DoD awards $5.97M IT services contract to Chenega Analytic Business Solutions, LLC for 5 years

Contract Overview

Contract Amount: $5,970,217 ($6.0M)

Contractor: Chenega Analytic Business Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-03

End Date: 2027-01-02

Contract Duration: 1,825 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICES

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48089

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC for work described as: IT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 5 years provides long-term service stability. 4. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of IT services. 5. Awarded by the Department of the Army, indicating a focus on military IT needs. 6. No small business set-aside, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this $5.97 million IT services contract is challenging without specific deliverables or performance metrics. The sole-source nature of the award raises concerns about whether the government secured the best possible price. Comparing it to similar contracts for 'Other Computer Related Services' would require detailed scope analysis, but the lack of competition suggests a potential for overpayment. The firm fixed price structure, however, offers cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one vendor is capable of meeting the requirement, or in specific circumstances like urgent needs or existing sole-source relationships. The lack of multiple bidders means there was no direct price comparison or negotiation driven by competitive pressure, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not benefit from multiple offers to drive down costs.

Public Impact

The Department of the Army benefits from specialized IT services to support its operations. The contract likely supports critical IT infrastructure and services for military personnel. The geographic impact is primarily within the Department of the Army's operational areas. Workforce implications may include the employment of IT professionals by Chenega Analytic Business Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long-term contract (5 years) ensures service continuity.
Award to an established entity (Chenega Analytic Business Solutions, LLC) may indicate prior positive performance.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This is a vast and critical sector for government operations, encompassing a wide range of support, development, and maintenance activities. The market for IT services is highly competitive, but sole-source awards bypass this dynamic. Comparable spending benchmarks are difficult to establish without knowing the specific services rendered, but the overall IT services market for the Department of Defense is substantial.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are limited unless Chenega Analytic Business Solutions, LLC voluntarily includes them in their supply chain. The absence of set-aside provisions means the primary award went to a larger entity, potentially bypassing the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed price structure, requiring the contractor to deliver specified services within the agreed price. Transparency is limited due to the sole-source nature of the award; the justification for this approach would be key to assessing transparency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
Information Technology Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award lacks competitive transparency.
Potential for above-market pricing due to lack of competition.
Limited visibility into specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC. IT SERVICES

Who is the contractor on this award?

The obligated recipient is CHENEGA ANALYTIC BUSINESS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2022-01-03. End: 2027-01-02.

What specific IT services are being provided under this contract?

The provided data indicates the contract is for 'Other Computer Related Services' under NAICS code 541519. This is a broad category that can include services such as IT consulting, systems integration, custom software development, IT support, and data processing services. Without further details on the contract's statement of work (SOW), it is impossible to specify the exact services. However, given the awarding agency is the Department of the Army, these services likely support military operations, logistics, personnel management, or other defense-related functions. The firm fixed price nature suggests a well-defined scope of work is expected.

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

The justification for a sole-source award is critical for understanding the value proposition for taxpayers. Common reasons include: the unique capability of a single contractor, an urgent and compelling need where competition is not feasible, or a follow-on contract to a previous sole-source award where the original justification still holds. Without access to the Justification and Approval (J&A) document, it's impossible to determine the specific rationale. This lack of transparency is a key concern, as it prevents an independent assessment of whether competition was truly not possible or if it was simply deemed less efficient by the procuring agency.

How does the $5.97 million contract value compare to similar IT services contracts awarded by the Department of the Army?

Comparing the $5.97 million contract value requires context regarding the duration, scope, and specific services. This contract spans five years, making the annual value approximately $1.19 million. To benchmark effectively, one would need to identify similar contracts for 'Other Computer Related Services' awarded by the Department of the Army with comparable durations and service levels. Given the sole-source nature, it's difficult to ascertain if this represents a competitive market rate. A thorough analysis would involve examining contract databases for similar solicitations and awards, factoring in inflation and specific technical requirements.

What are the potential risks associated with a sole-source IT services contract of this duration?

A primary risk with sole-source contracts is the potential for inflated pricing due to the absence of competitive pressure. Over a five-year period, this could lead to significant overspending compared to a competed contract. Another risk is vendor lock-in, where the government becomes dependent on a single provider, making it difficult to switch even if performance or pricing becomes unfavorable. Furthermore, without the vetting process of competition, there's a slightly elevated risk of the contractor not meeting all performance expectations, although contract management and oversight are intended to mitigate this. Finally, the lack of competition can stifle innovation that might arise from a more diverse vendor pool.

What is the track record of Chenega Analytic Business Solutions, LLC with the Department of Defense?

Chenega Analytic Business Solutions, LLC has a history of receiving contracts from the Department of Defense. While specific performance details for this particular contract are not yet available as it is a new award, the company's prior engagement with the DoD suggests they possess the necessary clearances and experience to operate within the defense sector. A deeper dive into their contract history, including past performance reviews and any reported issues or successes on previous DoD contracts, would provide a more comprehensive understanding of their reliability and capability in delivering IT services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV22RL013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $14,139,693

Exercised Options: $11,992,914

Current Obligation: $5,970,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline