Department of Defense awards $24.2M contract for facilities support services to Chugach Management Services, JV

Contract Overview

Contract Amount: $22,274,378 ($22.3M)

Contractor: Chugach Management Services, JV

Awarding Agency: Department of Defense

Start Date: 2010-06-30

End Date: 2010-09-30

Contract Duration: 92 days

Daily Burn Rate: $242.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 200509!000270!5700!FA9401!377 CONS/LGC !F2965000D0002 !A!N! !Y! !P00121!20050620!20050930!121636141!121636141!071844021!N!CHUGACH MANAGEMENT SERVICES, J!560 E 34TH AVENUE !ANCHORAGE !AK!99503!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000023673!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3!B!S!B! ! !20200930!B! ! !A! !B!N!M!1!001!N!5A!C!Y!A! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to CHUGACH MANAGEMENT SERVICES, JV for work described as: 200509!000270!5700!FA9401!377 CONS/LGC !F2965000D0002 !A!N! !Y! !P00121!20050620!20050930!121636141!121636141!071844021!N!CHUGACH MANAGEMENT SERVICES, J!560 E 34TH AVENUE !ANCHORAGE !AK!99503!36300!001!35!KIRTLAND AFB !BERN… Key points: 1. Contract awarded on a fixed-price award fee basis. 2. Performance period spans 92 days. 3. The contract was not competed, raising questions about potential cost savings. 4. The contractor, Chugach Management Services, JV, has a track record with federal agencies. 5. Services fall under Facilities Support Services, a broad category with significant federal spending. 6. The contract value is substantial for its short duration, suggesting high-intensity support.

Value Assessment

Rating: fair

The contract value of $24.2M for a 92-day period equates to approximately $263,000 per day. Benchmarking this against similar facilities support contracts is challenging without more specific service details. However, the daily rate appears high, suggesting a need for further scrutiny on the pricing structure and the necessity of the award fee component. The absence of competition further complicates a direct value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when only one vendor can meet the specific requirements, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service terms.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost for the services rendered compared to a fully competed contract.

Public Impact

The primary beneficiary is the Department of the Air Force at Kirtland AFB, New Mexico, receiving essential facilities support. Services include a range of facilities support, crucial for the operational readiness of the military installation. The geographic impact is localized to Kirtland AFB in New Mexico. Workforce implications are likely within the scope of the contractor's employees, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
High daily rate for a short-duration contract warrants further investigation into cost drivers.
Award fee structure could incentivize cost overruns if not tightly managed.

Positive Signals

Contract awarded to a known entity, Chugach Management Services, JV, suggesting some level of pre-qualification.
Services provided are critical for military base operations, indicating essential support is being delivered.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within federal contracting, encompassing a wide array of maintenance, repair, and operational services for government facilities. Federal spending in this area is consistently high, driven by the extensive infrastructure managed by agencies like the Department of Defense. This contract fits within the broader category of base operations support, which is crucial for maintaining military readiness and functionality.

Small Business Impact

The contract was awarded to Chugach Management Services, JV. Information regarding specific small business set-aside provisions or subcontracting plans is not detailed in the provided data. Without this information, it's difficult to assess the direct impact on the small business ecosystem or whether subcontracting opportunities were leveraged.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Department of the Air Force at Kirtland AFB. The effectiveness of oversight depends on the clarity of the award fee criteria, performance metrics, and regular performance reviews. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports.

Related Government Programs

Base Operations Support Contracts
Facilities Maintenance Services
Department of Defense Service Contracts
Air Force Installation Support

Risk Flags

Sole-source award limits competition and price discovery.
High daily rate for services warrants further cost analysis.
Award fee structure requires strong oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to CHUGACH MANAGEMENT SERVICES, JV. 200509!000270!5700!FA9401!377 CONS/LGC !F2965000D0002 !A!N! !Y! !P00121!20050620!20050930!121636141!121636141!071844021!N!CHUGACH MANAGEMENT SERVICES, J!560 E 34TH AVENUE !ANCHORAGE !AK!99503!36300!001!35!KIRTLAND AFB !BERNALILLO !NEW MEXICO!+000000023673!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !561210!E! !3!B!S!B! ! !202

Who is the contractor on this award?

The obligated recipient is CHUGACH MANAGEMENT SERVICES, JV.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2010-06-30. End: 2010-09-30.

What is the specific nature of the facilities support services provided under this contract?

The provided data indicates the contract falls under NAICS code 561210, which covers Facilities Support Services. This broad category typically includes services such as operation, maintenance, and repair of buildings and other facilities, as well as related services like security, cleaning, and groundskeeping. However, the specific tasks and deliverables for this particular contract are not detailed in the summary data. Understanding the precise scope of work is crucial for a comprehensive assessment of value and performance, especially given the contract's significant value and short duration.

How does the daily rate of approximately $263,000 compare to similar facilities support contracts?

Directly comparing the daily rate of approximately $263,000 to similar contracts is challenging without more granular data on the specific services rendered and the contract type. Facilities support can range from basic janitorial services to complex infrastructure management. However, this daily rate is substantial, suggesting either a very comprehensive service package or potentially inflated costs, particularly given the contract was sole-sourced. A thorough benchmark analysis would require comparing contracts with identical or highly similar scopes of work, performed at comparable locations, and under similar economic conditions. The absence of competition makes such comparisons more difficult and highlights a potential risk to achieving optimal value for taxpayer money.

What are the implications of awarding this contract on a sole-source basis?

A sole-source award means the contract was not competed, implying that the government determined only one vendor, Chugach Management Services, JV, could fulfill the requirement. This can occur for various reasons, such as unique capabilities, urgent needs, or follow-on work. However, it significantly limits the government's ability to leverage competition to drive down prices and ensure the best possible value. For taxpayers, this means there's a higher risk that the price paid may not be the most economical, as there was no opportunity for other qualified vendors to bid and potentially offer lower prices or better terms. It also reduces transparency in the procurement process.

What is the track record of Chugach Management Services, JV with federal contracts?

Chugach Management Services, JV has a history of receiving federal contracts. While the provided data doesn't detail their entire contract portfolio, their involvement in a significant sole-source award like this suggests they are an established contractor within the federal space, likely possessing the necessary clearances and capabilities for such work. Further investigation into their past performance, including any awards, penalties, or contract terminations, would be necessary for a complete assessment of their reliability and performance history.

What does the 'Award Fee' component of the contract signify?

The 'Fixed Price Award Fee' (PT: FIXED PRICE AWARD FEE) structure means the contractor is paid a base fixed price, plus an additional award fee based on performance against pre-defined criteria. This type of contract is intended to incentivize high performance by allowing for additional payment if the contractor exceeds expectations. However, it also requires robust oversight to ensure the award fee criteria are objective, measurable, and fairly applied. Without clear performance metrics and diligent oversight, the award fee could become a mechanism for paying more without a commensurate increase in value or quality, especially in a sole-source situation.

How does this contract fit into the broader spending on Facilities Support Services?

Federal spending on Facilities Support Services (NAICS 561210) is substantial, often running into billions of dollars annually across various agencies. Contracts like this, even for a short duration, contribute to this overall spending. The Department of Defense is a major consumer of these services due to its vast real estate and infrastructure footprint. This specific contract, valued at $24.2 million for just over three months, represents a significant investment in maintaining critical operational capabilities at Kirtland AFB. Its value, relative to the duration, suggests a high level of service intensity or specialized support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 560 E 34TH AVE STE 200, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,274,378

Exercised Options: $22,274,378

Current Obligation: $22,274,378

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F2965000D0002

IDV Type: IDC

Timeline