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If anything it looks a little underpowered to me; your basic forces are very expensive for the amount of firepower they can put out, and the arsenal is very short on ways to handle tough units.
If your friend is a Halo fan I might suggest taking a closer look at the Tau; they're competitive, interesting to play, and look and feel fairly close to the Covenant in a lot of ways (excepting the lack of melee, but I'm sure some creative modeling with Farsight and an Elite toy can solve that one)
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