Treasury's $5.66M security systems contract awarded to Chenega Global Protection, LLC without competition

Contract Overview

Contract Amount: $5,658,885 ($5.7M)

Contractor: Chenega Global Protection, LLC

Awarding Agency: Department of the Treasury

Start Date: 2020-09-24

End Date: 2026-03-23

Contract Duration: 2,006 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATVIE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.7 million to CHENEGA GLOBAL PROTECTION, LLC for work described as: ADMINISTRATVIE SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market fairness. 2. The duration of the contract, spanning over 2000 days, suggests a long-term need for these security services. 3. The fixed-price nature of the contract provides cost certainty for the government, but may limit flexibility. 4. Services provided fall under security systems, a critical area for government operations. 5. The contract is a definitive contract, indicating a firm commitment from the agency. 6. The Bureau of Engraving and Printing is the specific office within Treasury utilizing these services.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The contract's value of $5.66 million over its term needs to be assessed against industry standards for security systems services. The lack of competition means there is no direct comparison to other vendors' pricing, making it challenging to determine if the price is fair and reasonable. Further analysis would require understanding the specific services rendered and comparing them to similar contracts awarded competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source contract. This indicates that the agency likely justified the award to a single vendor, Chenega Global Protection, LLC, based on specific criteria such as unique capabilities, urgent need, or lack of other responsible sources. The absence of multiple bidders limits price discovery and potentially reduces the downward pressure on costs that competition typically provides.

Taxpayer Impact: The lack of competition means taxpayers may not have received the benefit of the lowest possible price. Without a bidding process, there's a risk that the awarded price is higher than what could have been achieved in a competitive environment.

Public Impact

The Bureau of Engraving and Printing benefits from enhanced security systems, ensuring the protection of sensitive operations and assets. Services include security systems installation, maintenance, and potentially monitoring, crucial for safeguarding government facilities. The contract's impact is primarily localized to Washington D.C., where the Bureau of Engraving and Printing is located. The contract supports jobs within the security services sector, contributing to the workforce in the D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
The sole-source award requires strong justification to ensure it was truly necessary and not a missed opportunity for cost savings.
The long contract duration could lead to vendor lock-in and reduced flexibility for the agency to adapt to changing security needs or technologies.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Bureau of Engraving and Printing.
Awarding to Chenega Global Protection, LLC suggests they possess specialized capabilities deemed essential for the agency's security requirements.
The contract addresses a critical need for security systems, ensuring operational continuity and asset protection.

Sector Analysis

The security systems services sector is a vital component of the broader professional, scientific, and technical services industry. This contract falls under the North American Industry Classification System (NAICS) code 561621, which covers security systems services, excluding locksmiths. The market for these services is competitive, with numerous providers offering a range of solutions from installation to monitoring. Government contracts in this space are significant, reflecting the ongoing need for robust security measures across federal agencies. Benchmarking this contract's value would involve comparing its per-unit costs and overall price to similar security system contracts awarded by other federal or state entities.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no indication of subcontracting opportunities for small businesses. The award to Chenega Global Protection, LLC, a company that may or may not be a small business itself, means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal. Further investigation into Chenega Global Protection, LLC's size status and subcontracting plans would be necessary for a complete assessment.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Engraving and Printing's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and performance metrics would be key. The Inspector General for the Department of the Treasury may have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, particularly if concerns arise regarding the procurement process or contract performance.

Related Government Programs

Federal Protective Service Contracts
Physical Security Services
Government Facility Security
Department of the Treasury Contracts
Bureau of Engraving and Printing Operations

Risk Flags

Sole-source award lacks competitive pricing.
Potential for vendor lock-in due to long contract duration.
Need for strong justification for non-competitive award.
Risk of technological obsolescence over contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.7 million to CHENEGA GLOBAL PROTECTION, LLC. ADMINISTRATVIE SERVICES

Who is the contractor on this award?

The obligated recipient is CHENEGA GLOBAL PROTECTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2020-09-24. End: 2026-03-23.

What specific security systems and services are covered under this contract?

The contract falls under NAICS code 561621, 'Security Systems Services (except Locksmiths)'. This typically encompasses a range of services related to the installation, maintenance, monitoring, and repair of electronic security systems. Examples include alarm systems, access control systems, video surveillance (CCTV), and potentially integrated security management platforms. The specific scope would be detailed in the contract's statement of work (SOW), outlining the exact systems to be provided, service level agreements (SLAs) for response times and repairs, and any required reporting or documentation.

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

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). For this contract, awarded under 'NOT COMPETED UNDER SAP', common reasons include: 1) Only one responsible source and no other supplies or services will satisfy the agency requirements (FAR 6.302-1); 2) A national emergency or compelling urgency (FAR 6.302-7); or 3) Specific statutory authority. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to know the precise reason. However, the Bureau of Engraving and Printing might argue that Chenega Global Protection, LLC possesses unique technical expertise, proprietary technology, or existing infrastructure critical to their specific security needs that cannot be replicated by other vendors in a timely manner.

How does the contract duration of over 2000 days impact its value and risk?

A contract duration exceeding 2000 days (approximately 5.5 years, including potential options) signifies a long-term commitment. From a value perspective, it can offer stability and predictable costs for the agency, potentially securing favorable pricing through a longer engagement. However, it also carries risks: 1) Technological obsolescence: Security systems technology evolves rapidly; a long-term contract might lock the agency into outdated systems. 2) Vendor lock-in: It can be difficult and costly to switch providers mid-contract, reducing leverage. 3) Market price changes: The agency might miss out on lower market prices that emerge during the contract term. 4) Performance degradation: Long-term relationships can sometimes lead to complacency if not actively managed.

What are the potential risks associated with a sole-source contract for security systems?

The primary risk of a sole-source contract is the lack of price competition, which can lead to the government paying a premium compared to a competitively bid contract. This reduces overall value for taxpayer money. Additionally, without the vetting process of multiple bidders, there's a potential risk that the selected contractor may not have the most innovative solutions or the best overall performance record. It also limits the agency's ability to explore alternative technologies or service models that might emerge in the market. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is Chenega Global Protection, LLC's track record with federal contracts, particularly in security services?

Chenega Global Protection, LLC is a known entity within the federal contracting space, often associated with security and protective services. As a subsidiary of the Chenega Corporation, it benefits from a larger corporate structure and established presence. Federal procurement databases would likely show a history of awards to this entity, potentially across various agencies and for different types of security-related services. Analyzing their past performance ratings, contract values, and the types of services rendered would provide insight into their reliability, expertise, and pricing competitiveness in previous engagements. A review of their contract history could reveal patterns in sole-source awards versus competitive ones.

How does this contract's spending compare to other federal spending on security systems services?

The $5.66 million contract value over its term is a moderate-sized award within the federal security systems services market. Federal agencies collectively spend billions annually on a wide array of security-related services, including physical security, cybersecurity, and specialized systems. This specific contract represents a portion of the Bureau of Engraving and Printing's operational budget for security infrastructure. To benchmark it effectively, one would compare its per-unit costs (e.g., cost per camera, cost per access point, hourly maintenance rates) against similar contracts awarded by agencies like GSA, DHS, or DoD for comparable security systems and services. Without detailed service breakdowns, a precise comparison is difficult, but it's not an exceptionally large contract in the context of overall federal security spending.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $7,288,510

Exercised Options: $5,658,885

Current Obligation: $5,658,885

Actual Outlays: $4,452,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline