DHS awards $9.2M contract for USCG engineering support, with 72% of value awarded to a single contractor

Contract Overview

Contract Amount: $9,217,542 ($9.2M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-05

End Date: 2026-07-05

Contract Duration: 1,277 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OBTAIN CONTRACTOR SUPPORT SERVICES FOR THE USCG PATROL BOAT ACQUISITION OFFICE (CG-9125) FRC PRO LOCKPORT LOUISIANA. ADMINISTRATIVE, LOGISTICS AND SYSTEMS ENGINEERING SUPPORT SERVICES, IN ADDITION TO TRAVEL. POP 01/05/23-01/06/26.

Place of Performance

Location: LOCKPORT, LAFOURCHE County, LOUISIANA, 70374

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.2 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: OBTAIN CONTRACTOR SUPPORT SERVICES FOR THE USCG PATROL BOAT ACQUISITION OFFICE (CG-9125) FRC PRO LOCKPORT LOUISIANA. ADMINISTRATIVE, LOGISTICS AND SYSTEMS ENGINEERING SUPPORT SERVICES, IN ADDITION TO TRAVEL. POP 01/05/23-01/06/26. Key points: 1. Contract provides essential administrative, logistics, and systems engineering support for the USCG's Patrol Boat Acquisition Office. 2. The contract duration is over three years, indicating a need for sustained support. 3. A significant portion of the contract value is concentrated with one awardee, raising questions about broad-based competition. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The procurement method involved full and open competition after exclusion of sources, suggesting a deliberate decision to limit initial bidders. 6. The contract is for engineering services, a critical area for naval asset acquisition and maintenance.

Value Assessment

Rating: fair

The contract value of $9.2 million for over three years of support appears reasonable for specialized engineering and logistics services. However, without specific benchmarks for similar support services within the Coast Guard or other naval acquisition programs, a definitive value-for-money assessment is challenging. The firm fixed-price nature of the contract helps control costs, but the limited number of bids received could indicate a less competitive pricing environment than ideal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be open, certain sources were intentionally excluded, potentially narrowing the field of bidders. The data indicates only one award was made, which, combined with the exclusion of sources, implies a limited competitive landscape for this specific requirement.

Taxpayer Impact: The limited competition may have resulted in less downward pressure on pricing, potentially leading to higher costs for taxpayers than if a broader range of bidders had been considered.

Public Impact

The U.S. Coast Guard's Patrol Boat Acquisition Office benefits from crucial support services, enabling efficient management of patrol boat programs. The contract ensures the continuity of administrative, logistics, and engineering functions vital to the acquisition and maintenance of Coast Guard vessels. Personnel in Louisiana, specifically in Lockport, are likely to be impacted through employment opportunities or support roles related to this contract. The successful execution of this contract contributes to the operational readiness and effectiveness of the Coast Guard's maritime security and law enforcement missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to 'exclusion of sources' could lead to suboptimal pricing.
Concentration of award value with a single contractor might limit future opportunities for other capable firms.
The specific nature of 'systems engineering support' may require specialized expertise, potentially limiting the pool of qualified bidders.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor.
The contract supports a critical national security agency (USCG) in its acquisition efforts.
The contract duration of over three years suggests a stable and predictable need for these services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and maritime acquisition. The market for such services is characterized by specialized expertise, long-term relationships, and significant government spending. Comparable spending benchmarks would typically involve other naval or aerospace acquisition programs requiring similar levels of technical and logistical support. The size of the overall market for government engineering services is substantial, with numerous firms competing for contracts across various agencies.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'small business set-aside' field is false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary contractor is expected to perform the majority of the work, and opportunities for small businesses to participate in this specific contract may be limited unless proactively sought by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's program management and the Department of Homeland Security's contracting oversight mechanisms. Accountability is established through the Firm Fixed Price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract's public availability, allowing for review of its terms and performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USCG Patrol Boat Programs
Department of Homeland Security Acquisition Support
Naval Engineering Services Contracts
Logistics Support for Federal Agencies
Systems Engineering Support Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for cost inefficiencies if scope expands.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.2 million to CHUGACH TECHNICAL SOLUTIONS LLC. OBTAIN CONTRACTOR SUPPORT SERVICES FOR THE USCG PATROL BOAT ACQUISITION OFFICE (CG-9125) FRC PRO LOCKPORT LOUISIANA. ADMINISTRATIVE, LOGISTICS AND SYSTEMS ENGINEERING SUPPORT SERVICES, IN ADDITION TO TRAVEL. POP 01/05/23-01/06/26.

