DoD's $151M Redstone Arsenal Substation Contract Awarded to Chugach Government Services

Contract Overview

Contract Amount: $15,123,868 ($15.1M)

Contractor: Chugach Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-07-22

End Date: 2011-07-22

Contract Duration: 1,095 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AMC SUBSTATION REDSTONE ARSENAL AL

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: CONSTRUCTION OF AMC SUBSTATION REDSTONE ARSENAL AL Key points: 1. The contract value of $151.2 million for substation construction is significant. 2. Limited competition was noted, with the contract type being 'NOT AVAILABLE FOR COMPETITION'. 3. Potential risks include the lack of competitive bidding and the fixed-price nature of the contract. 4. The sector is Construction, specifically Commercial and Institutional Building Construction.

Value Assessment

Rating: questionable

The contract value of $151.2 million is substantial for a substation construction project. Without comparable contract data or a clear justification for the lack of competition, assessing its pricing against similar projects is difficult. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition scenario. This significantly impacts price discovery, as the absence of multiple bids likely leads to a higher price than would be achieved in a fully competitive environment.

Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying a premium for this construction project, as the government did not leverage market competition to secure the best possible price.

Public Impact

Military infrastructure upgrades are essential for operational readiness. Construction projects can create local jobs and stimulate economic activity. The long duration of the contract (1095 days) suggests a complex and potentially lengthy build process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Fixed Price Contract Risk

Positive Signals

Essential Infrastructure Project
Definitive Contract Award

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on government needs for infrastructure, facilities, and upgrades. Benchmarks are difficult without specific project scope details.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and opportunities for small businesses may have been missed.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the price paid was fair and reasonable. The Department of the Army's contracting office is responsible for ensuring accountability in such awards.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification for sole-source
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to CHUGACH GOVERNMENT SERVICES, INC.. CONSTRUCTION OF AMC SUBSTATION REDSTONE ARSENAL AL

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 Army).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2008-07-22. End: 2011-07-22.

What was the specific justification for awarding this contract without full and open competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be required by federal acquisition regulations, outlining the specific circumstances (e.g., urgent need, unique capabilities, or lack of sources) that precluded a competitive process. Without this justification, it's impossible to assess the validity of the non-competitive award.

How does the final contract price compare to the initial estimated cost or budget?

The data provides the awarded amount ($151,238,68) but does not include an initial estimated cost or budget. Comparing the final price to an initial estimate is crucial for assessing cost control and potential overruns. The absence of this information makes it difficult to evaluate the financial performance of the contract.

What is the track record of Chugach Government Services, Inc. on similar large-scale construction projects?

Assessing the contractor's past performance on similar projects is vital for understanding their capability and reliability. Information on Chugach Government Services, Inc.'s experience with substation construction, project completion rates, and adherence to budget and schedule on comparable contracts would provide insight into the potential effectiveness and risks associated with this award.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chugach Alaska Corporation (UEI: 071844021)

Address: 560 E 34TH AVE, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Emerging Small Business, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,123,868

Exercised Options: $15,123,868

Current Obligation: $15,123,868

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline