DHS Coast Guard awards $2.2M for IT support, highlighting need for specialized electromagnetic hazard services

Contract Overview

Contract Amount: $2,194,752 ($2.2M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-01

End Date: 2027-02-28

Contract Duration: 729 days

Daily Burn Rate: $3.0K/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: CODE PLUG SUPPORT AND ELECTROMAGNETIC/RADIATION HAZARD SUPPORT (EMI/RADHAZ)

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: CODE PLUG SUPPORT AND ELECTROMAGNETIC/RADIATION HAZARD SUPPORT (EMI/RADHAZ) Key points: 1. Contract addresses critical IT needs for the U.S. Coast Guard, focusing on specialized electromagnetic interference (EMI) and radiation hazard (RADHAZ) support. 2. The award to CHUGACH TECHNICAL SOLUTIONS LLC indicates a reliance on established vendors for complex technical services. 3. Fixed-price contract structure aims to control costs, but the duration suggests potential for scope creep if not managed closely. 4. The contract's value, while significant for the specific service, is modest within the broader IT services landscape. 5. Geographic focus on Virginia aligns with key operational hubs for the Coast Guard. 6. The specific nature of EMI/RADHAZ support suggests a niche but vital capability within federal IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $2.2 million over two years for specialized IT support appears reasonable given the niche nature of EMI/RADHAZ services. Benchmarking against similar specialized technical support contracts is challenging due to the specific requirements. However, the firm-fixed-price structure suggests an effort to ensure cost predictability for the government. The duration of the contract (729 days) allows for sustained support, which is often necessary for complex technical functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting that while competition was sought, certain pre-existing conditions or specific qualifications may have limited the pool of eligible bidders. This procurement method implies that initial solicitations may have been broad, but only a select few met the stringent technical requirements for specialized EMI/RADHAZ support. The limited number of direct competitors for such niche services can impact price discovery.

Taxpayer Impact: While the competition was not entirely open, the exclusion of sources was likely based on necessary technical expertise. This ensures the Coast Guard receives highly specialized support, but taxpayers may not benefit from the most aggressive pricing that broader competition could yield.

Public Impact

The U.S. Coast Guard benefits from enhanced IT infrastructure and specialized technical expertise in electromagnetic hazard management. Services delivered are crucial for maintaining the operational integrity and safety of Coast Guard assets and personnel. The primary geographic impact is within Virginia, where the Coast Guard maintains significant operational and administrative presence. This contract supports a specialized segment of the IT services workforce, requiring expertise in electromagnetic compatibility and radiation safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a fully open market.
The specialized nature of the services may create vendor lock-in if alternatives are scarce.
Long contract duration requires diligent oversight to ensure continued value and prevent scope creep.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established entity suggests a track record of reliable service delivery.
Focus on critical safety and operational support (EMI/RADHAZ) indicates a well-justified need.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized technical consulting and support. The market for EMI/RADHAZ services is niche, often requiring highly specialized knowledge and certifications. Comparable spending benchmarks are difficult to establish precisely due to the unique requirements, but federal IT spending overall is in the hundreds of billions annually, with specialized technical services representing a significant subset.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While CHUGACH TECHNICAL SOLUTIONS LLC may be a small business itself, the contract type and competition method do not suggest a specific strategy to involve or benefit the broader small business ecosystem through subcontracting opportunities in this instance. Further analysis would be needed to determine if subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security IT Services
U.S. Coast Guard IT Modernization
Electromagnetic Compatibility (EMC) Services
Radiation Hazard (RADHAZ) Support
Federal IT Consulting Contracts
Computer Related Services

Risk Flags

Limited competition may impact price optimization.
Specialized technical requirements could pose integration challenges.
Reliance on a single vendor for critical niche services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to CHUGACH TECHNICAL SOLUTIONS LLC. CODE PLUG SUPPORT AND ELECTROMAGNETIC/RADIATION HAZARD SUPPORT (EMI/RADHAZ)

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 $2.2 million.

What is the period of performance?

Start: 2025-03-01. End: 2027-02-28.

What is the track record of CHUGACH TECHNICAL SOLUTIONS LLC in delivering similar IT and specialized technical support services to federal agencies?

CHUGACH TECHNICAL SOLUTIONS LLC has a history of performing various IT and technical support services for federal agencies. While specific details on their EMI/RADHAZ expertise require deeper investigation into past performance reports and contract vehicles, their presence as an awardee suggests they possess the necessary qualifications. Analyzing their prior contracts with agencies like DHS or other branches of the military would provide insight into their reliability, quality of service, and ability to manage complex technical requirements within budget and schedule constraints. A review of their past performance evaluations would be crucial to fully assess their suitability for this specific contract.

How does the pricing of this contract compare to similar specialized IT support services for electromagnetic hazards in the federal market?

Directly comparing the per-unit cost or overall value of this $2.2 million contract to 'similar' EMI/RADHAZ support contracts is challenging due to the highly specialized and niche nature of these services. The market for such expertise is limited, meaning fewer comparable contracts exist, and pricing can vary significantly based on specific technical requirements, geographic location, and the level of security clearance needed. The firm-fixed-price structure provides cost certainty for the government. However, without access to detailed pricing breakdowns or a broader set of benchmark data for comparable niche technical services, a definitive value-for-money assessment relative to the market is difficult. The Coast Guard likely conducted market research to ensure the price was fair and reasonable for the required specialized support.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns if the scope of work expands beyond initial estimates, despite the firm-fixed-price structure, especially given the 729-day duration. Another risk is the limited competition, which could result in less favorable pricing than a more open market might offer. Technical risks related to the complexity of EMI/RADHAZ support and the potential for unforeseen challenges in ensuring compliance and safety are also present. Mitigation strategies likely involve robust contract management by the Coast Guard, including detailed performance monitoring, clear communication channels with the contractor, and potentially contingency planning for technical issues. The limited competition risk is mitigated by ensuring the chosen contractor possesses the essential, specialized expertise required.

How effective is the U.S. Coast Guard's current IT infrastructure in managing electromagnetic interference and radiation hazards, and how will this contract enhance that effectiveness?

This contract is specifically designed to enhance the U.S. Coast Guard's effectiveness in managing EMI/RADHAZ. The award signifies a recognized need for specialized support to ensure that electronic systems operate correctly without interfering with each other or posing radiation risks, which is critical for operational safety and mission success. The contractor will likely provide expertise in testing, analysis, system design review, and compliance verification. By engaging CHUGACH TECHNICAL SOLUTIONS LLC, the Coast Guard aims to bolster its capabilities in these areas, potentially improving the reliability of its communication, navigation, and sensor systems, and ensuring adherence to safety standards across its diverse fleet and shore-based installations.

What has been the historical spending pattern for EMI/RADHAZ support services by the Department of Homeland Security or the U.S. Coast Guard?

Analyzing historical spending patterns for highly specialized services like EMI/RADHAZ support requires access to detailed procurement data beyond this single award. While the Department of Homeland Security (DHS) and its components, including the U.S. Coast Guard, spend billions on IT and technical services annually, specific line items for EMI/RADHAZ support may be aggregated within broader categories such as 'Other Computer Related Services' (NAICS code 541519) or 'Engineering Services.' This $2.2 million award suggests that dedicated funding for these services exists, but understanding the trend would involve tracking similar awards over multiple fiscal years to identify patterns of increasing, decreasing, or stable investment in this particular capability.

Industry Classification

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

Solicitation ID: 70Z04425RESD12505

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, Manufacturer of Goods, 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: $4,512,954

Exercised Options: $4,362,954

Current Obligation: $2,194,752

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,468,606

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z04423DESD20001

IDV Type: IDC

Timeline