Department of the Army awarded $20.1M for graphic design services to Chenega Applied Solutions, LLC

Contract Overview

Contract Amount: $20,113,988 ($20.1M)

Contractor: Chenega Applied Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-24

End Date: 2017-09-24

Contract Duration: 1,096 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT SERVICES

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to CHENEGA APPLIED SOLUTIONS, LLC for work described as: SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Duration of 1096 days suggests a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541430 points to specialized graphic design services. 5. Awarded to a single vendor, Chenega Applied Solutions, LLC, without a competitive process. 6. The contract value of $20.1M over three years represents a significant investment in design support.

Value Assessment

Rating: questionable

Benchmarking the value for graphic design services is challenging without more specific details on the scope of work. However, a $20.1 million award over three years for graphic design suggests a substantial engagement. The lack of competition means there's no direct market comparison to assess if this price is optimal. Without a competitive bidding process, it's difficult to ascertain if the government secured the best possible value for the funds expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that the Department of the Army identified a specific contractor, Chenega Applied Solutions, LLC, and did not solicit bids from other potential vendors. The reasons for this sole-source determination are not provided, but it limits the opportunity for price discovery and potentially higher quality solutions that might emerge from a competitive environment.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competition.

Public Impact

The primary beneficiaries are likely Department of the Army personnel requiring graphic design support for various internal and external communications. Services delivered include graphic design, which could encompass branding, visual aids, publications, and digital media. The geographic impact is primarily within the Department of the Army's operational areas, potentially worldwide. Workforce implications may involve reliance on Chenega Applied Solutions' staff for design expertise, rather than internal government designers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs than a competed contract.
Absence of competitive pressure could lead to less innovation in design solutions.
Sole-source awards can reduce transparency in government contracting.
Limited insight into the specific performance metrics and quality of services provided.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single, presumably qualified, vendor suggests a specific capability was identified.
Long contract duration indicates a stable, ongoing need for these services.

Sector Analysis

The graphic design services sector is a component of the broader professional, scientific, and technical services industry. This contract falls under NAICS code 541430, which specifically covers graphic design services. The federal government is a significant consumer of such services for public affairs, marketing, and internal documentation. Comparable spending benchmarks are difficult to establish without detailed scope of work, but the $20.1M over three years indicates a substantial, ongoing requirement for specialized design expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it bypasses the typical mechanisms for engaging small businesses, either directly or through subcontracting opportunities that might arise in a competitive scenario. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Graphic Design Services
Federal Creative Services Contracts
Army Public Affairs Support
Visual Information Services Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to CHENEGA APPLIED SOLUTIONS, LLC. SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHENEGA APPLIED 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 $20.1 million.

What is the period of performance?

Start: 2014-09-24. End: 2017-09-24.

What specific graphic design services were procured under this contract?

The contract falls under NAICS code 541430, 'Graphic Design Services.' While the specific deliverables are not detailed in the provided data, this typically includes services such as creating visual concepts, by hand or by using computer software, to communicate ideas that inspire, inform, and captivate consumers. This can encompass a wide range of outputs, including logos, brochures, advertisements, packaging, website graphics, and presentation materials. The substantial value of $20.1 million suggests a broad scope of work, potentially involving extensive branding initiatives, large-scale publication design, or ongoing support for multiple Army programs requiring sophisticated visual communication.

Why was this contract awarded on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. The specific justification for this determination is not included. Common reasons for sole-source awards include situations where only one responsible source can provide the required supply or service, such as when a unique capability, proprietary technology, or urgent need exists that cannot be met by other contractors. Without further information from the Department of the Army's justification and approval (J&A) document, the precise rationale remains unknown. This lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price.

How does the $20.1 million value compare to typical graphic design contracts?

The $20.1 million value for a three-year contract (2014-2017) for graphic design services is substantial. While the federal government procures a wide range of design services, contracts of this magnitude often involve extensive, long-term support for major agencies or complex projects. Smaller, more focused graphic design needs might be fulfilled through smaller contracts, task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles, or through government-wide acquisition contracts (GWACs). The size of this award suggests a significant and continuous demand for Chenega Applied Solutions' design capabilities within the Department of the Army.

What is Chenega Applied Solutions, LLC's track record with federal contracts?

The provided data indicates Chenega Applied Solutions, LLC was the awardee for this specific $20.1 million contract. To assess their broader track record, one would need to examine other federal contract awards to this entity. This would involve looking at the number of contracts awarded, their values, the agencies involved, and performance ratings if available through sources like the Federal Procurement Data System (FPDS) or contractor performance databases. A comprehensive review would reveal their experience across different service types and their history of performance, including any past issues or successes with government clients.

What are the potential risks associated with a sole-source award of this size?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not be securing the most cost-effective solution. Another risk is a potential lack of innovation, as the contractor may have less incentive to propose novel or more efficient design approaches. Furthermore, sole-source awards can reduce transparency in the procurement process, making it harder for oversight bodies and the public to verify that the government is receiving fair value. There's also a risk if the sole-source provider experiences performance issues, as switching contractors could be difficult and costly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Graphic Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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

Parent Company: THE Chenega Corporation (UEI: 622692994)

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: $20,113,988

Exercised Options: $20,113,988

Current Obligation: $20,113,988

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline