Navy Awards $795M for ADP Facility Operations to Chugach McKinley, Inc

Contract Overview

Contract Amount: $79,490,376 ($79.5M)

Contractor: Chugach Mckinley, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-10-01

End Date: 2012-03-31

Contract Duration: 3,104 days

Daily Burn Rate: $25.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200401!041002!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2072 !A!N! !Y! ! !20031001!20080930!038522876!038522876!071844021!N!CHUGACH MCKINLEY, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000416000!N!N!000008334538!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541513!E! !3! ! ! ! ! !99990909!B!F!N!N!Z!B!N!U!1!001!N!5A!Z!Y!Z! ! !N!A!N!N!E! ! ! !D!A!00 !A!B!N! ! ! ! ! !N00178!0001! !

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $79.5 million to CHUGACH MCKINLEY, INC. for work described as: 200401!041002!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2072 !A!N! !Y! ! !20031001!20080930!038522876!038522876!071844021!N!CHUGACH MCKINLEY, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!21008!099!51!DAHLGREN !KING… Key points: 1. Contract awarded for ADP Facility Operation & Maintenance Services. 2. Significant value of $794.9 million over its extended period. 3. Competition was limited, raising questions about price discovery. 4. IT services sector, specifically facility management, is the focus.

Value Assessment

Rating: fair

The contract value is substantial at $794.9 million. Without specific unit cost data or benchmarks for ADP facility operations, a precise pricing assessment is difficult. However, the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source award. This limits the opportunity for competitive bidding and potentially impacts price discovery, as there is no direct comparison to other offers.

Taxpayer Impact: The large contract value means taxpayers are funding a significant service contract with limited competitive pressure, potentially leading to higher costs than if competition were present.

Public Impact

Taxpayers are funding a long-term IT facility management contract. Limited competition may result in less cost-effective service delivery. The contract supports critical ADP facility operations for the Navy. Potential for cost overruns due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long contract duration
Cost-plus contract type

Positive Signals

Supports critical Navy IT infrastructure
Experienced contractor

Sector Analysis

This contract falls within the IT sector, specifically focusing on facility operation and maintenance services. Benchmarks for similar large-scale ADP facility management contracts are difficult to ascertain without more specific service details, but the value suggests a comprehensive, long-term engagement.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The awardee, Chugach McKinley, Inc., is a large business, suggesting that small business participation was likely minimal or not a primary focus of this specific award.

Oversight & Accountability

The contract was awarded by the Naval Surface Warfare Center, part of the Department of the Navy. Oversight would typically involve contract management teams within the Navy to ensure performance and adherence to terms, but specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition may lead to higher costs.
Cost-plus contract type can incentivize higher spending.
Long contract duration increases exposure to price changes and performance issues.
Lack of detailed service scope makes value assessment difficult.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.5 million to CHUGACH MCKINLEY, INC.. 200401!041002!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2072 !A!N! !Y! ! !20031001!20080930!038522876!038522876!071844021!N!CHUGACH MCKINLEY, INC !560 EAST 34TH AVENUE !ANCHORAGE !AK!99503!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000416000!N!N!000008334538!D301!ADP FACILITY OPERATION & MAINTENANCE SERVICES !S1 !SERVICES !000 !* !541513!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CHUGACH MCKINLEY, 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 $79.5 million.

What is the period of performance?

Start: 2003-10-01. End: 2012-03-31.

What is the specific breakdown of services provided under ADP Facility Operation & Maintenance, and how does this compare to industry standards for similar facilities?

The provided data classifies the service under NAICS code 541513 (Computer Facilities Management Services) but lacks specific details on the scope of operations, maintenance, and support. A detailed service breakdown is crucial for comparing costs against industry benchmarks and assessing the overall value for money. Without this, it's difficult to determine if the $794.9 million is justified.

Given the limited competition, what measures were in place to ensure fair pricing and prevent potential cost overruns?

The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize contractors to increase costs to maximize their fixed fee return. The limited competition suggests a lack of market pressure to control prices. Without detailed cost audits or performance metrics, it's challenging to ascertain if fair pricing was achieved or if robust controls were in place to mitigate risks associated with cost-plus contracts and limited competition.

How effectively has Chugach McKinley, Inc. performed in managing these critical ADP facilities over the contract's extended period?

The provided data does not include performance metrics or contractor past performance reviews. Assessing effectiveness requires evaluating factors like system uptime, response times to issues, security compliance, and overall operational efficiency. Without this information, it's impossible to determine the effectiveness of the contractor's services in supporting the Navy's mission-critical ADP facilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 EAST 34TH AVENUE, 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, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline