DOE's $71M training support contract awarded to Chenega Support Services, LLC, with no competition
Contract Overview
Contract Amount: $70,972,344 ($71.0M)
Contractor: Chenega Support Services, LLC
Awarding Agency: Department of Energy
Start Date: 2014-08-01
End Date: 2018-06-30
Contract Duration: 1,429 days
Daily Burn Rate: $49.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::OT::IGF TRAINING SUPPORT AND FACILITIES MAINTENANCE SERVICES FOR THE NATIONAL TRAINING CENTER.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $71.0 million to CHENEGA SUPPORT SERVICES, LLC for work described as: IGF::OT::IGF TRAINING SUPPORT AND FACILITIES MAINTENANCE SERVICES FOR THE NATIONAL TRAINING CENTER. Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery and potential value. 2. Significant duration of 1429 days suggests a long-term need for these services. 3. The contract type (Cost Plus Award Fee) can incentivize performance but may also lead to higher costs. 4. Awarded to a single contractor without a competitive process limits opportunities for other businesses. 5. The 'Other Computer Related Services' NAICS code indicates a focus on IT and related support functions. 6. The contract's value of over $70 million warrants close scrutiny of its cost-effectiveness.
Value Assessment
Rating: questionable
The contract's value of $70.9 million over approximately four years, awarded without competition, makes a direct value-for-money assessment challenging. Without benchmark data from competing bids, it's difficult to determine if the pricing is optimal. The Cost Plus Award Fee (CPAF) structure allows for contractor profit based on performance, which can be a positive incentive but also carries the risk of cost overruns if not managed tightly. Comparing this to similar training support contracts, especially those competed openly, would be necessary to gauge if the government received a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source justification, meaning it was not competed. The absence of competition means that only one bidder, Chenega Support Services, LLC, was considered. This limits the government's ability to leverage market forces to achieve the best possible price and terms. While sole-source awards are sometimes necessary due to unique capabilities or urgent needs, they typically result in higher costs for the government compared to competitively awarded contracts.
Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
The National Training Center benefits from continuous support and maintenance services, ensuring operational readiness. Personnel at the training center receive essential IT and facilities support, enabling them to focus on their core missions. The contract supports jobs within Chenega Support Services, LLC, contributing to the local and national economy. Geographic impact is primarily focused on New Mexico, where the National Training Center is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
- The Cost Plus Award Fee structure, while incentivizing performance, can lead to cost escalation if not rigorously overseen.
- Long contract duration (1429 days) without re-competition may reduce flexibility and opportunities for cost savings through market shifts.
Positive Signals
- Awarding to a single contractor may ensure continuity of essential services for the National Training Center.
- The Cost Plus Award Fee structure, if managed effectively, can drive high performance and quality outcomes.
- The contract supports a specific government need, indicating a clear purpose for the expenditure.
Sector Analysis
This contract falls within the broader professional, scientific, and technical services sector, specifically related to IT support and facilities maintenance. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide range of IT services. The market for such services is competitive, with numerous firms offering specialized support. However, the sole-source nature of this award bypasses typical market dynamics. Comparable spending benchmarks would ideally be drawn from other government agencies procuring similar integrated support services for training facilities, though direct comparisons are difficult without knowing the specific scope and performance requirements.
Small Business Impact
The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). This means that opportunities for small businesses to participate as prime contractors or through subcontracting were not explicitly mandated by the contract terms. While Chenega Support Services, LLC, may engage small businesses as subcontractors, the absence of a set-aside or subcontracting plan requirement means there's no guarantee of their involvement or the extent of their participation in this significant contract.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of Energy's contracting officers and program managers. Given the Cost Plus Award Fee structure, rigorous performance monitoring and financial oversight are crucial to ensure that award fees are justified and costs remain within acceptable parameters. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the agency's Inspector General, although specific IG jurisdiction for this particular contract is not detailed here.
