Army Reserve awards $7.8M contract for facility control systems, with 6 bidders competing

Contract Overview

Contract Amount: $7,849,585 ($7.8M)

Contractor: Chinook Systems Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: U.S. ARMY RESERVE (USAR) FACILITY RELATED CONTROL SYSTEM (FCRS) INVENTORY

Place of Performance

Location: FORT MCCOY, MARION County, FLORIDA, 32134

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to CHINOOK SYSTEMS INC for work described as: U.S. ARMY RESERVE (USAR) FACILITY RELATED CONTROL SYSTEM (FCRS) INVENTORY Key points: 1. Contract value appears reasonable given the scope of inventory management and system design services. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The contract duration of over 5 years indicates a long-term need for these facility control systems. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contractor, Chinook Systems Inc., has secured this award through a competitive process. 6. This contract supports the modernization and management of critical infrastructure for the Army Reserve.

Value Assessment

Rating: good

The contract value of approximately $7.8 million over its period of performance (roughly 5.5 years) suggests a moderate annual spend. Benchmarking against similar IT services contracts for facility management systems is challenging without more specific details on the system's complexity and scope. However, the number of bidders (6) in a full and open competition indicates a competitive market, which typically leads to fair pricing. The firm-fixed-price structure also aligns with expectations for well-defined service requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Six bidders participated in this competition, indicating a robust level of interest and a competitive marketplace for facility control system services. The presence of multiple bidders generally fosters price discovery and allows the government to select the offer that represents the best value.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

The U.S. Army Reserve benefits from an updated and managed inventory of its Facility Related Control Systems (FCRS). Services delivered include computer systems design and integration for facility control. The contract's geographic impact is primarily within the operational areas of the Army Reserve facilities managed by the awarded contractor. Workforce implications may include specialized IT and facility management roles for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if FCRS requirements are not precisely defined.
Dependence on contractor's expertise for critical facility system management.
Risk of system obsolescence if not updated throughout the contract period.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a competitive market and potentially good value.
Long contract duration allows for sustained support and system development.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration for facility management. The market for such services is substantial, driven by the increasing need for smart building technologies and efficient infrastructure management across government and commercial sectors. Comparable spending benchmarks would typically involve IT modernization projects for large organizations, where system design, integration, and ongoing support are key components.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the U.S. Army Reserve. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Army Reserve IT Modernization Programs
Facility Management IT Solutions
Department of Defense Infrastructure Management
Computer Systems Design Services Contracts

Risk Flags

Potential for technological obsolescence over the contract duration.
Dependence on contractor for critical facility system management.
Need for robust oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to CHINOOK SYSTEMS INC. U.S. ARMY RESERVE (USAR) FACILITY RELATED CONTROL SYSTEM (FCRS) INVENTORY

Who is the contractor on this award?

The obligated recipient is CHINOOK SYSTEMS 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 $7.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-03-31.

What is the specific nature of the Facility Related Control Systems (FCRS) being inventoried and managed under this contract?

The Facility Related Control Systems (FCRS) typically encompass a range of automated systems that manage and monitor a facility's environment and operations. This can include HVAC (Heating, Ventilation, and Air Conditioning) systems, lighting controls, security access systems, fire alarm systems, and power monitoring. The contract likely involves cataloging existing systems, assessing their operational status, identifying vulnerabilities or inefficiencies, and potentially designing integrated solutions for better management and control across various Army Reserve facilities. The specific scope would detail the types of systems covered, their locations, and the required level of detail for the inventory and design services.

How does the $7.8 million contract value compare to similar IT services contracts for facility management systems within the Department of Defense?

Benchmarking this $7.8 million contract requires detailed comparison with similar IT services contracts for facility management systems within the DoD. Factors such as the number of facilities covered, the complexity of the control systems involved, the scope of services (inventory, design, integration, maintenance), and the contract duration are crucial. Given the 5.5-year duration, the annual value is approximately $1.4 million. This figure appears moderate for a large-scale IT services contract supporting infrastructure management. The competitive nature (6 bidders) suggests the pricing is likely aligned with market rates for such services, but a precise comparison would necessitate access to detailed contract data for comparable procurements.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure successful delivery?

While specific KPIs and SLAs are not detailed in the provided data, typical performance indicators for a contract of this nature would focus on the accuracy and completeness of the FCRS inventory, the timeliness of system design deliverables, the effectiveness of proposed solutions in improving facility operations, and adherence to project schedules. For example, KPIs might include a target percentage for inventory accuracy, deadlines for design document submissions, and successful integration testing of new system components. SLAs could define response times for critical system issues or uptime requirements for managed systems. The contracting officer's representative (COR) would monitor these metrics to ensure the contractor meets contractual obligations.

What is the track record of Chinook Systems Inc. in delivering similar IT services, particularly for government clients?

Chinook Systems Inc. has a history of providing various IT and engineering services. Information regarding their specific track record with facility-related control systems and government contracts would typically be available through federal procurement databases like SAM.gov or through past performance evaluations submitted during the bidding process. Assessing their past performance would involve reviewing previous contracts, client feedback, and any documented successes or failures in delivering comparable services. A positive track record with similar projects would increase confidence in their ability to successfully execute this Army Reserve contract.

What are the potential risks associated with a long-term contract (over 5 years) for facility control systems, and how are they mitigated?

Long-term contracts for facility control systems carry risks such as technological obsolescence, evolving security threats, and potential contractor performance degradation over time. Technological obsolescence is a significant concern, as control systems can become outdated rapidly. Mitigation strategies include incorporating clauses for technology refresh, ensuring the contract allows for adaptation to new standards, and requiring regular system updates. Security risks are addressed through robust cybersecurity requirements and continuous monitoring. Contractor performance is managed through regular oversight, performance reviews, and the firm-fixed-price structure, which incentivizes timely and quality delivery. The Army Reserve would also maintain the option to exercise or not exercise future task orders or contract modifications.

How does this contract contribute to the overall modernization and efficiency goals of the U.S. Army Reserve's infrastructure?

This contract directly supports the U.S. Army Reserve's infrastructure modernization and efficiency goals by focusing on the critical Facility Related Control Systems (FCRS). By creating a comprehensive inventory and potentially designing integrated control solutions, the Army Reserve can gain better visibility and control over its facilities' operations. This can lead to significant improvements in energy efficiency, reduced maintenance costs, enhanced security, and improved operational readiness. Understanding the status and capabilities of these systems is a foundational step towards optimizing facility performance, reducing waste, and ensuring that Reserve facilities effectively support military operations and personnel.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY20R0088

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chinook Systems, Inc.

Address: 3400 OCEAN BEACH BLVD APT 511, COCOA BEACH, FL, 32931

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,849,585

Exercised Options: $7,849,585

Current Obligation: $7,849,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY21D0057

IDV Type: IDC

Timeline