CHUGACH SYSTEMS INTEGRATION, LLC awarded $10.1M for Business Support Services by the Department of State

Contract Overview

Contract Amount: $10,076,735 ($10.1M)

Contractor: Chugach Systems Integration, LLC

Awarding Agency: Department of State

Start Date: 2003-08-29

End Date: 2013-05-30

Contract Duration: 3,562 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: DUNN LORING, FAIRFAX County, VIRGINIA, 22027

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $10.1 million to CHUGACH SYSTEMS INTEGRATION, LLC for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3562 days (approx. 9.7 years) indicates a long-term need for these services. 3. The firm fixed-price contract type aims to provide cost certainty for the government. 4. The award was made by the Department of State, indicating a focus on administrative or operational support. 5. The North American Industry Classification System (NAICS) code 561499 covers 'All Other Business Support Services,' a broad category. 6. The contract was awarded in August 2003 and ended in May 2013, reflecting historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. The total award amount of $10.1 million over nearly a decade suggests a moderate annual spend. However, the lack of detailed performance metrics or specific deliverables makes a precise value-for-money assessment difficult. The firm fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be beneficial for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a degree of competition, though the exact number of potential bidders is unknown. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the most cost-effective solution through market forces.

Public Impact

The Department of State likely benefited from consistent and reliable business support services, enabling its core functions. Services provided under this contract supported the administrative and operational needs of the agency. The geographic impact is primarily within the Department of State's operational areas, likely domestic or international offices. The contract supported jobs within the business support services sector, contributing to the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad 'Business Support Services' category makes it difficult to assess specific performance or value.
Long contract duration without clear performance benchmarks could lead to complacency or reduced efficiency over time.
Limited information on the number of bidders and the specific nature of competition makes it hard to gauge true market price.

Positive Signals

Awarded via full and open competition, indicating a commitment to market-based pricing.
Firm fixed-price contract type provides budget certainty for the awarding agency.
Long-term contract suggests a stable and ongoing requirement met by the contractor.

Sector Analysis

The Business Support Services sector encompasses a wide range of activities, from administrative and clerical support to specialized consulting. This contract falls under the broader professional, scientific, and technical services industry. Government spending in this area is crucial for maintaining operational efficiency across various agencies. Comparable spending benchmarks are difficult to establish due to the broad NAICS code, but agencies frequently procure services like facilities management, logistics support, and administrative assistance.

Small Business Impact

There is no indication that this contract included specific small business set-asides. The contract was awarded to CHUGACH SYSTEMS INTEGRATION, LLC, and information regarding subcontracting plans or performance with small businesses is not provided in the data. Without this information, it's difficult to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures would be tied to the terms of the firm fixed-price contract and performance expectations. Transparency is limited by the available data, but the award through full and open competition suggests a documented procurement process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Administrative Support Contracts
Federal Business Operations Support Services
Professional and Business Support Services

Risk Flags

Lack of specific service details hinders performance and value assessment.
Long contract duration without clear performance metrics raises potential efficiency concerns.
Limited competition data (2 bids) makes it difficult to confirm optimal pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.1 million to CHUGACH SYSTEMS INTEGRATION, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CHUGACH SYSTEMS INTEGRATION, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2003-08-29. End: 2013-05-30.

What was the specific nature of the 'All Other Business Support Services' provided under this contract?

The provided data uses the NAICS code 561499, which broadly covers 'All Other Business Support Services.' This can include a wide array of services such as document preparation, mail services, telephone answering services, and other miscellaneous business support activities not classified elsewhere. Without further documentation or contract details, the precise services rendered by CHUGACH SYSTEMS INTEGRATION, LLC under this $10.1 million award remain unspecified. This lack of specificity hinders a detailed analysis of the contract's direct impact and the value derived from the services.

How did the pricing of this contract compare to market rates at the time of award?

Determining the precise comparison to market rates for this contract is challenging with the available data. The contract was awarded under 'full and open competition' with two bids received. While this suggests some level of market engagement, it does not provide specific pricing benchmarks. The firm fixed-price (FFP) nature of the contract means the contractor bore the cost risk, which can influence pricing. To conduct a thorough comparison, one would need access to detailed cost breakdowns, independent government cost estimates, and data from similar contracts awarded around 2003 for comparable business support services.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) associated with this contract. For a firm fixed-price contract of this nature, performance expectations are typically outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents would detail the required services, quality standards, and delivery timelines. Without access to these underlying documents, it is impossible to assess how effectively CHUGACH SYSTEMS INTEGRATION, LLC met its performance obligations or the specific metrics used to evaluate their success over the contract's nearly 10-year duration.

What is the track record of CHUGACH SYSTEMS INTEGRATION, LLC with federal contracts, particularly with the Department of State?

CHUGACH SYSTEMS INTEGRATION, LLC has a history of federal contracting, including this significant award from the Department of State. Analyzing their broader track record would involve reviewing other contracts awarded to them across various agencies and for different service types. Factors to consider include contract values, performance ratings (if available), types of services provided, and any history of contract disputes or modifications. A comprehensive review would help establish a pattern of performance, reliability, and adherence to contractual terms, providing context for this specific $10.1 million award.

How does the annual spending on this contract compare to overall Department of State spending on business support services?

The total award for this contract was $10.1 million over approximately 3562 days (about 9.7 years), averaging roughly $1.04 million per year. To compare this to the Department of State's overall spending on business support services, one would need access to the agency's historical budget data and detailed procurement reports. This would allow for an analysis of the contract's relative significance within the agency's total expenditure on similar services. Without that broader fiscal context, it's difficult to ascertain whether this contract represented a major or minor portion of the Department's support service budget during its active period.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 1235 CLARK STREET, SUITE 200, ARLINGTON, VA, 08

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $10,076,735

Exercised Options: $10,076,735

Current Obligation: $10,076,735

Parent Contract

Parent Award PIID: SLMAQM00D0013

IDV Type: IDC

Timeline