Related Government Programs
- Federal IT Support Services
- Facilities Maintenance Contracts
- Government Training Center Operations
- Cost Plus Award Fee Contracts
- Sole-Source IT Services
Risk Flags
- Sole-source award
- Lack of competition
- Cost Plus Award Fee structure
- Long contract duration
Tags
it-support, facilities-maintenance, department-of-energy, national-training-center, definitive-contract, cost-plus-award-fee, sole-source, new-mexico, large-contract, professional-services, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $71.0 million to CHENEGA SUPPORT SERVICES, LLC. IGF::OT::IGF TRAINING SUPPORT AND FACILITIES MAINTENANCE SERVICES FOR THE NATIONAL TRAINING CENTER.
Who is the contractor on this award?
The obligated recipient is CHENEGA SUPPORT 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 $71.0 million.
What is the period of performance?
Start: 2014-08-01. End: 2018-06-30.
What is the track record of Chenega Support Services, LLC, in performing similar government contracts, particularly those involving training support and facilities maintenance?
Chenega Support Services, LLC, has a history of performing various government contracts, including those related to base operations, logistics, and IT support. Their experience often spans multiple agencies and contract types. For contracts similar to this one, involving training support and facilities maintenance, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be crucial. These evaluations would provide insights into their ability to meet performance standards, manage costs, and adhere to schedules on previous projects. Understanding their performance on prior Cost Plus Award Fee contracts would be particularly relevant, as it indicates their ability to achieve performance incentives while managing costs effectively.
How does the awarded value of $70.9 million compare to similar training support and facilities maintenance contracts awarded by the Department of Energy or other federal agencies?
Directly comparing the $70.9 million value of this contract is challenging without detailed scope and duration information for comparable contracts. However, the contract's duration of approximately four years (1429 days) suggests an average annual value of roughly $17.7 million. This figure can be benchmarked against other large-scale IT support and facilities maintenance contracts. For instance, contracts for similar services at other federal training facilities or large government installations could serve as benchmarks. The absence of competition for this award means that a direct price-per-service comparison is not feasible, and the benchmark would primarily focus on the overall scale and duration of similar support agreements to assess if the magnitude of this award is within expected ranges for such comprehensive services.
What are the primary risks associated with a sole-source award of this magnitude and duration, and what mitigation strategies are in place?
The primary risks associated with a sole-source award of this magnitude ($70.9 million) and duration (approx. 4 years) include potential overpricing due to lack of competition, reduced incentive for innovation, and contractor lock-in. Without competitive pressure, the contractor may not be motivated to find the most cost-effective solutions or introduce efficiencies. Mitigation strategies typically involve robust contract oversight, including detailed performance metrics, regular cost reviews, and strong negotiation of award fee criteria. The Department of Energy would need to ensure that the contract terms clearly define performance expectations and that the award fee structure is tied to measurable outcomes that benefit the government. Periodic market research, even during the contract term, can help identify potential cost savings or alternative solutions.
What specific services are included under 'Other Computer Related Services' for the National Training Center, and how critical are they to the center's operations?
The 'Other Computer Related Services' (NAICS 541519) category is broad and can encompass a wide array of IT functions beyond standard software development or hardware maintenance. For a training center, this could include network administration, cybersecurity support, help desk services, IT infrastructure management, data management, and potentially specialized training simulation software support. These services are likely critical to the National Training Center's operations, as modern training environments rely heavily on robust and secure IT infrastructure. Disruptions in these services could impede training delivery, data access, communication, and overall operational effectiveness, highlighting the importance of reliable support.
What is the historical spending pattern for training support and facilities maintenance at the National Training Center, and how does this $70.9 million award fit into that trend?
Analyzing historical spending patterns for training support and facilities maintenance at the National Training Center would provide crucial context for this $70.9 million award. If previous contracts for similar services were also sole-sourced and of comparable value and duration, it might indicate a consistent approach by the agency. Conversely, if past procurements were competed and resulted in different cost structures or contractor performance, this sole-source award warrants closer examination. Understanding the trend—whether spending has increased, decreased, or remained stable—helps assess if this award represents a continuation of established practices or a deviation. Without specific historical data, it's difficult to definitively place this award within a trend, but its significant value suggests a substantial and ongoing requirement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Chenega Corporation (UEI: 622692994)
Address: 5710 W HAUSMAN RD, SUITE 105, SAN ANTONIO, TX, 78249
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: $71,395,591
Exercised Options: $71,395,591
Current Obligation: $70,972,344
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,763,614
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-08-01
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2020-04-16
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