DHS Coast Guard's $3.8M IT support contract with Chugach Information Technology LLC shows fair value but limited competition

Contract Overview

Contract Amount: $3,851,307 ($3.9M)

Contractor: Chugach Information Technology LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-24

End Date: 2023-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OBJECTIVE OF THE BASS REQUIREMENT IS TO OBTAIN NECESSARY CONTRACTOR SERVICES SUPPORT IN MAINTAINING INTEROPERABILITY, RESTRUCTURE EXISTING PROCESSES, TEST CHANGES, IMPLEMENT CHANGES, TRAIN USERS IN THE FIELD AND SUPPORT PERSONNEL, MONITOR SUCCESS THROUGH HELP DESK SUPPORT, AND COLLECT METRICS.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.9 million to CHUGACH INFORMATION TECHNOLOGY LLC for work described as: THE OBJECTIVE OF THE BASS REQUIREMENT IS TO OBTAIN NECESSARY CONTRACTOR SERVICES SUPPORT IN MAINTAINING INTEROPERABILITY, RESTRUCTURE EXISTING PROCESSES, TEST CHANGES, IMPLEMENT CHANGES, TRAIN USERS IN THE FIELD AND SUPPORT PERSONNEL, MONITOR SUCCESS THROUGH HELP DESK SUPPORT, AN… Key points: 1. The contract focuses on essential IT support, including system maintenance, process restructuring, testing, implementation, training, and help desk services. 2. While the contractor has a track record, the contract's value appears reasonable when benchmarked against similar IT support services. 3. The procurement method, 'Full and Open Competition after Exclusion of Sources,' suggests potential limitations in the competitive landscape. 4. Performance metrics and help desk support are key indicators for monitoring the success of the contractor's services. 5. This contract aligns with the broader IT modernization and operational support needs within the U.S. Coast Guard. 6. The fixed-price contract type provides cost certainty for the government, mitigating some financial risks. 7. The duration of the contract (5 years) indicates a need for sustained IT support services.

Value Assessment

Rating: fair

The contract's total value of approximately $3.85 million over five years for comprehensive IT support services appears to be within a reasonable range when compared to industry benchmarks for similar services. The firm fixed-price structure helps in managing costs. However, without more granular data on specific deliverables and performance metrics, a definitive assessment of 'excellent' value is challenging. The pricing seems competitive given the scope, but the limited competition might have influenced the final negotiated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of eligible bidders. The data does not specify the exact number of bidders, but the designation suggests a less robust competitive environment than a standard full and open competition. This could impact price discovery and potentially lead to higher costs than if a broader range of vendors had participated.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most aggressive pricing possible. While the contract was competed, the exclusion of certain sources could have resulted in a higher overall cost compared to a scenario with maximum bidder participation.

Public Impact

The U.S. Coast Guard benefits from enhanced IT interoperability, process efficiency, and user support, ensuring smoother operations. Services delivered include system maintenance, testing, implementation, user training, and ongoing help desk support. The primary geographic impact is within the U.S. Coast Guard's operational areas, supporting its mission readiness. Workforce implications include training for field and support personnel, improving their technical proficiency. The contract supports the Coast Guard's critical maritime security and safety missions by ensuring reliable IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to suboptimal pricing for taxpayers.
The exclusion of sources in the procurement process warrants further investigation into the rationale.
Lack of detailed performance metrics makes it difficult to fully assess value for money.
The long contract duration could pose risks if technology or requirements change significantly.

Positive Signals

The contract addresses critical IT support needs for a vital federal agency.
The firm fixed-price contract provides budget certainty.
The contractor, Chugach Information Technology LLC, is tasked with essential operational support functions.
The contract includes provisions for user training, enhancing internal capabilities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial segment of the IT industry supporting government operations. The market for such services is large and competitive, with numerous firms offering specialized support. The U.S. Coast Guard's spending on IT support is part of a broader federal trend towards modernizing legacy systems and enhancing digital capabilities to meet evolving mission requirements. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies for similar scopes of work.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the contract was likely awarded to a large business, and opportunities for small businesses to participate as prime contractors or through subcontracting may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers responsible for ensuring contractor performance and adherence to contract terms. The Department of Homeland Security's Office of Inspector General (OIG) may also conduct audits or investigations into contract spending and performance as part of its mandate to promote economy and efficiency. Transparency is facilitated through contract databases like FPDS, which provide public access to contract details, though detailed performance reports are typically internal.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Operational Support Contracts
Federal Civilian IT Services Procurement
Computer Systems Design Services Contracts
IT Help Desk and Support Services

Risk Flags

Limited competition may impact value for money.
Potential for scope creep given the long contract duration.
Dependence on a single contractor for critical IT support.
Need for clear performance metrics to ensure accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.9 million to CHUGACH INFORMATION TECHNOLOGY LLC. THE OBJECTIVE OF THE BASS REQUIREMENT IS TO OBTAIN NECESSARY CONTRACTOR SERVICES SUPPORT IN MAINTAINING INTEROPERABILITY, RESTRUCTURE EXISTING PROCESSES, TEST CHANGES, IMPLEMENT CHANGES, TRAIN USERS IN THE FIELD AND SUPPORT PERSONNEL, MONITOR SUCCESS THROUGH HELP DESK SUPPORT, AND COLLECT METRICS.

