DoD Awards $44M for Relocatable Facility Construction to Chugach Intelligence Solutions

Contract Overview

Contract Amount: $44,085,797 ($44.1M)

Contractor: Chugach Intelligence Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-08-24

Contract Duration: 693 days

Daily Burn Rate: $63.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS CONTRACT IS FOR DESIGN AND ALLIED SUPPORT AND FACILITY CONSTRUCTION OF A TEMPORARY 22,000 SQUARE FOOT RELOCATABLE FACILITY FOR SPACE DELTA 9, MEETING ALL SPECIFICATIONS.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $44.1 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC for work described as: THIS CONTRACT IS FOR DESIGN AND ALLIED SUPPORT AND FACILITY CONSTRUCTION OF A TEMPORARY 22,000 SQUARE FOOT RELOCATABLE FACILITY FOR SPACE DELTA 9, MEETING ALL SPECIFICATIONS. Key points: 1. Significant investment in specialized facility construction for Space Delta 9. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given the fixed-price nature and long duration. 4. Focus on prefabricated metal buildings suggests a specific industry sector.

Value Assessment

Rating: questionable

The contract's value of $44M for a 22,000 sq ft facility is substantial. Without comparable contract data, it's difficult to definitively assess if this price is competitive. The fixed-price nature aims to control costs, but the lack of competition makes a thorough value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to ensure the best possible price and value, as potential competitors were not given an opportunity to bid.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective solution available, as competitive pressures were absent.

Public Impact

Supports critical infrastructure needs for Space Delta 9. Ensures operational readiness through specialized facility development. Potential for long-term use beyond the initial temporary designation. Impacts the prefabricated metal building manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High contract value for a temporary facility.
Lack of detailed cost breakdown for assessment.
Fixed-price contract with a long duration carries risk.

Positive Signals

Addresses specific operational requirements for Space Delta 9.
Fixed-price contract provides cost certainty if managed well.
Contract awarded to a known entity, potentially reducing initial setup friction.

Sector Analysis

The contract falls within the construction and manufacturing sectors, specifically focusing on prefabricated metal buildings. The $44M award for a 22,000 sq ft facility suggests a high cost per square foot, which warrants scrutiny, especially given the sole-source nature.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor meets all specifications and delivers the facility within the agreed-upon timeline and budget. Accountability will be key to validating the value received.

Related Government Programs

Prefabricated Metal Building and Component Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
High cost per square foot.
Lack of transparency in price justification.
Long contract duration increases risk.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.1 million to CHUGACH INTELLIGENCE SOLUTIONS, LLC. THIS CONTRACT IS FOR DESIGN AND ALLIED SUPPORT AND FACILITY CONSTRUCTION OF A TEMPORARY 22,000 SQUARE FOOT RELOCATABLE FACILITY FOR SPACE DELTA 9, MEETING ALL SPECIFICATIONS.

Who is the contractor on this award?

The obligated recipient is CHUGACH INTELLIGENCE SOLUTIONS, LLC.

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 $44.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-08-24.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without further details, it's presumed the Air Force determined Chugach Intelligence Solutions was the only viable option. However, the absence of competition makes it imperative that the government conducted thorough market research and negotiation to secure the best possible price, even without bids.

How does the cost per square foot for this prefabricated facility compare to industry benchmarks, especially considering it's a sole-source award?

The contract value of $44,085,797.44 for 22,000 square feet equates to approximately $2,004 per square foot. This is significantly higher than typical costs for prefabricated metal buildings, which often range from $20-$100 per square foot depending on complexity and finishes. This high cost per square foot, coupled with the sole-source award, raises serious concerns about value for money.

What are the specific performance metrics and penalties associated with this fixed-price contract to ensure timely and quality delivery?

While the contract is firm fixed-price, the specific performance metrics, delivery schedules, and associated penalties for non-performance are not detailed in the provided data. Effective oversight is crucial to ensure Chugach Intelligence Solutions adheres to the 2026-08-24 completion date and meets all facility specifications. The government should have clear mechanisms in place to address any delays or quality issues.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA255023R0006

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, 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: $44,085,797

Exercised Options: $44,085,797

Current Obligation: $44,085,797

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $33,160,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline