DoD awards $26.3M for security services in South Korea, with Chenega Global Protection winning a definitive contract

Contract Overview

Contract Amount: $26,279,533 ($26.3M)

Contractor: Chenega Global Protection, LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-28

End Date: 2026-05-17

Contract Duration: 1,845 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE AWARD FOR SECURITY AND ACCESS CONTROL SERVICES IN SUPPORT OF USAG-KA.

Place of Performance

Location: MARSHALL ISLANDS

Plain-Language Summary

Department of Defense obligated $26.3 million to CHENEGA GLOBAL PROTECTION, LLC for work described as: BASE AWARD FOR SECURITY AND ACCESS CONTROL SERVICES IN SUPPORT OF USAG-KA. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 5 years indicates a long-term need for these security services. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 561612 points to specialized security guard services. 5. The award was made by the Department of the Army, a major component of the Department of Defense. 6. The contract is not set aside for small businesses, implying larger firms were expected to bid.

Value Assessment

Rating: good

The base award of $26.3 million for security and access control services appears reasonable given the contract's extensive duration of over five years and its scope supporting USAG-KA. Benchmarking against similar long-term security contracts for military installations would provide a more precise value assessment. The firm-fixed-price contract type suggests the government has locked in a price, but the total value could increase with task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the competition was intended to be open, certain sources were excluded. This suggests a potential limitation in the competitive landscape, possibly due to specific security clearances, past performance requirements, or geographic presence needed for the services in South Korea. The number of bidders is not specified, but the exclusion of sources might have reduced the pool of potential offerors.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'full and open' aspect suggests an effort to achieve a competitive price. However, the exclusion of sources could potentially limit price discovery and may have resulted in a higher price than if all qualified vendors could have participated.

Public Impact

US Army Garrison - Korea (USAG-KA) benefits from enhanced security and access control. Services provided include security guards and patrol services, crucial for maintaining base safety and operations. The geographic impact is concentrated in South Korea, supporting U.S. military presence and personnel. The contract supports a workforce of security personnel, likely including both U.S. and local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced competition due to exclusion of sources.
Long contract duration could lead to price increases if market conditions change significantly.
Dependence on a single contractor for critical security functions.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded through a process that aimed for open competition.
Long-term contract provides stability for security operations.

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guard and patrol services (NAICS 561612). This sector is vital for government operations, particularly for overseas installations requiring robust security measures. The market includes numerous private security firms, ranging from large multinational corporations to smaller specialized providers. The Department of Defense is a significant consumer of these services globally, with spending often concentrated in regions with a U.S. military presence.

Small Business Impact

The contract was not set aside for small businesses (SS=false, SB=false). This indicates that the requirement was likely deemed too large or complex for small business participation, or that the competition was open to all responsible sources regardless of size. There is no explicit mention of subcontracting requirements for small businesses, suggesting that the primary contractor, Chenega Global Protection, LLC, will be responsible for fulfilling the majority of the contract's scope.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices responsible for USAG-KA. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the price for the defined scope. Transparency is generally maintained through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Security Services Contracts
USAG-KA Operations and Maintenance
Global Security and Access Control Services
Contracting for Overseas Military Installations

Risk Flags

Limited competition due to exclusion of sources.
Long contract duration may expose government to price volatility.
Potential for contractor cost overruns impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to CHENEGA GLOBAL PROTECTION, LLC. BASE AWARD FOR SECURITY AND ACCESS CONTROL SERVICES IN SUPPORT OF USAG-KA.

Who is the contractor on this award?

The obligated recipient is CHENEGA GLOBAL PROTECTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2021-04-28. End: 2026-05-17.

What is Chenega Global Protection, LLC's track record with similar government contracts, particularly in overseas security operations?

Chenega Global Protection, LLC, is a subsidiary of Chenega Corporation, a large, Alaska Native-owned company that holds numerous government contracts across various sectors, including security services. They have a significant history of providing security, logistics, and facilities support to agencies like the Department of Defense, Department of State, and others, often in challenging overseas environments. Their experience includes providing base support services, physical security, and personnel protection. While specific performance details for this particular contract are not publicly detailed in the provided data, their extensive portfolio suggests a substantial capacity and experience in fulfilling large-scale security requirements for government entities operating abroad. Past performance evaluations, if available through government databases, would offer a more granular view of their execution on similar prior contracts.

How does the $26.3 million base award compare to the total potential value of the contract over its duration?

The $26.3 million represents the base award amount for the definitive contract. Definitive contracts, especially those with a long duration like this one (ending May 2026, approximately 5 years from award), often include options or are structured to allow for task orders that can increase the total value significantly beyond the base amount. The provided data does not specify the total ceiling value or any exercised options. Therefore, the $26.3 million is an initial commitment, and the ultimate expenditure could be considerably higher depending on the services required and exercised by the Army over the contract's life. Without knowing the total contract ceiling or the number and value of task orders issued, a full comparison is not possible.

What are the primary risks associated with a long-term, firm-fixed-price security contract for an overseas installation?

A primary risk for the government in a long-term, firm-fixed-price (FFP) contract is potential price escalation if market rates for labor and services increase significantly over the contract period, and the contractor is unable to absorb these costs without impacting service quality. For the contractor, the risk lies in underestimating costs or facing unforeseen operational challenges in a foreign environment, which could lead to reduced profitability or even losses if they cannot adjust. For this specific contract supporting USAG-KA, risks could include geopolitical instability affecting operations, difficulties in recruiting and retaining qualified security personnel in South Korea, and potential changes in security requirements due to evolving threats. The 'exclusion of sources' in the competition also introduces a risk of not achieving the most competitive pricing possible.

What does the NAICS code 561612 (Security Guards and Patrol Services) imply about the specific services being procured?

The North American Industry Classification System (NAICS) code 561612 specifically identifies establishments primarily engaged in providing security guards and patrol services. This typically includes armed and unarmed guards for protecting people and property, monitoring surveillance equipment, and patrolling premises. For a contract supporting USAG-KA, this would likely encompass a range of services such as access control at gates and facilities, perimeter security, response to alarms and incidents, crowd control, and general surveillance to maintain order and safety on the installation. It implies a focus on human-provided security personnel rather than solely electronic security systems, although those may be used in conjunction.

How does the contract type 'Definitive Contract' influence its structure and execution?

A definitive contract is a standard, long-form contract that clearly specifies the rights and obligations of both the government and the contractor. Unlike simpler contract types like purchase orders, definitive contracts are typically used for more complex or long-term requirements. In this case, it being a 'Definitive Contract' suggests a formal, detailed agreement governing the provision of security and access control services over an extended period. It implies that all terms, conditions, specifications, and pricing mechanisms are thoroughly documented. This structure provides clarity and legal enforceability for both parties, facilitating the management of a large-scale, multi-year service requirement such as supporting a military garrison.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J20R0093

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14420 ALBEMARLE POINT PL STE 100, CHANTILLY, VA, 20151

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: $27,503,253

Exercised Options: $26,279,533

Current Obligation: $26,279,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline