DoD's $30M ADMACS Block 2 contract awarded to Chugach World Services, Inc. for electronic computer manufacturing

Contract Overview

Contract Amount: $29,905,028 ($29.9M)

Contractor: Chugach World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-15

End Date: 2015-09-28

Contract Duration: 1,931 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADMACS BLOCK 2 LRIP/FRP

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to CHUGACH WORLD SERVICES, INC. for work described as: ADMACS BLOCK 2 LRIP/FRP Key points: 1. Value for money is difficult to assess without detailed cost breakdowns and performance metrics. 2. The contract was awarded on a sole-source basis, limiting competitive pressure on pricing. 3. Risk indicators include the lack of competition and the long duration of the contract. 4. Performance context is limited by the absence of publicly available performance reports. 5. This contract falls within the Defense sector, specifically related to electronic computer manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award and limited public data. The firm fixed-price structure suggests a defined scope, but without comparable contracts or detailed cost analysis, it's hard to determine if the $30 million represents a fair price. The absence of competition likely means less downward pressure on costs than in a fully competed scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required goods or services. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the contractor faced less pressure to offer the most cost-effective solution.

Public Impact

The primary beneficiary is the Department of Defense, which receives electronic computer manufacturing services. The contract supports the ADMACS Block 2 program, likely for specific defense applications. The geographic impact is concentrated in Alaska (AK), where the contractor is based. Workforce implications include employment opportunities for individuals involved in electronic computer manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration (1931 days) may lead to cost overruns if not managed effectively.
Limited public information on performance makes oversight difficult.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract awarded to Chugach World Services, Inc., potentially supporting a specific Alaskan business.

Sector Analysis

This contract falls under the electronic computer manufacturing industry, a critical component of the broader IT and Defense sectors. The market for specialized defense electronics is often characterized by high barriers to entry and a limited number of qualified suppliers. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the ADMACS Block 2 system.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to Chugach World Services, Inc. (a Native Alaskan corporation) might have indirect benefits to small businesses within their supply chain, but direct set-aside analysis is not possible from the provided data.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Defense Contract Management Agency (DCMA) and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the contract's performance clauses and the firm fixed-price nature. Transparency is limited by the sole-source award and the proprietary nature of defense systems.

Related Government Programs

Defense Information Technology Contracts
Electronic Equipment Manufacturing Contracts
Sole-Source Defense Procurements
Department of Defense IT Spending

Risk Flags

Sole-source award
Limited public performance data
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to CHUGACH WORLD SERVICES, INC.. ADMACS BLOCK 2 LRIP/FRP

Who is the contractor on this award?

The obligated recipient is CHUGACH WORLD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2010-06-15. End: 2015-09-28.

What is the specific nature of the ADMACS Block 2 system and its intended use within the Department of Defense?

The provided data does not specify the exact nature or intended use of the 'ADMACS BLOCK 2 LRIP/FRP'. ADMACS typically refers to Automated Data Management and Control Systems. Block 2 likely represents a specific iteration or upgrade of such a system. Within the Department of Defense, these systems often support critical functions such as logistics, command and control, intelligence processing, or personnel management. The 'LRIP/FRP' designation suggests Low-Rate Initial Production or Full-Rate Production phases, indicating the system is moving towards or is in full-scale deployment. Without further classification details or program descriptions, its precise role remains undisclosed in the public domain.

What are the key performance indicators (KPIs) and deliverables associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or deliverables for the ADMACS Block 2 contract. However, as a firm fixed-price contract for electronic computer manufacturing, typical deliverables would include the production and delivery of specified hardware components, software integration (if applicable), testing documentation, and potentially training materials or manuals. KPIs would likely focus on meeting production schedules, quality control standards (e.g., defect rates), adherence to technical specifications, and timely delivery. The success of the contract would be measured against these defined metrics, though they are not publicly itemized in the given information.

Why was this contract awarded on a sole-source basis, and what alternatives were considered?

The data indicates this contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not provided in the data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can meet the government's needs due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to know the precise reasons or if alternative approaches were evaluated and deemed unsuitable.

What is the track record of Chugach World Services, Inc. in performing similar defense contracts?

Chugach World Services, Inc. has a history of performing various contracts, including those with the Department of Defense. While specific details on their performance for 'ADMACS BLOCK 2 LRIP/FRP' are not provided, their general track record would involve assessing past contract awards, completion history, any reported performance issues, and client satisfaction. As a company often involved in logistics, facilities management, and technical services for government agencies, their experience in managing complex projects and adhering to government standards is a key factor. A deeper dive into their contract history, including any awards or penalties, would be necessary for a comprehensive assessment of their suitability for this specific sole-source award.

How does the $30 million contract value compare to historical spending on similar electronic computer manufacturing for defense purposes?

Comparing the $30 million contract value for ADMACS Block 2 to historical spending on similar defense electronic computer manufacturing is challenging without more specific details about the system's complexity and scale. The 'LRIP/FRP' designation suggests a production phase, which can involve significant costs. Historical spending on comparable systems would need to account for factors like technological sophistication, quantity ordered, and the specific defense application. Given the sole-source nature, direct price comparisons to competitively bid programs are less meaningful. However, general trends in defense IT and electronics procurement could offer a broad context, indicating whether this award falls within typical spending ranges for such specialized systems.

What are the potential risks associated with a sole-source award of this magnitude and duration?

A sole-source award of this magnitude ($30 million) and duration (1931 days, approximately 5.3 years) carries several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive process, meaning taxpayers may not receive the best value. Secondly, without the pressure of competing for future work or facing rivals, the contractor might have less incentive to innovate or maintain peak efficiency throughout the contract period. Thirdly, oversight becomes even more critical; the government must diligently monitor performance, costs, and adherence to specifications to mitigate risks of contractor complacency or substandard delivery. Finally, reliance on a single source can create vulnerabilities if the contractor experiences financial difficulties or operational issues.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833510R0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 3800 CENTERPOINT DR STE 601, ANCHORAGE, AK, 99503

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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,421,963

Exercised Options: $29,993,324

Current Obligation: $29,905,028

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline