DHS awards $5.6M for UCOP Engineering Development Services to Chugach Information Technology LLC

Contract Overview

Contract Amount: $5,568,782 ($5.6M)

Contractor: Chugach Information Technology LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-03-16

End Date: 2025-12-31

Contract Duration: 1,386 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNCLASSIFIED COMMON OPERATIONAL PICTURE (UCOP) ENGINEERING DEVELOPMENT SERVICES

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.6 million to CHUGACH INFORMATION TECHNOLOGY LLC for work described as: UNCLASSIFIED COMMON OPERATIONAL PICTURE (UCOP) ENGINEERING DEVELOPMENT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1386 days indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs for the government. 4. Services are categorized under Computer Systems Design, a key area for operational support. 5. The award is a Delivery Order, implying it's part of a larger indefinite-delivery contract vehicle. 6. The contractor, Chugach Information Technology LLC, has a track record in IT services.

Value Assessment

Rating: good

The total award of $5.6 million over approximately 3.8 years for engineering development services appears reasonable given the scope. Benchmarking against similar Computer Systems Design Services contracts within DHS would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means it was competed broadly but with specific exclusions. The presence of 2 bids suggests a moderate level of competition. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award, even with two bidders, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source procurement. It indicates that the government sought multiple offers to ensure a fair market price.

Public Impact

The U.S. Coast Guard benefits from enhanced operational capabilities through the development of the UNCLASSIFIED COMMON OPERATIONAL PICTURE (UCOP). This contract delivers critical engineering development services to support and improve the UCOP system. The services provided are essential for real-time situational awareness and decision-making within the Coast Guard. The impact is primarily on the operational effectiveness and technological advancement of the U.S. Coast Guard's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed throughout the contract duration.
Dependence on a single contractor for critical system development could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps mitigate cost overruns.
Awarded through a competitive process, indicating potential for good value.
Long-term duration suggests a stable and ongoing need, allowing for focused development.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design. The federal market for IT services is substantial, with agencies like DHS heavily investing in systems that support national security and operational missions. The UCOP system is a critical component for maritime domain awareness and operational command, placing this contract within a vital sub-sector of defense and homeland security IT.

Small Business Impact

The data indicates that small business participation was not a primary set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. Further review would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Coast Guard contracting office and program managers within the Department of Homeland Security. The firm-fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Command and Control Systems
Maritime Domain Awareness Systems
Common Operational Picture Development Contracts

Risk Flags

Potential for vendor lock-in if system is highly proprietary.
Dependence on specific technical expertise of the awarded contractor.
Risk of integration challenges with existing or future systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.6 million to CHUGACH INFORMATION TECHNOLOGY LLC. UNCLASSIFIED COMMON OPERATIONAL PICTURE (UCOP) ENGINEERING DEVELOPMENT SERVICES

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 $5.6 million.

What is the period of performance?

Start: 2022-03-16. End: 2025-12-31.

What is the track record of Chugach Information Technology LLC with the Department of Homeland Security and similar contracts?

Chugach Information Technology LLC (CIT) has a history of performing IT services for various government agencies, including DHS. Reviewing their past performance on contracts related to system design, development, and operational support would be crucial. Specifically, examining their performance on previous UCOP-related efforts or similar command and control systems would provide insight into their capabilities and reliability. Past performance evaluations, if available, would indicate their adherence to schedule, budget, and technical requirements. A review of contract awards and modifications can also highlight their experience with firm-fixed-price contracts and delivery order structures.

How does the $5.6 million value compare to similar UCOP or operational picture development contracts?

Benchmarking the $5.6 million award against similar contracts for developing or enhancing operational picture systems requires access to a broader dataset of federal procurements. Factors such as contract duration, scope complexity, and specific functionalities (e.g., real-time data integration, user interface design, security features) significantly influence cost. If this contract is for initial development versus sustainment or enhancement, the price point could vary. A preliminary assessment suggests that for a multi-year engineering development effort, this amount is within a plausible range, but a detailed comparison with contracts of similar scope and complexity within DHS or other agencies would be necessary for a definitive value assessment.

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

Key risks include potential scope creep, contractor performance issues, and technological obsolescence. Scope creep can occur if requirements evolve without proper change control, leading to cost overruns or schedule delays. Contractor performance risk is managed through contract oversight, performance metrics, and the firm-fixed-price structure, which incentivizes the contractor to meet defined objectives efficiently. Technological obsolescence is a risk in IT development; mitigation involves ensuring the system architecture is adaptable and that development incorporates current and future-ready technologies. The contract's duration and the competitive award process also play roles in managing these risks.

How effective is the UCOP system expected to be following this engineering development effort?

The effectiveness of the UCOP system post-development hinges on the successful execution of the engineering services outlined in the contract. The goal is to enhance situational awareness, improve data fusion from various sources, and provide a more intuitive interface for decision-makers within the U.S. Coast Guard. If the development meets its technical objectives, the system should lead to more informed and timely operational responses, better resource allocation, and improved overall mission effectiveness in areas like maritime security, search and rescue, and law enforcement. The success will be measured by the system's ability to deliver accurate, timely, and actionable intelligence.

What are the historical spending patterns for UCOP or similar operational picture systems within DHS?

Historical spending on UCOP or similar operational picture systems within DHS likely shows a consistent investment in command, control, and situational awareness technologies. Agencies like the Coast Guard require robust systems to manage vast maritime areas and diverse threats. Spending patterns would typically reflect a mix of development, sustainment, and upgrade contracts. Fluctuations in spending might correlate with major system overhauls, new technological insertions, or shifts in operational priorities. Analyzing past budgets and contract awards for these types of systems can reveal trends in investment and the evolution of technological requirements over time.

What is the significance of the 'Delivery Order' contract type in this context?

The 'Delivery Order' (aw: DELIVERY ORDER) designation indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means the government has established terms and conditions, and potentially a ceiling amount, under a master contract, and this specific order defines the scope, price, and delivery schedule for a particular requirement. This approach allows for flexibility and faster procurement of services as needs arise, while still leveraging a competitive process for the underlying IDIQ contract. It suggests that the UCOP engineering development services might be part of a broader, ongoing IT support framework for the Coast Guard.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z04422R22002400

Offers Received: 2

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: $7,067,147

Exercised Options: $6,807,427

Current Obligation: $5,568,782

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,318,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98119D00042

IDV Type: GWAC

Timeline