DoD Awards $136M Facilities Support Contract to Chugach Industries, Inc. for 10 Years
Contract Overview
Contract Amount: $135,928,866 ($135.9M)
Contractor: Chugach Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-11-24
End Date: 2013-09-30
Contract Duration: 3,232 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200612!601147!1700!N44255!ENGINEERING FIELD ACTIVITY !N4425505D7100 !A!N! !Y!FB00 !03 !20051001!20050930!142120745!142120745!071844021!N!CHUGACH INDUSTRIES INC !560 E 34TH AVE !ANCHORAGE !AK!99503!78155!029!53!WHIDBEY ISLAND NAS !ISLAND !WASHINGTON!+000000130582!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!B!S!D! !D!20130930!B! ! !A! !A!N!J!2!002!K! !C!N!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! !1700!N00620!0001! !
Place of Performance
Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278
Plain-Language Summary
Department of Defense obligated $135.9 million to CHUGACH INDUSTRIES, INC. for work described as: 200612!601147!1700!N44255!ENGINEERING FIELD ACTIVITY !N4425505D7100 !A!N! !Y!FB00 !03 !20051001!20050930!142120745!142120745!071844021!N!CHUGACH INDUSTRIES INC !560 E 34TH AVE !ANCHORAGE !AK!99503!78155!029!53!WHIDBEY ISLAND NAS !ISLA… Key points: 1. The contract, valued at $135,928,865.92, covers facilities operations support services. 2. Awarded by the Department of the Navy, it was procured through full and open competition. 3. The contract duration is 10 years, from 2004-11-24 to 2013-09-30. 4. Chugach Industries, Inc. is the contractor, based in Anchorage, AK. 5. The PSC code 561210 indicates Facilities Support Services.
Value Assessment
Rating: fair
The contract value of $135.9M over 10 years suggests an average annual value of approximately $13.6M. Without specific per-unit cost data or benchmarks for similar facilities support contracts, a precise pricing assessment is difficult.
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,' indicating a competitive process. The pricing was likely determined through sealed bids or proposals, aiming for the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair pricing for the services rendered, though specific cost savings are not detailed.
Public Impact
Ensures continued operation and maintenance of facilities, critical for military readiness. Supports jobs within Chugach Industries, Inc. and its supply chain. Impacts the local economy in Whidbey Island, WA, where services are performed. Provides essential services that contribute to the overall mission effectiveness of the Navy installation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may limit flexibility for future technological advancements or cost efficiencies.
- Lack of detailed cost breakdowns makes it difficult to assess true value for money.
- Potential for cost overruns if scope creep occurs over the decade-long period.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Contractor has a long-term commitment, potentially leading to operational efficiencies.
- Provides stable support for critical Navy facilities.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services for maintaining and operating buildings and grounds. Spending in this sector can vary significantly based on the size and complexity of the facilities managed.
Small Business Impact
The data indicates the primary contractor is Chugach Industries, Inc., a large business. There is no explicit information on subcontracting to small businesses within this award notice.
Oversight & Accountability
The contract was awarded by the Department of the Navy, implying oversight from this agency. The long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long-term contract duration may not reflect current market prices or technological advancements.
- Limited transparency on specific performance metrics and cost breakdowns.
- Potential for contractor lock-in over the 10-year period.
- Ambiguity in the 'Exclusion of Sources' aspect of the competition.
Tags
facilities-support-services, department-of-defense, wa, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $135.9 million to CHUGACH INDUSTRIES, INC.. 200612!601147!1700!N44255!ENGINEERING FIELD ACTIVITY !N4425505D7100 !A!N! !Y!FB00 !03 !20051001!20050930!142120745!142120745!071844021!N!CHUGACH INDUSTRIES INC !560 E 34TH AVE !ANCHORAGE !AK!99503!78155!029!53!WHIDBEY ISLAND NAS !ISLAND !WASHINGTON!+000000130582!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !561210!E! !5!B!S!D! !D!201
Who is the contractor on this award?
The obligated recipient is CHUGACH INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $135.9 million.
What is the period of performance?
Start: 2004-11-24. End: 2013-09-30.
What specific metrics were used to evaluate the 'best value' during the full and open competition?
The award notice specifies 'Full and Open Competition After Exclusion of Sources' and indicates a 'Firm Fixed Price' contract type. While this suggests a competitive process, the specific metrics for evaluating 'best value' are not detailed. Typically, these could include technical approach, past performance, price, and small business utilization, but the exact weighting and criteria remain undisclosed in this summary.
How does the $13.6M average annual cost compare to industry benchmarks for similar facilities support services?
Without detailed scope of work and specific service levels, direct comparison to industry benchmarks is challenging. Facilities support costs vary widely based on square footage, types of services (e.g., janitorial, HVAC, groundskeeping), geographic location, and security requirements. A precise benchmark would require a detailed analysis of the contract's deliverables against comparable contracts in the federal or commercial sectors.
What mechanisms are in place to ensure cost control and prevent scope creep over the 10-year contract duration?
The contract is Firm Fixed Price, which inherently shifts some cost risk to the contractor. However, mechanisms for cost control and scope creep prevention typically involve robust contract administration, regular performance reviews, clear change order procedures, and defined deliverables. The Department of the Navy would be responsible for actively managing these aspects throughout the contract's lifecycle to ensure accountability and prevent unwarranted cost increases.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 560 E 34TH AVE, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, 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: $244,894,321
Exercised Options: $244,894,321
Current Obligation: $135,928,866
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4425505D7100
IDV Type: IDC
Timeline
Start Date: 2004-11-24
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-02-27
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