DoD's $24.8M Facilities Support Services Contract with Chugach Government Services Faces Limited Competition Concerns
Contract Overview
Contract Amount: $24,795,299 ($24.8M)
Contractor: Chugach Government Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2013-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OPERATIONS SUPPORT
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: OPERATIONS SUPPORT Key points: 1. The contract value is substantial at $24.8 million over its duration. 2. Limited competition raises questions about potential overpricing and value for money. 3. The 'NOT AVAILABLE FOR COMPETITION' status is a significant risk flag. 4. Facilities Support Services is a broad category with potential for efficiency gains.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without a competitive benchmark, assessing the fairness of the fixed fee and overall pricing is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited solicitation approach. This significantly restricts price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely results in higher costs than a fully competitive procurement, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long duration of the contract (2008-2013) suggests a need for ongoing services, but the lack of competition is concerning. The specific services provided under 'Facilities Support Services' are not detailed, making it hard to assess the full impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of specific service details
Positive Signals
- Long-term contract provides stable support
- Established vendor relationship
Sector Analysis
Facilities Support Services are crucial for government operations, encompassing a wide range of maintenance, repair, and operational tasks. Spending in this sector can vary widely, but competitive procurements generally yield better value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further investigation to ensure proper justification and adherence to procurement regulations. Oversight should focus on the justification for limited competition and the reasonableness of costs.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of transparency on justification for limited competition
- Potential for inflated costs due to lack of competition
- No indication of small business participation
Tags
facilities-support-services, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to CHUGACH GOVERNMENT SERVICES, INC.. OPERATIONS SUPPORT
Who is the contractor on this award?
The obligated recipient is CHUGACH GOVERNMENT SERVICES, 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 $24.8 million.
What is the period of performance?
Start: 2008-09-30. End: 2013-09-30.
What was the specific justification for awarding this contract without full and open competition?
The justification for awarding this contract without full and open competition is not provided in the data. Typically, such justifications are required for sole-source or limited solicitations and must demonstrate a compelling reason, such as unique capabilities, urgent need, or lack of market availability. Without this information, it's impossible to assess the validity of the procurement approach.
How does the fixed fee in this Cost Plus Fixed Fee contract compare to industry benchmarks for similar services?
Without specific details on the services rendered and comparable market data, it is impossible to benchmark the fixed fee. Cost Plus Fixed Fee contracts can be efficient when well-defined, but the lack of competition here makes it difficult to ascertain if the fee adequately reflects the value delivered or if it includes a premium due to limited bidding options.
What is the potential cost savings if this contract had been awarded through a fully competitive process?
Estimating potential cost savings without a competitive benchmark is speculative. However, historical data from government procurements consistently shows that full and open competition can yield significant savings, often in the range of 10-30% or more, compared to sole-source or limited-source awards. The lack of competition here likely resulted in a higher overall cost to the taxpayer.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0017808R2012
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chugach Alaska Corporation (UEI: 071844021)
Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 00
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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,834,086
Exercised Options: $30,834,086
Current Obligation: $24,795,299
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-09-06
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