Department of Energy's $38.7M Facilities Maintenance Contract Awarded to Chugach Government Services
Contract Overview
Contract Amount: $38,687,882 ($38.7M)
Contractor: Chugach Government Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-04-30
End Date: 2015-02-28
Contract Duration: 2,130 days
Daily Burn Rate: $18.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SERVICES, FACILITIES MAINTENANCE FOR SC-OFS
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87185
Plain-Language Summary
Department of Energy obligated $38.7 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: SERVICES, FACILITIES MAINTENANCE FOR SC-OFS Key points: 1. The contract value represents a significant investment in maintaining critical government facilities. 2. The award was made on a non-competitive basis, raising questions about potential cost efficiencies. 3. The duration of the contract (2130 days) suggests a long-term need for these services. 4. The fixed-price nature of the contract aims to control costs, but the lack of competition may limit price discovery. 5. The services provided are essential for the operational readiness and safety of Department of Energy facilities. 6. The contract's value, while substantial, needs to be benchmarked against similar facilities maintenance contracts.
Value Assessment
Rating: fair
The contract value of approximately $38.7 million over its period of performance is substantial for facilities maintenance. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The fixed-price structure provides some cost certainty, but the lack of competition means there is no direct benchmark to evaluate if the pricing is competitive. Further analysis would require comparing the scope of services and pricing to similar contracts awarded by other agencies or for comparable facilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one contractor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition limits the opportunity for multiple bidders to offer proposals, which can drive down prices through a competitive bidding process. This can lead to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government did not benefit from the potential cost savings that typically arise from a robust bidding process.
Public Impact
The primary beneficiaries are the Department of Energy and its operational facilities, ensuring continued functionality and safety. Essential services including maintenance, repair, and upkeep of government buildings and infrastructure are delivered. The contract has a geographic impact primarily in New Mexico, where the facilities are located. The contract supports a workforce involved in facilities management and maintenance, contributing to local employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing.
- Sole-source awards can reduce transparency in pricing.
- Long contract duration without competition limits re-evaluation of service providers.
Positive Signals
- Fixed-price contract type helps control costs.
- Chugach Government Services has a track record of performing government contracts.
- The contract ensures continuity of essential facility operations.
Sector Analysis
Facilities support services, including maintenance and operations, represent a significant segment of the government contracting market. This sector is characterized by a mix of large and small businesses competing for contracts across various federal agencies. The Department of Energy, with its extensive infrastructure, is a major consumer of these services. Benchmarking this contract's value would involve comparing its per-square-foot maintenance costs or total value against similar facilities maintenance contracts awarded by agencies like the Department of Defense or the General Services Administration.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The award to Chugach Government Services, a larger entity, suggests that the primary focus was on capability and existing relationships rather than promoting small business participation. This contract does not appear to directly contribute to the small business ecosystem through set-asides or mandated subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is often limited in sole-source awards, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Energy Facilities Operations
- Government Facilities Maintenance Contracts
- Non-Competitive Contract Awards
- Fixed-Price Contract Services
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for cost inefficiencies due to non-competitive nature.
- Long contract duration without re-competition.
Tags
facilities-maintenance, department-of-energy, new-mexico, definitive-contract, firm-fixed-price, sole-source, facilities-support-services, non-competitive, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $38.7 million to CHUGACH GOVERNMENT SERVICES, INC.. SERVICES, FACILITIES MAINTENANCE FOR SC-OFS
Who is the contractor on this award?
The obligated recipient is CHUGACH GOVERNMENT SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $38.7 million.
What is the period of performance?
Start: 2009-04-30. End: 2015-02-28.
What is the historical spending pattern for facilities maintenance at this specific Department of Energy site?
Analyzing historical spending for facilities maintenance at this specific Department of Energy site would provide crucial context for the $38.7 million award. Without access to detailed historical data, it's challenging to determine if this contract represents an increase, decrease, or stable level of investment. Understanding past expenditures, including previous contract values, durations, and awarded contractors, can help identify trends, potential cost escalations, or efficiencies gained over time. For instance, if previous contracts for similar services were significantly lower in value or shorter in duration, it might warrant further investigation into the reasons for the current contract's scale. Conversely, if historical spending has been consistently high, it could indicate the ongoing need for extensive maintenance and the associated costs.
How does the per-square-foot cost of maintenance under this contract compare to industry benchmarks for similar government facilities?
To assess the value for money, comparing the per-square-foot cost of maintenance under this $38.7 million contract to industry benchmarks for similar government facilities is essential. This requires calculating the total square footage of the facilities covered by the contract and dividing the total contract value (or an annualized portion of it) by that area. Once a per-square-foot cost is derived, it can be benchmarked against data from similar facilities, such as those managed by other federal agencies (e.g., GSA, DoD) or large-scale commercial properties. A significantly higher per-square-foot cost, especially given the sole-source nature of the award, could indicate potential overpricing or inefficiencies. Conversely, a cost within or below the benchmark range might suggest reasonable pricing, despite the lack of competition.
What specific performance metrics or service level agreements (SLAs) are included in the contract to ensure quality and efficiency?
The effectiveness and efficiency of the services provided under this $38.7 million contract are contingent upon the inclusion of specific performance metrics and Service Level Agreements (SLAs). These contractual clauses define the expected standards of service, response times, and quality of work. For example, SLAs might dictate response times for emergency repairs, preventative maintenance schedules, or energy efficiency targets. Performance metrics would allow the Department of Energy to objectively measure Chugach Government Services' adherence to these standards. Without clearly defined and measurable SLAs and performance metrics, it is difficult for the government to hold the contractor accountable for service quality and to ensure that taxpayer funds are being used effectively to maintain the facilities to the required standard.
What is Chugach Government Services' track record with similar facilities maintenance contracts for the Department of Energy or other federal agencies?
Evaluating Chugach Government Services' track record with similar facilities maintenance contracts is crucial for understanding their capability and reliability in fulfilling this $38.7 million award. This involves reviewing their past performance on contracts with the Department of Energy and other federal agencies, looking for indicators such as on-time delivery, adherence to budget, quality of work, and any history of disputes or contract terminations. Positive performance reviews, successful completion of complex projects, and a history of cost-effective service delivery would build confidence in their ability to manage this contract. Conversely, a history of performance issues, cost overruns, or significant contract modifications could raise concerns about their suitability for this long-term, sole-source award.
Given the sole-source nature, what steps were taken to ensure the price proposed by Chugach Government Services was fair and reasonable?
When a contract is awarded on a sole-source basis, as this $38.7 million facilities maintenance contract was, the procuring agency must undertake specific steps to ensure the proposed price is fair and reasonable. This typically involves conducting a thorough price analysis. For fixed-price contracts, this might include analyzing historical pricing data for similar services, evaluating the contractor's cost elements (if provided), comparing prices with other commercial items or services, or using independent government cost estimates. The Department of Energy would have needed to justify why the price offered by Chugach Government Services represented good value in the absence of competitive bids. The level of detail in this price analysis is critical for demonstrating fiscal responsibility.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
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, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,687,882
Exercised Options: $38,687,882
Current Obligation: $38,687,882
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-04-30
Current End Date: 2015-02-28
Potential End Date: 2020-02-12 00:00:00
Last Modified: 2020-02-19
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