State Dept. Awards $3.7M for Technical Oversight Services to Chugach Dynamic Solutions LLC

Contract Overview

Contract Amount: $3,722,539 ($3.7M)

Contractor: Chugach Dynamic Solutions LLC

Awarding Agency: Department of State

Start Date: 2024-06-11

End Date: 2026-06-10

Contract Duration: 729 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL & PROGRAM OVERSIGHT SERVICES TO INCLUDE: SYSTEMS INSTALLATION AND ACCEPTANCE, SYSTEMS INTEGRATION, SYSTEMS DEVELOPMENT AND TESTING, SYSTEMS AND INFORMATION ENGINEERING, AND A VARIETY OF OTHER TECHNICAL SUPPORT SERVICES.

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $3.7 million to CHUGACH DYNAMIC SOLUTIONS LLC for work described as: TECHNICAL & PROGRAM OVERSIGHT SERVICES TO INCLUDE: SYSTEMS INSTALLATION AND ACCEPTANCE, SYSTEMS INTEGRATION, SYSTEMS DEVELOPMENT AND TESTING, SYSTEMS AND INFORMATION ENGINEERING, AND A VARIETY OF OTHER TECHNICAL SUPPORT SERVICES. Key points: 1. Contract awarded for comprehensive technical and program oversight services. 2. Chugach Dynamic Solutions LLC is the sole awardee. 3. The contract is a definitive contract with a Time and Materials pricing structure. 4. Services include systems installation, integration, development, testing, and engineering.

Value Assessment

Rating: questionable

The Time and Materials pricing structure can lead to cost overruns if not closely managed. Without a competitive bid, it's difficult to assess if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for these essential technical services may result in a higher cost to taxpayers than if multiple vendors had bid.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The broad scope of services could lead to unforeseen cost increases under a Time and Materials contract. Ensuring robust oversight of this sole-source contract is crucial for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Time and Materials pricing structure poses cost overrun risk.
Broad service scope may lead to scope creep and increased costs.

Positive Signals

Definitive contract provides clear terms for service delivery.
Longer duration allows for consistent support.

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Benchmarks for similar technical oversight services can vary widely depending on complexity and duration, but competitive bidding typically drives costs down.

Small Business Impact

The awardee, Chugach Dynamic Solutions LLC, is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses within this contract.

Oversight & Accountability

The contract is managed by the Department of State. Given the sole-source nature and Time and Materials pricing, rigorous oversight and performance monitoring are essential to ensure value for money and prevent potential cost escalations.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award
Time and Materials pricing
Lack of small business participation noted
Broad service scope

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.7 million to CHUGACH DYNAMIC SOLUTIONS LLC. TECHNICAL & PROGRAM OVERSIGHT SERVICES TO INCLUDE: SYSTEMS INSTALLATION AND ACCEPTANCE, SYSTEMS INTEGRATION, SYSTEMS DEVELOPMENT AND TESTING, SYSTEMS AND INFORMATION ENGINEERING, AND A VARIETY OF OTHER TECHNICAL SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is CHUGACH DYNAMIC 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 $3.7 million.

What is the period of performance?

Start: 2024-06-11. End: 2026-06-10.

What specific factors justified the sole-source award for these technical and program oversight services, and were alternatives considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further details from the Department of State, it's unclear why competitive bidding was not feasible. Exploring alternatives and documenting the rationale thoroughly is critical for transparency and accountability in government contracting.

How will the Department of State mitigate the risks associated with the Time and Materials pricing structure to control costs?

Mitigation strategies for Time and Materials contracts include establishing clear labor categories with pre-negotiated rates, setting firm fixed-price CLINs for specific deliverables where possible, implementing robust monitoring of hours and expenses, and requiring detailed progress reports. Strong contract management and regular performance reviews are vital to prevent cost overruns and ensure efficient service delivery.

What metrics will be used to measure the effectiveness and value delivered by Chugach Dynamic Solutions LLC for these oversight services?

Effectiveness can be measured through key performance indicators (KPIs) related to system acceptance rates, successful integration milestones, adherence to testing protocols, and timely identification of project risks. Value will be assessed by comparing project outcomes against established objectives, the quality of technical guidance provided, and the overall contribution to the successful execution of the Department's programs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM24R0075

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $35,518,438

Exercised Options: $14,027,011

Current Obligation: $3,722,539

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline