Army awards $11M contract for testing instruments, highlighting potential value in specialized equipment

Contract Overview

Contract Amount: $11,036,731 ($11.0M)

Contractor: Chiulista Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-11-01

End Date: 2010-08-31

Contract Duration: 1,764 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200602!000172!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q06C0063 !A!N! !N! ! !20051101!20101030!016441292!016441292!016441292!N!CHIULISTA CAMP SERVICES, INC !301 CALISTA CT STE A !ANCHORAGE !AK!99518!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000002651562!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541380!E! !3! ! ! ! ! !99990909!B! ! !N!B!B!N!J!1!001!N!5A!A!Y!Z! ! !N!A!N!N!Z! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99518

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to CHIULISTA SERVICES INC for work described as: 200602!000172!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q06C0063 !A!N! !N! ! !20051101!20101030!016441292!016441292!016441292!N!CHIULISTA CAMP SERVICES, INC !301 CALISTA CT STE A !ANCHORAGE !AK!99518!03000!020!02!ANCHORAGE !ANCH… Key points: 1. Contract awarded for testing instruments, suggesting a need for specialized equipment in missile and space systems. 2. The contract duration of 1764 days indicates a long-term requirement for these services. 3. Awarded to CHIULISTA SERVICES INC, a company with a significant contract value. 4. The specific product service code (PSC) 541380 points to a niche market for electrical and electronic properties measurement and test instruments. 5. The contract's value of over $11 million warrants scrutiny for cost-effectiveness and market competitiveness. 6. Geographic location of the contractor in Alaska may influence logistics and operational costs.

Value Assessment

Rating: fair

The contract value of $11,036,731.22 for testing instruments appears substantial. Benchmarking this against similar contracts for specialized testing equipment is crucial. Without direct comparisons for this specific niche (541380 - Electrical & Electronic Properties Measurement & Test Instruments), it's difficult to definitively assess value for money. However, the duration of the contract (1764 days) suggests a sustained need, which could justify the investment if the equipment and services are critical and performant.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, indicating that competition was not sought. This could be due to a lack of available sources, a specific requirement that only one contractor could meet, or other factors limiting competition. The absence of a competitive bidding process means that price discovery through market forces was bypassed, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The government may have paid a premium due to the lack of alternative offers.

Public Impact

The primary beneficiaries are likely the Army's missile and space systems programs, which require specialized testing capabilities. The contract delivers essential testing instruments and potentially related services, crucial for ensuring the quality and reliability of defense systems. The contractor, CHIULISTA SERVICES INC, based in Anchorage, Alaska, is the direct recipient of the funding. Workforce implications are not explicitly detailed but may involve specialized technicians for operating and maintaining the testing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs for taxpayers.
Lack of detailed performance metrics in the provided data makes it hard to assess the quality of delivered instruments/services.
Contract duration is long, increasing the risk of technology obsolescence or changing requirements.
Contractor location in Alaska could introduce logistical complexities and higher operational costs.

Positive Signals

Contract addresses a specific need for specialized testing instruments, indicating a focus on critical defense capabilities.
The substantial contract value suggests a significant investment in ensuring the reliability of missile and space systems.
Awarding to a single entity may streamline acquisition and management for highly specialized requirements.

Sector Analysis

The contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically related to testing laboratories and services (NAICS 541380). This niche involves the provision of specialized equipment and expertise for measuring and testing electrical and electronic properties. The market for such services is driven by the need for rigorous quality control and performance validation, particularly in high-stakes industries like defense, aerospace, and advanced manufacturing. Comparable spending benchmarks would typically involve analyzing other government or private sector contracts for similar testing instrumentation and laboratory services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there were no subcontracting opportunities explicitly mandated or detailed within this specific award notice. The impact on the small business ecosystem is therefore minimal for this particular contract, as it did not involve competitive set-asides or specific subcontracting goals.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a Department of the Army contract, it would fall under the purview of the Army's contracting command and potentially the Department of Defense's Inspector General. Transparency is limited due to the sole-source nature and lack of publicly available performance reports. Accountability would hinge on the contract's terms, deliverables, and any post-award monitoring conducted by the contracting officer.

Related Government Programs

Department of Defense Research and Development Contracts
Army Test and Evaluation Command Contracts
Missile Defense Agency Procurement
Aerospace Testing Services
Specialized Equipment Procurement

Risk Flags

Sole-source award may lead to higher costs.
Limited competition reduces price discovery.
Geographic location may impact logistics and cost.
Lack of detailed performance data hinders value assessment.
Long contract duration increases risk of obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to CHIULISTA SERVICES INC. 200602!000172!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q06C0063 !A!N! !N! ! !20051101!20101030!016441292!016441292!016441292!N!CHIULISTA CAMP SERVICES, INC !301 CALISTA CT STE A !ANCHORAGE !AK!99518!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000002651562!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541380!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CHIULISTA SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2005-11-01. End: 2010-08-31.

What is the specific nature of the 'Electrical & Electronic Properties Measurement & Test Instruments' being procured under NAICS 541380?

The NAICS code 541380, 'Testing Laboratories and Services,' encompasses a wide range of testing activities. For this specific contract, the description 'ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS' suggests the procurement of specialized equipment designed to measure and test the electrical characteristics and properties of materials, components, or systems. This could include devices for measuring resistance, capacitance, inductance, dielectric strength, conductivity, electromagnetic interference, and other related parameters. The context of 'MISSILE AND SPACE SYSTEMS' implies these instruments are likely high-precision, potentially ruggedized, and capable of meeting stringent military specifications for testing critical defense hardware.

How does the $11 million contract value compare to typical spending on similar testing instruments by the Department of the Army?

Direct comparison of this $11 million contract value to typical Army spending on similar testing instruments is challenging without access to a comprehensive database of historical Army procurements for NAICS 541380 and specific instrument types. However, given the sole-source nature and the specialized application within missile and space systems, this value could represent a significant investment in a critical capability. If the contract covers a suite of advanced instruments or a long-term service agreement, the amount might be justified. A thorough analysis would require benchmarking against other sole-source or competitively awarded contracts for comparable high-value, specialized testing equipment within the defense sector.

What are the potential risks associated with a sole-source award for critical testing instruments?

Sole-source awards carry inherent risks, primarily concerning cost and potential lack of innovation. Without competition, the government may not achieve the best possible pricing, potentially overpaying for the instruments and services. There's also a risk that the chosen contractor may not be the most capable or innovative provider available, as other potential suppliers were not considered. Furthermore, reliance on a single source can create vulnerabilities if that contractor experiences financial difficulties, operational issues, or fails to meet performance expectations. The government's leverage in negotiating terms or addressing issues is also diminished compared to a competitive environment.

What does the contract duration of 1764 days (approximately 4.8 years) imply for the Army's needs?

A contract duration of 1764 days, spanning nearly five years, suggests a long-term, stable requirement for the testing instruments and associated services. This extended period implies that these instruments are not for a short-term project but are integral to ongoing operations, research, development, or sustainment activities within the Army's missile and space systems programs. Such a duration could indicate the need for specialized equipment that requires significant lead time for manufacturing or integration, or it might reflect a service contract for maintenance, calibration, and support over the equipment's lifecycle. It also signals a commitment by the Army to this particular capability for an extended period.

What is the significance of the contractor, CHIULISTA SERVICES INC, being located in Alaska?

The contractor's location in Anchorage, Alaska (AK 99518), is noteworthy. While Alaska has a military presence, it is geographically distant from many major defense manufacturing and research hubs in the contiguous United States. This location could imply specific logistical challenges and potentially higher transportation costs for equipment delivery and personnel deployment. It might also suggest that CHIULISTA SERVICES INC has unique capabilities or infrastructure suited to operating in that region, or perhaps it serves a specific military installation or program located there. The implications for cost-effectiveness and operational efficiency warrant consideration.

Industry Classification

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

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

Parent Company: Calista Corp (UEI: 076651314)

Address: 301 CALISTA CT STE A, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,948,972

Exercised Options: $11,036,731

Current Obligation: $11,036,731

Contract Characteristics

Cost or Pricing Data: YES

Timeline