Who is the contractor on this award?

The obligated recipient is CHUGACH TECHNICAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2023-01-05. End: 2026-07-05.

What is the track record of CHUGACH TECHNICAL SOLUTIONS LLC with the U.S. Coast Guard and Department of Homeland Security?

CHUGACH TECHNICAL SOLUTIONS LLC has a history of performing contracts with the U.S. Coast Guard and the broader Department of Homeland Security. While specific details on past performance quality for this exact type of support are not provided in this data snippet, their presence as an awardee suggests they have met the necessary qualifications and demonstrated capability to secure government contracts. A deeper dive into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment of their track record. This would involve examining contract databases for previous awards, task orders, and any associated performance metrics or disputes.

How does the awarded amount of $9.2 million compare to similar engineering support contracts for naval acquisition programs?

The $9.2 million contract value for over three years of administrative, logistics, and systems engineering support for the USCG Patrol Boat Acquisition Office is within a typical range for specialized support services in naval acquisition. However, direct comparisons are difficult without knowing the exact scope, complexity, and duration of 'similar' contracts. Factors such as the number of personnel required, the level of technical expertise, and the specific deliverables heavily influence pricing. Generally, contracts for systems engineering and logistics support for major acquisition programs can range from a few million to tens or even hundreds of millions of dollars over their lifecycle. This particular award appears to be for a focused set of support functions rather than a full program management role.

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

The primary risks associated with this contract include potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by the Firm Fixed Price structure), contractor performance issues in delivering specialized engineering and logistics support, and potential delays impacting the Coast Guard's patrol boat acquisition timeline. Mitigation strategies include the Firm Fixed Price contract type, which places cost risk on the contractor. The Coast Guard's oversight and performance monitoring are crucial for ensuring timely and quality delivery. The limited competition, however, presents a risk of suboptimal pricing and potentially less robust contractor performance due to reduced market pressure.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method is a nuanced approach that aims to balance broad competition with specific acquisition needs. While 'full and open' suggests an intention to solicit widely, the 'exclusion of sources' indicates that certain potential bidders were deliberately disqualified, perhaps due to security, capability, or other strategic reasons. This method can be effective if the exclusions are well-justified and the remaining pool of bidders is still sufficiently competitive. However, if the exclusions significantly limit the number of viable bidders, it can reduce price competition, potentially leading to higher costs for taxpayers compared to a truly unrestricted full and open competition. The effectiveness hinges on the rationale for exclusion and the resulting market dynamics.

What is the historical spending trend for engineering and logistics support services within the U.S. Coast Guard?

Historical spending trends for engineering and logistics support services within the U.S. Coast Guard generally show a consistent need for such services, particularly in areas related to vessel acquisition, maintenance, and operational readiness. Spending in this category can fluctuate based on major acquisition programs, modernization efforts, and operational tempo. While this specific $9.2 million contract is a single award, the Coast Guard collectively awards billions of dollars annually across various support service categories. Analyzing historical data would reveal patterns of spending on engineering, IT, logistics, and administrative support, highlighting which areas receive the most investment and identifying any significant year-over-year changes or trends driven by strategic priorities or budget allocations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, 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: $9,217,542

Exercised Options: $9,217,542

Current Obligation: $9,217,542

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,950,621

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8153

IDV Type: IDC

Timeline