State Department awards $272.6M training contract to Alutiiq Essential Services LLC, facing limited competition

Contract Overview

Contract Amount: $272,598,587 ($272.6M)

Contractor: Alutiiq Essential Services LLC

Awarding Agency: Department of State

Start Date: 2021-05-14

End Date: 2026-05-13

Contract Duration: 1,825 days

Daily Burn Rate: $149.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IDIQ DS OPO-T- TO-01 TRAINING TASK ORDER

Plain-Language Summary

Department of State obligated $272.6 million to ALUTIIQ ESSENTIAL SERVICES LLC for work described as: IDIQ DS OPO-T- TO-01 TRAINING TASK ORDER Key points: 1. Contract value of $272.6M over five years suggests significant investment in training services. 2. Limited competition raises questions about potential overpayment and optimal resource allocation. 3. The contract's duration of five years indicates a long-term need for these training services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving training needs. 5. The award to a single vendor warrants scrutiny of the procurement process and justification for limited competition. 6. Performance metrics and quality assurance will be critical to ensure value for taxpayer dollars.

Value Assessment

Rating: fair

The total contract value of $272.6 million over five years averages approximately $54.5 million annually. Benchmarking this against similar large-scale training contracts is challenging without specific service details. However, the absence of robust competition suggests that pricing may not have been aggressively driven down. The fixed-price nature provides some cost predictability, but the overall value-for-money hinges on the quality and effectiveness of the training delivered and whether alternative, more competitive approaches could have yielded similar or better outcomes at a lower cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating a limited competitive process. The specific reasons for this limitation are not detailed in the provided data, but it suggests that only one or a very small number of vendors were considered or eligible. This lack of broad competition can lead to higher prices as vendors face less pressure to offer their most competitive rates. It also raises concerns about whether the government explored all viable avenues to ensure the best possible value was obtained.

Taxpayer Impact: Limited competition means taxpayers may not be receiving the most cost-effective solution. The absence of a robust bidding process could result in higher overall spending for the required training services compared to a fully competed contract.

Public Impact

The primary beneficiaries are likely Department of State personnel requiring specialized training to fulfill their diplomatic and operational duties. The services delivered encompass a broad range of training, potentially including security, language, cultural, and technical skills essential for foreign service. Geographic impact is likely global, as State Department personnel operate worldwide, requiring training relevant to diverse international environments. Workforce implications include the development and enhancement of skills for federal employees, contributing to national security and foreign policy objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price reasonableness and potential for inflated costs.
Lack of transparency in the 'NOT AVAILABLE FOR COMPETITION' justification requires further investigation.
The significant contract value necessitates robust oversight to ensure effective service delivery and prevent waste.

Positive Signals

The fixed-price contract type offers budget certainty for the Department of State.
The long-term nature of the contract (5 years) suggests a stable and ongoing need for these critical training services.
Awarding to a single entity may streamline management and ensure consistent delivery of training programs.

Sector Analysis

The training services sector is a significant component of the broader professional services market supporting government operations. This contract falls within the miscellaneous manufacturing and professional services categories, often encompassing specialized skills development. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the training, but large federal training contracts can range from tens to hundreds of millions of dollars, reflecting the extensive needs of agencies like the State Department.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific contract award. There is no indication of small business set-asides or subcontracting plans. This suggests that the prime contractor, Alutiiq Essential Services LLC, is likely a larger entity, and the contract's structure did not prioritize opportunities for small businesses within its execution, potentially limiting the broader impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. Accountability measures would be defined by the contract's performance work statement, including deliverables, quality standards, and reporting requirements. Transparency is dependent on the public availability of contract details and performance reports. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Department of State Training Programs
Federal Employee Professional Development
Foreign Affairs Training
Security and Readiness Training
Government Contract Services

Risk Flags

Limited competition raises concerns about price fairness.
Unclear justification for 'NOT AVAILABLE FOR COMPETITION' status.
NAICS/NDIS classification mismatch for a training contract.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $272.6 million to ALUTIIQ ESSENTIAL SERVICES LLC. IDIQ DS OPO-T- TO-01 TRAINING TASK ORDER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ ESSENTIAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $272.6 million.

What is the period of performance?

Start: 2021-05-14. End: 2026-05-13.

What specific types of training are covered under this $272.6 million contract, and how do they align with the Department of State's mission objectives?

The provided data classifies the contract under NAICS code 339999 (All Other Miscellaneous Manufacturing) and ND (All Other Miscellaneous Manufacturing), which is unusual for a training contract. Typically, training services fall under professional, scientific, and technical services. Without further details on the Statement of Work (SOW), it's difficult to ascertain the exact training modalities. However, given the agency (Department of State), the training likely supports diplomatic readiness, security protocols, cultural competency, language proficiency, and operational skills necessary for personnel serving domestically and abroad. These align directly with the mission of advancing U.S. foreign policy and protecting American interests worldwide by ensuring a well-prepared and capable workforce.

What is the justification for awarding this significant training contract with 'NOT AVAILABLE FOR COMPETITION' status, and were alternative procurement strategies considered?

The 'NOT AVAILABLE FOR COMPETITION' (often synonymous with sole-source or limited competition) status indicates that the Department of State did not conduct a full and open competition for this contract. The specific justification is not provided in the data. Common reasons include the existence of only one responsible source, urgent and compelling needs where competition is not feasible, or specific statutory authority. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to definitively state why full competition was bypassed. It is crucial for such justifications to be robust and demonstrate that all reasonable efforts were made to ensure fair and competitive pricing and selection.

How does the $272.6 million contract value compare to historical spending on similar training services by the Department of State or other federal agencies?

Comparing the $272.6 million contract value requires context regarding the scope and duration of services. Over its five-year term, this contract represents an average annual expenditure of approximately $54.5 million. The Department of State, like other large federal agencies (e.g., DoD, DHS), invests heavily in training. Historical data would need to be analyzed to determine if this amount is typical, higher, or lower than previous procurements for comparable services. Factors influencing this include the number of personnel trained, the complexity of the training, and market rates. A significant deviation from historical norms, especially without clear justification, would warrant closer examination.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the effectiveness and value for money of the training provided by Alutiiq Essential Services LLC?

The provided data does not detail the specific Key Performance Indicators (KPIs) or oversight mechanisms for this contract. However, for a contract of this magnitude and importance, effective oversight is critical. Typically, such contracts would include a Performance Work Statement (PWS) outlining specific deliverables, service levels, and quality standards. KPIs might include trainee satisfaction rates, knowledge retention scores, successful completion rates, and the applicability of learned skills to job performance. Oversight would involve regular progress reviews, performance monitoring, and potentially independent evaluations. The Department of State's contracting officer and program managers are responsible for ensuring Alutiiq Essential Services LLC meets all contractual obligations and delivers high-quality training.

What is Alutiiq Essential Services LLC's track record with federal training contracts, and have they previously received awards of similar size and scope?

Information regarding Alutiiq Essential Services LLC's specific track record with federal training contracts, especially those of similar size and scope to this $272.6 million award, is not included in the provided data snippet. To assess their capability and past performance, one would typically review contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A thorough review would determine if they have demonstrated expertise in delivering complex training programs and managing large federal contracts effectively.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 300 ALIMAQ DR, KODIAK, AK, 99615

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $360,029,988

Exercised Options: $274,213,528

Current Obligation: $272,598,587

Actual Outlays: $69,466,335

Subaward Activity

Number of Subawards: 178

Total Subaward Amount: $104,590,370

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0034

IDV Type: IDC

Timeline