DOE awards $18.6M to Chenega for CATS Development & Maintenance, a sole-source contract
Contract Overview
Contract Amount: $18,597,256 ($18.6M)
Contractor: Chenega Professional & Technical Services LLC
Awarding Agency: Department of Energy
Start Date: 2019-09-30
End Date: 2026-06-26
Contract Duration: 2,461 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CLEARANCE ACTION TRACKING SYSTEM (CATS) DEVELOPMENT&MAINTENANCE
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Energy obligated $18.6 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC for work described as: CLEARANCE ACTION TRACKING SYSTEM (CATS) DEVELOPMENT&MAINTENANCE Key points: 1. Contract awarded to Chenega Professional & Technical Services LLC for $18.6M. 2. The contract is for the CLEARANCE ACTION TRACKING SYSTEM (CATS) Development & Maintenance. 3. Awarded by the Department of Energy, with performance in New Mexico. 4. This is a sole-source contract, raising potential competition concerns. 5. The contract type is Time and Materials, which can lead to cost overruns.
Value Assessment
Rating: questionable
The contract value of $18.6M for custom computer programming services is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar custom software development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is sole-source, meaning it was not competed. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had submitted bids.
Taxpayer Impact: The lack of competition for this $18.6M contract means taxpayers may be paying a premium for the services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The sole-source nature of the award warrants scrutiny of the justification for not seeking competition. The long duration (2461 days) and Time and Materials pricing could lead to cost increases over the contract's life. Ensuring the system developed meets the Department of Energy's needs effectively is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials contract type
- Lack of competition
- Potential for cost overruns
Positive Signals
- Contract supports critical system development
- Established vendor relationship
Sector Analysis
The contract falls under Custom Computer Programming Services (NAICS 541511). Spending in this sector can vary widely based on project complexity and duration. The $18.6M value for a multi-year development and maintenance effort is substantial but not unusual for complex government IT systems.
Small Business Impact
The contract was awarded to Chenega Professional & Technical Services LLC, which is not identified as a small business. There is no indication that small businesses were considered or subcontracted for this sole-source award.
Oversight & Accountability
The sole-source nature of this award requires a strong justification from the Department of Energy to ensure accountability and prevent potential misuse of funds. Robust oversight will be needed to manage the Time and Materials contract effectively.
Related Government Programs
- Custom Computer Programming Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Time and Materials contract increases risk of cost overruns.
- Long contract duration (over 6 years) extends exposure to risks.
- No indication of small business participation.
- Potential for vendor lock-in due to sole-source nature.
Tags
custom-computer-programming-services, department-of-energy, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.6 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC. CLEARANCE ACTION TRACKING SYSTEM (CATS) DEVELOPMENT&MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2019-09-30. End: 2026-06-26.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm the lack of competition?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This often occurs when a specific technology or capability is unique to a single vendor, or in urgent situations. A thorough market research report should accompany the justification to validate these claims and explore any potential alternatives before proceeding without competition.
How will the Department of Energy ensure cost control and prevent overruns with a Time and Materials contract of this magnitude and duration?
Effective cost control for Time and Materials contracts involves establishing clear labor categories with defined rates, setting firm fixed-price components for materials, and implementing stringent monitoring of hours worked and tasks performed. The Department of Energy should utilize robust project management, regular progress reviews, and potentially establish cost ceilings or award-fee structures to incentivize efficiency and manage expenditures throughout the contract's lifecycle.
What performance metrics and deliverables are in place to ensure the CATS system meets the Department of Energy's operational needs effectively?
To ensure effectiveness, the contract should clearly define specific, measurable, achievable, relevant, and time-bound (SMART) performance metrics and deliverables. These might include system uptime, response times, data accuracy rates, user satisfaction scores, and the successful implementation of defined functionalities. Regular performance evaluations against these metrics, coupled with clear acceptance criteria for each deliverable, will be crucial for assessing the system's value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233119CNA000081
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 609 INDEPENDENCE PKWY STE 210, 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: $19,996,472
Exercised Options: $19,075,674
Current Obligation: $18,597,256
Actual Outlays: $14,363,345
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-30
Current End Date: 2026-06-26
Potential End Date: 2026-09-26 00:00:00
Last Modified: 2026-03-05
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