DOE's $30.7M Facilities Maintenance Contract with Chugach McKinley Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $30,690,557 ($30.7M)
Contractor: Chugach Mckinley, Inc.
Awarding Agency: Department of Energy
Start Date: 2004-02-18
End Date: 2009-04-30
Contract Duration: 1,898 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FACILITIES MAINTENENCE
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $30.7 million to CHUGACH MCKINLEY, INC. for work described as: FACILITIES MAINTENENCE Key points: 1. The contract awarded to Chugach McKinley, Inc. for facilities maintenance represents a significant investment by the Department of Energy. 2. While the contract utilized full and open competition after exclusion of sources, the specific rationale for exclusion warrants further examination. 3. The firm fixed-price contract structure aims to control costs, but the long duration and lack of small business participation raise potential value concerns. 4. The sector is characterized by essential services requiring consistent oversight to ensure taxpayer funds are used efficiently.
Value Assessment
Rating: fair
The contract's total value of $30.7 million over its duration suggests a substantial investment. Benchmarking against similar facilities maintenance contracts is necessary to determine if the pricing is competitive, especially given the long performance period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This suggests a competitive process, but the specific reasons for excluding certain sources need to be understood to assess the full impact on price discovery and potential savings.
Taxpayer Impact: The long-term nature of this contract and the absence of small business participation may limit opportunities for cost savings and broader economic impact for smaller enterprises.
Public Impact
Taxpayers are funding essential facilities maintenance services for the Department of Energy. The contract's duration and the exclusion of sources could impact the overall cost-effectiveness of the services provided. Lack of small business involvement means potential missed opportunities for economic development and diverse supplier engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1898 days)
- No small business participation
- Competition method requires further justification
Positive Signals
- Firm fixed-price contract type
- Essential service provision
Sector Analysis
Facilities maintenance is a critical but often overlooked sector within government spending. Benchmarks for this type of service can vary widely based on facility size, complexity, and location, making direct comparisons challenging without more specific data.
Small Business Impact
This contract did not include any small business participation, which represents a missed opportunity to leverage the capabilities of smaller firms and promote economic diversity within the federal contracting landscape.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure performance standards are met and costs remain justified. Regular reviews of contract performance and vendor compliance are crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of small business participation
- Long contract duration may lead to price inflexibility
- Justification for 'exclusion of sources' needs review
- Potential for uncompetitive pricing over the contract's life
Tags
facilities-support-services, department-of-energy, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $30.7 million to CHUGACH MCKINLEY, INC.. FACILITIES MAINTENENCE
Who is the contractor on this award?
The obligated recipient is CHUGACH MCKINLEY, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $30.7 million.
What is the period of performance?
Start: 2004-02-18. End: 2009-04-30.
What was the specific justification for excluding sources in the 'full and open competition after exclusion of sources' award method, and how did this impact the final price?
The justification for excluding sources under this procurement method is critical for understanding the competitive landscape and its effect on pricing. Without this information, it's difficult to ascertain if the government secured the best possible value. Further analysis is needed to determine if the exclusion led to a less competitive environment and potentially higher costs for taxpayers.
Given the 1898-day duration, what mechanisms are in place to ensure the firm fixed-price remains competitive and reflects current market rates throughout the contract's life?
Firm fixed-price contracts aim to provide cost certainty, but long durations can lead to price discrepancies if market rates shift significantly. The Department of Energy should have mechanisms for periodic review or price adjustments based on objective criteria, or ensure the initial price was set with long-term market trends in mind. Without such provisions, the government risks overpaying if market rates decrease.
How does the absence of small business participation in this $30.7 million contract align with federal goals for small business utilization and economic impact?
The complete absence of small business participation in a contract of this magnitude is concerning, especially given federal mandates to promote small business engagement. This suggests a potential failure to identify or leverage capable small businesses in the facilities maintenance sector. Agencies should actively seek ways to break down large contracts or ensure small businesses can compete effectively.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 560 EAST 34TH AVENUE, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,283,844
Exercised Options: $34,283,844
Current Obligation: $30,690,557
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2004-02-18
Current End Date: 2009-04-30
Potential End Date: 2009-04-30 00:00:00
Last Modified: 2018-07-15
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