FCC awards $2.6M for IT services to Chenega Architecture and Design Solutions, LLC

Contract Overview

Contract Amount: $2,604,009 ($2.6M)

Contractor: Chenega Architecture and Design Solutions, LLC

Awarding Agency: Federal Communications Commission

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VOICE OVER INTERNET PROTOCOL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554

State: District of Columbia Government Spending

Plain-Language Summary

Federal Communications Commission obligated $2.6 million to CHENEGA ARCHITECTURE AND DESIGN SOLUTIONS, LLC for work described as: VOICE OVER INTERNET PROTOCOL Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract duration of 912 days suggests a medium-term engagement for ongoing IT needs. 3. The firm fixed-price contract type helps control costs and provides predictability for the agency. 4. Awarded to a single vendor, raising questions about the extent of competition and potential value. 5. The contract is for IT services, a critical area for modern government operations. 6. The geographic location of the contractor is Washington D.C., aligning with federal agency presence.

Value Assessment

Rating: questionable

The contract value of $2.6 million for computer systems design services over approximately 2.5 years appears to be within a reasonable range for specialized IT support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is difficult. Benchmarking against similar contracts for comparable services would be necessary to determine if the pricing is competitive. The lack of competition, as indicated by the award type, further complicates a thorough value assessment, as it limits the opportunity for price discovery.

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 among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the specific service. The limited competition means that the Federal Communications Commission did not benefit from the potential cost savings and innovation that can arise from a competitive bidding process. The rationale for the sole-source award would need to be thoroughly documented to ensure it was justified.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers compared to competitively bid contracts, as there is less pressure on the contractor to offer the lowest possible price. This limits the government's ability to secure the best possible value for taxpayer dollars.

Public Impact

The Federal Communications Commission (FCC) is the primary beneficiary, receiving essential IT design services. The contract supports the delivery of computer systems design services, crucial for the FCC's operational efficiency. The geographic impact is centered in Washington D.C., where the FCC is headquartered. The contract likely impacts a specialized IT workforce, potentially requiring specific technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source awards require strong justification to ensure necessity and prevent potential abuse.
Limited transparency into the specific services and performance metrics makes independent evaluation challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Award to a single, potentially specialized vendor could indicate access to unique expertise.
The contract duration suggests a commitment to a stable IT infrastructure.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing a wide range of needs from software development to network infrastructure and cybersecurity. Spending in this sector is consistently high across federal agencies. This contract for computer systems design services fits within the broader IT consulting and professional services market. Comparable spending benchmarks would typically involve analyzing contracts for similar IT design and integration services awarded to firms of similar size and specialization within the federal government.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. The prime contractor, Chenega Architecture and Design Solutions, LLC, is likely a larger entity. There is no explicit information provided regarding subcontracting plans for small businesses. Without such provisions, the direct impact on the small business ecosystem for this specific contract is minimal, and opportunities for small business participation would depend on the prime contractor's voluntary engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Communications Commission's internal contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency could be enhanced by making the contract details, including the justification for the sole-source award and performance reports, publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

IT Professional Services
Computer Systems Design
Federal IT Procurement
Agency IT Modernization

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for overpayment due to lack of competition.
Limited transparency into specific service details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $2.6 million to CHENEGA ARCHITECTURE AND DESIGN SOLUTIONS, LLC. VOICE OVER INTERNET PROTOCOL

Who is the contractor on this award?

The obligated recipient is CHENEGA ARCHITECTURE AND DESIGN SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What is the specific scope of 'Computer Systems Design Services' covered under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512). This typically encompasses a range of activities related to designing and developing computer systems, including analyzing user needs, designing hardware and software configurations, integrating systems, and providing technical consulting. However, the precise deliverables, specific technologies involved, and the exact nature of the design work (e.g., network architecture, software system architecture, database design) are not detailed in the summary data. A thorough understanding would require reviewing the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract, which would outline the specific tasks, objectives, and expected outcomes for Chenega Architecture and Design Solutions, LLC.

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

Sole-source awards are granted when a competitive bidding process is not feasible or advantageous. Common justifications include the unique capabilities of a single contractor, the urgency of the requirement where only one vendor can respond in time, or when the contract is a logical follow-on to a previous contract where the original contractor possesses specialized knowledge. For this contract, the justification would likely stem from Chenega Architecture and Design Solutions, LLC possessing specific, proprietary, or highly specialized expertise in computer systems design that is not readily available from other sources. The Federal Communications Commission would need to have documented this justification, often through a Justification and Approval (J&A) document, to comply with federal procurement regulations (e.g., FAR Part 6).

How does the $2.6 million contract value compare to similar IT services contracts awarded by the FCC or other federal agencies?

Benchmarking the $2.6 million contract value requires comparing it against similar 'Computer Systems Design Services' (NAICS 541512) contracts awarded by the FCC or other agencies over a comparable period (approximately 2.5 years). Factors such as the scope of work, complexity, required expertise, and the number of bidders in competitive scenarios would influence pricing. Without access to a detailed breakdown of the services provided and market rate data for similar IT design projects, a precise comparison is difficult. However, for specialized IT design services, $2.6 million over 912 days is not inherently excessive, but its value is contingent on the specific deliverables and the absence of competitive pressure due to the sole-source nature of the award.

What are the potential risks associated with a sole-source award for IT design services?

The primary risk associated with a sole-source award is the potential for reduced value for money due to the lack of competition. Without competing offers, the government may pay a higher price than if the contract were competed. There's also a risk of vendor lock-in, where the agency becomes dependent on the sole provider, potentially limiting future flexibility. Furthermore, transparency and accountability can be diminished, making it harder to independently verify the fairness of the price and the necessity of the services. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations to mitigate these risks.

What is the track record of Chenega Architecture and Design Solutions, LLC in performing federal IT contracts?

Information on Chenega Architecture and Design Solutions, LLC's track record with federal IT contracts is not detailed in the provided summary data. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or issues. A positive track record with successful delivery of similar IT services would increase confidence in their ability to perform this current contract effectively. Conversely, a history of performance problems or unresolved issues would represent a significant risk factor for the FCC.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

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: 1155 KELLY JOHNSON BLVD SUITE 105, COLORADO SPRINGS, CO, 80920

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: $2,605,406

Exercised Options: $2,604,009

Current Obligation: $2,604,009

Actual Outlays: $2,130,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline