DoD's Army awards $31.3M for IT services to Chenega Technical Innovations under full and open competition

Contract Overview

Contract Amount: $31,338,123 ($31.3M)

Contractor: Chenega Technical Innovations, LLC

Awarding Agency: Department of Defense

Start Date: 2019-03-16

End Date: 2024-03-15

Contract Duration: 1,826 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATICK ENTERPRISE CENTER (NEC), INFORMATION TECHNOLOGY SERVICE (ITS) LABOR (BASELINE&ABOVE BASELINE)

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to CHENEGA TECHNICAL INNOVATIONS, LLC for work described as: NATICK ENTERPRISE CENTER (NEC), INFORMATION TECHNOLOGY SERVICE (ITS) LABOR (BASELINE&ABOVE BASELINE) Key points: 1. The contract value of $31.3M over 5 years for IT services is substantial. 2. Chenega Technical Innovations, LLC is the sole awardee for this delivery order. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The sector is Information Technology, a critical area for defense operations.

Value Assessment

Rating: fair

The total award of $31.3M over 5 years averages to approximately $6.26M annually. Benchmarking against similar IT service contracts requires more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for best value but may limit the pool of potential bidders.

Taxpayer Impact: The competitive award process is intended to secure fair pricing for taxpayers, though the specific impact is difficult to quantify without a baseline.

Public Impact

Ensures continued IT support for the Department of the Army's operations. Supports a private sector company and its employees through contract work. The use of a competitive process suggests an effort to obtain value for taxpayer money. The duration of the contract indicates a long-term need for these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
Lack of detailed service breakdown makes precise value assessment difficult.

Positive Signals

Firm Fixed Price contract shifts performance risk to the contractor.
Awarded under a full and open competition framework.
Long-term contract provides stability for IT service delivery.

Sector Analysis

The Information Technology sector is crucial for modern defense operations, encompassing a wide range of services from system design to maintenance. Spending in this area is consistently high across government agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The award was made by the Department of the Army, a major component of the Department of Defense, suggesting established oversight mechanisms. However, the specific effectiveness of oversight for this contract is not detailed.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition due to source exclusions.
Lack of detailed service scope hinders precise value assessment.
No indication of small business participation.
The specific benefits derived from the 'exclusion of sources' are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to CHENEGA TECHNICAL INNOVATIONS, LLC. NATICK ENTERPRISE CENTER (NEC), INFORMATION TECHNOLOGY SERVICE (ITS) LABOR (BASELINE&ABOVE BASELINE)

Who is the contractor on this award?

The obligated recipient is CHENEGA TECHNICAL INNOVATIONS, 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 $31.3 million.

What is the period of performance?

Start: 2019-03-16. End: 2024-03-15.

What specific IT services are included under the 'Computer Systems Design Services' NAICS code for this contract, and how do they align with the Army's current needs?

The NAICS code 541512 covers services like designing computer systems that integrate hardware, software, and communication technologies. For the Army, this likely includes network infrastructure, cybersecurity solutions, software development, and IT support for enterprise systems. Understanding the precise scope is crucial to assess if the $31.3M award represents value for money and addresses evolving technological requirements.

Given the 'Full and Open Competition After Exclusion of Sources' award method, what were the specific reasons for excluding other potential sources, and did this exclusion impact the final price?

Excluding sources typically occurs when specific capabilities, past performance, or security clearances are required that only a limited number of vendors possess. The reasons for exclusion are not provided in the data. While aiming for competition, such exclusions can sometimes reduce the number of bidders, potentially impacting price discovery and the final negotiated cost. A review of the justification for exclusions would clarify this.

How does the $31.3M contract value compare to industry benchmarks for similar IT service delivery over an 1826-day period, considering the firm-fixed-price structure?

Benchmarking this $31.3M contract requires comparing it against similar government or commercial IT service contracts of comparable scope, duration, and complexity. The firm-fixed-price nature shifts risk to Chenega Technical Innovations, which should be factored into the pricing. Without detailed service breakdowns and market data, a precise benchmark is difficult, but the annual average of ~$6.26M suggests a significant investment in IT infrastructure and support.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation

Address: 3635 CONCORDE PARKWAY SUITE 300, CHANTILLY, VA, 20151

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: $32,901,716

Exercised Options: $31,983,882

Current Obligation: $31,338,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17GWD2334

IDV Type: GWAC

Timeline