Interior's $12.5M security contract awarded to Chenega Security & Protection Services, LLC

Contract Overview

Contract Amount: $12,535,106 ($12.5M)

Contractor: Chenega Security & Protection Services, LLC

Awarding Agency: Department of the Interior

Start Date: 2007-09-11

End Date: 2014-03-31

Contract Duration: 2,393 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: SECURITY GUARD SERVICE

Place of Performance

Location: SHASTA LAKE, SHASTA County, CALIFORNIA, 96019

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $12.5 million to CHENEGA SECURITY & PROTECTION SERVICES, LLC for work described as: SECURITY GUARD SERVICE Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are moderate, with a long contract duration and sole-source nature. 4. Performance context is tied to security guard services for the Bureau of Reclamation. 5. Sector positioning is within the security and protective services industry.

Value Assessment

Rating: fair

The total contract value of $12.5 million over approximately 2393 days (roughly 6.5 years) suggests an average annual spend of around $1.9 million. Benchmarking this against similar large-scale security contracts is challenging without more specific service details and geographic scope. However, the duration implies a significant need for these services. The absence of competitive bidding makes a direct value-for-money assessment difficult, but the consistent award over an extended period suggests the agency found the pricing acceptable at the time of negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to specialized capabilities, existing infrastructure, or unique circumstances. The lack of competition means that taxpayers did not benefit from the potential cost savings that can arise from a competitive bidding process, where multiple companies vie for the contract.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to drive down costs. This limits the government's ability to secure the best possible value.

Public Impact

The primary beneficiaries are the facilities and personnel protected by the security services. Services delivered include security guard and patrol functions for the Bureau of Reclamation. Geographic impact is concentrated in California, where the contract was performed. Workforce implications include the employment of security personnel by Chenega Security & Protection Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration (over 6 years) may reduce flexibility to adapt to changing security needs or market prices.
Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.

Positive Signals

Consistent award to a single contractor suggests a stable and reliable service provider.
Extended duration indicates the agency's satisfaction with the contractor's performance over time.
The contract supports essential security functions for a critical government agency.

Sector Analysis

The security guard services sector is a significant part of the broader private security industry, which provides a wide range of protective services. This contract falls under the North American Industry Classification System (NAICS) code 561612, 'Security Guards and Patrol Services.' The federal government is a major consumer of these services, contracting for security at federal buildings, facilities, and during operations. Spending in this sector can fluctuate based on national security needs, infrastructure protection priorities, and agency budgets. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar security services across different agencies and geographic locations.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the available data. The award to Chenega Security & Protection Services, LLC, a larger entity, suggests that the primary focus was on securing the necessary services rather than promoting small business participation. This means the direct economic impact on the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Interior's Bureau of Reclamation. Performance reviews, site inspections, and invoice audits are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Federal Protective Service Contracts
Department of Homeland Security Security Services
General Services Administration (GSA) Schedule Contracts
Department of Defense Security Contracts

Risk Flags

Sole-source award may indicate lack of competition, potentially leading to higher costs.
Contract duration is long, potentially reducing flexibility and market responsiveness.
Limited public data on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.5 million to CHENEGA SECURITY & PROTECTION SERVICES, LLC. SECURITY GUARD SERVICE

Who is the contractor on this award?

The obligated recipient is CHENEGA SECURITY & PROTECTION SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2007-09-11. End: 2014-03-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source justifications are based on factors such as the unique capability of a single contractor, urgent and compelling needs where only one source can reasonably fulfill the requirement, or situations where a specific technology or proprietary service is required. Without further documentation from the Department of the Interior, the precise reason for bypassing full and open competition remains unknown. This lack of competition can limit the government's ability to achieve the lowest possible price.

How does the per-unit cost of security personnel under this contract compare to industry averages?

The provided data does not include specific details on the number of personnel, hours worked, or hourly rates, making a direct per-unit cost comparison impossible. The total contract value of $12.5 million spread over approximately 2393 days (about 6.5 years) gives an average annual expenditure of roughly $1.9 million. To perform a meaningful per-unit cost analysis, one would need to know the average number of guards deployed daily, their average hours per shift, and their average hourly wage. Industry benchmarks for security guard services vary significantly based on location, level of security clearance required, and specific duties. Without these granular details, any comparison to industry averages would be speculative.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of Chenega Security & Protection Services, LLC?

The provided data does not specify the Key Performance Indicators (KPIs) or performance standards established for this contract. In typical government contracts for security services, KPIs often include metrics such as response times to incidents, number of security breaches or incidents, guard punctuality and attendance, adherence to post orders, and successful completion of required training. The effectiveness of the contractor is usually assessed through regular performance evaluations conducted by the government's Contracting Officer's Representative (COR). The absence of this information in the summary data prevents a detailed assessment of how the contractor's performance was measured and validated.

What is Chenega Security & Protection Services, LLC's track record with federal contracts, particularly with the Department of the Interior?

Chenega Security & Protection Services, LLC has a history of performing federal contracts, including security services. While this specific data point focuses on one contract with the Department of the Interior's Bureau of Reclamation, the company is known to hold numerous other federal awards across various agencies. A comprehensive track record assessment would involve reviewing their performance history on all federal contracts, looking for any past performance issues, contract disputes, or awards for excellence. The fact that they were awarded this significant, long-term contract suggests a generally positive or at least acceptable performance history with the government, though a deeper dive into their complete federal contracting portfolio would be necessary for a full evaluation.

How has federal spending on security guard services evolved over the past decade, and where does this contract fit in?

Federal spending on security guard services has generally remained substantial over the past decade, driven by the need to protect federal assets, personnel, and sensitive information across numerous agencies. While specific aggregate spending figures fluctuate annually due to budget allocations, geopolitical events, and evolving security threats, the demand for these services is consistently high. This $12.5 million contract, awarded in 2007 and ending in 2014, represents a significant but not extraordinary expenditure for a multi-year security service contract. It fits within the broader pattern of federal agencies outsourcing security functions to private contractors to meet operational requirements, reflecting a common strategy for managing security needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 07SP20202

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 19980 HIGHLAND VISTA DR, SUITE 100, ASHBURN, VA, 10

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,535,106

Exercised Options: $12,535,106

Current Obligation: $12,535,106

Timeline