DoD's $608M Facilities Support Contract with Chugach Raises Concerns Over Competition and Value

Contract Overview

Contract Amount: $171,431,071 ($171.4M)

Contractor: Chugach Support Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-08-01

End Date: 2012-11-13

Contract Duration: 3,757 days

Daily Burn Rate: $45.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: 200211!000391!5700!JA02 !AETC CONS/CC !F4168902C0024 !A!N! !Y! !20020801!20020930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!72875!005!12!TYNDALL AFB !BAY !FLORIDA !+000000079752!N!N!000000000000!M152!OPERATION/MAINTENANCE BUILDINGS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!N!L!1!001!N!5A!C!Y!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $171.4 million to CHUGACH SUPPORT SERVICES, INC. for work described as: 200211!000391!5700!JA02 !AETC CONS/CC !F4168902C0024 !A!N! !Y! !20020801!20020930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!72875!005!12!TYNDALL AFB !BAY … Key points: 1. The contract awarded to Chugach Support Services, Inc. for facilities support services is valued at $608.25M. 2. Competition for this contract was limited, with a 'NOT AVAILABLE FOR COMPETITION' designation. 3. The contract duration is exceptionally long at 3757 days (over 10 years), raising potential risks. 4. The sector is Facilities Support Services, a common area for government contracting.

Value Assessment

Rating: questionable

The contract value of $608.25M over more than 10 years suggests a significant investment. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar services is difficult, especially given the long duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition scenario. This lack of open bidding may have limited price discovery and potentially led to a higher cost for taxpayers.

Taxpayer Impact: The absence of robust competition for a contract of this magnitude could result in suboptimal pricing and reduced value for taxpayer funds.

Public Impact

Taxpayers may be overpaying for facilities support services due to limited competition. The long contract term could lead to outdated service provisions or missed opportunities for cost savings through re-competition. Lack of transparency in the procurement process hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited Competition
Long Contract Duration
Lack of Transparency in Award

Positive Signals

Established Contractor
Potential for Stable Service Delivery

Sector Analysis

Facilities Support Services contracts are crucial for maintaining government infrastructure. Benchmarks for such services vary widely based on scope, location, and contract type, but long-term, non-competitive awards warrant scrutiny.

Small Business Impact

There is no clear indication from the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The limited competition and long duration suggest potential oversight gaps. Robust oversight is needed to ensure the contractor is delivering services effectively and at a fair price throughout the contract's life.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for inflated costs due to lack of competition.
Risk of outdated services over the long contract term.
Lack of transparency in the procurement process.
Difficulty in ensuring ongoing value for taxpayer money.
Potential for contractor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $171.4 million to CHUGACH SUPPORT SERVICES, INC.. 200211!000391!5700!JA02 !AETC CONS/CC !F4168902C0024 !A!N! !Y! !20020801!20020930!608253824!608253824!071844021!N!CHUGACH SUPPORT SERVICES, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!72875!005!12!TYNDALL AFB !BAY !FLORIDA !+000000079752!N!N!000000000000!M152!OPERATION/MAINTENANCE BUILDINGS !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !561210!E! !3! ! ! ! ! !99990909!B

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 $171.4 million.

What is the period of performance?

Start: 2002-08-01. End: 2012-11-13.

What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' status for this large facilities support contract?

The justification for a 'NOT AVAILABLE FOR COMPETITION' award typically stems from unique circumstances, such as the existence of only one responsible source, urgent and compelling needs that preclude full and open competition, or specific statutory authority. Without detailed documentation from the DoD, the precise reasons remain unclear, but such designations warrant careful review to ensure they are not circumventing competitive processes.

How does the $608M contract value compare to industry benchmarks for similar facilities support services over a 10+ year period?

Comparing this $608M contract value requires detailed analysis of the specific services rendered, geographic locations, and prevailing market rates for facilities support over a decade. Benchmarking is challenging due to the contract's long duration and potential for evolving service needs. However, a preliminary assessment suggests the scale is substantial, and without clear cost efficiencies or unique service provisions, it raises questions about potential overpayment compared to competitively procured, shorter-term contracts.

What mechanisms are in place to ensure service quality and cost-effectiveness given the contract's extended duration and lack of competition?

Given the contract's length and limited competition, robust oversight mechanisms are critical. This includes performance metrics, regular reviews of service delivery, and mechanisms for contract modifications or adjustments if market conditions change significantly. The government should actively monitor contractor performance and explore options for ensuring continued value, potentially through incentive clauses or periodic performance-based reviews, to mitigate risks associated with a long-term, non-competitive award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 EAST 34TH AVENUE, ANCHORAGE, AK, 00

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline