USDA awards $8.48M for IT quality management, with limited competition and a firm fixed price

Contract Overview

Contract Amount: $8,476,167 ($8.5M)

Contractor: Chenega Services & Federal Solutions, LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-27

End Date: 2025-09-26

Contract Duration: 364 days

Daily Burn Rate: $23.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FSA QUALITY MANAGEMENT TEAM (QMT) FY24; PROVIDE QUALITY MANAGEMENT SERVICES AND IV&V SUPPORT TO THE MANY IT PROJECTS, SYSTEMS, AND INVESTMENTS MANAGED BY USDA IN SUPPORT OF ITS COMPLEX FPAC MISSIONS AND PROGRAM DELIVERY. SERVICES ARE REQUIRED FOR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.5 million to CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC for work described as: FSA QUALITY MANAGEMENT TEAM (QMT) FY24; PROVIDE QUALITY MANAGEMENT SERVICES AND IV&V SUPPORT TO THE MANY IT PROJECTS, SYSTEMS, AND INVESTMENTS MANAGED BY USDA IN SUPPORT OF ITS COMPLEX FPAC MISSIONS AND PROGRAM DELIVERY. SERVICES ARE REQUIRED FOR Key points: 1. The contract focuses on essential IT quality management and independent verification and validation (IV&V) for USDA's FPAC missions. 2. Limited competition for this contract may impact price discovery and potentially lead to higher costs. 3. The firm fixed-price contract type shifts performance risk to the contractor, incentivizing efficient delivery. 4. The contract duration of one year suggests a need for ongoing support rather than a one-time project. 5. The specific NAICS code (541511) indicates a focus on custom computer programming services, aligning with IT project support. 6. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though details are not provided.

Value Assessment

Rating: fair

Benchmarking the value of this $8.48 million contract is challenging without comparable contract data for similar quality management and IV&V services within USDA or across the federal government. The firm fixed-price structure is generally favorable for cost control, but the limited competition raises concerns about whether the pricing reflects the best possible value. Without more information on the scope of services and the specific deliverables, a definitive assessment of value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under full and open competition, indicated as 'NOT AVAILABLE FOR COMPETITION'. This suggests that the procurement may have been set aside for a specific entity or followed a non-competitive process, potentially due to existing contract vehicles or specific requirements. The limited competition means fewer vendors were considered, which can reduce the government's ability to secure the most competitive pricing and innovative solutions.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as it restricts the pool of potential bidders, thereby reducing downward pressure on prices. This may mean that the government is not achieving the most cost-effective outcome for this service.

Public Impact

The primary beneficiaries are the USDA's FPAC missions, which will receive enhanced IT project oversight and quality assurance. Services delivered include quality management and independent verification and validation (IV&V) for IT projects, systems, and investments. The geographic impact is centered in the District of Columbia, where the Office of the Chief Financial Officer is located. The contract supports the IT workforce by ensuring the quality and reliability of systems critical to program delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing and reduced innovation.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of quality management services.
The contract is a delivery order, and its relationship to a parent IDIQ contract is not specified, hindering a full understanding of its context.
The specific nature of the 'quality management services' and 'IV&V support' is broadly defined, potentially leading to scope creep or misinterpretation.

Positive Signals

Firm fixed-price contract type aligns incentives for efficient service delivery.
Focus on quality management and IV&V is crucial for ensuring the integrity and success of IT investments.
The contractor, Chenega Services & Federal Solutions, LLC, is likely experienced in providing such services to federal agencies.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and related services (NAICS 541511). The market for IT quality management and IV&V services is robust, with numerous companies offering specialized expertise. Federal spending in this area is significant, driven by the government's continuous need to modernize IT systems and ensure the reliability of mission-critical applications. Comparable spending benchmarks would typically involve analyzing IT support contracts across various agencies, considering factors like contract size, duration, and the specific services provided.

Small Business Impact

There is no indication that this contract includes a small business set-aside. The contractor, Chenega Services & Federal Solutions, LLC, is likely a large business. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem is minimal for this particular award. However, if this delivery order is part of a larger IDIQ contract, the overall IDIQ's small business subcontracting goals would be relevant.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Office of the Chief Financial Officer, which awarded the contract. As a firm fixed-price contract, oversight will focus on ensuring the contractor meets the defined scope of work and performance standards. Transparency is facilitated by contract award databases, but detailed performance reports or Inspector General involvement would depend on specific performance issues or audit triggers. The contract's duration and delivery order nature suggest ongoing monitoring is expected.

