DoD's $29.4M Contract for Web/Mobile Tech Sustains Defense Health Agency Systems

Contract Overview

Contract Amount: $29,372,478 ($29.4M)

Contractor: Chenega Agile Real-Time Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2025-12-31

Contract Duration: 699 days

Daily Burn Rate: $42.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WEB AND MOBILE TECHNOLOGY SUSTAINMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to CHENEGA AGILE REAL-TIME SOLUTIONS LLC for work described as: WEB AND MOBILE TECHNOLOGY SUSTAINMENT Key points: 1. Contract awarded to Chenega Agile Real-Time Solutions LLC for custom computer programming. 2. Focuses on sustaining critical web and mobile technologies for the Defense Health Agency. 3. The contract is a definitive contract with a firm fixed price structure. 4. Represents a significant investment in maintaining essential defense health IT infrastructure.

Value Assessment

Rating: fair

The contract's value of $29.4M over approximately two years needs comparison to similar custom programming services. Without specific benchmarks for web and mobile technology sustainment, assessing optimal pricing is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a limited competition approach. The lack of open competition may impact price discovery and potentially lead to higher costs than a fully competitive scenario.

Taxpayer Impact: The absence of full and open competition raises concerns about maximizing taxpayer value. A non-competed award requires strong justification to ensure fair pricing and prevent potential overspending.

Public Impact

Ensures continuity of essential web and mobile services for military healthcare personnel. Supports the operational readiness of the Defense Health Agency's IT systems. Impacts the efficiency and accessibility of health information for service members and their families. Contributes to the modernization and upkeep of critical defense health technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises cost concerns.
Lack of clear performance metrics for sustainment.
Potential for vendor lock-in with custom solutions.

Positive Signals

Supports critical defense health infrastructure.
Firm fixed price provides cost certainty.
Long-term sustainment ensures operational continuity.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for similar sustainment contracts are crucial for evaluating cost-effectiveness, especially given the specialized nature of defense health IT.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this procurement.

Oversight & Accountability

Oversight will be critical to ensure Chenega Agile Real-Time Solutions LLC meets performance expectations and that the firm fixed price remains advantageous throughout the contract duration. Regular reviews of deliverables and costs are essential.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Limited competition may inflate costs.
Lack of transparency in vendor selection.
Potential for scope creep if not managed tightly.
Reliance on a single vendor for critical IT sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to CHENEGA AGILE REAL-TIME SOLUTIONS LLC. WEB AND MOBILE TECHNOLOGY SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is CHENEGA AGILE REAL-TIME SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-12-31.

What is the justification for awarding this contract on a limited competition basis rather than full and open competition?

The justification for limited competition typically involves factors such as urgency, unique capabilities of the vendor, or the existence of only one responsible source. For this contract, the specific reasons need to be documented by the agency to ensure it aligns with federal acquisition regulations and promotes best value for the government.

How does the per-unit cost of sustaining these web and mobile technologies compare to industry benchmarks for similar services?

Benchmarking the per-unit cost is essential for assessing value. Without specific data on the number of users, modules, or complexity of the systems being sustained, a direct comparison is difficult. The agency should have internal or external benchmarks to validate the pricing against similar custom programming services in the defense sector.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

Effective oversight requires clearly defined KPIs related to system uptime, response times, security compliance, and user satisfaction. The contract should outline these metrics and the methodology for measuring performance. Regular reporting and performance reviews are necessary to ensure the vendor is delivering on its obligations and the technology sustainment is effective.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001124R0058

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10505 FURNACE RD, LORTON, VA, 22079

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,682,685

Exercised Options: $29,372,478

Current Obligation: $29,372,478

Actual Outlays: $3,719,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline