DOE awards $10.8M for acquisition support services to Chenega Professional & Technical Services LLC

Contract Overview

Contract Amount: $10,809,203 ($10.8M)

Contractor: Chenega Professional & Technical Services LLC

Awarding Agency: Department of Energy

Start Date: 2022-02-01

End Date: 2027-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE NON-PERSONAL ACQUISITION SUPPORT SERVICES IN SUPPORT OF OAM, HQ, AND MB TO INCLUDE CONTRACT PRE-SOLICITATION, SOLICITATION, POST-AWARD, ADMINISTRATION, AND CLOSEOUT ACTIVITIES.

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Energy obligated $10.8 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC for work described as: THE CONTRACTOR SHALL PROVIDE NON-PERSONAL ACQUISITION SUPPORT SERVICES IN SUPPORT OF OAM, HQ, AND MB TO INCLUDE CONTRACT PRE-SOLICITATION, SOLICITATION, POST-AWARD, ADMINISTRATION, AND CLOSEOUT ACTIVITIES. Key points: 1. Contract focuses on comprehensive acquisition lifecycle support, from pre-solicitation to closeout. 2. Services are critical for efficient and compliant procurement processes within the Department of Energy. 3. The contract is structured as a Time and Materials award, which can pose cost control challenges. 4. A significant duration of 5 years suggests a long-term need for these acquisition support functions. 5. The contract was not competed, raising questions about potential cost savings and market-driven pricing. 6. The specific value of $10.8M is moderate for a 5-year acquisition support contract.

Value Assessment

Rating: fair

The contract value of $10.8 million over five years averages to approximately $2.16 million annually. Benchmarking this against similar acquisition support contracts is challenging without more specific service details and scope. However, the Time and Materials pricing structure, while offering flexibility, can lead to higher costs if not managed diligently compared to fixed-price contracts. The lack of competition further complicates a direct value assessment, as there's no market-driven price discovery.

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 among multiple vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION.' This approach bypasses the standard competitive bidding process, which typically leads to a wider range of proposals and potentially lower prices due to market forces. Without competition, it's difficult to ascertain if the government received the best possible pricing or if alternative solutions were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive bidding, which drives down prices, is absent. This necessitates strong internal oversight to ensure fair pricing and efficient service delivery.

Public Impact

The Department of Energy (DOE) benefits from continuous and specialized acquisition support, ensuring smoother procurement operations. Federal agencies receive support in managing complex acquisition processes, contributing to overall government efficiency. The contract supports administrative and management consulting services, a key function for government operations. Workforce implications are primarily within the contractor's organization, providing employment for acquisition support specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The acquisition support services sector is a vital component of government operations, enabling agencies to procure goods and services efficiently and compliantly. This contract falls under administrative management and general management consulting services. The market for these services is substantial, with numerous firms offering specialized expertise. The Department of Energy's reliance on such support highlights the complexity of its procurement needs, particularly in areas like energy research, development, and infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits to the small business ecosystem stemming from a small business set-aside. The prime contractor, Chenega Professional & Technical Services LLC, is likely a larger entity, and the contract's sole-source nature further limits opportunities for small business participation through subcontracting unless proactively pursued by the prime.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Energy's contracting and program management offices. As a sole-source award, scrutiny on the justification and pricing is crucial. Transparency regarding the specific services rendered and performance metrics would be key accountability measures. While not explicitly stated, the DOE's Inspector General would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

acquisition-support, administrative-management-consulting, department-of-energy, sole-source, time-and-materials, federal-contract, acquisition-lifecycle, new-mexico, chenega-professional-technical-services-llc, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $10.8 million to CHENEGA PROFESSIONAL & TECHNICAL SERVICES LLC. THE CONTRACTOR SHALL PROVIDE NON-PERSONAL ACQUISITION SUPPORT SERVICES IN SUPPORT OF OAM, HQ, AND MB TO INCLUDE CONTRACT PRE-SOLICITATION, SOLICITATION, POST-AWARD, ADMINISTRATION, AND CLOSEOUT ACTIVITIES.

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 $10.8 million.

What is the period of performance?

Start: 2022-02-01. End: 2027-01-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification (e.g., urgency, unique capabilities, follow-on to a prior sole-source award) is not detailed in the provided data. Typically, sole-source awards require a formal justification and approval (J&A) process, often citing reasons such as only one responsible source being available, or the need for standardization. Without access to the J&A document, the precise rationale remains unclear. This lack of transparency can be a concern for ensuring fair and competitive practices.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar acquisition support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For acquisition support services, where tasks can be relatively predictable, a firm-fixed-price or cost-plus-fixed-fee contract might offer better cost certainty and incentivize contractor efficiency. The government must implement robust monitoring and ceiling controls to manage T&M costs effectively.

What are the potential risks associated with a 5-year sole-source contract for acquisition support?

A 5-year sole-source contract for acquisition support presents several risks. Firstly, the lack of competition over an extended period can lead to complacency and potentially inflated pricing, as the contractor faces no market pressure to innovate or reduce costs. Secondly, the government may miss out on potentially better solutions or technological advancements offered by other vendors that could emerge during the contract term. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to transition to a different provider if performance issues arise or needs change significantly. Finally, without ongoing competition, the government's leverage to negotiate favorable terms or pricing in future renewals is diminished.

What performance metrics or oversight mechanisms are in place to ensure the quality and efficiency of Chenega's acquisition support?

The provided data does not detail specific performance metrics or oversight mechanisms for this contract. However, standard government contracting practice dictates that such contracts should include a Performance Work Statement (PWS) outlining required services and performance standards. Quality Assurance Surveillance Plans (QASPs) are typically developed by the government to monitor contractor performance against these standards. For a sole-source T&M contract, rigorous oversight is particularly critical. This would involve regular reviews of timesheets, invoices, progress reports, and direct observation of work to ensure adherence to the PWS and prevent cost creep. The Contracting Officer's Representative (COR) plays a vital role in day-to-day oversight.

How does this contract's value compare to historical spending on acquisition support services within the Department of Energy?

The provided data does not include historical spending patterns for acquisition support services within the Department of Energy, making a direct comparison impossible. The current contract value is $10.8 million over five years. To assess if this is high or low, one would need to analyze prior contracts for similar services, considering factors like scope, duration, and economic conditions at the time of award. Analyzing trends in federal spending on management and administrative consulting services (NAICS code 541611) across the government could provide broader context, but agency-specific historical data is essential for a precise benchmark.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $12,490,930

Exercised Options: $12,490,930

Current Obligation: $10,809,203

Actual Outlays: $7,876,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DENA0003496

IDV Type: IDC

Timeline

Start Date: 2022-02-01

Current End Date: 2027-01-31

Potential End Date: 2027-01-31 00:00:00

Last Modified: 2026-03-23

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