Army's Redstone Arsenal Facilities Support Contract Awarded to Chugach Federal Solutions for $147M
Contract Overview
Contract Amount: $146,984,310 ($147.0M)
Contractor: Chugach Federal Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2011-03-31
End Date: 2014-11-30
Contract Duration: 1,340 days
Daily Burn Rate: $109.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: INSTALLATION SUPPORT SERVICES (ISS) THROUGHOUT REDSTONE ARSENAL FOR THE US ARMY GARRISON-REDSTONE, DIRECTORATE OF PUBLIC WORKS. THIS EFFORT CONSISTS OF MAIL PICKUP AND DELIVERY, LOGISTICS SUPPORT WAREHOUSING, RECEIVE/STORE/MOVE/ISSUE SUPPLY CLASSES I-X (EXCEPT V), PETROLEUM ISSUE POINT, VEHICLE MAINTENANCE, MOTOR POOL OPERATIONS, ASSET MANAGEMENT, RETAIL SUPPLY SERVICES; PUBLIC WORKS FACILITY MAINTENANCE, HEATING AND COOLING SERVICES, LANDFILL OPERATIONS, SNOW/ICE REMOVAL/STREET SWEEPING, MISCELLANEOUS ENGINEERING ACTIVITIES, AND WATER SERVICES FOR THE ENTIRE POST FOR THE PERIOD OF 01 APRIL 2011 THROUGH 31 MARCH 2012.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $147.0 million to CHUGACH FEDERAL SOLUTIONS LLC for work described as: INSTALLATION SUPPORT SERVICES (ISS) THROUGHOUT REDSTONE ARSENAL FOR THE US ARMY GARRISON-REDSTONE, DIRECTORATE OF PUBLIC WORKS. THIS EFFORT CONSISTS OF MAIL PICKUP AND DELIVERY, LOGISTICS SUPPORT WAREHOUSING, RECEIVE/STORE/MOVE/ISSUE SUPPLY CLASSES I-X (EXCEPT V), PETROLEUM IS… Key points: 1. The contract covers a broad range of installation support services, including logistics, facility maintenance, and utilities. 2. Chugach Federal Solutions, the sole awardee, will provide these services for Redstone Arsenal. 3. The contract's 'Not Available for Competition' status raises questions about potential price discovery limitations. 4. The sector is Facilities Support Services, a critical but often overlooked area of government operations.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar large-scale installation support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this large contract may result in a higher cost to taxpayers compared to a competitively awarded contract.
Public Impact
Ensures continuous operation of critical infrastructure and services at Redstone Arsenal. Supports military readiness by maintaining facilities and providing essential logistical support. Impacts local economy through contract spending and potential job creation/retention. Highlights the significant investment in base operations and maintenance for military installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type carries inherent risk of cost escalation.
- Broad scope of services may be difficult to manage effectively under one contract.
Positive Signals
- Provides comprehensive support for a critical military installation.
- Ensures continuity of essential services for base personnel and operations.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing maintenance, logistics, and operational support for government facilities. Spending in this sector is substantial across the federal government, often awarded through various contract types to ensure operational continuity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger prime contractors often utilize small business subcontractors, but direct small business participation is not evident here.
Oversight & Accountability
The 'Not Available for Competition' status suggests a lack of robust oversight in the initial procurement phase. Ongoing oversight would be crucial to manage costs and ensure performance under the Cost Plus Fixed Fee structure.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type increases financial risk.
- Broad service scope may lead to management challenges.
- Lack of small business prime awardee.
Tags
facilities-support-services, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $147.0 million to CHUGACH FEDERAL SOLUTIONS LLC. INSTALLATION SUPPORT SERVICES (ISS) THROUGHOUT REDSTONE ARSENAL FOR THE US ARMY GARRISON-REDSTONE, DIRECTORATE OF PUBLIC WORKS. THIS EFFORT CONSISTS OF MAIL PICKUP AND DELIVERY, LOGISTICS SUPPORT WAREHOUSING, RECEIVE/STORE/MOVE/ISSUE SUPPLY CLASSES I-X (EXCEPT V), PETROLEUM ISSUE POINT, VEHICLE MAINTENANCE, MOTOR POOL OPERATIONS, ASSET MANAGEMENT, RETAIL SUPPLY SERVICES; PUBLIC WORKS FACILITY MAINTENANCE, HEATING AND COOLING SERVICES, LANDFILL OPERATIONS, SNOW/ICE REMOVAL/STREET SWEEPING, M
Who is the contractor on this award?
The obligated recipient is CHUGACH FEDERAL 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 $147.0 million.
What is the period of performance?
Start: 2011-03-31. End: 2014-11-30.
What specific factors justified the sole-source award for these extensive installation support services?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. For installation support services, it might stem from highly specialized requirements tied to the specific infrastructure or mission of Redstone Arsenal, or a previous contractor's unique knowledge that made rebidding impractical or detrimental to operations.
How effectively were costs managed under the Cost Plus Fixed Fee structure for this contract?
Assessing cost management effectiveness requires detailed financial data and performance metrics. Cost Plus Fixed Fee contracts inherently carry a risk of cost growth if the government's oversight and the contractor's efficiency controls are not robust. Without post-award financial reviews and performance reports, it's difficult to definitively state how well costs were managed.
What was the overall value proposition delivered by Chugach Federal Solutions given the contract's scope and cost?
The value proposition hinges on the successful and efficient delivery of all specified services, from mail delivery to complex facility maintenance and utilities. If Redstone Arsenal's operations were uninterrupted and met all requirements, the contract provided significant value. However, the sole-source nature and cost-plus fee structure raise questions about whether this represented the best possible value compared to a competitive scenario.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9124P11R0007
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation
Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $152,513,453
Exercised Options: $152,513,453
Current Obligation: $146,984,310
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-31
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2025-12-31
More Contracts from Chugach Federal Solutions LLC
- Phase-In Wake Island (WI) — $268.8M (Department of Defense)
- Critical Functions: the Contractor Shall Provide Facility Operation and Maintenance Services (foms) for the Goddard Space Flight Center (gsfc), Greenbelt, Maryland. for the Purpose of This Contract, "gsfc" Herein Refers to the Gsfc Facility in Greenbelt, Maryland Only. ALL Requirements Listed in This Statement of Work ARE Baseline Except for Those Specifically Designated AS Indefinite Delivery/Indefinite Quantity (idiq) Which Will BE Procured Through Issuance of Task Orders (TO) — $140.9M (National Aeronautics and Space Administration)
- Recurring Work, FY15, OP 1 — $34.9M (Department of Defense)
- Purchase Recurring Work Clin and Selected Non-Recurring Work Slins for Fiscal Year 2016 — $32.6M (Department of Defense)
- X942 FY19 Wsbosc OY5 Funding Task Order for Recurring Services — $31.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)