Related Government Programs

USDA IT Modernization Initiatives
FPAC Program Management Support
Federal IT Quality Assurance Services
Independent Verification and Validation (IV&V) Contracts
Custom Computer Programming Services

Risk Flags

Limited Competition
Lack of Detailed Scope of Work
Potential for Price Inflation due to Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.5 million to CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC. FSA QUALITY MANAGEMENT TEAM (QMT) FY24; PROVIDE QUALITY MANAGEMENT SERVICES AND IV&V SUPPORT TO THE MANY IT PROJECTS, SYSTEMS, AND INVESTMENTS MANAGED BY USDA IN SUPPORT OF ITS COMPLEX FPAC MISSIONS AND PROGRAM DELIVERY. SERVICES ARE REQUIRED FOR

Who is the contractor on this award?

The obligated recipient is CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2024-09-27. End: 2025-09-26.

What is the specific scope of 'quality management services and IV&V support' required by the USDA?

The provided data indicates that the services are for 'QUALITY MANAGEMENT SERVICES AND IV&V SUPPORT TO THE MANY IT PROJECTS, SYSTEMS, AND INVESTMENTS MANAGED BY USDA IN SUPPORT OF ITS COMPLEX FPAC MISSIONS AND PROGRAM DELIVERY.' However, the precise details of these services, such as the methodologies to be employed, the specific systems to be reviewed, the depth of testing, and the reporting requirements, are not elaborated upon in the provided summary. A comprehensive understanding would require reviewing the Statement of Work (SOW) associated with this delivery order. This would detail the deliverables, performance standards, and the specific IT projects or systems that fall under the purview of this contract, allowing for a more precise assessment of the scope and its alignment with USDA's needs.

How does the pricing of this $8.48 million contract compare to similar federal IT quality management and IV&V contracts?

Directly comparing the pricing of this $8.48 million contract is difficult without access to a database of comparable federal contracts for IT quality management and IV&V services. Factors such as contract duration, specific services rendered, geographic location, and the level of competition significantly influence pricing. However, the fact that this contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis suggests that the pricing may not have benefited from the full competitive pressures that typically drive down costs. To conduct a robust comparison, one would need to identify contracts with similar NAICS codes (e.g., 541511), similar contract types (firm fixed-price), and comparable scopes of work, while also accounting for inflation and market rate adjustments over time.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) or metrics that will be used to evaluate the performance of Chenega Services & Federal Solutions, LLC. For a contract focused on quality management and IV&V, typical KPIs might include the number of critical defects identified, the accuracy of IV&V assessments, adherence to project timelines for reviews, the effectiveness of recommendations provided, and overall client satisfaction. The firm fixed-price nature of the contract implies that performance will be measured against the agreed-upon scope of work and deliverables outlined in the contract's Statement of Work (SOW). Without the SOW, a detailed understanding of the performance evaluation criteria remains elusive.

What is the track record of Chenega Services & Federal Solutions, LLC in providing IT quality management and IV&V services to the federal government?

Chenega Services & Federal Solutions, LLC is a known entity within the federal contracting space. As a subsidiary of Chenega Corporation, it likely has a portfolio of contracts across various federal agencies. To assess their specific track record for IT quality management and IV&V, one would need to examine their past performance on similar contracts. This would involve looking at contract databases for awards, contract performance reports (if publicly available), and any past performance evaluations. Agencies often maintain internal records of contractor performance. A review of their contract history would reveal their experience with the specific services required, their ability to meet deadlines, manage costs, and deliver quality outcomes, providing insight into their reliability for this USDA contract.

How does this contract align with USDA's broader IT strategy and modernization efforts?

This contract directly supports USDA's IT strategy by providing essential quality management and independent verification and validation (IV&V) services. These functions are critical for ensuring that IT projects, systems, and investments are developed and implemented effectively, securely, and in alignment with mission requirements. By overseeing the quality of IT endeavors, the contractor helps mitigate risks associated with IT failures, cost overruns, and security vulnerabilities. This aligns with modernization efforts by ensuring that new technologies and system upgrades are robust and reliable, thereby enhancing the overall efficiency and effectiveness of USDA's program delivery across its complex FPAC missions.

What is the potential impact of the limited competition on the long-term availability and cost of these services for USDA?

The limited competition for this contract raises concerns about long-term service availability and cost. If the procurement process restricts the number of potential bidders, it can stifle innovation and prevent the government from accessing a wider range of solutions and competitive pricing. Over time, this could lead to higher costs for USDA as the incumbent contractor may face less pressure to optimize pricing. Furthermore, a limited competitive landscape might reduce the pool of qualified vendors willing to invest in developing specialized capabilities for USDA's specific needs, potentially impacting the agency's ability to secure these critical services in the future without incurring premium costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 12314424Q0112

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 609 INDEPENDENCE PKWY STE 210, CHESAPEAKE, VA, 23320

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: $8,476,167

Exercised Options: $8,476,167

Current Obligation: $8,476,167

Actual Outlays: $8,476,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12314422D0017

IDV Type: IDC

Timeline