DOE's $20.6M contract for SPR management services awarded to Chenega Enterprise Systems & Solutions
Contract Overview
Contract Amount: $20,653,094 ($20.7M)
Contractor: Chenega Enterprise Systems & Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2021-11-01
End Date: 2026-11-30
Contract Duration: 1,855 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE DEPARTMENT OF ENERGY STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE
Place of Performance
Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123
Plain-Language Summary
Department of Energy obligated $20.7 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC for work described as: MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE DEPARTMENT OF ENERGY STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract duration of over 5 years suggests a long-term need for these services. 3. The firm-fixed-price contract type helps to control costs for the government. 4. The services are categorized under Engineering Services, aligning with the project's technical nature. 5. The award was made by the Department of Energy to support the Strategic Petroleum Reserve. 6. The contract value of over $20 million reflects a significant investment in reserve management.
Value Assessment
Rating: good
The contract value of $20.6 million over approximately five years for management and technical support services for the Strategic Petroleum Reserve appears reasonable given the scope. Benchmarking against similar large-scale government support contracts suggests that the pricing is likely competitive, especially considering the firm-fixed-price structure which shifts some risk to the contractor. The specific nature of supporting a critical national asset like the SPR warrants specialized expertise, which can command a certain market rate.
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,' indicating that multiple potential bidders were considered and allowed to compete. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are the Department of Energy and the nation, through the effective management and maintenance of the Strategic Petroleum Reserve. Services delivered include crucial management and technical support for the SPR project management office. The geographic impact is focused on Louisiana, where the SPR facilities are located. The contract supports specialized technical and management roles, potentially impacting the workforce in engineering and project management fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs, despite firm-fixed-price.
- Dependence on contractor performance for critical national energy security infrastructure.
- Risk of knowledge transfer challenges at contract end if not managed proactively.
Positive Signals
- Firm-fixed-price contract structure provides cost certainty.
- Long-term contract duration allows for stable support and expertise development.
- Awarded through full and open competition, suggesting a competitive market price.
- Contractor has a clear role in supporting a critical national asset.
Sector Analysis
The energy sector, particularly the management of strategic national resources, is a critical area for government spending. This contract falls under engineering and management support services, a common category for large infrastructure and operational projects. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Comparable spending benchmarks would involve looking at other large-scale government contracts for infrastructure management and technical support across various agencies.
Small Business Impact
The provided data indicates that small business participation (sb) was false and the contract was not a small business set-aside. This suggests that the primary award went to a larger entity. There is no explicit information on subcontracting plans for small businesses within this data, which would be a key area to investigate for potential small business impact.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Strategic Petroleum Reserve Operations
- Department of Energy Management Support
- Federal Engineering Services Contracts
- National Energy Security Programs
Risk Flags
- Contract performance risk
- Cybersecurity risk
- Dependency on contractor expertise
- Potential for scope creep
Tags
energy, department-of-energy, strategic-petroleum-reserve, engineering-services, management-support, firm-fixed-price, full-and-open-competition, louisiana, large-contract, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.7 million to CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC. MANAGEMENT AND TECHNICAL SUPPORT SERVICES FOR THE DEPARTMENT OF ENERGY STRATEGIC PETROLEUM RESERVE PROJECT MANAGEMENT OFFICE
Who is the contractor on this award?
The obligated recipient is CHENEGA ENTERPRISE SYSTEMS & SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2021-11-01. End: 2026-11-30.
What is the track record of Chenega Enterprise Systems & Solutions, LLC with Department of Energy contracts?
Chenega Enterprise Systems & Solutions, LLC has a history of performing various contracts with the Department of Energy and other federal agencies. Their portfolio often includes management, technical, and professional services. A detailed review of their past performance on similar DOE contracts, particularly those related to energy infrastructure or reserve management, would be necessary to fully assess their capabilities and reliability for the Strategic Petroleum Reserve project. This would involve examining past performance evaluations, any documented issues or successes, and their overall contract completion history to ensure they meet the demanding requirements of this critical national asset.
How does the awarded value compare to similar SPR management contracts?
Direct comparison of the $20.6 million awarded value for this specific contract requires access to detailed historical data on similar Strategic Petroleum Reserve (SPR) management and technical support contracts. However, considering the contract duration of over five years and the specialized nature of supporting a critical national energy security asset, the annual value appears to be in the range of $4 million. This figure needs to be benchmarked against previous contracts for SPR operations and management, as well as similar large-scale engineering and technical support services awarded to other federal agencies managing critical infrastructure. Factors like inflation, scope changes, and market competition over time would influence precise comparisons.
What are the primary risks associated with this contract?
Key risks associated with this contract include potential performance shortfalls by the contractor, which could impact the operational readiness and security of the Strategic Petroleum Reserve. Given the critical nature of the SPR, any lapse in management or technical support could have significant national security implications. Another risk is the potential for cost overruns, although the firm-fixed-price structure aims to mitigate this. Contractor dependency is also a concern; ensuring smooth knowledge transfer and continuity of operations, especially during transitions, is vital. Finally, cybersecurity risks related to managing sensitive data and systems for the SPR must be continuously addressed.
How effective has the Department of Energy been in managing SPR contracts historically?
The Department of Energy (DOE) has a long history of managing the Strategic Petroleum Reserve (SPR), a critical national asset. Historically, the DOE has generally maintained the operational readiness of the SPR, fulfilling its mandate. However, like any large government agency managing complex, long-term projects, there have been instances of challenges, including budget constraints, infrastructure modernization needs, and occasional performance reviews of support contractors. Assessing the overall effectiveness requires examining specific program outcomes, audit reports from the Inspector General, and the SPR's readiness metrics over time. The competitive bidding process for contracts like this one suggests a commitment to securing effective services.
What are the historical spending patterns for SPR management and technical support?
Historical spending patterns for SPR management and technical support reveal a consistent need for significant investment to maintain this critical national energy security asset. Over the years, the Department of Energy has allocated substantial funds towards operations, maintenance, and technical services for the SPR. This spending fluctuates based on infrastructure upgrades, modernization efforts, and the overall geopolitical energy landscape. Analyzing multi-year budget appropriations and contract awards provides insight into these patterns, showing a sustained commitment to the SPR's readiness. The current $20.6 million contract is part of this ongoing financial commitment.
What is the potential impact of this contract on energy market stability?
This contract's primary impact is on the operational stability and readiness of the Strategic Petroleum Reserve (SPR), which indirectly contributes to broader energy market stability. By ensuring the SPR is well-managed and technically sound, the Department of Energy can effectively utilize it as a tool to mitigate disruptions in the global oil supply and cushion price shocks. The contract itself does not directly influence market prices or supply dynamics but rather supports the infrastructure and services that enable the SPR to perform its crucial role in stabilizing the energy market during emergencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89243521RFE000017
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
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: $27,556,025
Exercised Options: $27,556,025
Current Obligation: $20,653,094
Actual Outlays: $18,529,335
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAD20D8152
IDV Type: IDC
Timeline
Start Date: 2021-11-01
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-03-25
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