DoD Awards $200M Engineering Services Contract to Chugach Dynamic Solutions LLC

Contract Overview

Contract Amount: $20,051,318 ($20.1M)

Contractor: Chugach Dynamic Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2028-09-26

Contract Duration: 1,826 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HOLDING SLIN

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to CHUGACH DYNAMIC SOLUTIONS LLC for work described as: HOLDING SLIN Key points: 1. Significant contract value of $200.5 million awarded. 2. Sole-source award raises questions about competition and potential cost savings. 3. Engineering services sector is critical for defense operations. 4. Long contract duration (5 years) requires ongoing oversight.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without comparable contracts, it's difficult to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a $200 million contract could mean taxpayers are not receiving the best possible value.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract means sustained scrutiny is needed. Potential for cost overruns exists with Cost Plus Fixed Fee contracts. Ensuring the contractor delivers high-quality engineering services is paramount.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition
Long contract duration

Positive Signals

Award to a specific company
Supports critical defense needs

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's infrastructure and operational support. Spending in this sector can vary widely based on project scope and urgency.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure cost control and performance quality throughout the contract's duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to higher costs.
Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
Sole-source awards reduce transparency and accountability.
Long contract duration requires sustained vigilance.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to CHUGACH DYNAMIC SOLUTIONS LLC. HOLDING SLIN

Who is the contractor on this award?

The obligated recipient is CHUGACH DYNAMIC 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 $20.1 million.

What is the period of performance?

Start: 2023-09-27. End: 2028-09-26.

What justification was provided for the sole-source award, and how does it align with federal procurement regulations for competitive sourcing?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Federal regulations typically require agencies to seek competition unless specific exceptions apply, such as unique capabilities or urgent needs. A thorough review of the justification would reveal if the agency adequately demonstrated the necessity of awarding to Chugach Dynamic Solutions LLC without soliciting bids from other qualified firms.

How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns and ensure fair pricing for the services rendered?

Monitoring a Cost Plus Fixed Fee contract requires diligent oversight of the contractor's incurred costs and the fixed fee. The agency must establish clear cost accounting standards and regularly audit expenditures. Performance metrics should be tied to the fixed fee to incentivize efficiency and quality, ensuring that the government pays a fair price for the services delivered without unnecessary escalation.

What performance metrics and deliverables are in place to ensure the engineering services provided meet the Department of the Navy's requirements effectively?

Effective oversight relies on clearly defined performance metrics and deliverables. The Department of the Navy should have established specific, measurable, achievable, relevant, and time-bound (SMART) goals for Chugach Dynamic Solutions LLC. Regular performance reviews, quality assurance checks, and milestone tracking are essential to confirm that the engineering services are being delivered to the required standards and are contributing to the Navy's mission objectives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $60,317,145

Exercised Options: $60,317,145

Current Obligation: $20,051,318

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,527,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6523623D8021

IDV Type: IDC

Timeline