CISA awards $15.2M contract to CHEVO LLC for program evaluation and performance management

Contract Overview

Contract Amount: $15,246,325 ($15.2M)

Contractor: Chevo LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW AWARD WITH CHEVO FOR PROGRAM EVALUATION AND PERFORMANCE MANAGEMENT SERVICES WITH CISA/SED

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.2 million to CHEVO LLC for work described as: NEW AWARD WITH CHEVO FOR PROGRAM EVALUATION AND PERFORMANCE MANAGEMENT SERVICES WITH CISA/SED Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of 1460 days (4 years) suggests a long-term need for these services. 4. The award is a Delivery Order under a larger contract, implying it's part of an existing framework. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, though the description focuses on evaluation and management. 6. The base award amount is $10.4M, with a potential ceiling of $15.2M, indicating flexibility for growth. 7. The contract is not set aside for small businesses, suggesting larger prime contractors were eligible and potentially awarded.

Value Assessment

Rating: fair

The contract's value of $15.2M over four years for program evaluation and performance management services needs further benchmarking against similar contracts. The Time and Materials pricing structure requires careful monitoring to ensure cost-effectiveness, as it can lead to higher final costs compared to fixed-price contracts if not managed diligently. The base award of $10.4M suggests an initial scope, with the remaining $4.8M representing potential growth or option periods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be broad, specific sources may have been excluded prior to the final solicitation. The presence of 5 bids suggests a moderate level of competition. The exclusion of sources could potentially limit the range of innovative solutions or competitive pricing.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure a reasonable price for taxpayers. However, the exclusion of certain sources warrants scrutiny to ensure it did not unduly restrict competition and inflate costs.

Public Impact

The Department of Homeland Security (DHS), specifically the Cybersecurity and Infrastructure Security Agency (CISA), will benefit from enhanced program evaluation and performance management capabilities. Services delivered will likely improve the effectiveness and efficiency of CISA's programs. The geographic impact is primarily national, supporting federal agency operations. Workforce implications may include the need for skilled analysts and program managers within CISA and potentially at CHEVO LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
The 'exclusion of sources' clause in the competition method requires further investigation to ensure fair market access.
The NAICS code (Engineering Services) appears misaligned with the described services (program evaluation and performance management), raising questions about the contract's classification and potential for scope creep.

Positive Signals

Awarded through a competitive process, indicating potential for value.
Long-term contract duration suggests a sustained need and potential for stable service delivery.
CHEVO LLC is a known entity, potentially bringing established expertise to the task.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to management and technical consulting. The market for program evaluation and performance management services is robust, serving various government agencies seeking to optimize their operations and demonstrate accountability. Comparable spending benchmarks would typically be found within the broader federal IT and professional services categories, where agencies invest heavily in improving program outcomes and efficiency.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This indicates that the competition was open to all eligible offerors, including large businesses. There is no explicit mention of subcontracting requirements for small businesses within the provided data, suggesting that the prime contractor, CHEVO LLC, may not be obligated to engage small businesses for a significant portion of the work. This could limit opportunities for the small business ecosystem on this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the performance-based nature of program evaluation and management services, requiring CHEVO LLC to meet defined objectives and deliverables. Transparency may be enhanced through standard government reporting mechanisms and contract award databases, though specific oversight details are not provided.

Related Government Programs

CISA Program Management Support
Federal Performance Management Services
Government Program Evaluation Contracts
DHS Management and Consulting Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Ambiguity in NAICS code classification versus stated services.
Limited transparency on 'exclusion of sources' justification.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.2 million to CHEVO LLC. NEW AWARD WITH CHEVO FOR PROGRAM EVALUATION AND PERFORMANCE MANAGEMENT SERVICES WITH CISA/SED

Who is the contractor on this award?

The obligated recipient is CHEVO LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is CHEVO LLC's track record with federal contracts, particularly in program evaluation and performance management?

CHEVO LLC has a history of federal contracting, though specific details on their performance in program evaluation and performance management require deeper analysis of their contract history. Examining past performance reviews, contract modifications, and any reported disputes or awards associated with their previous government engagements would provide a clearer picture of their capabilities and reliability. Understanding their experience with agencies similar to CISA, and the scale of those previous contracts, is crucial for assessing their suitability for this $15.2M award.

How does the $15.2M contract value compare to similar program evaluation and performance management contracts awarded by CISA or DHS?

Benchmarking the $15.2M contract value against similar awards requires access to a comprehensive database of federal contracts. However, for a four-year contract of this nature, the value appears within a reasonable range for specialized professional services. Factors such as the scope of work, specific deliverables, and the level of expertise required will influence the final price. A detailed comparison would involve analyzing the per-year cost and the specific services included in comparable contracts awarded to other firms.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific engagement?

The primary risk with a Time and Materials contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. For program evaluation and performance management, where the scope can sometimes be less defined than in pure engineering, there's a risk that hours could escalate beyond initial projections. Effective oversight, clear task definitions, and robust monitoring of labor hours and resource utilization by CISA are critical to mitigating these risks and ensuring the contract remains within budget.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring optimal value for taxpayers?

This procurement method aims to balance broad competition with specific agency needs. While 'full and open' suggests an intention to solicit widely, the 'exclusion of sources' clause indicates that certain potential bidders were identified and excluded before the solicitation was released. The effectiveness for taxpayers hinges on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or past performance issues, it could lead to a more focused competition among qualified vendors, potentially resulting in better value. However, if the exclusions were arbitrary or overly restrictive, it could limit competition and lead to higher prices.

What is the potential impact of the NAICS code 541330 (Engineering Services) on the contract's scope and performance?

The discrepancy between NAICS code 541330 (Engineering Services) and the described services (program evaluation and performance management) is notable. This could indicate a broad interpretation of 'engineering' to include analytical and management functions, or it might be an administrative misclassification. If the contract is truly focused on evaluation and management, the engineering code might not fully capture the required skill sets or could lead to confusion regarding performance expectations and deliverables. It's essential that CISA's oversight clearly defines the scope to align with the intended services, regardless of the NAICS code.

What are the implications of this contract not being a small business set-aside for the small business ecosystem?

As this contract was not designated as a small business set-aside, it was open to all eligible businesses, including large corporations. This means that small businesses may not have had a direct opportunity to compete for the prime contract. While large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, the absence of a set-aside does not guarantee such opportunities. The direct impact is a reduced chance for small businesses to secure prime contract revenue on this specific award, potentially limiting their growth and participation in federal contracting.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RCSA22Q00000086

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2275 RESEARCH BLVD., STE 100, ROCKVILLE, MD, 20850

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $19,304,680

Exercised Options: $15,445,288

Current Obligation: $15,246,325

Actual Outlays: $10,075,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS111

IDV Type: IDC

Timeline