State Department building renovation awarded to Chugach Intelligence Solutions for $1.98M, with a 462-day duration

Contract Overview

Contract Amount: $1,981,120 ($2.0M)

Contractor: Chugach Intelligence Solutions, LLC

Awarding Agency: General Services Administration

Start Date: 2024-12-09

End Date: 2026-03-16

Contract Duration: 462 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEPARTMENT OF STATE, HARRY S. TRUMAN BUILDING TASK 440 RENOVATION, 2201 C ST NW, WASHINGTON, DC 20520.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $2.0 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC for work described as: DEPARTMENT OF STATE, HARRY S. TRUMAN BUILDING TASK 440 RENOVATION, 2201 C ST NW, WASHINGTON, DC 20520. Key points: 1. The contract value of $1.98 million appears reasonable for a significant building renovation project of this scale. 2. Competition dynamics are limited, as the contract was not available for open competition, potentially impacting price discovery. 3. Risk indicators are moderate, given the fixed-price contract type which shifts some risk to the contractor, but the project duration presents potential for cost overruns. 4. Performance context is established by the General Services Administration (GSA) overseeing the renovation of a key federal facility. 5. Sector positioning places this contract within the commercial and institutional building construction domain, a common area for federal procurement.

Value Assessment

Rating: good

The contract value of $1.98 million for the Harry S. Truman Building Task 440 Renovation is within a typical range for substantial building upgrades. Benchmarking against similar GSA-managed renovation projects of comparable scope and complexity would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of defined costs, but the 462-day duration introduces potential for unforeseen issues that could impact the final expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for open competition, indicating a sole-source or limited competition award. The specific justification for this procurement approach is not detailed, but it means that potential savings from a broader bidding process were likely forgone. Without multiple bids, it is difficult to ascertain the most competitive price achievable in the market.

Taxpayer Impact: The lack of open competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a robust bidding process.

Public Impact

The primary beneficiaries are the Department of State personnel who will utilize the renovated facilities, leading to improved working conditions. The services delivered include comprehensive renovation of Task 440 within the Harry S. Truman Building. The geographic impact is localized to Washington, D.C., specifically at the State Department's headquarters. Workforce implications include employment opportunities for construction workers and related trades involved in the renovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
The extended project duration of 462 days increases the risk of schedule delays and potential cost escalations.
Lack of detailed justification for sole-source award raises transparency concerns.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Award to an established entity (Chugach Intelligence Solutions) may indicate prior positive performance.
Renovation of a critical federal building ensures continued operational capacity.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The General Services Administration (GSA) is a major procurer in this space, managing numerous renovation and construction projects for federal agencies. Spending in this sector is driven by the need to maintain and upgrade aging federal infrastructure, with contract values varying widely based on project scope and complexity.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Chugach Intelligence Solutions, is likely not a small business, and the contract was not specifically designed to benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), which is responsible for managing federal building construction and renovation. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to complete the work within the agreed-upon price. Transparency could be enhanced by publicly disclosing the justification for the sole-source award and providing regular progress updates.

Related Government Programs

Federal Building Renovations
Department of State Facilities Management
GSA Public Buildings Service Contracts
Commercial Construction Procurement

Risk Flags

Limited Competition
Extended Project Duration
Lack of Public Justification for Sole-Source Award

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.0 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC. DEPARTMENT OF STATE, HARRY S. TRUMAN BUILDING TASK 440 RENOVATION, 2201 C ST NW, WASHINGTON, DC 20520.

Who is the contractor on this award?

The obligated recipient is CHUGACH INTELLIGENCE SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-12-09. End: 2026-03-16.

What is the track record of Chugach Intelligence Solutions with the federal government, particularly on similar construction projects?

A review of federal procurement data would be necessary to fully assess Chugach Intelligence Solutions' track record. Specifically, one would look for past performance evaluations on similar construction and renovation contracts, particularly those managed by the General Services Administration (GSA). Key metrics to examine would include on-time delivery, adherence to budget, quality of work, and any history of contract disputes or terminations. Understanding their experience with firm fixed-price contracts and projects of similar duration (462 days) would also be crucial in evaluating their capability to successfully execute this renovation.

How does the awarded value of $1.98 million compare to similar federal building renovation projects managed by GSA?

To benchmark the value, one would compare this $1.98 million contract against GSA-administered renovation projects of comparable scope, size (square footage), and complexity within the last 3-5 years. Factors such as the age and condition of the building, the extent of the renovation (e.g., structural, MEP, finishes), and the specific location (Washington D.C. area costs) would need to be considered. If similar projects have been awarded for significantly less or more, it would indicate whether this contract represents excellent, fair, or questionable value for money. Without access to a detailed breakdown of the renovation tasks, a precise comparison is challenging.

What are the primary risks associated with a 462-day construction project for a federal building, and how are they mitigated?

The primary risks for a 462-day construction project include potential schedule delays due to unforeseen site conditions, material availability issues, labor shortages, or weather impacts. Cost escalation is another significant risk, especially if the fixed-price contract does not adequately account for potential fluctuations in material and labor costs over the extended period. Mitigation strategies typically involve robust project management, contingency planning, clear communication protocols between the government and contractor, and potentially performance bonds. The firm fixed-price nature shifts much of the financial risk to the contractor, incentivizing them to manage these risks effectively.

What is the justification for awarding this contract on a sole-source basis rather than through full and open competition?

The justification for a sole-source award is critical for understanding the procurement strategy and its potential impact on cost and competition. Common reasons include the existence of a unique capability held by only one contractor, urgent and compelling needs where competition is not feasible, or specific circumstances outlined in federal acquisition regulations (e.g., follow-on work to a previous contract where only one source can provide the necessary services). Without the specific justification documented by the GSA, it is impossible to definitively state why full and open competition was bypassed. This lack of transparency can raise concerns about whether taxpayers received the best possible value.

How does this contract align with the Department of State's broader infrastructure maintenance and modernization goals?

This renovation contract directly supports the Department of State's infrastructure maintenance and modernization goals by addressing necessary upgrades to a key facility, the Harry S. Truman Building. Such projects are essential for ensuring a safe, secure, and functional working environment for diplomatic staff and supporting the agency's mission. The specific scope of 'Task 440 Renovation' would determine how it contributes to modernization efforts, whether through technological upgrades, energy efficiency improvements, or enhanced space utilization. Consistent investment in facility upkeep is crucial for long-term operational effectiveness and asset preservation.

What are the potential implications of this contract on the local construction labor market in Washington D.C.?

A contract of this magnitude, valued at $1.98 million and spanning over a year (462 days), is likely to have a positive impact on the local construction labor market in the Washington D.C. area. It will create demand for skilled tradespeople, including electricians, plumbers, HVAC technicians, carpenters, and general laborers. Furthermore, it may stimulate business for local suppliers of construction materials and equipment. The duration of the project suggests sustained employment opportunities for the workforce involved, contributing to the regional economy. The specific skill sets required will depend on the detailed scope of the renovation.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PM0224R0019

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: $1,981,120

Exercised Options: $1,981,120

Current Obligation: $1,981,120

Actual Outlays: $707,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline