HHS FDA Awards $3.46M Contract for OAGS Support Services to Chenega Government Mission Solutions

Contract Overview

Contract Amount: $3,457,147 ($3.5M)

Contractor: Chenega Government Mission Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-29

End Date: 2026-09-29

Contract Duration: 365 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT COMPETED

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TASK ORDER 2 - OAGS CONTRACT AND GRANT SUPPORT SERVICES IDIQ CONTRACT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to CHENEGA GOVERNMENT MISSION SOLUTIONS, LLC for work described as: TASK ORDER 2 - OAGS CONTRACT AND GRANT SUPPORT SERVICES IDIQ CONTRACT Key points: 1. The contract is for administrative management and general management consulting services. 2. It was awarded as a delivery order under an existing IDIQ contract. 3. The contract value is $3.46 million with a 365-day duration. 4. The award was not competed, raising questions about price discovery. 5. The Food and Drug Administration is the primary agency utilizing these services.

Value Assessment

Rating: questionable

The contract value of $3.46 million for 365 days of administrative and management consulting services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is reasonable compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach bypasses the standard competitive process, potentially leading to higher costs and reduced innovation as there is no market pressure to offer the best value.

Taxpayer Impact: Without competition, taxpayers may be paying a premium for these services, as the government did not explore alternative vendors or pricing structures.

Public Impact

Ensures continued administrative and management support for FDA operations. Potential for increased costs due to lack of competitive bidding. Limited transparency on how vendor was selected and pricing was determined. Impact on small businesses is minimal as this is not a small business set-aside. Services are critical for the functioning of the FDA's Office of the Assistant General Counsel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Continuity of essential services
Awarded to an established vendor

Sector Analysis

The administrative management and general management consulting services sector is broad, encompassing strategic planning, organizational design, and operational efficiency improvements. Benchmarks for such services vary widely based on scope and expertise, but non-competed contracts often carry a risk of inflated pricing.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit or analysis related to small business participation in this specific award.

Oversight & Accountability

The lack of competition for this contract raises concerns regarding oversight. Standard oversight procedures should include justification for sole-source awards and verification of fair and reasonable pricing, which are less robust in non-competed scenarios.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in vendor selection
Absence of market-driven cost controls
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to CHENEGA GOVERNMENT MISSION SOLUTIONS, LLC. TASK ORDER 2 - OAGS CONTRACT AND GRANT SUPPORT SERVICES IDIQ CONTRACT

Who is the contractor on this award?

The obligated recipient is CHENEGA GOVERNMENT MISSION SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-29.

What is the specific justification for awarding this contract on a sole-source basis, and how was the fair and reasonable price determined without competition?

The justification for a sole-source award typically involves circumstances where only one vendor can provide the required services, such as unique capabilities or urgent needs. The determination of a fair and reasonable price without competition often relies on historical pricing data from previous contracts with the same vendor, commercial price lists, or independent government cost estimates. However, without a competitive process, the rigor of this determination is inherently reduced.

What are the potential risks associated with awarding a $3.46 million contract without competition, particularly regarding cost and performance?

The primary risks of awarding a large contract without competition include paying a higher price than necessary due to the absence of market pressure, and potentially receiving suboptimal performance if the vendor faces no competitive threat. There's also a risk of reduced innovation and a lack of transparency in the selection and pricing process, which can erode public trust and lead to inefficient use of taxpayer funds.

How does this contract contribute to the overall effectiveness of the FDA's administrative and grant support functions, and what metrics are in place to measure this effectiveness?

This contract is intended to ensure the continuity and effectiveness of essential administrative and grant support services for the FDA, likely within the Office of the Assistant General Counsel. Effectiveness is typically measured through performance metrics outlined in the contract, such as timeliness of service delivery, quality of work, and adherence to regulatory requirements. However, the specific metrics and their targets would need to be detailed within the contract documentation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

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, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,457,147

Exercised Options: $3,457,147

Current Obligation: $3,457,147

Actual Outlays: $639,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40124D00067

IDV Type: IDC

Timeline