DOJ awards $12.3M for IT program management, but competition details are missing

Contract Overview

Contract Amount: $12,279,113 ($12.3M)

Contractor: Chenega Enterprise Systems & Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2022-07-01

End Date: 2025-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OCIO PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Justice obligated $12.3 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC for work described as: OCIO PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES. Key points: 1. The contract value of $12.3 million for IT program management support appears reasonable given the duration and scope. 2. The lack of competition information raises concerns about potential overpricing and limited market engagement. 3. Performance risk is moderate, as the contractor has a history with the agency, but the specific project's complexity is unknown. 4. This contract supports essential IT program and project management functions within the Office of Justice Programs. 5. The IT services sector is highly competitive, making the absence of a competitive award notable. 6. The contract's duration of three years suggests a need for sustained support in IT project oversight.

Value Assessment

Rating: fair

The contract value of $12.3 million over three years averages approximately $4.1 million annually. Benchmarking this against similar IT program management support contracts is challenging without more detailed scope information. However, the price per day is roughly $11,214, which seems within a plausible range for complex IT support services. Further analysis would require comparing specific labor categories and hours to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the opportunity for multiple vendors to bid, potentially impacting price discovery and innovation. The specific justification for the sole-source award is not provided, which is a key piece of information for assessing the procurement's fairness.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers as competition is absent, potentially reducing the government's leverage in price negotiations.

Public Impact

The Office of Justice Programs benefits from enhanced IT program and project management capabilities. Essential IT services are delivered to support the agency's mission. The contract's geographic impact is primarily within the Department of Justice's operational areas. The contract likely supports a team of IT professionals, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Sole-source justification needs further review to ensure necessity.
Scope creep could increase costs without competitive pressure.
Performance metrics and oversight are critical due to limited competition.

Positive Signals

Contract awarded to a known entity, potentially reducing transition risks.
Clear contract duration provides budget certainty.
Focus on program and project management suggests alignment with agency needs.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under custom computer programming services, a segment that includes IT consulting, project management, and system integration. The annual spending on IT services by the federal government is in the tens of billions, with program management support being a critical component for agencies like the Department of Justice to effectively deploy and manage technology initiatives.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means opportunities for small business participation in this specific contract are likely limited, potentially impacting the small business ecosystem within the federal IT contracting space.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and program managers within the Office of Justice Programs. Accountability is driven by contract performance metrics and reporting requirements. Transparency is enhanced through contract databases like FPDS, though detailed justifications for sole-source awards are not always publicly accessible.

Related Government Programs

IT Program Management Support Services
Custom Computer Programming Services
Department of Justice IT Contracts
Office of Justice Programs IT Services

Risk Flags

Lack of Competition
Sole-Source Award Justification Unclear
Limited Transparency on Procurement Process

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.3 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC. OCIO PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES.

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 (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2025-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, such as in cases of urgent need, unique capabilities, or when competition is deemed not feasible or not in the government's best interest. Without this justification, it is difficult to fully assess the necessity and fairness of the procurement process. Agencies are required to document and justify sole-source awards, and this documentation is crucial for transparency and accountability.

How does the awarded price compare to similar IT program management support contracts within the federal government?

Direct comparison of the awarded price ($12.3 million over three years) to similar contracts is challenging without detailed scope, labor mix, and performance requirements. The average annual value is approximately $4.1 million. However, the contract's daily rate of approximately $11,214 suggests a significant level of expertise and support. To benchmark effectively, one would need to analyze contracts for comparable IT program management services, considering factors like agency size, complexity of IT systems managed, and the specific services provided (e.g., strategic planning, risk management, acquisition support). The lack of competition makes a direct price benchmark more difficult.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

The provided data does not specify the key performance indicators (KPIs) or the detailed monitoring mechanisms for this contract. Typically, IT program management support contracts include KPIs related to project timelines, budget adherence, quality of deliverables, stakeholder satisfaction, and risk mitigation. The Contracting Officer's Representative (COR) and the program office are responsible for monitoring contractor performance against these KPIs and the overall contract requirements. Regular performance reviews and reporting are standard procedures to ensure the contractor meets expectations.

What is the track record of Chenega Enterprise Systems & Solutions, LLC with the Department of Justice or similar agencies?

Chenega Enterprise Systems & Solutions, LLC has a history of contracting with the federal government, including the Department of Justice. While specific details of past performance on similar IT program management contracts are not provided in this data snippet, their presence as a contractor suggests they have met certain qualifications and performance standards in previous engagements. A deeper dive into their contract history, past performance evaluations, and any reported issues would be necessary for a comprehensive assessment of their track record.

What is the potential impact of this sole-source award on future competition for similar IT services within the DOJ?

A sole-source award, especially if not well-justified, can signal to the market that the agency may not actively seek competitive bids for certain services. This could potentially discourage other vendors from investing in capabilities to compete for future DOJ IT program management contracts if they perceive the playing field as uneven. Conversely, if the sole-source justification is robust and tied to unique circumstances, it may have minimal impact on broader market competition. However, the general trend in federal procurement favors full and open competition to ensure best value for taxpayers.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,550,062

Exercised Options: $20,550,062

Current Obligation: $12,279,113

Actual Outlays: $12,279,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline