DoD awards $24.8M water/wastewater contract to Chugach Government Services, Inc. for 3 years

Contract Overview

Contract Amount: $24,827,847 ($24.8M)

Contractor: Chugach Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-14

End Date: 2010-09-30

Contract Duration: 1,143 days

Daily Burn Rate: $21.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATER WASTEWATER OPERATION CONTRACT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to CHUGACH GOVERNMENT SERVICES, INC. for work described as: WATER WASTEWATER OPERATION CONTRACT Key points: 1. Contract value of $24.8M over 3 years suggests a significant operational scope. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Fixed-price contract type aims to transfer risk to the contractor, but requires careful performance monitoring. 4. Contract duration of over 3 years indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 221310 points to a specialized utility operation. 6. Awarded by the Department of the Army, indicating a critical infrastructure support function.

Value Assessment

Rating: fair

The contract value of $24.8M over approximately 3 years averages to about $8.3M annually. Without comparable contract data for similar water and wastewater operations within the Department of Defense or other federal agencies, it is difficult to definitively benchmark the value. However, the fixed-price nature suggests an expectation of predictable costs. The lack of competition in the award process may have limited opportunities for price discovery and potentially higher costs than a competitively bid contract.

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. This typically occurs when only one responsible source is available or when the agency determines it is in the public interest to award without competition. The lack of multiple bidders means there was no direct price comparison from the market, potentially impacting the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the benefit of competitive bidding, which drives down prices, is lost. This necessitates robust oversight to ensure fair pricing.

Public Impact

The Department of the Army benefits from the reliable operation of essential water and wastewater infrastructure. Military personnel and their families residing on or near the installation are directly impacted by the quality and availability of these services. The contract supports critical public health and environmental compliance for the military installation. Local workforce may be employed by the contractor for the operation and maintenance of these utility systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
Fixed-price contract requires diligent performance monitoring to ensure service quality.
Contract duration of over 3 years necessitates long-term planning for service continuity and potential future needs.
Lack of publicly available performance metrics makes it difficult to assess contractor effectiveness.

Positive Signals

Fixed-price contract shifts cost overrun risk to the contractor.
Award to an established entity (Chugach Government Services, Inc.) may indicate a track record of performance.
The contract addresses essential infrastructure, ensuring operational continuity for the military.

Sector Analysis

The water and wastewater utility sector is a critical component of public infrastructure, essential for health, safety, and environmental protection. Federal agencies, particularly the Department of Defense, rely heavily on these services for the operation of installations. The market for these services includes specialized engineering and operations firms. While specific spending benchmarks for federal water and wastewater operations are not readily available, the scale of this contract suggests a significant operational requirement, likely for a large military installation.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have been specifically structured to include small business participation goals unless mandated by broader agency policy. Further investigation into the contractor's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Department of the Army's contract management division. As a definitive contract, it is subject to standard federal procurement regulations. Transparency regarding performance metrics and any potential disputes or modifications would be managed through official channels. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Management
Military Base Operations Support
Federal Utility Services Contracts
Water Infrastructure Management

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics in public domain.
Contract duration exceeds typical shorter-term service agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to CHUGACH GOVERNMENT SERVICES, INC.. WATER WASTEWATER OPERATION CONTRACT

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 $24.8 million.

What is the period of performance?

Start: 2007-08-14. End: 2010-09-30.

What is the historical spending pattern for water and wastewater operations at this specific Department of the Army installation?

Analyzing historical spending for water and wastewater operations at the specific installation is crucial for understanding the context of this $24.8M contract. Without access to detailed historical data for this particular site, it's challenging to establish a baseline. However, federal agencies often have multi-year budgets for infrastructure maintenance and operations. If this contract represents a significant increase or decrease compared to previous expenditures, it could indicate changes in service scope, pricing, or operational efficiency. A review of past contracts for similar services at the installation would reveal trends in cost, duration, and contractor performance, providing a benchmark against which the current award can be evaluated for value and necessity.

How does the annual cost of this contract compare to similar water and wastewater operations at other federal facilities?

Benchmarking the annual cost of this contract, approximately $8.3M ($24.8M / 3 years), against similar water and wastewater operations at other federal facilities is essential for assessing value for money. However, direct comparisons can be complex due to variations in facility size, population served, infrastructure age, regulatory requirements, and geographic location, all of which influence operational costs. Ideally, a comparison would involve contracts for facilities with comparable military missions and infrastructure needs. The absence of readily available, granular data on comparable contracts makes a precise benchmark difficult. If this contract's annual cost is significantly higher than similar facilities, it could suggest potential inefficiencies or a premium associated with the sole-source award.

What specific performance metrics are included in the contract to ensure service quality and accountability?

The contract specifies a Firm Fixed Price (FFP) type, which generally implies that the contractor is responsible for delivering the defined scope of work at the agreed-upon price. However, the effectiveness of an FFP contract hinges on clearly defined performance standards and metrics. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to detail the specific metrics. Typically, for water and wastewater operations, these metrics would include water quality testing results, system uptime, response times for emergencies, compliance with environmental regulations (e.g., EPA standards), and preventative maintenance schedules. Robust oversight and regular performance reviews against these metrics are critical for ensuring accountability and service quality.

What is the track record of Chugach Government Services, Inc. in managing similar federal water and wastewater contracts?

Chugach Government Services, Inc. (CGS) has a history of performing various government contracts, including those related to base operations and facilities support. To assess their track record specifically for water and wastewater operations, a review of their past performance on similar federal contracts would be necessary. This would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any contract disputes, or contract terminations. A positive history on comparable contracts would suggest a lower risk associated with this award. Conversely, a history of performance issues could raise concerns about CGS's ability to meet the requirements of this significant infrastructure contract effectively and efficiently.

What are the potential risks associated with a sole-source award for critical utility services like water and wastewater?

The primary risk associated with a sole-source award for critical utility services is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for innovation or efficiency. Taxpayers may end up paying more than necessary for these essential services. Another risk is contractor lock-in; if the sole-source provider underperforms or faces financial difficulties, transitioning to a new provider can be complex, costly, and disruptive to essential operations. Furthermore, without the vetting process inherent in a competitive bid, there's a potential, albeit usually mitigated by pre-award responsibility determinations, for awarding the contract to a less capable or less suitable entity. Robust contract management and oversight are therefore paramount to mitigate these risks.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DR07R0001

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, Category Business, 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: $24,827,847

Exercised Options: $24,827,847

Current Obligation: $24,827,847

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline