DoD's $22.1M IT Operations Contract Awarded to Chugach Technical Solutions LLC

Contract Overview

Contract Amount: $22,104,685 ($22.1M)

Contractor: Chugach Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-28

End Date: 2025-09-29

Contract Duration: 1,858 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GLOBAL INFORMATION TECHNOLOGY OPERATIONS CENTER

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to CHUGACH TECHNICAL SOLUTIONS LLC for work described as: GLOBAL INFORMATION TECHNOLOGY OPERATIONS CENTER Key points: 1. Contract value of $22.1 million over its period of performance. 2. Awarded to Chugach Technical Solutions LLC, a company with a significant presence in government contracting. 3. The contract is for Computer Systems Design Services, a critical area for defense operations. 4. The contract duration is 1858 days, spanning from August 2020 to September 2025. 5. The contract type is Firm Fixed Price, indicating predictable costs for the government. 6. The contract was not competitively procured, raising questions about potential value for money. 7. The contract is a Definitive Contract, suggesting a well-defined scope of work.

Value Assessment

Rating: fair

The contract's value of $22.1 million for IT operations services over nearly five years requires careful benchmarking. Without specific performance metrics or comparison to similar contracts, assessing the value for money is challenging. The firm fixed-price structure provides cost certainty, but the lack of competition could mean the government did not secure the most advantageous pricing. Further analysis of the specific services rendered and their market rates is needed to definitively evaluate value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to higher costs than might be achieved through open bidding.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government did not have the opportunity to solicit and evaluate multiple bids, which is a standard practice to ensure the best possible pricing and terms.

Public Impact

The Department of Defense benefits from continuous IT operations support, ensuring critical systems remain functional. Services delivered include computer systems design and related support, crucial for maintaining defense infrastructure. The contract's geographic impact is focused on Alaska (AK), indicated by the 'ST' and 'SN' fields. Workforce implications include employment opportunities for IT professionals within the contractor's organization, potentially in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source awards can limit innovation by excluding potential new entrants.
Performance data is not readily available to assess contractor effectiveness.
The specific IT services provided require detailed understanding to benchmark effectively.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long-term contract (1858 days) offers stability for IT operations.
Award to an established contractor may indicate a known quantity for critical services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with numerous companies offering specialized solutions. Government IT spending represents a significant portion of the overall federal IT market. Benchmarking this contract's value would involve comparing its per-diem or total cost against similar IT support contracts awarded by the DoD or other federal agencies, considering the scope of services and geographic location.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) and the data does not indicate any specific subcontracting requirements for small businesses (sb=false). This suggests that the primary award was not targeted towards small businesses, and there may be limited direct opportunities for small businesses through this specific contract, unless they are part of the prime contractor's supply chain without a formal set-aside designation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure which obligates the contractor to deliver specified services within a set budget. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
Federal Civilian IT Services Contracts
Alaska-based Federal Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns without competitive pressure.
Limited transparency on specific performance metrics.
Dependency on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to CHUGACH TECHNICAL SOLUTIONS LLC. GLOBAL INFORMATION TECHNOLOGY OPERATIONS CENTER

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 $22.1 million.

What is the period of performance?

Start: 2020-08-28. End: 2025-09-29.

What is the track record of Chugach Technical Solutions LLC with the Department of Defense?

Chugach Technical Solutions LLC has a history of receiving contracts from the Department of Defense. While this specific contract is for $22.1 million, a comprehensive review of their past performance with the DoD would involve examining the number, value, and types of previous awards. This includes assessing their success in fulfilling contract requirements, any past performance issues or disputes, and their overall reputation within the agency. Understanding their prior experience, particularly in IT operations and computer systems design, provides context for their current award and helps in evaluating their capability to meet the stated needs.

How does the pricing of this contract compare to similar IT services contracts?

Directly comparing the pricing of this $22.1 million contract is challenging without detailed service breakdowns and market data. However, the 'NOT AVAILABLE FOR COMPETITION' status suggests a potential lack of competitive pricing pressure. To benchmark, one would typically look at the average cost per service hour, per system supported, or per user, based on similar contracts awarded by the DoD or other agencies for comparable IT operations and computer systems design services. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee the best market rate. A thorough analysis would require access to detailed service level agreements and market research data.

What are the primary risks associated with this sole-source IT contract?

The primary risks associated with this sole-source IT contract include potential overpricing due to the lack of competition, which could lead to suboptimal value for taxpayer money. There's also a risk of reduced innovation, as the absence of competitive bidding may disincentivize the contractor from proactively seeking more efficient or advanced solutions. Furthermore, dependency on a single contractor for critical IT operations can create vulnerability if the contractor experiences performance issues, financial instability, or decides not to renew the contract. Ensuring robust oversight and clear performance metrics becomes crucial to mitigate these risks.

How effective is the Department of the Army in managing IT operations contracts like this one?

Assessing the effectiveness of the Department of the Army in managing IT operations contracts requires analyzing their overall contract management framework, including procurement processes, oversight mechanisms, and performance evaluation systems. While this specific contract's effectiveness is difficult to gauge without performance data, the Army, like other large federal agencies, employs contracting officers and program managers to oversee such awards. Their effectiveness is often measured by factors such as adherence to budget, timely delivery of services, achievement of performance standards, and successful mitigation of contractor-related risks. Past performance reviews and IG reports related to Army IT contracts would provide further insight.

What are the historical spending patterns for Computer Systems Design Services within the Department of Defense?

Historical spending patterns for Computer Systems Design Services (NAICS code 541512) within the Department of Defense (DoD) are substantial, reflecting the critical role of IT in modern military operations. The DoD consistently ranks among the largest federal government purchasers of IT services. Analyzing historical data would reveal trends in contract values, types of services procured (e.g., system design, integration, maintenance), and the distribution of awards among large and small businesses, as well as competitive versus sole-source procurements. This contract, valued at $22.1 million, fits within the broader landscape of significant DoD investments in IT infrastructure and support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: $23,007,321

Exercised Options: $22,104,685

Current Obligation: $22,104,685

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $141,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline