DoD's $268.8M Facilities Support Contract for Wake Island Awarded to Chugach Federal Solutions

Contract Overview

Contract Amount: $268,804,000 ($268.8M)

Contractor: Chugach Federal Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2012-11-30

End Date: 2021-09-30

Contract Duration: 3,226 days

Daily Burn Rate: $83.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHASE-IN WAKE ISLAND (WI)

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $268.8 million to CHUGACH FEDERAL SOLUTIONS LLC for work described as: PHASE-IN WAKE ISLAND (WI) Key points: 1. Contract value of $268.8M over its period of performance. 2. Awarded to Chugach Federal Solutions LLC for facilities support services. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Performance period spans from November 30, 2012, to September 30, 2021. 5. The contract was competed under 'Full and Open Competition After Exclusion of Sources'. 6. Services provided are categorized under Facilities Support Services (NAICS 561210). 7. The contract was awarded by the Department of the Air Force. 8. The geographic location of service is Wake Island, Alaska.

Value Assessment

Rating: fair

The total contract value of $268.8M over approximately 9 years suggests a significant investment in facilities support. Benchmarking this value requires comparison to similar large-scale base operations support contracts, which often run into hundreds of millions of dollars. Without specific details on the scope of services and the number of personnel involved, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the breadth of competition. The number of bidders is not explicitly stated in the provided data, but the designation suggests a more restricted bidding process than a purely 'full and open' competition. This could impact price discovery and potentially lead to higher costs compared to a scenario with maximum bidder participation.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding pool. This exclusion of sources warrants further investigation to ensure fair market access and optimal use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel stationed at Wake Island, who receive essential facilities support. Services delivered include a broad range of facilities maintenance, operations, and support functions crucial for base functionality. The geographic impact is concentrated on Wake Island, a critical strategic location in the Pacific. Workforce implications include employment opportunities for individuals involved in providing these facilities support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may have impacted price competitiveness.
Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.
The long duration of the contract could lead to potential complacency or reduced incentive for innovation.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
Award to an established contractor suggests a level of confidence in their capabilities.
The contract addresses critical facilities support needs for a strategic military installation.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide array of maintenance, repair, and operational support for physical infrastructure. This contract falls within the broader defense support services market, which is substantial due to the global presence and operational needs of military branches. Comparable spending benchmarks would involve looking at other large-scale base operations support contracts awarded by the DoD or other federal agencies for similar remote or strategic locations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on securing the necessary facilities support services through the most capable large business contractor. There is no explicit information on subcontracting plans for small businesses, which could represent missed opportunities for small business engagement in supporting this significant federal contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Base Operations Support (BOS)
Logistics and Facilities Management Services
Department of Defense Contracts
Air Force Service Contracts
Remote Installation Support

Risk Flags

Limited competition may have impacted price optimization.
Lack of detailed performance metrics hinders assessment of contractor efficiency.
The exclusion of sources requires clear justification to ensure fairness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $268.8 million to CHUGACH FEDERAL SOLUTIONS LLC. PHASE-IN WAKE ISLAND (WI)

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 $268.8 million.

What is the period of performance?

Start: 2012-11-30. End: 2021-09-30.

What specific facilities support services were included under this contract?

The contract falls under NAICS code 561210, which defines Facilities Support Services. This typically encompasses a wide range of activities including operation and maintenance of buildings and infrastructure, grounds maintenance, waste management, pest control, security services, transportation services, and other support functions necessary for the effective operation of a facility or installation. For Wake Island, a remote and strategic location, these services would be critical for maintaining readiness and operational capability, likely including power generation, water treatment, housing maintenance, airfield support, and general base upkeep.

How does the $268.8M contract value compare to similar facilities support contracts for remote military installations?

The $268.8M value over approximately nine years for facilities support at a strategic location like Wake Island is substantial, aligning with the high costs associated with supporting remote and critical infrastructure. Large-scale Base Operations Support (BOS) contracts for similar remote or overseas installations often range from tens to hundreds of millions of dollars annually, depending on the scope, size of the installation, and required services. Without specific details on the number of personnel supported, the square footage of facilities managed, and the exact service mix, a direct comparison is difficult. However, the magnitude of this award is consistent with the significant logistical and operational demands of maintaining such a key Pacific asset.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' contract type?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain potential bidders were deliberately excluded. This exclusion can introduce several risks. Firstly, it may limit the pool of qualified offerors, potentially reducing the level of innovation and competition. Secondly, it could lead to a less competitive pricing environment, as the government might not receive bids from all capable market participants, potentially resulting in higher costs for taxpayers. Thirdly, the rationale for excluding specific sources needs to be clearly documented and justified to ensure fairness and prevent potential protests or perceptions of impropriety.

What is the track record of Chugach Federal Solutions LLC in performing similar large-scale government contracts?

Chugach Federal Solutions LLC (CFS) is a subsidiary of Chugach Alaska Corporation, an Alaska Native Corporation. CFS has a history of performing large-scale government contracts, particularly within the Department of Defense and other federal agencies, often focusing on facilities operations, maintenance, logistics, and base support services. Their portfolio includes contracts in various geographic locations, including remote and challenging environments. While specific performance details for this particular Wake Island contract are not detailed here, CFS generally operates within this service domain and has experience managing significant federal contracts, suggesting a capacity to handle complex requirements.

How has federal spending on Facilities Support Services (NAICS 561210) evolved over the contract's performance period (2012-2021)?

Federal spending on Facilities Support Services (NAICS 561210) has generally remained robust, reflecting the ongoing need for operational and maintenance support across government installations. During the 2012-2021 period, the Department of Defense consistently represented the largest segment of this spending due to its extensive global footprint and infrastructure requirements. While specific year-over-year trends for the entire federal government within this NAICS code would require detailed analysis of federal procurement data, overall spending in this category has been influenced by defense budgets, infrastructure modernization initiatives, and the operational tempo of various agencies. The significant value of this single contract indicates the substantial investment required for critical support services.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA500010R0019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 700, ANCHORAGE, AK, 99503

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $300,018,960

Exercised Options: $299,907,938

Current Obligation: $268,804,000

Subaward Activity

Number of Subawards: 141

Total Subaward Amount: $57,439,182

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline