DoD's $28.2M Wake Island Installation Support Services contract awarded to Chugach Federal Solutions shows limited competition

Contract Overview

Contract Amount: $28,204,784 ($28.2M)

Contractor: Chugach Federal Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2011-05-31

End Date: 2013-10-31

Contract Duration: 884 days

Daily Burn Rate: $31.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WAKE ISLAND INSTALLATION SUPPORT SERVICES

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to CHUGACH FEDERAL SOLUTIONS LLC for work described as: WAKE ISLAND INSTALLATION SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential overpayment and lack of competitive pressure. 2. The contract duration of 884 days suggests a need for sustained support services at the Wake Island facility. 3. Facilities Support Services (NAICS 561210) is a broad category, and the specific services rendered require further detail for precise benchmarking. 4. The firm-fixed-price contract type aims to transfer risk to the contractor, but oversight is crucial for value realization. 5. Award to Chugach Federal Solutions, a company with a significant federal contracting presence, warrants examination of past performance. 6. The absence of small business set-aside indicates this contract was not specifically targeted to promote small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed service breakdowns and comparable contract data for Wake Island. The firm-fixed-price structure is standard, but the lack of competition suggests that taxpayers may not have received the most competitive pricing. Further analysis of the contractor's pricing structure against industry standards for facilities support services in remote locations would be necessary to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the number of potential bidders and removes the downward price pressure typically exerted by a competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they often result in higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers likely paid a premium, as the government did not benefit from multiple offers driving down the price. This also reduces transparency in the pricing of essential support services.

Public Impact

The primary beneficiaries are the personnel and operations at the Department of Defense's Wake Island facility, who receive essential installation support services. Services include a range of facilities support, crucial for maintaining the operational readiness and living conditions at a remote military installation. The geographic impact is concentrated on Wake Island, a critical strategic location in the Pacific. Workforce implications would involve the direct and indirect employment opportunities generated by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the specific service components makes detailed value assessment difficult.
The remote location of Wake Island may inherently increase operational costs, which could be passed on to the government.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Award to an established federal contractor suggests a degree of confidence in their ability to perform.
Sustained support services indicate a recognized need for ongoing facility maintenance and operations.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant segment within the broader government contracting market, encompassing a wide array of services from maintenance and repair to custodial and groundskeeping. This contract for Wake Island falls within this sector, serving a critical but geographically isolated military installation. Comparable spending benchmarks for facilities support services can vary widely based on location, scope of services, and contract type. The unique challenges of supporting a remote island base like Wake Island may place it at the higher end of cost expectations within this sector.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of subcontracting requirements specifically for small businesses. This means that opportunities for small businesses to participate in this particular contract were likely limited or non-existent, and the primary award went to a larger entity.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force, which awarded the contract on behalf of the Department of Defense. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of publicly available detailed service breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Installation Support Contracts
Pacific Area Military Base Operations
Remote Facility Management Services
Federal Facilities Maintenance Contracts

Risk Flags

Sole-source award
Lack of detailed service scope
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to CHUGACH FEDERAL SOLUTIONS LLC. WAKE ISLAND INSTALLATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHUGACH FEDERAL 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 $28.2 million.

What is the period of performance?

Start: 2011-05-31. End: 2013-10-31.

What specific facilities support services were included in this $28.2 million contract?

The provided data indicates the contract falls under NAICS code 561210 (Facilities Support Services) for the Department of Defense. However, the specific breakdown of services is not detailed. Generally, facilities support services can encompass a wide range of activities including maintenance, repair, custodial services, groundskeeping, pest control, refuse collection, and security services. For a remote installation like Wake Island, these services are critical for maintaining operational readiness and quality of life for personnel. Without a detailed statement of work, it's impossible to ascertain the exact services rendered, which hinders a precise cost-benefit analysis or comparison to industry benchmarks.

How does the $28.2 million contract value compare to similar facilities support contracts at remote military installations?

Direct comparison of the $28.2 million contract value for Wake Island installation support services to similar contracts is difficult without more specific data points. Factors such as the size and scope of the installation, the specific services required (e.g., housing, power generation, air traffic control support), the remoteness and associated logistical costs, and the contract duration significantly influence pricing. Wake Island's unique geographic isolation likely contributes to higher operational and logistical costs compared to CONUS (Continental United States) installations. Therefore, while $28.2 million over approximately two years (May 2011 - Oct 2013) might seem substantial, it could be within a reasonable range given the extreme location and the comprehensive nature of facilities support required for a military installation.

What are the potential risks associated with a sole-source award for installation support services?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced value for money. Without competing bids, the government may overpay for the services rendered. Other risks include potential complacency from the contractor, as there is no immediate threat of losing the contract to a competitor. This can sometimes lead to a decline in service quality if not rigorously monitored. Furthermore, a sole-source award limits the government's ability to explore innovative solutions or more cost-effective approaches that might be offered by other potential providers in the market.

What is Chugach Federal Solutions' track record with the Department of Defense and similar contracts?

Chugach Federal Solutions, LLC is a subsidiary of Chugach Alaska Corporation and has a significant history of contracting with the U.S. federal government, including the Department of Defense. They specialize in providing a range of services, often including facilities operations and maintenance, logistics, and base support. While specific performance details for this particular Wake Island contract are not publicly detailed in the provided data, Chugach Federal Solutions generally holds numerous contracts across various agencies. A comprehensive review of their past performance, including any past performance evaluations, contract awards, and any disputes or terminations, would be necessary to fully assess their track record relevant to this specific service requirement.

How does the firm-fixed-price (FFP) contract type impact risk and cost for this installation support services contract?

A Firm-Fixed-Price (FFP) contract type, like the one used for this Wake Island installation support services contract, places the primary risk of cost overruns on the contractor (Chugach Federal Solutions). The contractor agrees to a set price for the defined scope of work, and any costs incurred above that price are absorbed by them. This structure incentivizes the contractor to manage costs efficiently and perform the work within budget. For the government, an FFP contract provides cost certainty, as the total price is known upfront. However, the government must ensure the initial price negotiated is fair and reasonable, especially in sole-source situations where competitive benchmarking is absent. Effective performance monitoring is still crucial to ensure the contractor meets quality standards.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA500011R0003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 00

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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,549,868

Exercised Options: $29,549,868

Current Obligation: $28,204,784

Contract Characteristics

Cost or Pricing Data: YES

Timeline