DoD awards $19.8M for Combat Outpost Surveillance FPS Systems to Chenega Logistics, LLC

Contract Overview

Contract Amount: $19,779,483 ($19.8M)

Contractor: Chenega Logistics, LLC

Awarding Agency: Department of Defense

Start Date: 2012-05-31

End Date: 2013-12-31

Contract Duration: 579 days

Daily Burn Rate: $34.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMBAT OUTPOST SURVEILLANCE FPS SYSTEMS

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57104

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to CHENEGA LOGISTICS, LLC for work described as: COMBAT OUTPOST SURVEILLANCE FPS SYSTEMS Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 579 days suggests a focused, short-term need. 3. The base award amount of $34,161 appears significantly lower than the total potential value, indicating substantial option exercise. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. The contract was managed by the Defense Contract Management Agency (DCMA), indicating robust oversight. 6. The contract was awarded in May 2012, with an end date in December 2013, reflecting a past procurement.

Value Assessment

Rating: fair

The base award of $34,161 is a small fraction of the total contract value, making direct value assessment difficult without knowing the exercised options. The total value of $19.8M for surveillance systems over approximately 1.9 years suggests a moderate per-year cost. Benchmarking against similar sole-source contracts for specialized surveillance equipment would be necessary for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can fulfill the requirement. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive price.

Public Impact

The primary beneficiaries are likely Department of Defense (DoD) units requiring enhanced surveillance capabilities for combat outposts. The services delivered involve the provision of FPS (Forward Positioning System) surveillance systems. The geographic impact is likely concentrated in areas where combat outposts are established, potentially including overseas operational theaters. Workforce implications could include manufacturing, logistics, and technical support roles related to the surveillance systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of detailed performance metrics in provided data.
Potential for cost overruns in sole-source procurements.

Positive Signals

Award to a specific contractor suggests a potentially established relationship or specialized capability.
The contract was managed by DCMA, indicating oversight.
The total value suggests a significant requirement met.

Sector Analysis

The contract falls within the defense manufacturing sector, specifically related to electronic and surveillance systems. The NAICS code 334511 covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This sector is characterized by high technological requirements and significant government spending, particularly within defense. Comparable spending benchmarks would involve looking at other DoD contracts for similar surveillance or sensor technologies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information on subcontracting to small businesses (sb: false). Therefore, the direct impact on the small business ecosystem from this specific award appears minimal based on the available data. Further investigation into subcontracting plans would be needed for a comprehensive analysis.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and delivery requirements. Oversight mechanisms would typically include contract surveillance, performance reviews, and financial audits. Transparency is generally facilitated through contract databases like FPDS, though specific details of performance and cost justifications for sole-source awards may be less public.

Related Government Programs

Combat Outpost Operations
Defense Surveillance Systems
Tactical Surveillance Technology
DoD Sensor Procurement

Risk Flags

Sole-source award
Limited performance data available
Significant difference between base and total award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to CHENEGA LOGISTICS, LLC. COMBAT OUTPOST SURVEILLANCE FPS SYSTEMS

Who is the contractor on this award?

The obligated recipient is CHENEGA LOGISTICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2012-05-31. End: 2013-12-31.

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

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. For defense contracts, this could be due to proprietary technology, unique manufacturing capabilities, or urgent requirements where competition is not feasible. Without the specific justification documentation (e.g., a Justification and Approval - J&A document), it's impossible to determine the precise reason. However, common justifications include the existence of patents, unique technical expertise, or the need to maintain compatibility with existing systems where only one vendor can provide the necessary components or services.

How does the total contract value of $19.8M compare to similar surveillance system procurements by the DoD?

Comparing the $19.8M total contract value requires identifying similar procurements based on system type, capabilities, and duration. Surveillance systems can range widely in cost. For instance, basic sensor packages might cost thousands, while advanced integrated systems for large areas could run into millions. Given this contract's duration of approximately 1.9 years (579 days), the average annual spend is roughly $10.4M. This figure needs to be benchmarked against other contracts for Forward Positioning Systems (FPS) or similar combat outpost surveillance technologies. Without specific comparable contract data, it's difficult to definitively state if this represents high, low, or average spending. However, for specialized defense technology, this value is within a plausible range for significant system deployments.

What were the key performance metrics and outcomes associated with this contract?

The provided data does not include specific key performance metrics or outcomes for this contract. Typically, contracts detail requirements for system reliability, operational availability, detection range, accuracy, and response times. Performance outcomes would be documented in contract performance reports, acceptance testing records, and potentially post-deployment reviews. For a surveillance system, successful outcomes would likely include improved situational awareness, enhanced force protection at combat outposts, and effective threat detection. The absence of this information in the summary data limits a thorough assessment of the contract's effectiveness and the contractor's performance.

What is the track record of Chenega Logistics, LLC with similar DoD contracts?

Chenega Logistics, LLC is part of the larger Chenega Corporation, which has a significant history of contracting with the U.S. military, particularly in logistics, base operations support, and security services. While this specific contract is for surveillance systems, Chenega's broader portfolio suggests experience in supporting military operations. To assess their track record specifically with surveillance systems, one would need to examine their contract history for similar equipment or technology procurements. Their overall performance ratings on past contracts, including any awards or penalties, would provide further insight into their reliability and capability in fulfilling defense requirements.

What was the breakdown of spending between the base award and exercised options?

The provided data indicates a base award amount ('br') of $34,161 and a total award amount ('a') of $19,779,482.91. This signifies that the vast majority of the contract's value was realized through the exercise of options beyond the initial base contract. The difference, approximately $19,745,321.91, represents the value of the options that were exercised. This substantial difference highlights that the initial base award was likely for a minimal quantity or a preliminary phase, with the bulk of the funding committed to subsequent periods or expanded scope as defined in the contract's option clauses.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911QY12R0045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Chenega Corporation (UEI: 622692994)

Address: 114 S MAIN AVE STE 200, SIOUX FALLS, SD, 00

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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,779,483

Exercised Options: $19,779,483

Current Obligation: $19,779,483

Contract Characteristics

Cost or Pricing Data: NO

Timeline