DOJ's U.S. Marshals Service awards $3.2M for on-site SME support, raising value-for-money questions

Contract Overview

Contract Amount: $3,228,860 ($3.2M)

Contractor: Chenega Naswik International LLC

Awarding Agency: Department of Justice

Start Date: 2022-07-01

End Date: 2026-03-31

Contract Duration: 1,369 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACTOR TO PROVIDE ONE ON-SITE SUBJECT MATTER EXPERT (SME) AT EACH OF THE FOLLOWING FACILITES:

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $3.2 million to CHENEGA NASWIK INTERNATIONAL LLC for work described as: CONTRACTOR TO PROVIDE ONE ON-SITE SUBJECT MATTER EXPERT (SME) AT EACH OF THE FOLLOWING FACILITES: Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract type is Time and Materials, which can lead to cost overruns if not closely managed. 3. A single SME is being procured, suggesting a potentially narrow scope of work or limited need. 4. The contract duration is over three years, indicating a long-term need for this specialized support. 5. The specific facilities requiring SME support are not detailed, hindering a full understanding of the service's necessity. 6. The lack of competition raises concerns about whether the government secured the best possible price and quality.

Value Assessment

Rating: questionable

The contract's value-for-money is questionable due to the sole-source award and Time and Materials pricing structure. Without competitive bidding, it's difficult to benchmark the pricing against market rates or similar contracts. The total award of $3.2 million over approximately 3.75 years suggests an average annual cost of around $850,000 for one on-site SME. This figure needs further context regarding the specific expertise required and the prevailing market rates for such specialized personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not provided, but it implies that only one contractor was deemed capable of fulfilling the requirement. The lack of competition means there were no other bidders to compare against, and the government did not benefit from a competitive bidding process to drive down prices or encourage innovation.

Taxpayer Impact: Taxpayers may have paid a premium for this service due to the absence of competition. Without competing the requirement, the U.S. Marshals Service may not have secured the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the U.S. Marshals Service facilities that will receive on-site subject matter expertise. The services delivered will involve specialized knowledge to support the operations at designated facilities. The geographic impact is limited to the specific facilities where the SME will be deployed, which are located in Virginia. There are no immediate workforce implications mentioned, as this contract procures an external expert rather than expanding the government workforce.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Sole-source award limits price competition.
Time and Materials contract type carries inherent risk of cost overruns.
Lack of detailed scope of work makes it hard to assess necessity and value.
High annual cost for a single SME warrants scrutiny.

Positive Signals

Procurement of specialized expertise to support critical facilities.
Long-term contract indicates a sustained need for the services.

Sector Analysis

This contract falls under Facilities Support Services, a broad category within the professional, scientific, and technical services sector. The North American Industry Classification System (NAICS) code 561210 covers facilities support services. The market for such services is diverse, ranging from janitorial to highly specialized technical support. Benchmarking this specific SME support contract is challenging without more detail on the required expertise, but general facility support services can range significantly in cost depending on the complexity and criticality of the support.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award suggests it was directed to a specific contractor, and information regarding small business participation is not available in the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the U.S. Marshals Service contracting officer and program managers. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source award and the lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Management Contracts
Professional and Technical Services
Department of Justice Contracts
U.S. Marshals Service Support Services

Risk Flags

Sole-source award
Time and Materials contract type
Lack of detailed scope
High cost per SME

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.2 million to CHENEGA NASWIK INTERNATIONAL LLC. CONTRACTOR TO PROVIDE ONE ON-SITE SUBJECT MATTER EXPERT (SME) AT EACH OF THE FOLLOWING FACILITES:

Who is the contractor on this award?

The obligated recipient is CHENEGA NASWIK INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-03-31.

What is the specific expertise provided by the Subject Matter Expert (SME) and why was it deemed necessary to procure this service on a sole-source basis?

The provided data does not specify the exact nature of the Subject Matter Expert's (SME) expertise. It only indicates that the contractor will provide one on-site SME. The justification for awarding this contract on a sole-source basis is also not available. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs, often due to unique capabilities, proprietary technology, or urgent requirements. Without this information, it is difficult to assess the necessity and appropriateness of the sole-source determination and the value of the SME's contribution. Further investigation into the contract file and justification for other than full and open competition would be required.

How does the Time and Materials (T&M) contract type potentially impact the total cost and risk for the U.S. Marshals Service?

A Time and Materials (T&M) contract is a type of contract where the contractor is reimbursed for the actual costs of labor (at hourly rates) and materials, plus a fee (fixed or percentage). This contract type shifts a significant portion of the cost risk to the government, as the final price is not fixed upfront. If the project takes longer than anticipated or requires more resources than initially estimated, the total cost to the government will increase. For the U.S. Marshals Service, this means that effective oversight, diligent monitoring of labor hours, and strict control over material costs are crucial to prevent cost overruns. Without robust management, T&M contracts can become significantly more expensive than fixed-price alternatives.

What are the comparable market rates for providing a single on-site SME for facilities support services in Virginia?

Determining comparable market rates for a single on-site Subject Matter Expert (SME) for facilities support services in Virginia is challenging without knowing the specific expertise required. SME roles can range from general facility management consultation to highly specialized technical support (e.g., security systems, environmental compliance, infrastructure maintenance). If the role requires high-level, niche expertise, daily or hourly rates could range from several hundred to over a thousand dollars per day. Given the contract's total value of $3.2 million over approximately 1369 days (about 3.75 years), the average daily rate for the SME, including overhead and profit, would be around $2,359. This rate needs to be benchmarked against similar specialized roles within the federal government and private sector in the Virginia region to assess its reasonableness.

What is the track record of Chenega NASwik International LLC in providing similar facilities support services to federal agencies?

Information regarding Chenega NASwik International LLC's specific track record in providing similar facilities support services, particularly on-site SME support, is not detailed in the provided data. To assess their performance, one would need to review past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Federal procurement databases and past performance questionnaires can offer insights into their reliability, quality of service, and ability to manage contracts effectively. Without this external data, it's difficult to gauge their suitability and past performance specifically for this type of specialized support.

How does the $3.2 million expenditure for one SME compare to other federal spending on facilities support or specialized technical services?

The $3.2 million expenditure for a single on-site SME over approximately 3.75 years represents an average annual cost of roughly $850,000. This figure is substantial for a single individual's support, even for a highly specialized role. To contextualize this, one would need to compare it against federal spending benchmarks for similar roles across different agencies and for various types of facilities support. For instance, contracts for broader facilities management services might involve larger total dollar amounts but cover a wider range of services and personnel. Conversely, highly specialized technical consulting contracts can also reach significant figures. The key is to understand the criticality and uniqueness of the SME's expertise to determine if this expenditure aligns with industry standards and represents good value.

What are the potential risks associated with relying on a single, sole-source contractor for critical on-site support?

Relying on a single, sole-source contractor for critical on-site support introduces several risks. Firstly, there is a lack of competitive pressure, which can lead to complacency, reduced innovation, and potentially higher prices over time. Secondly, the government becomes heavily dependent on that specific contractor's performance, resources, and stability. If the contractor experiences financial difficulties, personnel turnover, or performance issues, it could significantly disrupt the services provided to the U.S. Marshals Service facilities. Thirdly, without the option to switch to a different provider through competition, the government has limited leverage to enforce performance improvements or negotiate better terms. This dependence can be particularly concerning for essential operational support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15M40022QA3500006

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 100, 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: $4,886,092

Exercised Options: $4,886,092

Current Obligation: $3,228,860

Actual Outlays: $1,348,092

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline