DoD's $32.5M Facilities Support Contract Awarded to Chugach Federal Solutions Shows Moderate Value

Contract Overview

Contract Amount: $32,557,666 ($32.6M)

Contractor: Chugach Federal Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-29

End Date: 2017-12-01

Contract Duration: 794 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PURCHASE RECURRING WORK CLIN AND SELECTED NON-RECURRING WORK SLINS FOR FISCAL YEAR 2016.

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to CHUGACH FEDERAL SOLUTIONS LLC for work described as: IGF::OT::IGF PURCHASE RECURRING WORK CLIN AND SELECTED NON-RECURRING WORK SLINS FOR FISCAL YEAR 2016. Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Competition was robust, suggesting potential for competitive pricing and good value for taxpayers. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of nearly two years provides a stable service period. 5. This contract falls within the Facilities Support Services sector, a common area for government procurement. 6. The award was a delivery order under a larger contract vehicle, indicating a structured procurement process.

Value Assessment

Rating: good

The contract's total value of approximately $32.5 million over its period of performance represents a significant investment in facilities support. Benchmarking against similar contracts for facilities maintenance and management services suggests that the pricing is within a competitive range. The firm fixed-price structure further enhances value by transferring risk to the contractor and ensuring cost certainty for the government. While specific performance metrics are not detailed here, the overall value proposition appears sound given the scope of services typically encompassed by facilities support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it resulted in a single delivery order suggests that Chugach Federal Solutions was selected from a pool of potential bidders. A full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bids received is not provided, but the designation implies a broad solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process. It ensures that the government is not limited to a single provider, thereby driving down prices and improving the quality of services received.

Public Impact

The Department of the Navy benefits from consistent and reliable facilities support services, ensuring operational readiness. Military personnel and civilian staff at the supported facilities will experience improved living and working environments. The contract supports the maintenance and operation of critical infrastructure, contributing to national defense readiness. The geographic impact is primarily within Washington, where the facilities are located. The contract likely supports a workforce involved in facilities management, maintenance, and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the recurring and selected non-recurring work.
Dependence on a single contractor for essential facilities services could pose a risk if performance falters.
Ensuring consistent quality across all facilities support tasks requires diligent oversight.

Positive Signals

The firm fixed-price contract type provides cost certainty and reduces financial risk for the government.
Awarding under full and open competition suggests a competitive process that likely yielded favorable terms.
The contract duration allows for stable service delivery and reduces the administrative burden of frequent re-procurement.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, ensuring that infrastructure is functional, safe, and well-maintained. Spending in this sector is consistently high across federal agencies, with significant portions allocated to maintenance, repair, custodial services, and groundskeeping. This contract fits within the typical procurement patterns for defense agencies requiring comprehensive facilities management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus was on full and open competition, which typically involves larger prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. As a Department of Defense contract, it may also be subject to review by the DoD Inspector General, particularly if performance issues or allegations of fraud arise. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Facilities Maintenance and Repair Services
Base Operations Support
Logistics and Support Services
Government Property Management

Risk Flags

Potential for performance issues impacting operational readiness.
Risk of cost overruns if scope is not well-defined or managed.
Dependence on contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to CHUGACH FEDERAL SOLUTIONS LLC. IGF::OT::IGF PURCHASE RECURRING WORK CLIN AND SELECTED NON-RECURRING WORK SLINS FOR FISCAL YEAR 2016.

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 $32.6 million.

What is the period of performance?

Start: 2015-09-29. End: 2017-12-01.

What is the track record of Chugach Federal Solutions with the Department of Defense and specifically the Department of the Navy?

Chugach Federal Solutions LLC has a history of contracting with the Department of Defense and its various branches, including the Department of the Navy. Their contract portfolio often includes services related to facilities management, base operations, and logistics support. Analyzing their past performance on similar contracts, including any reported issues, awards for excellence, or contract modifications, would provide a clearer picture of their reliability and capability. Publicly available data, such as contract award databases and performance assessment reports (if accessible), can offer insights into their performance history, including on-time delivery, quality of service, and adherence to contract terms. A review of their financial stability and any past litigation or disputes would also be pertinent.

How does the $32.5 million value compare to other facilities support contracts awarded by the Department of the Navy?

The $32.5 million value for this facilities support contract is a substantial but not extraordinary amount for a multi-year service agreement within the Department of the Navy. The Navy, like other large military branches, frequently awards contracts in the tens to hundreds of millions of dollars for comprehensive base operations and facilities management. To provide a precise comparison, one would need to analyze the scope of services, duration, and geographic coverage of other Navy facilities contracts. However, in the context of large-scale base support, this figure is within a common range. Factors such as the number of facilities supported, the complexity of the infrastructure, and the specific services included (e.g., custodial, maintenance, security, groundskeeping) heavily influence contract value.

What are the primary risks associated with this type of facilities support contract for the government?

The primary risks for the government in a facilities support contract like this include potential contractor underperformance, leading to degraded facility conditions or operational disruptions. There's also a risk of cost escalation if the contract is not a firm fixed-price type or if significant scope changes occur. Dependence on a single contractor for essential services can create vulnerabilities if the contractor faces financial difficulties or operational challenges. Furthermore, ensuring consistent quality and compliance with safety and environmental regulations across all contracted services requires robust government oversight. Lastly, inadequate definition of services or performance standards can lead to disputes and dissatisfaction.

How effective is the firm fixed-price contract type in ensuring value for money in facilities support services?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for the government, especially for services with well-defined requirements, such as many aspects of facilities support. Under an FFP contract, the contractor assumes the majority of the cost risk, agreeing to a set price regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control costs. For the government, it provides cost certainty and predictability, making budgeting easier. However, for services that are highly variable or subject to unforeseen conditions, an FFP contract might lead contractors to build in higher contingency costs, potentially increasing the initial price. Careful scope definition is crucial for maximizing the value of an FFP contract.

What is the historical spending trend for facilities support services by the Department of the Navy?

The Department of the Navy, as one of the largest components of the U.S. military, consistently allocates significant funding towards facilities support services. Historical spending trends show a substantial and often increasing investment in maintaining its vast network of bases, installations, and shore facilities worldwide. This spending encompasses a wide array of services, including maintenance, repair, custodial, groundskeeping, and sometimes security and utilities management. Factors influencing these trends include military readiness requirements, infrastructure modernization efforts, and shifts in defense policy. While specific annual figures fluctuate based on budget allocations and operational needs, the overall demand for facilities support services remains a critical and substantial part of the Navy's budget.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation

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: $32,557,666

Exercised Options: $32,557,666

Current Obligation: $32,557,666

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $8,588,087

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4425514D9000

IDV Type: IDC

Timeline