DOJ's FBI awards $3.99M contract for management consulting, raising value-for-money questions

Contract Overview

Contract Amount: $3,988,820 ($4.0M)

Contractor: Chenega Enterprise Systems & Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2020-09-24

End Date: 2026-06-29

Contract Duration: 2,104 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP) SUPPORT SERVICES IAW THE TERMS AND CONDITIONS OF THE TASK ORDER.

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23320

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $4.0 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC for work described as: PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP) SUPPORT SERVICES IAW THE TERMS AND CONDITIONS OF THE TASK ORDER. Key points: 1. Contract awarded via full and open competition, suggesting a competitive process. 2. The contract duration of 2104 days (approx. 5.7 years) is substantial. 3. The contract type is 'Labor Hours', which can sometimes lead to cost overruns if not managed tightly. 4. The awarded amount of $3.99M is for the entire period, not an annual figure. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract is a Delivery Order under a larger contract vehicle. 7. The contractor, Chenega Enterprise Systems & Solutions, LLC, has secured this award.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this specific contract is challenging without more granular data on the services provided and the specific deliverables. The 'Labor Hours' contract type introduces a risk of cost escalation if not meticulously managed. Comparing this to similar management consulting contracts within the FBI or DOJ would require access to detailed service descriptions and pricing structures. The total award amount of $3.99M over nearly six years averages to approximately $688,000 annually, which needs to be assessed against the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment was intended. However, the number of bids received and the specific evaluation criteria are not detailed here. A high level of competition generally benefits price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to secure the best value for government funds.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation (FBI), which will receive administrative management and general management consulting services. These services are intended to support the 'PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP)'. The geographic impact is likely focused on the FBI's operational areas, primarily within Virginia where the contract is noted. Workforce implications could include support for FBI personnel in program management and strategic planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor Hours contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (nearly 6 years) may reduce flexibility to adapt to changing needs.
Lack of specific performance metrics makes it difficult to assess true value for money.
The 'PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP)' scope is broad and could be subject to scope creep.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Chenega Enterprise Systems & Solutions, LLC, is a known entity in government contracting.
The contract is a Delivery Order, implying it's part of a pre-established contract vehicle, potentially streamlining acquisition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for these services is vast and highly competitive, with numerous firms offering expertise in areas like program management, strategic planning, and administrative support. Government spending in this category is significant, as agencies often outsource specialized functions to leverage external expertise and manage workload. Comparable spending benchmarks would typically look at the average cost of similar consulting engagements for federal agencies of the FBI's size and scope.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this particular delivery order. This means the primary contract vehicle was competed broadly, and this order did not have a specific small business goal. There is no information provided on subcontracting plans to small businesses. The impact on the small business ecosystem is neutral to potentially negative if larger prime contractors do not actively seek small business subcontractors for this work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Bureau of Investigation (FBI) contracting officers and program managers. Accountability measures would be defined within the task order's statement of work and performance standards. Transparency is facilitated by the contract award being publicly available, but detailed performance reports and financial oversight details are typically internal. The Inspector General for the Department of Justice would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Department of Justice Administrative Support Contracts
FBI Program Management Support
Federal Management and Consulting Services
Private Sector Engagement Initiatives
Government-wide Acquisition Contracts (GWACs) for Professional Services

Risk Flags

Labor Hours contract type requires close monitoring to prevent cost overruns.
Long contract duration may limit flexibility.
Scope of 'Private Sector Engagement Program' is broad and requires clear definition.
Value for money assessment is difficult without detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.0 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC. PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP) SUPPORT SERVICES IAW THE TERMS AND CONDITIONS OF THE TASK ORDER.

Who is the contractor on this award?

The obligated recipient is CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2020-09-24. End: 2026-06-29.

What is the specific nature of the 'PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP)' and what are the key objectives this contract aims to support?

