DoD awards $2.77M for medical logistics, but competition details remain unclear

Contract Overview

Contract Amount: $2,773,624 ($2.8M)

Contractor: Chenega Reliable Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL LOGICIANS AND SUPPLY TECHNICIANS

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.8 million to CHENEGA RELIABLE SERVICES LLC for work described as: MEDICAL LOGICIANS AND SUPPLY TECHNICIANS Key points: 1. Contract value of $2.77 million for medical logistics support. 2. Limited information available on the competition dynamics for this award. 3. Potential for cost efficiencies through firm-fixed-price contract type. 4. Contract duration spans nearly two years, indicating ongoing support needs. 5. Awarded by the Defense Health Agency, highlighting critical healthcare infrastructure support. 6. Contractor, Chenega Reliable Services LLC, has a track record with federal agencies.

Value Assessment

Rating: fair

The contract value of $2.77 million for medical logistics and supply technicians appears to be within a reasonable range for specialized support services. However, without more detailed benchmarking data or comparison to similar contracts for medical logistics technicians, a precise value-for-money assessment is challenging. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government if the scope is well-defined. Further analysis would require understanding the specific deliverables and the complexity of the medical logistics operations supported.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario. The specific justification for this approach is not provided, which limits the ability to assess the extent of market research conducted or the reasons for excluding other potential bidders. Sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure, although they may be necessary in specific circumstances where only one vendor can meet the requirement.

Taxpayer Impact: The lack of open competition means taxpayers may not be benefiting from the most competitive pricing achievable through a broader solicitation process. This could result in a higher overall cost for the government compared to a fully competed contract.

Public Impact

Provides essential medical logistics and supply technician services to the Department of Defense. Supports the operational readiness and efficiency of military healthcare facilities. Benefits military personnel and their families by ensuring the availability of medical supplies. The geographic impact is likely concentrated around the facilities served by the Defense Health Agency. The contract supports specialized roles within the medical support workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the justification for sole-source award.
Potential for inflated costs due to limited competition.
Uncertainty about the contractor's specific experience in this exact medical logistics niche without further details.

Positive Signals

Award to an established contractor, Chenega Reliable Services LLC.
Firm-fixed-price contract type can provide cost certainty.
Contract duration suggests a stable and ongoing need for these services.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on specialized support services like medical logistics. This contract falls under administrative and management consulting services, which often encompass the operational and supply chain management crucial for healthcare delivery. The Defense Health Agency's spending in this area is significant, reflecting the vast scale of military medical operations. Benchmarking this specific award is difficult without more granular data on comparable medical logistics contracts, but it represents a component of the broader federal healthcare IT and services market.

Small Business Impact

There is no indication that this contract involved a small business set-aside. The award was made to Chenega Reliable Services LLC. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract, which could provide some indirect benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. As a purchase order, it may be subject to internal agency review and audit processes. Transparency regarding the specific oversight mechanisms and accountability measures is limited due to the nature of the award and the information provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Health Agency Medical Support Contracts
Federal Medical Logistics Services
Administrative Management and General Management Consulting Services

Risk Flags

Sole-source award justification unclear
Potential for non-competitive pricing
Limited public information on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.8 million to CHENEGA RELIABLE SERVICES LLC. MEDICAL LOGICIANS AND SUPPLY TECHNICIANS

Who is the contractor on this award?

The obligated recipient is CHENEGA RELIABLE SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of Chenega Reliable Services LLC with federal contracts, particularly in medical logistics?

Chenega Reliable Services LLC has a history of receiving federal contracts across various agencies, including the Department of Defense. While specific details on their medical logistics expertise within this contract are not elaborated, their general experience with government contracts suggests a familiarity with federal procurement processes and compliance requirements. A deeper dive into their past performance on similar contracts, including client feedback and any performance issues, would provide a more comprehensive understanding of their capabilities and reliability for this specific medical logistics and supply technician role.

How does the $2.77 million contract value compare to similar medical logistics support contracts?

Directly comparing the $2.77 million contract value to similar medical logistics support contracts is challenging without access to a comprehensive database of comparable awards. Factors such as the scope of services, geographic coverage, duration, and specific requirements (e.g., types of medical supplies managed, complexity of inventory systems) can significantly influence pricing. However, for a nearly two-year contract supporting specialized technicians, this value appears to be within a plausible range for federal healthcare support services. Further benchmarking would require identifying contracts with identical or highly similar service descriptions and performance periods.

What are the primary risks associated with a sole-source award for medical logistics services?

The primary risks associated with a sole-source award for medical logistics services include potential overpricing due to the absence of competitive bidding, limited innovation from a single provider, and a potential lack of flexibility if the government's needs evolve. Taxpayers may bear a higher cost than if the contract were competed. Additionally, there's a risk that the chosen contractor may not be the most capable or cost-effective option available in the market. Robust justification and oversight are crucial to mitigate these risks, ensuring the government secures necessary services at a fair price and acceptable quality.

How effective is the firm-fixed-price contract type in managing costs for medical logistics?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for medical logistics services when the scope of work is clearly defined and unlikely to change significantly. Under an FFP contract, the contractor assumes the risk of cost overruns, providing the government with cost certainty. This can prevent unexpected budget increases. However, if the scope is poorly defined or unforeseen issues arise, the contractor may be incentivized to cut corners on quality or service to maintain profitability, or the government may need to issue change orders, potentially increasing the overall cost. For stable, well-understood logistics operations, FFP is often a preferred choice for cost control.

What is the historical spending pattern for medical logistics and supply technician services by the Defense Health Agency?

Analyzing the historical spending patterns of the Defense Health Agency (DHA) for medical logistics and supply technician services would reveal trends in demand, contractor utilization, and average contract values. Without specific historical data for this analysis, it's difficult to provide precise figures. However, it's reasonable to assume that the DHA consistently requires such services to maintain the operational readiness of military medical facilities. Spending in this area is likely influenced by factors such as troop levels, global health requirements, and modernization initiatives within the military healthcare system. Consistent, multi-year awards suggest a sustained need and budget allocation for these critical support functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MEDICAL SERVICES › CLERICAL MEDICAL SUPPORT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5253 PRUE RD STE 230, SAN ANTONIO, TX, 78240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $4,353,146

Exercised Options: $2,773,624

Current Obligation: $2,773,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline