State Department Awards $5.9M HVAC Repair Contract to Chugach Intelligence Solutions
Contract Overview
Contract Amount: $5,895,328 ($5.9M)
Contractor: Chugach Intelligence Solutions, LLC
Awarding Agency: Department of State
Start Date: 2022-09-16
End Date: 2026-04-30
Contract Duration: 1,322 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REC BELMOPAN, BELIZE CHILLERS / HVAC REPAIRS
Plain-Language Summary
Department of State obligated $5.9 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC for work described as: REC BELMOPAN, BELIZE CHILLERS / HVAC REPAIRS Key points: 1. Contract awarded for HVAC repairs in Belize. 2. Chugach Intelligence Solutions is the sole awardee. 3. The contract has a duration of over 3 years. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: questionable
The contract value of $5.9M for HVAC repairs over 3.5 years appears high, especially given the lack of competition. Benchmarking against similar government HVAC repair contracts is difficult without more specific scope details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about whether the government secured the best possible price and value for taxpayer funds.
Public Impact
Ensures operational readiness of facilities in Belize. Supports diplomatic missions and personnel. Potential for cost savings through competitive bidding on future contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for repairs
- Sole-source award
Positive Signals
- Supports critical infrastructure
- Long-term contract provides stability
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, specifically focusing on HVAC systems. Government spending in this sector often involves significant investments in maintaining facilities, with benchmarks varying widely based on project scope and location.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Future solicitations should consider opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of State adequately justified the lack of competition and obtained fair pricing.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation identified
Tags
commercial-and-institutional-building-co, department-of-state, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $5.9 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC. REC BELMOPAN, BELIZE CHILLERS / HVAC REPAIRS
Who is the contractor on this award?
The obligated recipient is CHUGACH INTELLIGENCE SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $5.9 million.
What is the period of performance?
Start: 2022-09-16. End: 2026-04-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves specific circumstances where only one responsible source can provide the required services or supplies. This could be due to unique capabilities, urgent needs, or specific security requirements. Without further details from the Department of State, it's difficult to ascertain the precise reason, but it warrants investigation to ensure it was a valid exception to full and open competition.
How does the $5.9M cost compare to similar HVAC repair contracts in similar geographic regions?
Benchmarking this $5.9M contract against similar HVAC repair contracts is challenging without detailed scope of work, specific equipment types, and labor rates for the Belize region. However, for a 3.5-year duration, this value suggests a substantial scope, potentially including major overhauls or extensive system replacements rather than routine maintenance. A comparative analysis with other State Department facilities or similar embassy/consulate repair contracts would be necessary for a robust assessment.
What is the potential impact on taxpayer funds due to the lack of competition?
The lack of competition in a sole-source award typically results in a higher cost to taxpayers compared to a competitively bid contract. Without multiple bids, the government loses the benefit of price negotiation and the incentive for contractors to offer their most competitive pricing. This can lead to an overpayment for the services rendered, potentially by a significant margin, depending on the market and the specific services required.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $5,895,328
Exercised Options: $5,895,328
Current Obligation: $5,895,328
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $3,351,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-16
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-02-19
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