Who is the contractor on this award?

The obligated recipient is CHUGACH INFORMATION TECHNOLOGY 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 $3.9 million.

What is the period of performance?

Start: 2018-09-24. End: 2023-09-23.

What is the track record of Chugach Information Technology LLC with the federal government, particularly with the Department of Homeland Security?

Chugach Information Technology LLC (CIT) has a significant history of contracting with the federal government, including substantial work with the Department of Homeland Security (DHS) and its various components like the U.S. Coast Guard. Their portfolio often includes IT support, systems integration, and other technical services. Reviewing past performance evaluations and contract awards for CIT can provide insights into their reliability, quality of service, and ability to manage complex projects. While this specific contract is for $3.85 million, their broader federal contract history might reveal larger or more complex engagements, offering a fuller picture of their capabilities and past performance.

How does the value of this contract compare to similar IT support contracts awarded by the U.S. Coast Guard or DHS?

Benchmarking this $3.85 million, 5-year contract requires comparing it against similar IT support services procured by the U.S. Coast Guard and DHS. Factors like the scope of services (help desk, system maintenance, training), contract type (firm fixed-price), and duration are crucial. Generally, IT support contracts can vary widely in price based on complexity and service levels. A contract of this size for comprehensive support over five years appears moderate. However, a detailed comparison would involve analyzing the number of users supported, the criticality of the systems, and specific service level agreements (SLAs) to determine if the price per service unit is competitive within the agency's historical spending patterns.

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

Key risks for this contract include potential underperformance by the contractor, leading to disruptions in critical Coast Guard IT operations. Another risk is scope creep, where the requirements may expand beyond the initial agreement, potentially increasing costs if not managed properly. Given the 'limited competition' aspect, there's also a risk that the government did not secure the most cost-effective solution. Management of these risks is likely through the firm fixed-price structure, which shifts some cost risk to the contractor, and through the Coast Guard's contract oversight, including monitoring performance metrics and help desk support. Clear communication channels and defined deliverables are essential for mitigating these risks.

How effective has Chugach Information Technology LLC been in delivering the services outlined in this contract?

Assessing the effectiveness of Chugach Information Technology LLC requires access to performance reports, user feedback, and help desk metrics associated with this specific contract. The contract's objective includes maintaining interoperability, restructuring processes, testing, implementation, training, and monitoring success through help desk support and metrics collection. Without direct access to these internal performance evaluations, it's difficult to provide a definitive assessment. However, the continued award and duration of such contracts often imply a level of satisfactory performance, though 'satisfactory' can range widely and may not always represent optimal value or efficiency.

What are the historical spending patterns for IT support services within the U.S. Coast Guard, and how does this contract fit?

The U.S. Coast Guard, like other branches of the Department of Homeland Security, relies heavily on IT infrastructure to support its diverse missions. Historical spending patterns likely show consistent investment in IT support, encompassing areas like network management, cybersecurity, software development, and end-user support. This $3.85 million contract for Computer Systems Design Services fits within the broader category of IT operational support. It addresses specific needs for system maintenance, process improvement, and user enablement, contributing to the overall IT ecosystem that underpins the Coast Guard's operations. Understanding historical spending helps contextualize the scale and necessity of this particular contract.

What does the 'Full and Open Competition after Exclusion of Sources' procurement method imply about the competitive landscape for this contract?

The 'Full and Open Competition after Exclusion of Sources' method indicates that the solicitation was made available to all responsible sources, but specific sources were intentionally excluded from consideration. This is often done for reasons such as national security, proprietary information, or specific capabilities required that only a limited number of entities possess. While it aims for broad competition among eligible parties, the exclusion inherently limits the pool of potential bidders compared to a standard 'Full and Open Competition.' This can impact the level of price competition and potentially lead to fewer innovative solutions being proposed, suggesting a less robust market dynamic than a completely unrestricted competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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, 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: $3,851,307

Exercised Options: $3,851,307

Current Obligation: $3,851,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17GWD2309

IDV Type: GWAC

Timeline