Treasury's $17.4M waste water treatment contract awarded to KADIAK LLC raises value concerns

Contract Overview

Contract Amount: $17,367,176 ($17.4M)

Contractor: Kadiak LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-11-01

End Date: 2026-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: "EO14042" WASTE WATER TREATMENT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.4 million to KADIAK LLC for work described as: "EO14042" WASTE WATER TREATMENT SERVICES Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Duration of 5 years suggests a long-term need for these essential facilities support services. 3. The contract's value, while significant, needs benchmarking against similar services to assess value for money. 4. Performance context is limited due to the 'NOT AVAILABLE FOR COMPETITION' status, hindering a full assessment. 5. Sector positioning within Facilities Support Services is critical for operational continuity at the Bureau of Engraving and Printing. 6. Risk indicators are elevated due to the lack of competition and limited transparency on pricing.

Value Assessment

Rating: questionable

Benchmarking the $17.4 million contract value for waste water treatment services is challenging without comparable contract data. The 'NOT AVAILABLE FOR COMPETITION' award type suggests potential for overpricing compared to a competitively bid scenario. The per-unit cost is not readily available for direct comparison, but the overall value warrants scrutiny to ensure it aligns with market rates for similar facilities support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the requirement. The lack of multiple bidders means there was no competitive pressure to drive down prices or encourage innovative solutions, potentially impacting the overall value for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, it is difficult to ascertain if the government secured the best possible price and terms for these essential waste water treatment services.

Public Impact

The Bureau of Engraving and Printing benefits from uninterrupted waste water treatment services, crucial for its operations. Essential facilities support services are delivered, ensuring compliance with environmental regulations. The geographic impact is localized to the District of Columbia, where the Bureau of Engraving and Printing is located. Workforce implications are likely within the facilities management and environmental services sectors, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in the procurement process hinders full value assessment.
Potential for vendor lock-in due to sole-source award.

Positive Signals

Ensures continuity of essential waste water treatment services.
Award to KADIAK LLC addresses a specific government need.
Contract duration provides stability for service provision.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, encompass a broad range of services necessary for the operation and maintenance of buildings and other facilities. This sector includes services like general building maintenance, waste management, and utility management. The market for these services is substantial, with government contracts forming a significant portion. This specific contract for waste water treatment is a critical component of maintaining operational infrastructure for sensitive government facilities.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside. Therefore, the direct impact on the small business ecosystem is minimal, and there are no explicit subcontracting opportunities for small businesses mentioned in this data. Further investigation would be needed to determine if KADIAK LLC has its own small business subcontracting plan.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Bureau of Engraving and Printing, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the contract's deliverables and payment schedules. Transparency is limited due to the non-competitive award, but contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Facilities Maintenance Contracts
Environmental Services Contracts
Government Operations Support
Bureau of Engraving and Printing Procurement

Risk Flags

Non-competitive award
Lack of detailed performance metrics
Limited public information on pricing benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.4 million to KADIAK LLC. "EO14042" WASTE WATER TREATMENT SERVICES

Who is the contractor on this award?

The obligated recipient is KADIAK LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-10-31.

What is KADIAK LLC's track record with federal contracts, particularly in waste water treatment or facilities support?

Information regarding KADIAK LLC's specific track record with federal contracts, especially in waste water treatment or facilities support, is not detailed in the provided data snippet. A comprehensive review would require accessing contract databases like FPDS-NG or SAM.gov to analyze past performance, past performance evaluations, and any history of contract modifications or disputes. Understanding their experience and performance history is crucial for assessing the reliability and effectiveness of their service delivery under this new award.

How does the $17.4 million contract value compare to market rates for similar waste water treatment services?

Directly comparing the $17.4 million contract value to market rates is difficult without specific details on the scope of services, service levels, and geographic location of comparable contracts. However, given the 'NOT AVAILABLE FOR COMPETITION' award status, there is an inherent risk that the price may be higher than what could have been achieved through a competitive bidding process. Benchmarking against other government facilities support contracts or private sector contracts for similar services in the District of Columbia would be necessary for a more precise value assessment. The duration of the contract (5 years) also influences the total value, and annual cost comparisons would be more insightful.

What are the primary risks associated with awarding this contract on a non-competitive basis?

The primary risks associated with awarding this contract on a non-competitive basis include potential overpricing, reduced incentive for the contractor to innovate or provide exceptional service, and a lack of transparency in the procurement process. Without competition, the government loses the opportunity to explore alternative solutions or secure better pricing through negotiation. This can lead to inefficient use of taxpayer funds. Additionally, it may signal a reliance on a single vendor, creating potential challenges if that vendor's performance declines or if their capacity becomes strained.

What is the expected impact of this contract on the Bureau of Engraving and Printing's operational continuity?

This contract is expected to ensure the operational continuity of the Bureau of Engraving and Printing by providing essential waste water treatment services. These services are critical for maintaining the facility's infrastructure, complying with environmental regulations, and preventing disruptions that could impact the Bureau's core functions, such as currency production. The five-year duration of the contract provides a stable and predictable service provision, minimizing the risk of service interruptions related to waste water management.

Are there any historical spending patterns with KADIAK LLC or for waste water treatment services at this agency?

The provided data does not offer historical spending patterns for KADIAK LLC or for waste water treatment services at the Bureau of Engraving and Printing. To analyze historical spending, one would need to examine past contract awards to KADIAK LLC and previous contracts for similar services awarded by the Department of the Treasury or the Bureau of Engraving and Printing. Understanding trends in spending, contract types, and competition levels over time would provide valuable context for evaluating the current $17.4 million award.

What specific services are included under 'waste water treatment services' for this contract?

The provided data snippet categorizes the contract under 'WASTE WATER TREATMENT SERVICES' and NAICS code '561210' (Facilities Support Services), but it does not detail the specific services included. Typically, waste water treatment services for a federal facility would encompass the collection, treatment, and disposal of all waste water generated on-site, ensuring compliance with federal, state, and local environmental regulations. This could include industrial waste water, sanitary waste water, and storm water management, along with necessary monitoring, testing, and reporting.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koniag, Inc.

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,562,176

Exercised Options: $17,497,176

Current Obligation: $17,367,176

Actual Outlays: $12,530,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline