HHS awards $23.9M for security systems services, with Chenega Global Protection, LLC as the sole provider

Contract Overview

Contract Amount: $23,918,604 ($23.9M)

Contractor: Chenega Global Protection, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-25

End Date: 2020-11-30

Contract Duration: 524 days

Daily Burn Rate: $45.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.9 million to CHENEGA GLOBAL PROTECTION, LLC for work described as: SERVICES Key points: 1. The contract value of $23.9 million for security systems services represents a significant investment in safeguarding federal facilities. 2. The sole-source nature of this award raises questions about potential price inflation and the absence of competitive pressure. 3. A 524-day duration suggests a need for sustained security operations, but the lack of competition limits performance benchmarking. 4. The contract falls under the 'Security Systems Services (except Locksmiths)' category, indicating a focus on electronic and physical security measures. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to promote small business participation.

Value Assessment

Rating: questionable

The contract's value of $23.9 million for security systems services over approximately 17 months needs careful benchmarking. Without competitive bids, it's difficult to ascertain if this price reflects fair market value. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not meticulously managed and monitored. Comparing this to similar government contracts for comparable security services, especially those awarded through full and open competition, would be crucial to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Chenega Global Protection, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., urgent needs, unique capabilities), they inherently limit price discovery and may not yield the most cost-effective solution for the government.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. This could translate to a higher overall expenditure for the services rendered.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced security for its facilities and operations. Services delivered include the provision and maintenance of security systems, contributing to the physical safety of personnel and assets. The contract's geographic impact is focused on Georgia (ST: GA, SN: GEORGIA), where the CDC facilities are located. Workforce implications are likely related to the personnel required by Chenega Global Protection, LLC to deliver these security services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may reduce incentives for the contractor to optimize service delivery and efficiency.
Time and Materials contract type can pose a risk of cost escalation if not closely monitored.
Absence of small business set-aside may limit opportunities for smaller specialized security firms.

Positive Signals

Contract awarded to a known entity, Chenega Global Protection, LLC, potentially indicating prior satisfactory performance.
Specific focus on security systems services addresses a critical operational need for the CDC.
Contract duration of 524 days suggests a commitment to sustained security operations.

Sector Analysis

The security systems services sector is a critical component of the broader government contracting landscape, encompassing physical security, electronic surveillance, access control, and alarm systems. This contract, valued at $23.9 million, falls within this domain, serving the needs of the Department of Health and Human Services (HHS) via the CDC. The market for such services is competitive, but specific needs or existing infrastructure can sometimes lead to sole-source or limited competition awards. Benchmarking this contract's value would ideally involve comparing it to other HHS or CDC contracts for similar security services, or to industry averages for large-scale security system deployments and maintenance.

Small Business Impact

This contract does not appear to have included a small business set-aside (SS: false, SB: false). This means that the opportunity was not specifically reserved for small businesses. Consequently, the primary contractor, Chenega Global Protection, LLC, is likely a larger entity. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside may limit the direct participation of small businesses in fulfilling the core requirements of this contract, although they might be involved as subcontractors if Chenega Global Protection, LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). Specific oversight mechanisms would likely involve contract officers, program managers, and potentially contracting officer's representatives (CORs) to monitor performance, expenditures, and compliance with contract terms. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

HHS Security Services Contracts
CDC Facility Management
Federal Security Systems Procurement
Sole-Source Security Contracts
Time and Materials Security Contracts

Risk Flags

Sole-source award
Potential for cost overruns (Time and Materials)
Limited competition impacts price discovery
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.9 million to CHENEGA GLOBAL PROTECTION, LLC. 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 Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2019-06-25. End: 2020-11-30.

What is the track record of Chenega Global Protection, LLC with the federal government, particularly in security systems services?

Chenega Global Protection, LLC has a significant history of federal contracting. While specific details on their performance for this particular $23.9 million CDC contract are not provided in the abbreviated data, their presence as a sole-source awardee suggests a pre-existing relationship or a perceived unique capability. A deeper dive into their contract history would reveal the types of services they have provided, the agencies they have served, and their overall performance ratings (if available through sources like the Contractor Performance Assessment Reporting System - CPARS). Examining past performance on similar security systems contracts would be crucial to understanding their reliability and expertise in this domain.

How does the $23.9 million contract value compare to similar security systems services contracts awarded by HHS or other agencies?

Benchmarking the $23.9 million contract value requires comparing it against similar 'Security Systems Services (except Locksmiths)' contracts awarded by HHS or other federal agencies. Factors such as contract duration (524 days), scope of services, geographic location, and the level of competition significantly influence pricing. If this contract was awarded on a sole-source basis, its price may be higher than comparable contracts secured through full and open competition. Analyzing data from the Federal Procurement Data System (FPDS) for contracts with similar PSC codes (like 561621) and service descriptions would provide a more robust comparison to assess if the $23.9 million represents a fair market price.

What are the specific risks associated with a sole-source award for security systems services?

The primary risk of a sole-source award for security systems services is the lack of competitive pressure, which can lead to inflated pricing and reduced value for taxpayers. Without competing bids, the government may not secure the most cost-effective solution. Furthermore, it limits the opportunity to explore innovative solutions or leverage the expertise of a wider range of qualified vendors. There's also a potential risk that the sole-source provider may become complacent due to the guaranteed business, potentially impacting service quality or responsiveness over time. Robust oversight and clear performance metrics are essential to mitigate these risks.

What does the 'Time and Materials' (T&M) contract type imply for cost control and program effectiveness?

A 'Time and Materials' (T&M) contract type, as indicated for this award, means the government pays the contractor for the direct labor hours at specified hourly rates, plus the actual cost of materials. This structure can be advantageous when the scope of work is not clearly defined or is expected to change. However, it carries a significant risk of cost overruns, as the contractor is incentivized to bill for more hours and materials. Effective cost control requires stringent monitoring of labor hours, material costs, and contractor performance by the government. Program effectiveness under T&M hinges on clear communication, well-defined deliverables, and proactive management to ensure the work stays within budget and meets objectives.

What is the historical spending pattern for security systems services at the CDC or HHS?

Analyzing historical spending patterns for security systems services at the CDC or HHS is crucial for context. This $23.9 million award represents a significant, albeit potentially one-time or recurring, investment. Understanding how much the CDC or HHS has spent on similar services in previous years, and through which contract vehicles (competitive vs. sole-source), can reveal trends, identify potential cost efficiencies, or highlight areas where spending has increased. For instance, a consistent increase in spending might indicate growing security needs or rising market prices. Conversely, a decrease could suggest successful cost-saving measures or a shift in security strategy. This data provides a baseline against which the current award's value and necessity can be assessed.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14295 PARK MEADOW DR STE 400, CHANTILLY, VA, 20151

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $23,918,604

Exercised Options: $23,918,604

Current Obligation: $23,918,604

Actual Outlays: $140,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline