DoD's $28.5M Facilities Support Contract Awarded to KISAQ, LLC Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $28,477,676 ($28.5M)

Contractor: Kisaq, LLC

Awarding Agency: Department of Defense

Start Date: 2011-08-19

End Date: 2014-03-06

Contract Duration: 930 days

Daily Burn Rate: $30.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TORP 0005 - USAKA SRM - PHASE I SITE VISIT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to KISAQ, LLC for work described as: TORP 0005 - USAKA SRM - PHASE I SITE VISIT Key points: 1. Value for money is difficult to assess due to limited public data on performance metrics and pricing benchmarks. 2. The contract was awarded on a sole-source basis, raising questions about potential price inflation and lack of competitive pressure. 3. Risk indicators include the sole-source award and the relatively short performance period, which may limit long-term contractor accountability. 4. Performance context is limited, with no readily available data on key performance indicators or service level agreements. 5. The contract falls within the Facilities Support Services sector, a broad category encompassing a range of essential operational services. 6. The award amount of $28.5 million over approximately 30 months suggests a significant investment in maintaining military facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the sole-source nature of the award and the lack of publicly disclosed performance metrics. While the total value of $28.5 million over roughly 30 months appears substantial, without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if it represents a good use of taxpayer funds. The fixed-price contract type offers some cost certainty, but the absence of competitive bidding limits the ability to gauge market-driven pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning KISAQ, LLC was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity to compare different pricing structures or service offerings, potentially leading to a higher price than might be achieved in an open market.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as they eliminate the downward price pressure that competition normally provides. This reduces the opportunity for the government to secure the best possible value.

Public Impact

The primary beneficiaries are the Department of the Army, which receives essential facilities support services. Services delivered include maintenance, repair, and operational support for military facilities, ensuring readiness and functionality. The geographic impact is concentrated in Alaska (st: AK, sn: ALASKA), supporting military installations in that region. Workforce implications may include direct employment by KISAQ, LLC and potential indirect employment in supporting industries within Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of publicly available performance data makes it difficult to assess service quality and value.
Short contract duration might not incentivize long-term investment in service improvement.

Positive Signals

Fixed-price contract type provides some cost predictability for the government.
Award to a single contractor can streamline management and communication for essential services.
Focus on a specific geographic region (Alaska) allows for tailored support.

Sector Analysis

The Facilities Support Services sector is a critical component of government operations, encompassing a wide array of services necessary for the upkeep and functioning of physical infrastructure. This contract, valued at approximately $28.5 million, represents a significant portion of spending within this niche for the Department of the Army in Alaska. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided and the scale of the facilities supported.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the procurement process. This contract does not appear to directly contribute to the small business ecosystem through set-aside goals.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures are usually tied to the contract's performance work statement and delivery schedules. Transparency is limited due to the sole-source award and the proprietary nature of performance data, though Inspector General reviews could be initiated if specific concerns arise.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Government Contracting

Risk Flags

Sole-source award
Lack of public performance data
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to KISAQ, LLC. TORP 0005 - USAKA SRM - PHASE I SITE VISIT

Who is the contractor on this award?

The obligated recipient is KISAQ, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2011-08-19. End: 2014-03-06.

What is the track record of KISAQ, LLC in performing similar facilities support contracts for the Department of Defense?

Information regarding KISAQ, LLC's specific track record for similar facilities support contracts with the Department of Defense is not readily available in the public domain. As this contract was awarded sole-source, detailed performance evaluations or past performance reviews that would typically inform competitive bidding are not publicly accessible. Further investigation into government contract databases or direct inquiries to the contracting agency might yield more specific details on their performance history, but based on the provided data, a comprehensive assessment of their track record is limited.

How does the pricing of this contract compare to similar facilities support contracts awarded competitively?

Direct comparison of pricing for this contract to competitively awarded similar contracts is not feasible with the available data. The sole-source nature of this award means there was no competitive bidding process to establish a market-driven price. Without access to detailed cost breakdowns, service level agreements, and the specific scope of work for comparable contracts, any price comparison would be speculative. Generally, sole-source contracts are presumed to be at a higher price point than competitively bid ones due to the absence of market pressures.

What are the primary risk indicators associated with this sole-source contract award?

The primary risk indicator for this contract is its sole-source award. This significantly reduces transparency and eliminates the competitive pressure that typically drives down costs and improves service quality. Taxpayers may be exposed to higher prices than necessary. Additionally, the lack of publicly available performance metrics makes it difficult to assess the contractor's effectiveness and identify potential issues before they escalate. The relatively short duration of the contract (approximately 30 months) could also be a risk if it leads to frequent re-procurement costs or hinders the development of long-term, stable service delivery.

What is the assessed effectiveness of the services provided under this contract, and how is it measured?

The effectiveness of the services provided under this contract cannot be definitively assessed with the currently available public data. The contract details do not include specific performance metrics, key performance indicators (KPIs), or service level agreements (SLAs) that would allow for an objective evaluation of KISAQ, LLC's performance. Effectiveness is typically measured through contractor performance evaluations, which are often not made public, especially for sole-source awards. Without this information, it is impossible to determine if the services are meeting the government's needs efficiently and effectively.

What are the historical spending patterns for facilities support services in Alaska by the Department of the Army?

Historical spending patterns for facilities support services in Alaska by the Department of the Army are not detailed in the provided data. This specific contract represents a $28.5 million award over approximately 30 months. To understand broader historical trends, one would need to analyze aggregated spending data for similar North American Industry Classification System (NAICS) codes (like 561210) awarded by the Department of the Army within the state of Alaska over multiple fiscal years. This would involve accessing and analyzing large datasets from federal procurement databases to identify patterns in contract values, durations, and types of services procured.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source justification. However, the specific reasons for this determination are not detailed. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required services, there is a compelling urgency, or the acquisition is for a specialized capability. Without the official justification document, the precise rationale remains unknown, but it implies that a competitive process was deemed impractical or impossible.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9113M10R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3150 C ST STE 250, 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, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,477,676

Exercised Options: $28,477,676

Current Obligation: $28,477,676

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M11D0004

IDV Type: IDC

Timeline