Over $19.4 million awarded for miscellaneous engineering activities to Chugach World Services, Inc. by the Department of the Army

Contract Overview

Contract Amount: $19,419,557 ($19.4M)

Contractor: Chugach World Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-25

End Date: 2015-05-19

Contract Duration: 1,697 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MISCELLANEOUS ENGINEERING ACTIVITIES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to CHUGACH WORLD SERVICES, INC. for work described as: MISCELLANEOUS ENGINEERING ACTIVITIES Key points: 1. The contract value of over $19.4 million for facilities support services indicates a significant investment in maintaining critical infrastructure. 2. The award to a single contractor suggests potential limitations in market competition for these specific services. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process and potential missed opportunities for broader market engagement. 4. The contract duration of nearly five years (1697 days) points to a long-term need for these engineering activities. 5. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully, posing a risk to budget adherence. 6. The absence of small business set-aside flags suggests this contract did not prioritize small business participation. 7. The geographic focus on Alabama (AL) highlights a regional concentration of this federal spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'miscellaneous engineering activities' performed. However, a nearly $20 million award over almost five years for facilities support services suggests a substantial commitment. The CPFF contract type, while offering flexibility, can be less cost-effective than fixed-price contracts if not rigorously overseen, potentially leading to higher-than-expected costs for the government. Without comparable contract data for similar services, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating that the procurement process did not involve a competitive bidding process. This typically occurs when only one source is capable of meeting the government's needs, or in specific circumstances like urgent requirements or follow-on work. The lack of competition means there was no direct price comparison with other potential providers, potentially impacting price discovery and the government's ability to secure the most competitive rates.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. This could result in a higher overall cost for the services rendered.

Public Impact

The Department of the Army benefits from the provision of essential facilities support services, ensuring the operational readiness of its infrastructure. The contract supports the maintenance and upkeep of government facilities, contributing to their longevity and functionality. The primary geographic impact is within Alabama, where the services are being performed. The contract likely supports a workforce involved in various engineering and maintenance activities within the facilities support sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'NOT AVAILABLE FOR COMPETITION' award status raises concerns about the justification for not seeking competitive bids, potentially leading to suboptimal pricing.
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if not managed with stringent oversight.
Lack of transparency regarding the specific 'miscellaneous engineering activities' makes it difficult to assess the true scope and necessity of the work.
The absence of small business participation or set-asides may limit opportunities for smaller firms in this contracting space.

Positive Signals

The award to Chugach World Services, Inc. suggests a contractor with existing capabilities and potentially a track record in providing facilities support services.
The long contract duration indicates a sustained need for these services, implying a level of satisfaction or necessity that led to the extended award.
The contract's focus on facilities support is crucial for maintaining government infrastructure, contributing to operational continuity.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is critical for government operations, ensuring that facilities are functional, safe, and well-maintained. The market for these services is often characterized by a mix of large, established providers and smaller, specialized firms. Federal spending in this area is substantial, reflecting the government's extensive real estate holdings and operational requirements.

Small Business Impact

The contract details indicate that small business participation was not a specific requirement, as the 'sb' (small business) flag is false and there is no mention of small business set-asides. This suggests that the procurement did not actively seek to award a portion of the contract to small businesses. Consequently, there are limited direct subcontracting opportunities for small businesses stemming from this specific award, and its impact on the broader small business ecosystem in this sector is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance metrics and financial reporting. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' status and the lack of detailed public information on the specific services rendered. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Maintenance Services
Base Operations Support
Engineering and Technical Services
Government Infrastructure Management

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition justification
No small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to CHUGACH WORLD SERVICES, INC.. MISCELLANEOUS ENGINEERING ACTIVITIES

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2010-09-25. End: 2015-05-19.

What specific 'miscellaneous engineering activities' were performed under this contract?

The provided data does not specify the exact 'miscellaneous engineering activities' performed under this contract. This category is broad and could encompass a wide range of services such as structural assessments, mechanical system maintenance, electrical system repairs, plumbing services, HVAC system upkeep, grounds maintenance, and minor construction or renovation projects. Without a detailed statement of work or task orders, it is impossible to ascertain the precise nature of the engineering activities. This lack of specificity hinders a thorough evaluation of the contract's necessity, scope, and value for money.

What was the justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis?

The justification for awarding this contract on a 'NOT AVAILABLE FOR COMPETITION' basis is not detailed in the provided data. Generally, such awards are made when only one responsible source is available to meet the agency's needs, or in specific circumstances like urgent and compelling requirements, or when the contract is a sole-source follow-on to a previously competed contract. Without further information, it is difficult to assess whether this procurement method was appropriate and if it resulted in fair and reasonable pricing for the government. A thorough review of the Justification and Approval (J&A) document would be necessary for a complete understanding.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost efficiency for facilities support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not clearly defined or when there is significant uncertainty in performance costs. While it allows for flexibility, it generally offers less cost control compared to fixed-price contracts. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can incentivize cost overruns if not managed diligently, as the contractor's fee remains constant regardless of the final cost. For well-defined facilities support services, fixed-price contracts often provide better value for money by shifting cost risk to the contractor and encouraging efficiency.

What is the track record of Chugach World Services, Inc. in performing similar facilities support contracts for the Department of Defense?

The provided data does not include specific details on Chugach World Services, Inc.'s track record for this particular contract or other similar contracts with the Department of Defense. To assess their performance history, one would typically look at past performance evaluations, contract awards, and any reported issues or successes on federal contract databases. A contractor's experience and past performance are crucial factors in determining their capability to successfully execute a contract, especially one of this magnitude and duration.

What was the total spending on 'MISCELLANEOUS ENGINEERING ACTIVITIES' by the Department of the Army in the years this contract was active (2010-2015)?

The provided data only details a single contract award of $19,419,557.34 for 'MISCELLANEOUS ENGINEERING ACTIVITIES' to Chugach World Services, Inc. It does not offer a comprehensive view of the Department of the Army's total spending in this category during the contract's active period (September 25, 2010, to May 19, 2015). To determine total spending, one would need to query federal procurement databases for all contracts classified under the relevant NAICS code (561210) and PSC codes related to engineering activities awarded by the Army during those fiscal years.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data does not include any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. For Cost Plus Fixed Fee contracts, performance is typically evaluated based on the successful completion of tasks outlined in the Statement of Work, adherence to schedules, and quality of deliverables. However, these specific metrics are often detailed in contract line item numbers (CLINs) or task orders, which are not available here. Publicly available contract data rarely includes granular performance details unless there are significant issues or awards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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

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: $19,419,557

Exercised Options: $19,419,557

Current Obligation: $19,419,557

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline