USAID awards $24.7M contract for institutional support to Chugach Technical Solutions LLC

Contract Overview

Contract Amount: $24,736,334 ($24.7M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Agency for International Development

Start Date: 2023-03-16

End Date: 2026-09-30

Contract Duration: 1,294 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACT FOR INSTITUTIONAL CONTRACT SUPPORT (ISC) TO SUPPORT CORE MISSIONS OF M/OAA AND PROVIDE SME SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $24.7 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: CONTRACT FOR INSTITUTIONAL CONTRACT SUPPORT (ISC) TO SUPPORT CORE MISSIONS OF M/OAA AND PROVIDE SME SUPPORT. Key points: 1. Contract provides critical Subject Matter Expert (SME) support for core Agency for International Development (USAID) missions. 2. The contract utilizes a Time and Materials pricing structure, which can present cost control challenges. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a potentially complex procurement process. 4. The contract duration extends over three years, suggesting a need for sustained support. 5. The primary place of performance is Washington D.C., concentrating economic impact in the capital region. 6. This award falls under Engineering Services (NAICS 541330), aligning with technical and professional services.

Value Assessment

Rating: fair

The contract value of $24.7 million over approximately 3.2 years averages to about $7.7 million annually. Benchmarking this against similar contracts for institutional support and SME services within federal agencies is challenging without more specific service details. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not closely managed, compared to fixed-price contracts. The value proposition hinges on the quality and impact of the SME support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 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 broad, certain sources may have been excluded based on predefined criteria, potentially limiting the pool of bidders. The number of bidders is not specified, making it difficult to fully assess the intensity of competition and its impact on price discovery. A limited competition might result in less aggressive pricing compared to a truly unrestricted full and open process.

Taxpayer Impact: Taxpayers benefit from a competitive process, but the exclusion of sources warrants scrutiny to ensure maximum value was achieved. A less competitive environment could mean higher costs than might otherwise be secured.

Public Impact

The primary beneficiaries are the Agency for International Development (USAID) and its core mission operations, which will receive enhanced institutional and SME support. The services delivered are crucial for the effective functioning and strategic execution of USAID's international development programs. The geographic impact is concentrated in Washington D.C., where the primary place of performance is located. The contract supports specialized professional roles, potentially impacting the workforce in engineering, technical consulting, and program management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not diligently managed and monitored.
The 'exclusion of sources' clause in the competition type suggests a potentially narrowed field of bidders, which could impact price competitiveness.
Lack of specific performance metrics makes it difficult to objectively assess the contractor's effectiveness and value for money.
The contract's duration of over three years requires ongoing oversight to ensure continued alignment with USAID's evolving needs.

Positive Signals

Awarded to Chugach Technical Solutions LLC, a known entity in government contracting, suggesting a degree of established capability.
The contract aims to provide essential institutional and SME support, indicating a recognized need within USAID's core missions.
The use of a competitive procurement process, even with exclusions, is a positive signal for seeking qualified vendors.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is characterized by a high degree of specialization and expertise. Federal spending in this area supports a wide range of government functions, from infrastructure design to complex program management and advisory roles. Comparable spending benchmarks would typically involve analyzing contracts for management consulting, technical advisory, and specialized engineering support across various federal agencies, often measured by annual spending or contract value per FTE.

Small Business Impact

The contract details indicate that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. This suggests that the competition was likely focused on larger, established firms capable of meeting the specialized requirements. There is no explicit mention of subcontracting goals for small businesses within the provided data, which could limit opportunities for the small business ecosystem to participate in this particular contract's execution.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID) contracting officers and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases like FPDS.gov, where contract awards are recorded. The Inspector General's office for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Program Management Support Contracts
Federal Engineering and Technical Services
Institutional Support Contracts
Subject Matter Expert (SME) Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition due to 'exclusion of sources' may impact price.
Lack of detailed performance metrics hinders objective value assessment.
Concentration of performance in a single geographic location (DC).

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $24.7 million to CHUGACH TECHNICAL SOLUTIONS LLC. CONTRACT FOR INSTITUTIONAL CONTRACT SUPPORT (ISC) TO SUPPORT CORE MISSIONS OF M/OAA AND PROVIDE SME SUPPORT.

Who is the contractor on this award?

The obligated recipient is CHUGACH TECHNICAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2023-03-16. End: 2026-09-30.

What is the specific nature of the 'institutional contract support' and SME expertise required by USAID under this contract?

The contract description states it is for 'Institutional Contract Support (ISC) to support core missions of M/OAA and provide SME support.' While the exact nature of the support is not detailed, M/OAA typically refers to the Management/Office of the Administrator within USAID. This suggests the contract likely involves providing expert advice, analytical services, program management assistance, policy development, or operational support critical to the functioning of USAID's administrative and core mission objectives. The SME support implies specialized knowledge in areas relevant to international development, foreign assistance, or government operations.

How does the 'full and open competition after exclusion of sources' procurement method differ from standard full and open competition, and what are its implications?

Standard 'full and open competition' requires all responsible sources to be considered. 'Full and open competition after exclusion of sources' means that while the competition was intended to be broad, specific sources were intentionally excluded based on certain criteria, often related to national security, specialized capabilities, or prior performance issues. This method can be used when a limited number of sources possess the required expertise or when specific circumstances warrant excluding certain entities. The implication is that the pool of potential bidders is smaller than in a standard full and open competition, which could potentially reduce price competition and innovation, although it aims to ensure the most suitable, albeit limited, sources are considered.

What are the potential risks associated with the Time and Materials (T&M) contract type for this $24.7 million award?

Time and Materials (T&M) contracts carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, meaning the final price is determined by the actual labor hours and material costs incurred. If not managed rigorously, this can lead to cost overruns and a higher final price than initially anticipated. Key risks include potential for inefficient labor utilization, scope creep without adequate cost adjustments, and difficulty in accurately forecasting the total expenditure. Effective oversight, detailed tracking of hours and materials, and strong negotiation skills by the contracting officer are crucial to mitigate these risks.

Can the value of this contract be benchmarked against similar institutional support contracts awarded by other federal agencies?

Benchmarking this contract's value requires comparing it to similar institutional support and SME services contracts across federal agencies. However, direct comparisons are challenging without more granular data on the specific services provided, the level of expertise required, and the geographic location of performance. Contracts for management consulting, program support, and specialized advisory services can vary significantly in price based on these factors. While the $24.7 million value over ~3.2 years ($7.7M/year) provides a topline figure, its 'value for money' can only be assessed by comparing it to the outcomes achieved and the market rates for comparable expertise and services, which are not fully detailed here.

What is the track record of Chugach Technical Solutions LLC in performing similar federal contracts?

Chugach Technical Solutions LLC has a history of performing federal contracts, often in areas related to technical services, logistics, and program support. While specific details of their past performance on institutional support or SME-focused contracts for agencies like USAID would require a deeper dive into contract databases (e.g., FPDS), their presence as an awardee suggests they possess the necessary qualifications and experience. Assessing their track record would involve reviewing past performance evaluations, on-time delivery rates, and client satisfaction feedback from previous government engagements to gauge their reliability and effectiveness.

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: TIME AND MATERIALS (Y)

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: $26,347,248

Exercised Options: $25,981,735

Current Obligation: $24,736,334

Actual Outlays: $16,717,044

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $13,436,821

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