DoD's $86M Security Services Contract with Chenega Security International Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $86,351,475 ($86.4M)
Contractor: Chenega Security International, LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-15
End Date: 2026-06-28
Contract Duration: 2,631 days
Daily Burn Rate: $32.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SECURITY SERVICES
Plain-Language Summary
Department of Defense obligated $86.4 million to CHENEGA SECURITY INTERNATIONAL, LLC for work described as: SECURITY SERVICES Key points: 1. The contract awarded to Chenega Security International, LLC for security services represents a significant expenditure by the Department of Defense. 2. Competition was limited, raising questions about price discovery and potential value for taxpayers. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a complex procurement history. 4. Analysis of the per-unit cost benchmark is crucial to assess the overall value of this $86M contract.
Value Assessment
Rating: questionable
The contract's total value is $86,351,475.13. Without specific per-unit data or comparison to similar contracts for security guards and patrol services, it is difficult to definitively assess value. The limited competition may have impacted pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, specific sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: The limited competition and the substantial contract value raise concerns about whether taxpayers received the best possible price for these essential security services.
Public Impact
Taxpayers may be overpaying for security services due to a non-fully open competitive process. The long duration of the contract (ending in 2026) means potential overspending could continue for years. Lack of transparency in the procurement process can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of clear per-unit cost benchmark
Positive Signals
- Essential service provision
- Established contractor
Sector Analysis
The security services sector, particularly for government contracts, is highly competitive. However, the specific procurement method used here suggests unique circumstances that may have restricted competition, potentially leading to higher costs than in a fully open market.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants closer oversight to ensure fairness and prevent potential manipulation. Accountability for the final pricing and service quality is essential.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to inflated prices.
- Lack of transparency in source exclusion.
- Potential for taxpayer overspending.
- Long contract duration increases risk exposure.
Tags
security-guards-and-patrol-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.4 million to CHENEGA SECURITY INTERNATIONAL, LLC. SECURITY SERVICES
Who is the contractor on this award?
The obligated recipient is CHENEGA SECURITY INTERNATIONAL, 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 $86.4 million.
What is the period of performance?
Start: 2019-04-15. End: 2026-06-28.
What was the rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement, and how did this impact the final price?
The exclusion of specific sources suggests a complex procurement history, possibly related to specialized requirements or prior performance issues. This exclusion likely limited the number of bidders, potentially reducing competitive pressure and leading to a higher contract price than if all qualified sources had been allowed to compete.
How does the per-unit cost of security guards and patrol services under this contract compare to industry benchmarks and other government contracts?
Without specific per-unit cost data, a direct comparison is impossible. However, given the limited competition and the substantial total value, there is a risk that the per-unit costs are higher than market rates. Benchmarking against similar contracts would be necessary to confirm value for money.
What are the key performance indicators (KPIs) for this contract, and how is Chenega Security International, LLC being held accountable for service quality and cost-effectiveness?
The provided data does not detail the specific KPIs or accountability mechanisms. Effective oversight would involve regular performance reviews, clear metrics for service delivery, and penalties for non-compliance to ensure the contractor meets its obligations and provides value.
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: W9126018R0001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14295 PARK MEADOW DR STE 400, CHANTILLY, VA, 20151
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $118,536,320
Exercised Options: $86,383,398
Current Obligation: $86,351,475
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-04-15
Current End Date: 2026-06-28
Potential End Date: 2028-12-28 00:00:00
Last Modified: 2025-09-12
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