The 'PRIVATE SECTOR ENGAGEMENT PROGRAM (PSEP)' is not explicitly defined in the provided data. However, based on the name and the contracting entity (FBI), it likely involves initiatives designed to foster collaboration, information sharing, or partnerships between the FBI and private sector entities. This could range from cybersecurity threat intelligence sharing to public-private partnerships for crime prevention or technology development. The objectives would be to leverage private sector expertise, resources, or insights to enhance the FBI's mission effectiveness, operational capabilities, or strategic goals. Without further details on the PSEP, the specific consulting services required remain broad, encompassing areas like program strategy, stakeholder management, operational efficiency, and policy development related to these engagements.

How does the average annual cost of this contract ($688,000) compare to similar management consulting contracts awarded by the FBI or DOJ?

Directly comparing the average annual cost of $688,000 for this contract to similar FBI or DOJ management consulting contracts is difficult without access to a comprehensive database of comparable contracts, including their scope of work, duration, and specific services rendered. However, for a contract spanning nearly six years and supporting a program like 'Private Sector Engagement', this figure could be within a reasonable range, especially if it involves senior-level consultants or specialized expertise. Factors influencing comparability include the level of the consultants (e.g., senior advisors vs. junior analysts), the specific deliverables required, and the complexity of the program being supported. A detailed benchmark analysis would require examining contracts with similar NAICS codes (541611) and similar agencies, controlling for contract size and duration.

What are the potential risks associated with a 'Labor Hours' contract type for management consulting services over a 2104-day period?

The primary risk with a 'Labor Hours' contract type, especially over a long duration like 2104 days (approximately 5.7 years), is the potential for cost escalation and lack of defined end-product. Unlike fixed-price contracts, 'Labor Hours' contracts reimburse the contractor based on the hours worked by their personnel at agreed-upon rates. If the scope of work is not tightly defined, or if project management is weak, the contractor may bill for more hours than initially anticipated, leading to costs exceeding the government's budget or expectation. This necessitates rigorous oversight, detailed timesheet verification, and strong program management to ensure efficient use of labor and prevent scope creep. For long-term engagements, the risk of inefficiency or over-billing increases if performance metrics and cost controls are not consistently applied.

What is Chenega Enterprise Systems & Solutions, LLC's track record with similar federal contracts, particularly within the Department of Justice or FBI?

Chenega Enterprise Systems & Solutions, LLC is a known entity in the federal contracting space, often performing work across various agencies, including defense and civilian sectors. While specific details of their track record with the DOJ or FBI for management consulting services are not provided in this data snippet, their presence suggests they have experience navigating federal procurement processes and delivering services to government clients. A deeper dive into contract databases (like SAM.gov or FPDS) would reveal the extent and nature of their past performance, including contract values, types of services rendered, and past performance ratings, which are crucial for assessing their suitability and reliability for this specific task order.

Given the 'Full and Open Competition' award, what does the limited information suggest about the level of competition and its impact on pricing?

The designation 'Full and Open Competition' indicates that the solicitation was broadly advertised, allowing any qualified vendor to submit a proposal. This generally fosters a competitive environment, which is beneficial for price discovery and securing favorable pricing for the government. However, the data does not specify the number of proposals received or the evaluation process. If only a few bids were submitted, or if the evaluation criteria heavily favored specific capabilities over price, the competitive pressure might have been less intense than ideal. Conversely, a large number of responsive bids would typically drive prices down. Without knowing the number of bidders and the details of the competition, it's difficult to definitively assess the impact on pricing beyond the general expectation that competition was intended.

What are the potential implications of this contract for the FBI's 'Private Sector Engagement Program' and its overall mission effectiveness?

This contract provides crucial support services, enabling the FBI to effectively manage and execute its 'Private Sector Engagement Program (PSEP)'. By outsourcing administrative management and general consulting, the FBI can potentially enhance the program's strategic direction, operational efficiency, and stakeholder relationship management. The external expertise gained through these services could lead to more robust partnerships, improved information sharing, and better alignment of private sector capabilities with FBI objectives. Ultimately, if the consulting services are well-executed and aligned with the PSEP's goals, this contract could contribute positively to the FBI's overall mission effectiveness by strengthening its ability to collaborate with and leverage resources from the private sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 609 INDEPENDENCE PKWY, 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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,990,237

Exercised Options: $3,990,237

Current Obligation: $3,988,820

Actual Outlays: $3,398,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D005F

IDV Type: FSS

Timeline