DoD's $27.7M C2F AV Services Contract Awarded to Chugach Dynamic Solutions LLC

Contract Overview

Contract Amount: $27,743,854 ($27.7M)

Contractor: Chugach Dynamic Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-18

End Date: 2027-07-17

Contract Duration: 1,094 days

Daily Burn Rate: $25.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AUDIO/VISUAL (AV) ENGINEERING AND INSTALLATION SERVICES TO SUPPORT COMMAND AND CONTROL FACILITIES(C2F) IN THE COLORADO SPRINGS, CO AREA.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to CHUGACH DYNAMIC SOLUTIONS LLC for work described as: AUDIO/VISUAL (AV) ENGINEERING AND INSTALLATION SERVICES TO SUPPORT COMMAND AND CONTROL FACILITIES(C2F) IN THE COLORADO SPRINGS, CO AREA. Key points: 1. Contract focuses on critical Command and Control Facilities (C2F) audio-visual engineering and installation. 2. Awarded as a sole-source contract, raising questions about competition and potential cost efficiencies. 3. The contract duration of nearly three years suggests a significant, ongoing need for these specialized services. 4. Geographic focus on Colorado Springs, CO, indicates a specific operational requirement. 5. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure value for money. 6. No small business set-aside was utilized, suggesting potential missed opportunities for smaller contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source awards for AV engineering services. The CPFF structure inherently carries risk, as costs can fluctuate. However, the fixed fee component provides some cost certainty for the contractor's effort. Further analysis would be needed to compare the labor rates and overhead applied against industry standards for specialized C2F AV support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition means that pricing and service levels were not tested against the market, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pressures to secure the best possible pricing, potentially resulting in less favorable terms for taxpayers.

Public Impact

The Department of Defense (specifically the Department of the Navy) benefits from enhanced Command and Control Facilities (C2F) through upgraded audio-visual capabilities. Services include engineering and installation of AV systems crucial for operational effectiveness and communication. The geographic impact is concentrated in the Colorado Springs, Colorado area, supporting local military installations. The contract supports specialized technical roles in AV engineering and installation, potentially impacting the local workforce in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage cost overruns.
Lack of small business participation may limit opportunities for smaller, specialized AV firms.
Geographic concentration could indicate a lack of broader market availability or a specific regional need.

Positive Signals

Contract addresses critical Command and Control Facility (C2F) needs, ensuring operational readiness.
Chugach Dynamic Solutions LLC is a known entity within the defense contracting space.
The contract duration suggests a stable, long-term requirement being met.
Specialized AV engineering and installation are vital for modern military operations.

Sector Analysis

The market for audio-visual (AV) engineering and installation services within the federal sector is substantial, supporting a wide range of government functions from command and control to training and public outreach. This contract falls within the broader engineering services (NAICS 541330) and IT services categories. While specific benchmarks for C2F AV support are difficult to isolate, the federal government consistently spends billions on IT and engineering services annually. This award represents a focused investment in a critical niche within the defense sector.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses in the AV engineering and installation sector to participate in this specific contract are limited. The prime contractor, Chugach Dynamic Solutions LLC, may have its own internal small business subcontracting goals, but this is not explicitly detailed here. The absence of a set-aside suggests a focus on specialized capabilities that may be more readily available from larger or more established firms.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs against the fixed fee. Transparency regarding cost reporting and performance metrics will be key. While specific Inspector General (IG) involvement is not detailed, the DoD IG has broad jurisdiction over defense spending and could investigate if performance or cost issues arise.

Related Government Programs

Department of Defense IT Services
Engineering Services for Military Facilities
Audio-Visual Equipment Procurement
Command and Control Systems Support
Federal IT Infrastructure

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of explicit small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to CHUGACH DYNAMIC SOLUTIONS LLC. AUDIO/VISUAL (AV) ENGINEERING AND INSTALLATION SERVICES TO SUPPORT COMMAND AND CONTROL FACILITIES(C2F) IN THE COLORADO SPRINGS, CO AREA.

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 $27.7 million.

What is the period of performance?

Start: 2024-07-18. End: 2027-07-17.

What is the track record of Chugach Dynamic Solutions LLC in delivering similar audio-visual engineering and installation services for Command and Control Facilities?

Chugach Dynamic Solutions LLC has a history of performing various IT and engineering services for the Department of Defense. While specific details on their past performance with Command and Control Facilities (C2F) audio-visual (AV) engineering and installation are not fully elaborated in the provided data, their general experience within the defense sector suggests a foundational understanding of military requirements. Further investigation into their contract history, past performance reviews, and specific project portfolios related to C2F or similar secure communication environments would be necessary to fully assess their capabilities and track record for this particular type of specialized service. Government contract databases and performance assessment reports would be the primary sources for this detailed analysis.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry benchmarks for similar AV services?

The Cost Plus Fixed Fee (CPFF) pricing structure means the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves inherent uncertainties. Benchmarking CPFF contracts for specialized AV services like C2F support is complex, as direct comparisons are difficult due to varying scopes, labor rates, and overhead. However, CPFF contracts generally carry a higher risk of cost escalation for the government compared to fixed-price contracts. The 'fairness' of the fee and the allowability of costs require diligent oversight by the contracting agency to ensure the government receives good value and that costs remain reasonable relative to the services delivered and market rates for similar expertise.

What are the primary risks associated with a sole-source award for critical C2F AV services?

The primary risks associated with a sole-source award for critical Command and Control Facility (C2F) audio-visual (AV) services include a lack of competitive pricing, potentially leading to inflated costs for the government. Without competition, there is less incentive for the contractor to optimize efficiency or offer the most cost-effective solutions. Furthermore, sole-source awards can limit the government's access to innovative technologies or alternative approaches that might be brought forward by a more competitive field of bidders. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially hindering future flexibility and negotiation power. Ensuring robust contract management and oversight becomes even more critical in sole-source situations.

What is the expected impact of these AV services on the operational effectiveness of the C2F in Colorado Springs?

The audio-visual (AV) engineering and installation services are expected to significantly enhance the operational effectiveness of the Command and Control Facilities (C2F) in Colorado Springs. Modern AV systems are critical for clear communication, data visualization, situational awareness, and collaborative decision-making within C2F environments. Upgraded systems can improve the reliability and clarity of audio and video feeds, facilitate seamless integration of diverse information sources, and provide more intuitive control interfaces for operators. This directly supports the C2F's mission by ensuring that commanders and staff have access to timely, accurate, and easily digestible information, thereby improving response times and the overall quality of command decisions.

How does this contract's spending compare to historical federal spending on similar AV or C2F support services?

Direct historical spending comparisons for this specific contract are challenging without access to detailed historical data on similar sole-source C2F AV support services. However, federal spending on IT, engineering, and specialized facility support services is consistently in the billions of dollars annually across various agencies. The $27.7 million value over nearly three years for a specific geographic location suggests a significant but not exceptionally large investment within the broader context of defense spending. To provide a more precise comparison, one would need to analyze historical contract awards for AV systems integration, C2F modernization, and related engineering services, looking at both competed and sole-source actions, to establish a trend and benchmark for this type of specialized support.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6600124R0045

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: $32,190,522

Exercised Options: $29,110,357

Current Obligation: $27,743,854

Actual Outlays: $274,694

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $19,226,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600124D0045

IDV Type: IDC

Timeline