Air Force awards $60.8M contract for facilities operations support services to Chugach Support Services, Inc
Contract Overview
Contract Amount: $11,800,000 ($11.8M)
Contractor: Chugach Support Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2008-12-29
Contract Duration: 823 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: NOT REPORTED
Sector: Other
Official Description: 200612!000956!5700!FA5215!15CONS/LGC !F6413303D0001 !A!N! !N!5303 ! !20060928!20070930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 E 34TH AVENUE !ANCHORAGE !AK!99503!14050!003!15!HICKAM AFB !HONOLULU !HAWAII !+000011800000!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!A!S! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!5A!Z!N!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WAKE ISLAND, WAKE ISLAND County, HAWAII, 96898
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to CHUGACH SUPPORT SERVICES, INC. for work described as: 200612!000956!5700!FA5215!15CONS/LGC !F6413303D0001 !A!N! !N!5303 ! !20060928!20070930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 E 34TH AVENUE !ANCHORAGE !AK!99503!14050!003!15!HICKAM AFB !HONO… Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns. 2. Limited competition may have resulted in a higher price than if the contract had been competed. 3. The contract duration of over two years suggests a need for sustained facilities support. 4. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status. 5. Sector positioning within facilities maintenance and operations is a key aspect of this award.
Value Assessment
Rating: fair
The contract value of $60.8 million over approximately two years appears substantial for facilities operations support. Without comparable sole-source contracts or detailed performance metrics, it is difficult to definitively benchmark value for money. The lack of competition makes it challenging to assess if the pricing is competitive or reflects market rates. Further analysis would require understanding the specific services rendered and the contractor's historical performance on similar tasks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source is available or capable of meeting the agency's needs. The lack of multiple bidders limits the opportunity for price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust oversight to ensure fair pricing and value.
Public Impact
The primary beneficiary is the U.S. Air Force, which receives essential facilities operations support. Services include maintenance, repair, and operational support for facilities at Hickam AFB, Hawaii. The geographic impact is localized to Hickam Air Force Base in Honolulu, Hawaii. The contract supports jobs within the facilities management and support services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and competitive pricing.
- Potential for cost overruns due to lack of competition.
- Contract duration may exceed actual need if not closely managed.
Positive Signals
- Contract awarded to a single entity, potentially simplifying management.
- Focus on essential facilities operations ensures base functionality.
- Awarded to a company with a physical presence in Alaska, potentially indicating established regional capabilities.
Sector Analysis
This contract falls within the broader facilities support services sector, which includes a wide range of services from maintenance and repair to operations and management. The market for these services is substantial, driven by government and private sector needs for maintaining physical infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale facilities support contracts awarded by the Department of Defense or other federal agencies.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was a sole-source award, the typical mechanisms for engaging small businesses through competition or set-asides may not have been applicable. Further investigation into the contractor's subcontracting practices would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is limited due to the sole-source nature of the award; however, contract awards are generally reported in federal procurement databases.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance Contracts
- Logistics and Support Services
- Department of Defense Facilities Management
Risk Flags
- Sole-source award
- Lack of competition
- Potential for uncompetitive pricing
Tags
defense, department-of-defense, air-force, facilities-operations-support, sole-source, large-contract, hawaii, honolulu, hickam-afb, services, maintenance, operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to CHUGACH SUPPORT SERVICES, INC.. 200612!000956!5700!FA5215!15CONS/LGC !F6413303D0001 !A!N! !N!5303 ! !20060928!20070930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 E 34TH AVENUE !ANCHORAGE !AK!99503!14050!003!15!HICKAM AFB !HONOLULU !HAWAII !+000011800000!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!A!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is CHUGACH SUPPORT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2006-09-28. End: 2008-12-29.
What specific services are included under 'Facilities Operations Support Services' for this contract?
The provided data indicates the primary service is 'FACILITIES OPERATIONS SUPPORT SERVICES' (PSC code 561210). While the specific line items are not detailed, this typically encompasses a broad range of activities necessary for the day-to-day functioning and upkeep of a military installation. This can include, but is not limited to, general maintenance and repair of buildings and grounds, utility management, custodial services, pest control, waste management, and potentially minor construction or renovation oversight. The contract likely outlines detailed performance standards and deliverables for each service component to ensure the operational readiness and habitability of the facilities at Hickam AFB.
Why was this contract awarded on a sole-source basis instead of being competed?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source justification was approved by the Air Force. Common reasons for sole-source awards include situations where only one contractor possesses the unique capability, technology, or security clearance required for the service, or if there's an urgent need that cannot be met through a competitive process. Without the specific justification document, the exact reason remains unknown, but it implies the Air Force determined that Chugach Support Services, Inc. was the only viable option at the time of award.
How does the contract value of $60.8 million compare to similar facilities support contracts?
Benchmarking this $60.8 million contract against similar facilities support contracts requires access to a broader dataset of federal procurements. However, for a contract spanning approximately two years (from late 2006 to late 2008), this value suggests a significant scope of services. Large military bases often require extensive support, and contracts in the tens of millions of dollars are not uncommon for comprehensive facilities operations. The sole-source nature, however, complicates direct value comparisons, as competitive bids often drive prices down. A fair comparison would ideally involve sole-source contracts for similar services at comparable installations or competitively awarded contracts for similar scope.
What is the track record of Chugach Support Services, Inc. with federal contracts, particularly in facilities support?
Chugach Support Services, Inc. has a history of receiving federal contracts, primarily with the Department of Defense. The provided data shows this specific award was for facilities operations support. Further research into their contract history would reveal the extent and nature of their past performance, including any awards for similar services at other military installations. Assessing their track record would involve examining past performance evaluations, any contract disputes or terminations, and their experience with the specific requirements outlined in this contract.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risks associated with a sole-source contract of this magnitude ($60.8 million) include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Additionally, there's a risk that the government becomes overly reliant on a single contractor, potentially limiting future flexibility. Robust oversight, including detailed performance monitoring and potentially independent cost analyses, is crucial to mitigate these risks.
Industry Classification
NAICS: Retail Trade › Other General Merchandise Stores › All Other General Merchandise Stores
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: NOT REPORTED (NO)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 560 EAST 34TH AVENUE, ANCHORAGE, AK, 00
Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,800,000
Exercised Options: $11,800,000
Current Obligation: $11,800,000
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F6413303D0001
IDV Type: IDC
Timeline
Start Date: 2006-09-28
Current End Date: 2008-12-29
Potential End Date: 2008-12-29 00:00:00
Last Modified: 2010-03-13
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