Interior Department awards $12.8M contract for facility management IT support to Katmai Diversified Services LLC

Contract Overview

Contract Amount: $12,823,735 ($12.8M)

Contractor: Katmai Diversified Services LLC

Awarding Agency: Department of the Interior

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RANGE FACILITY MANAGEMENT SUPPORT SYSTEM (RFMSS) SERVICES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99515

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $12.8 million to KATMAI DIVERSIFIED SERVICES LLC for work described as: RANGE FACILITY MANAGEMENT SUPPORT SYSTEM (RFMSS) SERVICES Key points: 1. Contract focuses on IT support for facility management systems, indicating a need for specialized technical services. 2. The award to a single contractor suggests potential limitations in market competition or a specific capability requirement. 3. A firm-fixed-price contract type aims to provide cost certainty for the government. 4. The contract duration of approximately four years allows for sustained support but also requires ongoing performance monitoring. 5. The geographic location in Alaska may present unique logistical or operational challenges. 6. The broad service category 'All Other Professional, Scientific, and Technical Services' requires careful definition of deliverables to ensure value.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided. The contract value of $12.8 million over four years averages to $3.2 million annually. This figure needs to be compared against the scope and complexity of the RFMSS IT support. Given the 'All Other Professional, Scientific, and Technical Services' NAICS code, the pricing could vary significantly. Without comparable contracts for similar IT facility management support systems in remote locations, a definitive value assessment is difficult. The firm-fixed-price structure, however, offers some predictability.

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 could be due to a specific, unique capability held by Katmai Diversified Services LLC, or potentially a lack of market research identifying other capable vendors. Sole-source awards can sometimes lead to higher prices due to the absence of competitive pressure. The government must justify why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards can limit opportunities for other businesses to secure federal contracts and may result in less favorable pricing for taxpayers compared to a competitive procurement.

Public Impact

The Department of the Interior benefits from continued IT support for its Range Facility Management Support System. This contract ensures the operational continuity and potential enhancement of critical facility management IT infrastructure. The services are primarily delivered within Alaska, impacting federal operations in that region. The contract supports specialized IT roles, potentially creating or sustaining jobs in the technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and limited innovation.
The broad NAICS code makes it difficult to assess if the contractor's specific expertise aligns perfectly with the RFMSS IT support needs.
Performance metrics and oversight will be crucial to ensure value delivery in a sole-source scenario.

Positive Signals

Firm-fixed-price contract provides budget certainty for the government.
The contract duration allows for stability in IT support services.
Awarding to Katmai Diversified Services LLC may leverage existing knowledge of the RFMSS system if they were involved previously.

Sector Analysis

The IT services sector supporting government facility management is a niche but essential area. This contract falls under professional, scientific, and technical services, specifically focusing on IT support for a specialized system (RFMSS). The market for such services can be competitive, but specific system expertise or geographic requirements can lead to less open procurements. Annual spending on IT services by the federal government is substantial, often in the tens of billions, with significant portions allocated to specialized support and maintenance contracts.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The prime contractor, Katmai Diversified Services LLC, is identified as a business entity, but its size status (small or large) is not provided. The absence of set-aside provisions means that opportunities for small businesses to participate in this specific contract are limited unless they are part of a subcontracting plan not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Interior. Accountability measures will be defined in the contract's statement of work and performance standards. Transparency is dependent on the government's reporting practices and the public availability of contract performance information. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Support Services
Facility Management Systems
Department of the Interior IT Contracts
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award may limit competition and potentially increase costs.
Lack of detailed service scope makes value assessment difficult.
Geographic location in Alaska could introduce logistical complexities and higher operational costs.
Contract performance data is not publicly available to assess contractor effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.8 million to KATMAI DIVERSIFIED SERVICES LLC. RANGE FACILITY MANAGEMENT SUPPORT SYSTEM (RFMSS) SERVICES

Who is the contractor on this award?

The obligated recipient is KATMAI DIVERSIFIED SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the specific nature of the RFMSS IT support being provided, and how does it differ from standard IT services?

The Range Facility Management Support System (RFMSS) is a specialized system used by the Department of the Interior, likely for managing land use permits, leases, and related activities on federal lands, particularly ranges. The IT support would therefore involve maintaining the software, databases, network infrastructure, and user support specifically for this system. This differs from standard IT services as it requires in-depth knowledge of the RFMSS application's unique functionalities, data structures, and operational context within the DOI's land management mission. Support may include troubleshooting application errors, managing user access, performing system updates and patches, ensuring data integrity, and potentially developing minor enhancements or reports tailored to RFMSS.

What is the track record of Katmai Diversified Services LLC with the Department of the Interior or similar agencies?

Information regarding Katmai Diversified Services LLC's specific track record with the Department of the Interior or similar agencies is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes. Understanding their experience with IT support for specialized government systems, particularly in remote locations like Alaska, would be crucial. Without this data, it's difficult to gauge their reliability and expertise for this particular RFMSS IT support contract. Further research into federal procurement databases and contractor performance systems would be necessary.

How does the $12.8 million contract value compare to historical spending on RFMSS IT support or similar services?

The provided data does not include historical spending figures for RFMSS IT support or comparable services, making a direct comparison difficult. The $12.8 million award over approximately four years equates to an average annual spend of $3.2 million. To assess value, this figure should be benchmarked against previous contracts for RFMSS support, if any, or against contracts for similar specialized IT management systems within the federal government. Factors such as the scope of services, geographic location, and complexity of the system would influence appropriate spending levels. A lack of historical data or comparable benchmarks hinders a definitive assessment of whether this contract represents good or fair value.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These are critical components that define the expected quality, timeliness, and effectiveness of the IT support services. Typically, for IT support contracts, KPIs might include system uptime percentages, response times for issue resolution, user satisfaction ratings, and successful completion of maintenance tasks. SLAs would outline the specific targets for these KPIs and potential remedies or penalties if they are not met. Without this information, it is challenging to objectively measure the contractor's performance and ensure the government is receiving adequate value for its investment.

What is the justification for awarding this contract on a sole-source basis, and were alternatives 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 determination is not provided. Common reasons for sole-source awards include the unique capability of a single contractor, urgent and compelling needs where competition is impractical, or follow-on work to a previous contract where only one vendor can perform. The government is generally required to conduct market research to ensure no other responsible sources can meet the requirement. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to verify if adequate consideration was given to competitive options or if the sole-source determination was fully warranted.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

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

Address: 11001 OMALLEY CENTRE DR, ANCHORAGE, AK, 99515

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

Financial Breakdown

Contract Ceiling: $23,254,056

Exercised Options: $12,886,564

Current Obligation: $12,823,735

Actual Outlays: $10,489,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline