DoD awards $12.7M janitorial services contract to Chugach Solutions Enterprise, LLC in California

Contract Overview

Contract Amount: $12,687,806 ($12.7M)

Contractor: Chugach Solutions Enterprise, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2025-09-30

Contract Duration: 547 days

Daily Burn Rate: $23.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUND ACRN AA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to CHUGACH SOLUTIONS ENTERPRISE, LLC for work described as: FUND ACRN AA Key points: 1. Contract value appears reasonable for a multi-year janitorial services agreement of this scope. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. Contract duration of 547 days presents moderate performance risk. 4. Services are essential for maintaining facilities, indicating a stable demand. 5. This contract falls within the broader facilities maintenance and support services sector. 6. The firm-fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of $12.7 million over approximately 18 months for janitorial services is within a typical range for large-scale government facilities. However, without specific details on the scope of services, square footage, or locations, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for janitorial services at military installations of comparable size would be necessary for a more definitive evaluation. The firm-fixed-price nature suggests the contractor bears cost overruns, which can be a positive indicator if the price is competitive.

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. While specific justifications for sole-source awards are not provided here, common reasons include unique capabilities of the contractor, urgent needs, or a lack of other qualified sources. The absence of competition limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition typically drives down costs. This contract's value could have been lower if multiple companies had the opportunity to bid.

Public Impact

The primary beneficiaries are the Department of the Navy facilities in California, which will receive essential janitorial services. Services include cleaning, sanitation, and maintenance of buildings and grounds, ensuring a safe and healthy environment. The geographic impact is concentrated within California, supporting local operations. While not explicitly stated, the contract likely supports local employment through the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated pricing and reduced value for taxpayer dollars.
Sole-source awards can indicate potential issues with market research or contractor dependency.
Contract duration of over 1.5 years requires diligent oversight to ensure performance standards are met.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Janitorial services are essential for facility upkeep and operational readiness.
Contract awarded to an established entity, potentially indicating prior performance history.

Sector Analysis

This contract falls under the Facilities Support Services sector, specifically janitorial and cleaning services. This is a mature market with numerous providers, ranging from small local businesses to large national corporations. Government contracts for janitorial services are common across various agencies and are often awarded through competitive bidding processes. The total government spending on facilities maintenance and support services is substantial, making this contract a small component of a much larger market.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary contractor, Chugach Solutions Enterprise, LLC, will likely perform the majority of the work. Without specific subcontracting plans, the direct impact on the small business ecosystem for janitorial services in California is likely minimal for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant Department of the Navy contracting activity. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is generally maintained through contract databases like FPDS, though the justification for sole-source awards may not always be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Navy Base Operations Support
Government Cleaning Services
Commercial Facilities Management

Risk Flags

Sole-source award limits price competition.
Lack of detailed scope may hinder value assessment.
Contract duration requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to CHUGACH SOLUTIONS ENTERPRISE, LLC. FUND ACRN AA

Who is the contractor on this award?

The obligated recipient is CHUGACH SOLUTIONS ENTERPRISE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-09-30.

What is the specific scope of janitorial services required under this contract, and how does it compare to industry standards for similar facilities?

The provided data does not detail the specific scope of janitorial services. Typically, such contracts encompass routine cleaning (e.g., dusting, vacuuming, mopping, restroom sanitation), waste removal, and potentially specialized services like floor care or window cleaning. To compare with industry standards, one would need to know the square footage of the facilities, the types of facilities (e.g., office buildings, barracks, workshops), the frequency of cleaning, and specific performance metrics. Without this granular information, a direct comparison is difficult. However, for a contract valued at approximately $12.7 million over 18 months, it suggests a significant number of facilities or a high level of service intensity is expected.

What is the justification for awarding this contract on a sole-source basis, and were alternative sources considered?

The justification for this sole-source award is not provided in the data. Government agencies typically justify sole-source contracts under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements. Common reasons include unique contractor capabilities, proprietary technology, or a lack of competition within a specific geographic area or service niche. Without the official justification document, it's impossible to know the exact reasoning or if alternative sources were indeed considered and found unsuitable. This lack of transparency is a common concern with sole-source awards.

How does the awarded amount of $12.7 million compare to historical spending on janitorial services by the Department of the Navy in California?

To compare the $12.7 million award to historical spending, one would need access to historical contract data for janitorial services specifically for the Department of the Navy in California. This would involve querying databases like the Federal Procurement Data System (FPDS) for similar contracts over previous fiscal years. Factors such as inflation, changes in facility size or number, and service level adjustments would need to be considered for a meaningful comparison. Given the duration of approximately 18 months, the annual value is roughly $8.47 million. This figure can then be benchmarked against previous annual spending to identify trends or significant deviations.

What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the contractor meets service expectations?

The provided data does not specify the Key Performance Indicators (KPIs) or quality assurance (QA) measures for this contract. However, standard government contracts for janitorial services typically include detailed performance standards related to cleanliness levels, response times for issues, adherence to schedules, and safety protocols. QA surveillance is usually conducted by a government representative who monitors the contractor's performance against these standards, documents deficiencies, and provides feedback. The contract likely includes clauses for remedies in case of non-performance, such as service credits or termination.

What is the track record of Chugach Solutions Enterprise, LLC in performing similar government contracts, particularly for janitorial services?

Information regarding the specific track record of Chugach Solutions Enterprise, LLC for janitorial services is not included in the provided data. A comprehensive assessment would require reviewing their past performance evaluations on federal contracts, including ratings, any past performance issues, and the types and scale of services previously delivered. Databases like the Contractor Performance Assessment Reporting System (CPARS) would be the primary source for such information. Understanding their history with similar government requirements is crucial for evaluating the risk associated with this award, especially given its sole-source nature.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6247324RD506

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 1200, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,829,186

Exercised Options: $15,829,186

Current Obligation: $12,687,806

Actual Outlays: $1,810,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline