State Dept. Awards $65.7M for Technical Security Systems to Chenega Security International, LLC

Contract Overview

Contract Amount: $65,724,533 ($65.7M)

Contractor: Chenega Security International, LLC

Awarding Agency: Department of State

Start Date: 2020-07-01

End Date: 2025-09-30

Contract Duration: 1,917 days

Daily Burn Rate: $34.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TECHNICAL SECURITY SYSTEM

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $65.7 million to CHENEGA SECURITY INTERNATIONAL, LLC for work described as: TECHNICAL SECURITY SYSTEM Key points: 1. Significant contract value of $65.7 million over five years. 2. Sole-source award raises questions about competition and potential price discovery. 3. Focus on engineering services for technical security systems. 4. Contract duration extends to September 2025.

Value Assessment

Rating: questionable

The contract's value of $65.7 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar technical security system contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition for a $65.7 million contract could lead to suboptimal pricing, impacting taxpayer funds.

Public Impact

Ensures critical technical security systems are maintained and potentially upgraded. Supports national security interests by safeguarding sensitive facilities. Potential for increased costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Essential service provision
Long-term contract

Sector Analysis

The contract falls under Engineering Services (NAICS 541330). Spending in this sector can vary widely, but large sole-source awards warrant scrutiny to ensure value for money.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). Further analysis would be needed to determine if small businesses were excluded or had no opportunity to compete.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight in the procurement process. Robust justification and review are crucial for such contracts to ensure accountability.

Related Government Programs

Engineering Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value
Potential for overpricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $65.7 million to CHENEGA SECURITY INTERNATIONAL, LLC. TECHNICAL SECURITY SYSTEM

Who is the contractor on this award?

The obligated recipient is CHENEGA SECURITY INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $65.7 million.

What is the period of performance?

Start: 2020-07-01. End: 2025-09-30.

What is the justification for the sole-source award of this significant technical security system contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation from the Department of State, it's impossible to determine the precise reason. However, such justifications are often scrutinized to ensure they are valid and not merely a way to avoid competitive processes.

What are the potential risks associated with awarding a $65.7 million contract without competition?

The primary risks include inflated pricing due to the absence of market pressure, potential for reduced quality or innovation if the contractor faces no competitive threat, and a perception of unfairness in the procurement process. Taxpayers may bear the burden of higher costs without a commensurate increase in value or service.

How effective is this contract likely to be in meeting the Department of State's technical security needs?

Effectiveness is difficult to gauge without knowing the specific requirements and the contractor's past performance. While Chenega Security International, LLC is likely capable, the lack of competition means there's no benchmark to assess if alternative providers could have offered a more effective or cost-efficient solution. The long duration suggests a perceived need for continuity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: PR9229632

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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

Financial Breakdown

Contract Ceiling: $137,682,535

Exercised Options: $70,414,843

Current Obligation: $65,724,533

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $324,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline