DoD Awards $8.99M Engineering Services Contract to Chenega Systems, LLC with No Competition
Contract Overview
Contract Amount: $8,986,891 ($9.0M)
Contractor: Chenega Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TRAVEL COSTS CLIN
Place of Performance
Location: LORTON, FAIRFAX County, VIRGINIA, 22079
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $9.0 million to CHENEGA SYSTEMS, LLC for work described as: TRAVEL COSTS CLIN Key points: 1. Contract awarded for engineering services with a significant value of $8.99 million. 2. Sole-source award indicates a lack of competitive bidding, potentially impacting price. 3. The contract duration is 3 years, ending in September 2026. 4. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive benchmarks, assessing the pricing's fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $8.99 million contract raises concerns about whether the government secured the best possible price for engineering services.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The specific engineering services provided are not detailed, making it hard to assess their direct public benefit. The Department of Defense's reliance on sole-source contracts can limit opportunities for smaller, innovative businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of detailed service description
Positive Signals
- Contract awarded to a specific company, potentially fulfilling a critical need.
Sector Analysis
Engineering services are crucial for government projects, including defense infrastructure and technology development. Benchmarks for similar contracts are difficult to ascertain without competitive data.
Small Business Impact
The contract was not awarded to a small business, and the sole-source nature limits opportunities for small businesses to compete for this specific award.
Oversight & Accountability
The sole-source justification and the cost-plus fixed fee structure warrant close oversight to ensure cost control and prevent potential waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Cost-plus contract type increases risk of cost overruns.
- Lack of transparency regarding specific services and justification for sole-sourcing.
- Limited opportunities for small businesses.
- No clear indication of performance metrics or value assessment.
Tags
engineering-services, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to CHENEGA SYSTEMS, LLC. TRAVEL COSTS CLIN
Who is the contractor on this award?
The obligated recipient is CHENEGA SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.0 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What specific engineering services are being procured under this contract, and how do they align with critical defense needs?
The provided data does not specify the exact engineering services. However, given the agency (Department of Defense) and NAICS code (541330), these likely involve design, consultation, or development related to military systems, infrastructure, or technology. Further details would be needed to assess their criticality and alignment with specific defense objectives.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award is not provided in the data. Typically, such awards require a documented rationale, such as unique capabilities of the contractor or urgent needs. Without this justification and competitive bidding, ensuring fair pricing relies heavily on the government's negotiation and oversight processes, which are not detailed here.
How will the effectiveness and value of the engineering services be measured given the cost-plus fixed fee structure and lack of competition?
Effectiveness and value measurement for a cost-plus fixed fee contract typically involve tracking performance against defined milestones and deliverables. However, the lack of competition makes it harder to benchmark against market rates. The government must rely on robust performance metrics and diligent oversight to ensure the contractor delivers the required services efficiently and within the fixed fee.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003024R6307
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10505 FURNACE RD STE 205, LORTON, VA, 22079
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: $23,219,838
Exercised Options: $13,229,903
Current Obligation: $8,986,891
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-12-04
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