USCG Technical Services Contract Awarded to Chugach Technical Solutions for $165.7M

Contract Overview

Contract Amount: $165,732,150 ($165.7M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-30

End Date: 2026-04-28

Contract Duration: 1,824 days

Daily Burn Rate: $90.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: ENGINEERING/TECHNICAL SERVICES AND MANAGEMENT SUPPORT SERVICES TO EXECUTE TECHNICAL, READINESS AND IMPLEMENTATION SERVICES IN SUPPORT OF USCG.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $165.7 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: ENGINEERING/TECHNICAL SERVICES AND MANAGEMENT SUPPORT SERVICES TO EXECUTE TECHNICAL, READINESS AND IMPLEMENTATION SERVICES IN SUPPORT OF USCG. Key points: 1. Contract awarded to Chugach Technical Solutions LLC for engineering and management support. 2. Services support USCG technical, readiness, and implementation needs. 3. Full and open competition was utilized. 4. The contract has a duration of 1824 days.

Value Assessment

Rating: good

The contract value of $165.7M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar large-scale engineering and technical support contracts is necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment.

Public Impact

Ensures critical technical and readiness support for the U.S. Coast Guard's operations. Supports national security and maritime safety through essential engineering services. Provides long-term stability for a key government contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Fixed Fee contract type.
Reliance on a single contractor for critical services.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government agencies with technical and management functions. Spending in this sector is often substantial, driven by complex project requirements and the need for specialized expertise.

Small Business Impact

The contract was awarded to Chugach Technical Solutions LLC, and there is no indication of small business subcontracting in the provided data. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Navy awarded this contract on behalf of the USCG, suggesting established oversight mechanisms. The duration and value warrant regular performance reviews and financial audits.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Long contract duration could lead to scope creep or evolving needs.
Lack of explicit small business subcontracting information.
Potential for contractor performance issues over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $165.7 million to CHUGACH TECHNICAL SOLUTIONS LLC. ENGINEERING/TECHNICAL SERVICES AND MANAGEMENT SUPPORT SERVICES TO EXECUTE TECHNICAL, READINESS AND IMPLEMENTATION SERVICES IN SUPPORT OF USCG.

Who is the contractor on this award?

The obligated recipient is CHUGACH TECHNICAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $165.7 million.

What is the period of performance?

Start: 2021-04-30. End: 2026-04-28.

What is the projected cost efficiency of this contract given the Cost Plus Fixed Fee structure?

The Cost Plus Fixed Fee (CPFF) structure aims to control costs by setting a fixed fee for the contractor's profit, while allowing for reimbursement of actual costs. However, it can incentivize cost overruns if not closely monitored. Effective oversight and detailed cost tracking are crucial to ensure value for money and prevent excessive spending beyond the anticipated scope.

What are the key performance indicators (KPIs) for this contract and how are they being measured?

Specific KPIs for this contract are not detailed in the provided data. Typically, for engineering and technical support services, KPIs would include on-time delivery of milestones, adherence to technical specifications, quality of deliverables, and responsiveness to USCG needs. Regular performance reviews against these KPIs are essential for accountability and ensuring mission effectiveness.

How does the awarded amount compare to industry benchmarks for similar services?

The awarded amount of $165.7 million over approximately five years for engineering, technical, readiness, and implementation services is substantial. A precise comparison requires detailed analysis of the specific services, scope, and complexity. However, for large-scale, long-term government support contracts, this value appears within a reasonable range, assuming the scope of work is comprehensive.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523620R3013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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, Manufacturer of Goods, 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: $178,664,198

Exercised Options: $178,664,198

Current Obligation: $165,732,150

Subaward Activity

Number of Subawards: 98

Total Subaward Amount: $23,078,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7349

IDV Type: IDC

Timeline