DoD's $66M Facilities Support Contract with Chugach Technical Solutions Faces Scrutiny Over Competition

Contract Overview

Contract Amount: $66,194,827 ($66.2M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-03

End Date: 2022-09-20

Contract Duration: 747 days

Daily Burn Rate: $88.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHORT TERM BASE OPS

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $66.2 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: SHORT TERM BASE OPS Key points: 1. The contract awarded to Chugach Technical Solutions LLC for $66.2 million represents a significant investment in facilities support services. 2. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about potential lack of competitive pricing and value for taxpayers. 3. The duration of 747 days suggests a substantial, ongoing need for these services, highlighting the importance of fair pricing. 4. The sector for Facilities Support Services (NAICS 561210) is broad, making direct comparison difficult without more specific service details.

Value Assessment

Rating: questionable

The contract value of $66.2 million for facilities support services over 747 days is difficult to assess without a competitive benchmark. The lack of available award data prevents a direct comparison to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited procurement approach. This lack of competition may have impacted price discovery and potentially led to a higher cost for the government.

Taxpayer Impact: The absence of competitive bidding raises concerns about whether taxpayers received the best possible value for the $66.2 million spent on these services.

Public Impact

Taxpayers may be overpaying for facilities support services due to the lack of competitive bidding. The long-term nature of the contract suggests a sustained need, making the absence of competition a recurring issue. Transparency in government contracting is crucial, and this award highlights areas where more open competition could be beneficial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited price discovery
Potential for overpayment

Positive Signals

Definitive contract awarded
Firm fixed price contract type

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a wide range of activities, from building maintenance to groundskeeping. Spending in this sector can vary widely based on the scope and complexity of services required by government agencies.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. Accountability for procurement decisions is essential.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
Difficulty in assessing value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.2 million to CHUGACH TECHNICAL SOLUTIONS LLC. SHORT TERM BASE OPS

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 Army).

What is the total obligated amount?

The obligated amount is $66.2 million.

What is the period of performance?

Start: 2020-09-03. End: 2022-09-20.

What was the specific justification for awarding this contract without competition, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION' but does not detail the specific justification. Typically, such justifications include reasons like urgent and compelling needs, or that only one source can provide the service. A thorough review of the contract file would be necessary to assess the adequacy of the documentation and the validity of the justification.

How does the awarded price of $66.2 million compare to market rates for similar facilities support services, considering the contract's scope and duration?

Without a competitive bidding process, it is challenging to establish a precise market rate comparison. The benchmark of $88,614 (br) is likely a bid or estimate, not a final award price comparison. A detailed analysis of the services rendered and comparison with publicly available pricing for similar government or commercial contracts would be needed to assess value.

What mechanisms are in place to ensure the quality and effectiveness of the facilities support services provided by Chugach Technical Solutions LLC under this contract?

The data indicates a 'FIRM FIXED PRICE' contract type, which generally incentivizes the contractor to perform efficiently. However, the effectiveness of the services relies on contract performance monitoring, quality assurance surveillance plans (QASPs), and regular performance reviews by the contracting officer's representative (COR) to ensure deliverables meet requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, 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: $66,194,827

Exercised Options: $66,194,827

Current Obligation: $66,194,827

Actual Outlays: $2,761,396

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $7,720,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline