DoD awards $13.9M for Adelphi Lab maintenance, with Chinook Systems Inc. securing the contract

Contract Overview

Contract Amount: $13,951,306 ($14.0M)

Contractor: Chinook Systems Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR ADELPHI LABORATORY CENTER, MD

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to CHINOOK SYSTEMS INC for work described as: PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR ADELPHI LABORATORY CENTER, MD Key points: 1. Contract value of $13.9M over 4 years suggests a significant investment in facility upkeep. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract is for Computer Systems Design Services, aligning with modern facility management needs. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract duration of 4 years allows for stable service provision. 6. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $13.9M over four years for preventative and corrective maintenance of the Adelphi Laboratory Center appears reasonable given the scope of facility upkeep. Benchmarking against similar large-scale facility maintenance contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. With 3 bidders identified, the competition level appears moderate. This level of competition is generally positive for price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through a competitive bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at the Adelphi Laboratory Center, ensuring operational continuity. Services delivered include essential preventative and corrective maintenance, crucial for the functionality and safety of the facility. The geographic impact is localized to Adelphi, Maryland, where the laboratory center is situated. Workforce implications may include the direct employment of maintenance technicians and support staff by Chinook Systems Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs are not clearly defined in the base contract.
Reliance on a single contractor for critical facility maintenance could pose a risk if performance issues arise.
The fixed-price nature might disincentivize proactive, cost-saving measures by the contractor if not carefully monitored.

Positive Signals

Full and open competition suggests a robust selection process, likely resulting in a qualified contractor.
The fixed-price contract type provides cost certainty for the government.
A 4-year contract duration allows for building a stable working relationship and predictable service delivery.

Sector Analysis

This contract falls within the broader facilities maintenance and management sector, which is a critical component of government operations. The market for such services is substantial, encompassing a wide range of providers from large facility management corporations to specialized maintenance firms. The specific nature of the Adelphi Laboratory Center may require specialized technical expertise, influencing the competitive landscape within this sector.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit small business subcontracting requirements mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal unless Chinook Systems Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance checks, and adherence to contract terms are key accountability measures. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

Federal Building Maintenance Contracts
Department of Defense Facilities Management
Laboratory Infrastructure Support
Computer Systems Design Services Contracts

Risk Flags

Potential for performance issues impacting facility operations.
Risk of cost overruns if scope is not well-defined or managed.
Dependence on a single contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to CHINOOK SYSTEMS INC. PREVENTATIVE AND CORRECTIVE MAINTENANCE FOR ADELPHI LABORATORY CENTER, MD

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 $14.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the track record of Chinook Systems Inc. in performing similar federal maintenance contracts?

Chinook Systems Inc. has a history of performing federal contracts, primarily in the realm of IT and computer systems design services. While specific details on their experience with large-scale, long-term facility maintenance like that for the Adelphi Laboratory Center would require deeper investigation into their contract history, their presence in the federal contracting space suggests a level of established operational capacity. Analyzing past performance reviews and any reported issues on previous government contracts would be crucial to fully assess their suitability and reliability for this specific role. It's important to determine if their core competencies align with the demands of comprehensive preventative and corrective maintenance for a complex laboratory facility.

How does the awarded price compare to market rates for similar facility maintenance services?

A precise comparison of the awarded price ($13.9M over 4 years) to market rates requires detailed knowledge of the specific services included, the facility's size and complexity, and prevailing labor and material costs in the Maryland region. However, the contract's full and open competition with three bidders suggests a degree of market validation. If the contract was awarded after a competitive process where multiple firms submitted bids, it implies the price is likely within a range considered acceptable by the market. Further analysis would involve benchmarking against publicly available data for similar-sized laboratory facilities or government installations in the same geographic area, considering factors like square footage, specialized equipment maintenance, and security requirements.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around contractor performance and potential cost overruns if not managed effectively. Given it's a fixed-price contract, the risk of performance failure by Chinook Systems Inc. is significant; if the contractor cannot deliver the required maintenance, it could lead to facility downtime, operational disruptions, and potential safety hazards. There's also a risk of inadequate preventative maintenance leading to more costly corrective actions later. Ensuring robust oversight, clear performance metrics, and timely issue resolution are critical to mitigating these risks. The reliance on a single entity for critical maintenance also presents a concentration risk.

How effective is the chosen contract type (Firm Fixed Price) for this type of service?

The Firm Fixed Price (FFP) contract type is generally effective for services where the scope of work is well-defined and unlikely to change significantly. For preventative and corrective maintenance, FFP provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This encourages the contractor to manage their costs efficiently. However, if the scope of 'corrective maintenance' is broad or if unforeseen issues arise within the facility, the contractor might be disincentivized from performing extensive work without seeking contract modifications, potentially leading to disputes or delays. Clear definition of 'corrective maintenance' and robust oversight are key to maximizing FFP effectiveness here.

What are the historical spending patterns for Adelphi Laboratory Center maintenance?

Analyzing historical spending patterns for the Adelphi Laboratory Center's maintenance is crucial for context. Without specific historical data, it's difficult to ascertain if the current $13.9M award represents an increase, decrease, or stable level of investment. Understanding past expenditures would reveal trends in maintenance needs, identify any significant one-time repair costs, and help assess whether the current contract value is aligned with long-term facility upkeep requirements. Comparing this award to previous contract values for similar services at the center would provide insight into the government's sustained commitment and resource allocation for facility management.

What is the significance of the contract being a Delivery Order?

The fact that this award is a Delivery Order (DO) signifies that it was issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This implies that the Department of Defense (or a specific agency within it) has established a master contract with a ceiling amount and a defined period, allowing for the issuance of multiple task orders or delivery orders as needs arise. This approach provides flexibility for the government to procure services incrementally, adapting to fluctuating requirements. For Chinook Systems Inc., it means they are one of potentially several awardees under the IDIQ, competing for individual orders based on specific needs and tasking.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 3

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: $25,926,725

Exercised Options: $19,803,881

Current Obligation: $13,951,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0028

IDV Type: IDC

Timeline