Treasury awards $2.5M contract for stationary engineer support services to Chenega Global Protection, LLC

Contract Overview

Contract Amount: $2,513,827 ($2.5M)

Contractor: Chenega Global Protection, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-09-20

End Date: 2026-09-19

Contract Duration: 1,095 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STATIONARY ENGINEERS SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.5 million to CHENEGA GLOBAL PROTECTION, LLC for work described as: STATIONARY ENGINEERS SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1095 days suggests a need for sustained support services. 3. The award was not competed, raising questions about potential cost savings through competition. 4. The Bureau of Engraving and Printing is the primary beneficiary of these services. 5. The contractor, Chenega Global Protection, LLC, has secured this award without a competitive bidding process. 6. The North American Industry Classification System (NAICS) code 561210 points to facilities support services.

Value Assessment

Rating: fair

The contract value of $2.51 million over three years for stationary engineer support services is difficult to benchmark without more specific details on the scope of work and service levels. As a sole-source award, there is no direct comparison to other bids to assess pricing competitiveness. However, the firm-fixed-price structure provides cost certainty. Further analysis would require understanding the specific technical requirements and comparing them to industry standards for similar facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach is typically used when only one vendor possesses the necessary qualifications, or in urgent situations. The lack of competition means that the government did not benefit from the price discovery that typically occurs in a competitive bidding environment, potentially leading to higher costs than if multiple bids were considered.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to lower prices. Without a competitive process, it is harder to ensure the most cost-effective solution was secured.

Public Impact

The Bureau of Engraving and Printing facilities will receive essential support services for their stationary engineering systems. This ensures the continued operational efficiency and safety of critical government infrastructure. The services provided are vital for maintaining the physical plant and equipment necessary for the Bureau's operations. The contract supports the government's ability to perform its core functions without interruption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit opportunities for other qualified vendors.
Absence of competitive benchmarking makes value assessment challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract duration suggests a stable, long-term need for services.
Award to an established entity may indicate reliability.

Sector Analysis

The facilities support services sector is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This contract falls under the general services category, specifically focusing on the technical aspects of stationary engineering. The market for such services is competitive, but sole-source awards can bypass this dynamic. Benchmarking spending in this area is challenging without detailed service scope, but facility maintenance is a consistent government expenditure.

Small Business Impact

The contract was not awarded to a small business, nor does it indicate any specific small business set-aside provisions. There is no information provided regarding subcontracting plans for small businesses. This award does not appear to directly benefit the small business ecosystem through set-asides or prime contracting opportunities.

Oversight & Accountability

Oversight of this contract would typically fall under the Bureau of Engraving and Printing's contracting and program management offices. As a firm-fixed-price contract, the primary oversight focus would be on ensuring the contractor meets the defined service level agreements and deliverables. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on the agency's internal policies and the nature of any potential issues.

Related Government Programs

Facilities Maintenance Contracts
Government Building Operations Support
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on justification for sole-source.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.5 million to CHENEGA GLOBAL PROTECTION, LLC. STATIONARY ENGINEERS SUPPORT 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 $2.5 million.

What is the period of performance?

Start: 2023-09-20. End: 2026-09-19.

What specific stationary engineering services are included in this contract?

The provided data indicates the contract is for 'STATIONARY ENGINEERS SUPPORT SERVICES' under NAICS code 561210 (Facilities Support Services). However, the specific scope of work is not detailed. Typically, stationary engineer services involve the operation, maintenance, and repair of building systems such as HVAC (heating, ventilation, and air conditioning), boilers, chillers, plumbing, and electrical systems. This could include routine inspections, preventative maintenance, emergency repairs, and system monitoring to ensure optimal performance and safety within the Bureau of Engraving and Printing facilities.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Agencies typically justify sole-source awards when only one responsible source is available or capable of providing the required services. Reasons can include unique capabilities, proprietary technology, urgent and compelling needs, or specific government requirements that only one contractor can meet. Without further documentation from the Department of the Treasury, the precise justification for this sole-source award remains unspecified, but it implies that competitive bidding was deemed impractical or impossible.

How does the firm-fixed-price (FFP) structure benefit the government in this contract?

A firm-fixed-price (FFP) contract structure is generally advantageous for the government when the scope of work is well-defined and the risks of cost overruns are manageable. In this case, it means Chenega Global Protection, LLC is obligated to perform the specified services for a predetermined price, regardless of their actual costs. This provides the Bureau of Engraving and Printing with cost certainty and predictability, making budgeting easier and protecting against unexpected price increases. The contractor assumes the primary risk for cost overruns, incentivizing them to manage their resources efficiently.

What is the track record of Chenega Global Protection, LLC in providing similar services?

Information regarding Chenega Global Protection, LLC's specific track record for stationary engineer support services is not detailed in the provided data. However, Chenega Global Protection is part of the larger Chenega Corporation, which is a significant government contractor, particularly in security and facilities management. To assess their track record thoroughly, one would need to review past performance evaluations, contract history with federal agencies for similar services, and any reported issues or successes on previous contracts. Their status as a sole-source awardee might suggest prior positive engagement or unique qualifications.

What are the potential risks associated with a sole-source award for facilities support?

The primary risk associated with a sole-source award for facilities support is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not be securing the most cost-effective solution available in the market. Additionally, there's a risk of complacency from the awarded contractor, as they face no direct competition for future work or contract renewals. This can sometimes lead to a decline in service quality or responsiveness over time. Furthermore, sole-source awards limit opportunities for other capable small and large businesses to compete for government contracts.

How does this contract compare to other federal spending on facilities support services?

The $2.51 million contract value for stationary engineer support services is a relatively modest amount within the broader context of federal facilities support spending. Federal agencies collectively spend billions annually on a wide array of facility maintenance, operations, and support services, including janitorial, security, groundskeeping, and specialized technical services like stationary engineering. This specific contract represents a small fraction of that overall expenditure. Benchmarking requires comparing the scope, duration, and service levels against similar contracts awarded to other agencies or for comparable facilities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $4,971,063

Exercised Options: $2,513,827

Current Obligation: $2,513,827

Actual Outlays: $740,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline