EPA awards $3.8M IT support contract to Chenega Services & Federal Solutions for radiation monitoring labs

Contract Overview

Contract Amount: $3,836,113 ($3.8M)

Contractor: Chenega Services & Federal Solutions, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT AND TELECOMMUNICATIONS SUPPORT SERVICES FOR LAB, RADNET, AND ARADDS FUNCTIONS IN THE OFFICE OF RADIATION AND INDOOR AIR (ORIA) NATIONAL ANALYTICAL RADIATION ENVIRONMENTAL LABORATORY (NAREL) IN MONTGOMERY, AL.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36115

State: Alabama Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $3.8 million to CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC for work described as: IT AND TELECOMMUNICATIONS SUPPORT SERVICES FOR LAB, RADNET, AND ARADDS FUNCTIONS IN THE OFFICE OF RADIATION AND INDOOR AIR (ORIA) NATIONAL ANALYTICAL RADIATION ENVIRONMENTAL LABORATORY (NAREL) IN MONTGOMERY, AL. Key points: 1. Contract provides essential IT support for critical radiation monitoring functions. 2. Sole-source award raises questions about potential cost savings through competition. 3. Firm-fixed-price contract type offers cost certainty for the government. 4. Long-term duration (3 years) suggests a need for sustained IT services. 5. Contractor has a track record with federal agencies, indicating some level of performance history. 6. Geographic focus on Alabama for laboratory operations.

Value Assessment

Rating: fair

The contract's value of $3.8 million over three years for IT support services appears within a reasonable range for specialized government IT needs. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The firm-fixed-price structure provides budget predictability, but the absence of competition limits the ability to assess if the government is receiving the best possible value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. While it ensures the specific needs are met, it bypasses the opportunity for multiple vendors to bid, potentially leading to higher prices than if competition were present. The lack of bidders means price discovery through market forces was not utilized.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from competitive pricing. This limits the potential for cost savings that could be redirected to other critical government functions.

Public Impact

The Office of Radiation and Indoor Air (ORIA) and its National Analytical Radiation Environmental Laboratory (NAREL) will benefit from sustained IT support. Services ensure the continued operation of critical functions related to radiation monitoring and environmental analysis. The primary geographic impact is in Montgomery, Alabama, where the laboratory is located. The contract supports IT professionals employed by Chenega Services & Federal Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Long contract duration may not fully account for rapidly evolving IT needs.
Lack of transparency in the sole-source justification could mask inefficiencies.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contractor has existing federal contracting experience.
Services support critical environmental and public health functions.

Sector Analysis

This contract falls within the IT and Telecommunications Support Services sector, specifically Computer Systems Design Services. The federal government is a significant consumer of these services, with spending often concentrated in areas supporting national security, research, and public health initiatives. Benchmarking this contract's value against similar IT support contracts for specialized scientific laboratories would provide further context on its cost-effectiveness.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that opportunities for small businesses to participate in this specific contract are limited, potentially impacting the small business ecosystem in this service area.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver specified services within the agreed-upon budget. Transparency regarding the sole-source justification and performance metrics would be key areas for oversight.

Related Government Programs

Environmental Protection Agency IT Support Contracts
National Analytical Radiation Environmental Laboratory Operations
Radiation Monitoring and Analysis Services
Computer Systems Design Services Federal Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost inefficiencies

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $3.8 million to CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC. IT AND TELECOMMUNICATIONS SUPPORT SERVICES FOR LAB, RADNET, AND ARADDS FUNCTIONS IN THE OFFICE OF RADIATION AND INDOOR AIR (ORIA) NATIONAL ANALYTICAL RADIATION ENVIRONMENTAL LABORATORY (NAREL) IN MONTGOMERY, AL.

Who is the contractor on this award?

The obligated recipient is CHENEGA SERVICES & FEDERAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is Chenega Services & Federal Solutions, LLC's track record with the federal government, particularly in IT support for scientific or environmental agencies?

Chenega Services & Federal Solutions, LLC has a history of federal contracting, including various IT and support services across different agencies. While specific details on their performance for environmental or radiation-focused laboratories are not detailed here, their general experience suggests familiarity with government procurement processes and requirements. A deeper dive into their past performance evaluations (e.g., CPARS) and the types of IT services they have provided to similar agencies would offer a more comprehensive understanding of their capabilities and reliability in this specialized domain. Their ability to secure sole-source contracts may indicate a perceived unique capability or a strong existing relationship with certain government entities.

How does the $3.8 million contract value compare to similar IT support contracts for environmental laboratories within the EPA or other federal agencies?

Benchmarking this $3.8 million contract against similar IT support services for environmental or scientific laboratories is challenging without more specific data on the scope of services, duration, and complexity. However, for a three-year contract providing comprehensive IT support (including systems design, maintenance, and potentially cybersecurity) for a specialized national laboratory, this figure appears to be within a plausible range. Federal IT support contracts can vary significantly in cost based on the criticality of the systems, the level of security required, and the specific technical expertise needed. A more precise comparison would require analyzing contracts with similar National Institute of Standards and Technology (NIST) special publication 800-53 security controls or those supporting laboratory information management systems (LIMS).

What are the primary risks associated with a sole-source award for essential IT support services?

The primary risks associated with a sole-source award for essential IT support services include a lack of competitive pricing, which can lead to overpayment and reduced value for taxpayer money. Without competition, there is less incentive for the contractor to innovate or offer the most cost-effective solutions. Furthermore, reliance on a single provider can create vendor lock-in and increase vulnerability if the contractor's performance declines or if they face financial instability. There's also a risk that the government might not be aware of alternative, potentially superior, or more cost-effective solutions available in the market. The justification for the sole-source award needs to be robust to mitigate these risks.

How effective is the firm-fixed-price contract type in ensuring performance and managing costs for IT support?

The firm-fixed-price (FFP) contract type is generally effective in managing costs and ensuring performance for IT support services when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the risk for cost overruns, providing the government with budget certainty. This structure incentivizes the contractor to perform efficiently to maximize profit. For IT support, where requirements can sometimes evolve, the FFP structure works best when there are clear deliverables and service level agreements. Any necessary changes to the scope would typically require contract modifications, which can add administrative burden and potentially increase costs if not managed carefully.

What are the historical spending patterns for IT support services at the EPA's National Analytical Radiation Environmental Laboratory (NAREL)?

Analyzing historical spending patterns for IT support at NAREL would provide crucial context for evaluating the current $3.8 million contract. Without access to specific historical data, it's difficult to ascertain trends. However, federal agencies like the EPA typically have ongoing needs for IT infrastructure, cybersecurity, data management, and specialized software support, especially for laboratories dealing with sensitive environmental data. Spending in this area can fluctuate based on upgrades, new technology adoption, and changes in regulatory requirements. Understanding past expenditures, contract durations, and the number of competitive versus sole-source awards for similar services at NAREL would help determine if the current award represents an increase, decrease, or stable level of investment and if it aligns with previous procurement strategies.

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 - COMPUTE

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: 609 INDEPENDENCE PARKWAY, 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: $6,920,643

Exercised Options: $3,975,019

Current Obligation: $3,836,113

Actual Outlays: $3,023,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline