DoD's $3.5M Facilities Support Services Contract Awarded to Chugach Federal Solutions LLC

Contract Overview

Contract Amount: $34,855,178 ($34.9M)

Contractor: Chugach Federal Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2015-09-30

Contract Duration: 364 days

Daily Burn Rate: $95.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF RECURRING WORK, FY15, OP 1

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to CHUGACH FEDERAL SOLUTIONS LLC for work described as: IGF::OT::IGF RECURRING WORK, FY15, OP 1 Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a clear understanding of scope and cost. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 364 days is typical for recurring service needs. 4. The contractor, Chugach Federal Solutions LLC, has a track record with federal contracts. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 7. The contract was awarded in Washington state, indicating a specific geographic focus for the services.

Value Assessment

Rating: fair

Benchmarking the value of this $3.5 million contract requires comparison to similar facilities support services contracts awarded by the Department of Defense. Without specific details on the scope of services (e.g., janitorial, maintenance, security), a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government aimed to control costs by defining them upfront. The number of bidders (9) indicates some level of competition, which can help in achieving a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. With 9 bidders participating, the competition level appears healthy, which typically leads to better price discovery and potentially more favorable terms for the government. The presence of multiple bidders suggests that the market for these facilities support services is robust enough to attract significant interest.

Taxpayer Impact: A competitive bidding process like this one generally benefits taxpayers by driving down prices and encouraging efficiency from contractors vying for the award.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential facilities support services. Services likely include maintenance, repair, and operational support for government facilities. The geographic impact is concentrated in Washington state, where the services are to be performed. The contract supports jobs within the facilities management and support services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to assess if the $3.5M represents optimal value.
The delivery order nature of the award suggests potential for follow-on work, but the specific IDIQ contract details are not provided.
Performance metrics and quality assurance details are not available in the provided data.

Positive Signals

Awarded under full and open competition, indicating a robust bidding environment.
Firm-fixed-price contract type helps in cost control and predictability.
Multiple bidders (9) suggest a competitive market for these services.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, is a significant sector within the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services necessary for the operation of buildings and other facilities. Federal spending in this area is substantial, supporting military bases, government offices, and other installations. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar services across different federal agencies and geographic locations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Chugach Federal Solutions LLC, may engage small businesses as subcontractors, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by locking in costs. Transparency is facilitated by the contract award being publicly available. Further oversight could be provided by the agency's Inspector General, particularly if performance issues or potential fraud arise.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support Services
Government Property Management
Department of Defense Service Contracts

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of contractor underperformance impacting facility operations.
Firm-fixed-price contracts can be less flexible for unforeseen changes.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to CHUGACH FEDERAL SOLUTIONS LLC. IGF::OT::IGF RECURRING WORK, FY15, OP 1

Who is the contractor on this award?

The obligated recipient is CHUGACH FEDERAL SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.9 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-09-30.

What is the specific scope of facilities support services covered by this contract?

The provided data identifies the contract under NAICS code 561210, which corresponds to Facilities Support Services. This broad category typically includes a range of services such as building maintenance, custodial services, groundskeeping, pest control, and potentially security or mailroom operations. However, the specific deliverables, service level agreements, and detailed requirements are not included in the abbreviated data. To understand the precise scope, one would need to review the full contract award documentation, including any statements of work or performance work statements.

How does the $3.5 million award compare to similar facilities support contracts for the Department of Defense?

A direct comparison of the $3.5 million award requires access to a database of similar contracts, considering factors like contract duration, geographic location, and the specific services rendered. Facilities support contracts can vary widely in cost based on the size and complexity of the facilities being serviced. For instance, a contract for a small administrative building would be significantly less expensive than one for a large military installation. The fact that this was awarded under full and open competition with 9 bidders suggests the price is likely competitive within its specific service niche and location. Further analysis would involve benchmarking against contracts with similar square footage, service types (e.g., janitorial vs. full maintenance), and contract types (firm-fixed-price).

What is the track record of Chugach Federal Solutions LLC with federal contracts, particularly in facilities support?

Chugach Federal Solutions LLC has a history of receiving federal contracts. While the provided data doesn't detail their entire contract portfolio, their presence as a recipient of this Department of Defense contract indicates they are an established federal contractor. To assess their track record thoroughly, one would need to examine their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the volume and value of previous contracts held, especially within the facilities support services domain. Their ability to win contracts under full and open competition suggests a level of competence and competitiveness.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include scope creep if the initial requirements are not clearly defined, contractor underperformance leading to service disruptions, or cost overruns if the firm-fixed-price model proves inadequate for unforeseen circumstances. Mitigation strategies often involve robust contract management by the agency, clear performance standards, regular progress reviews, and the use of contract clauses that allow for adjustments or penalties. The firm-fixed-price structure itself is a risk mitigation tool for the government, capping the potential cost. The competitive award process also helps mitigate the risk of selecting an unqualified contractor.

How does the competition level (9 bidders) impact the value and efficiency for the government?

A healthy competition with 9 bidders typically leads to better value for the government. It increases the likelihood that the lowest price meeting all requirements will be submitted. Competition also incentivizes contractors to be more efficient and offer better service quality to win and retain contracts. For taxpayers, this means their money is likely being spent more effectively, as the government is not beholden to a single provider and benefits from market forces driving down costs and improving service delivery.

What is the historical spending pattern for facilities support services by the Department of the Navy in Washington?

The provided data only pertains to a single contract award. To understand historical spending patterns for facilities support services by the Department of the Navy in Washington, extensive research into historical contract databases (like FPDS or USASpending) would be necessary. This would involve filtering for the Department of the Navy, the specific NAICS code (561210), and the geographic location (Washington). Analyzing trends over several fiscal years would reveal the total amount spent, the number of contracts awarded, the primary contractors, and the average contract values, providing context for the significance of this $3.5 million award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4425510R5016

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,855,178

Exercised Options: $34,855,178

Current Obligation: $34,855,178

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $8,375,111

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4425514D9000

IDV Type: IDC

Timeline