Interior Department awards $47.8M for IT services to Chenega Professional & Technical Services LLC

Contract Overview

Contract Amount: $47,803,270 ($47.8M)

Contractor: Chenega Professional & Technical Services LLC

Awarding Agency: Department of the Interior

Start Date: 2021-12-09

End Date: 2027-01-25

Contract Duration: 1,873 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SYSTEMS OPERATIONS AND ADMINISTRATION (SOA)

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $47.8 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC for work described as: SYSTEMS OPERATIONS AND ADMINISTRATION (SOA) Key points: 1. Contract value represents a significant investment in IT operations and administration. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk may be moderate given the nature of IT service delivery. 4. This contract supports essential IT functions within the Departmental Offices. 5. The IT services sector is characterized by rapid technological change and evolving needs. 6. The contract duration of over four years indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $47.8 million over approximately four years suggests a substantial but not excessive investment for comprehensive IT operations and administration. Benchmarking against similar IT service contracts within federal agencies is crucial for a precise value-for-money assessment. The pricing structure, likely influenced by the Time and Materials (T&M) award type, needs careful monitoring to ensure costs remain aligned with the scope of work and market rates. Without specific per-unit cost data, a definitive comparison is challenging, but the overall award size is within a typical range for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and strong technical solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs and encourages innovation, ensuring the government receives the best possible value for its investment in IT services.

Public Impact

Federal employees within the Department of the Interior benefit from reliable and efficient IT systems and support. The contract ensures the continuity of critical IT operations and administration services. Services are likely delivered primarily within the Washington D.C. metropolitan area, supporting the Departmental Offices. The contract supports a workforce of IT professionals employed by Chenega Professional & Technical Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials (T&M) contract type if not closely managed.
Dependence on a single contractor for critical IT operations could pose a risk if performance falters.
Scope creep could increase costs beyond the initial award amount without proper oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration of over four years suggests a stable and predictable IT support environment.
Contractor has experience in providing professional and technical services, implying relevant expertise.

Sector Analysis

The IT services sector is a vast and dynamic market within the federal government, encompassing a wide range of needs from custom programming to cloud computing and cybersecurity. Federal spending in this area consistently ranks among the largest categories. This contract for Systems Operations and Administration (SOA) fits within the custom computer programming services sub-sector, supporting the foundational IT infrastructure and operational needs of a major federal agency. Comparable spending benchmarks for IT operations and administration services vary widely based on agency size and complexity, but this award is substantial.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Chenega Professional & Technical Services LLC, is not identified as a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of the prime contractor's supply chain or a subcontractor to Chenega.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Interior's contracting officers and program managers. Accountability measures will be embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through federal contract databases where award details are published. While specific Inspector General (IG) jurisdiction for this particular delivery order would depend on the nature of any potential issues, the Department of the Interior's Office of Inspector General provides oversight for departmental programs and operations.

Related Government Programs

IT Operations and Maintenance
Custom Computer Programming Services
Federal IT Infrastructure Support
Departmental IT Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Dependence on contractor performance for critical IT functions.
Need for robust government oversight to manage scope and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $47.8 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC. SYSTEMS OPERATIONS AND ADMINISTRATION (SOA)

Who is the contractor on this award?

The obligated recipient is CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $47.8 million.

What is the period of performance?

Start: 2021-12-09. End: 2027-01-25.

What is the track record of Chenega Professional & Technical Services LLC in delivering similar IT operations and administration services to federal agencies?

Chenega Professional & Technical Services LLC has a history of providing a range of professional and technical services to the federal government, including IT support. Their experience often spans areas like cybersecurity, enterprise IT, and program management. To assess their specific track record for Systems Operations and Administration (SOA), a deeper dive into their past performance evaluations, contract history with agencies like the Department of the Interior, and any documented successes or challenges in similar SOA roles would be necessary. Reviewing contract databases for past awards and performance metrics can provide insights into their reliability and capability in managing complex IT environments and ensuring operational continuity for government clients.

How does the awarded amount of $47.8 million compare to similar IT operations and administration contracts within the Department of the Interior or other large federal agencies?

The $47.8 million award for IT operations and administration services over approximately four years places this contract in the mid-to-large tier for IT support within a federal agency. Comparing it directly requires access to detailed data on similar contracts, considering factors like the scope of services, number of users supported, and specific IT infrastructure complexity. However, for a department like the Interior, which manages vast data and diverse operations, this level of investment is not unusual for comprehensive IT support. Larger agencies might award contracts in the hundreds of millions for similar functions, while smaller agencies would have significantly smaller awards. This contract appears to be a substantial, but not outlier, investment for the scope of services.

What are the primary risks associated with this Time and Materials (T&M) contract type for IT services, and how are they being mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns if not managed diligently, as the government pays for the labor hours and materials used. This can lead to costs exceeding initial estimates if inefficiencies arise or scope creep occurs. Mitigation strategies typically involve robust oversight from the government, including detailed monitoring of labor hours, verification of material costs, and clear definition of work requirements. Establishing labor hour ceilings, requiring regular progress reports, and implementing strong change control processes are crucial to keeping T&M contracts within budget and ensuring value for money. The Department of the Interior's contracting officers are responsible for this oversight.

What is the expected impact of this contract on the overall effectiveness and efficiency of the Department of the Interior's IT systems?

This contract is expected to significantly enhance the effectiveness and efficiency of the Department of the Interior's IT systems by ensuring continuous operation, maintenance, and administration. Reliable IT infrastructure is fundamental to the department's ability to carry out its mission, from managing natural resources to processing applications and supporting its workforce. By outsourcing these critical functions to Chenega Professional & Technical Services LLC, the Department can leverage specialized expertise and resources to maintain system uptime, implement necessary upgrades, and provide responsive user support. This should lead to improved data accessibility, streamlined workflows, and enhanced security, ultimately contributing to the department's overall operational efficiency and mission accomplishment.

How has federal spending on custom computer programming services (NAICS 541511) evolved over the past five years, and where does this contract fit within that trend?

Federal spending on custom computer programming services (NAICS 541511) has generally shown a consistent upward trend over the past five years, driven by the increasing digitization of government operations and the need for specialized software solutions. Agencies across the government rely on these services for everything from developing new applications to modernizing legacy systems and integrating complex data platforms. This $47.8 million contract for Systems Operations and Administration, which falls under this NAICS code, represents a significant, but not unprecedented, investment within this category. It aligns with the broader trend of federal agencies dedicating substantial resources to IT modernization and operational support to meet evolving mission requirements and enhance service delivery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0421Q0422

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

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: $132,153,930

Exercised Options: $50,556,426

Current Obligation: $47,803,270

Actual Outlays: $40,945,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D002Y

IDV Type: FSS

Timeline