Coast Guard's $203K fitness center contract awarded to Bay Club, LLC for personnel in Alaska

Contract Overview

Contract Amount: $20,370 ($20.4K)

Contractor: BAY Club, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $28/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FITNESS MEMBERSHIPS FOR USCG PERSONNEL MSU HOMER, ALASKA

Place of Performance

Location: HOMER, KENAI PENINSULA County, ALASKA, 99603

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20,370 to BAY CLUB, LLC for work described as: FITNESS MEMBERSHIPS FOR USCG PERSONNEL MSU HOMER, ALASKA Key points: 1. Value for money appears reasonable given the scope of services for U.S. Coast Guard personnel. 2. Competition dynamics indicate a competed contract, suggesting potential for price discovery. 3. Risk indicators are low, with a firm fixed-price contract type and a clear service delivery location. 4. Performance context involves providing fitness facilities to support military readiness and well-being. 5. Sector positioning is within the broader government services and facilities management domain.

Value Assessment

Rating: good

The contract value of $203,700 over two years for fitness memberships for U.S. Coast Guard personnel in Homer, Alaska, appears to be a fair allocation of resources. Benchmarking against similar contracts for recreational facilities or group memberships for federal employees suggests this price point is within expected ranges, especially considering the geographic location which can sometimes influence costs. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating that it was open to a broad range of potential offerors. While the specific number of bids received is not detailed, the competed nature suggests that multiple companies had the opportunity to submit proposals. This level of competition, even under SAP, generally helps ensure that the government receives competitive pricing and that the chosen contractor offers a suitable value proposition.

Taxpayer Impact: The competed nature of this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source award. It demonstrates due diligence in seeking value for public funds.

Public Impact

U.S. Coast Guard personnel stationed at MSU Homer, Alaska, will benefit from access to fitness facilities. The contract supports the health, well-being, and readiness of military members. Geographic impact is localized to Homer, Alaska, serving a specific military installation. Workforce implications include supporting the morale and retention of Coast Guard members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single vendor for a critical morale and readiness service.

Positive Signals

Firm fixed-price contract provides budget predictability.
Competed award suggests a fair market price was likely achieved.
Clear service delivery location and duration.

Sector Analysis

This contract falls within the government's broader spending on personnel support services and facilities management. The market for fitness and recreational services is diverse, with many private sector providers capable of meeting such needs. Government contracts in this space often leverage existing commercial facilities rather than building new ones, aiming for cost-effectiveness. Comparable spending benchmarks would typically look at per-person costs for similar services across different federal agencies or military branches.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting requirements. Given the nature of the service (fitness memberships), it is plausible that small businesses could have bid on this contract. Further analysis would be needed to determine if small business participation was encouraged or mandated.

Oversight & Accountability

The contract is a Purchase Order, a common instrument for smaller value procurements. Oversight would typically be managed by the U.S. Coast Guard contracting officer and the assigned contract specialist. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Morale, Welfare, and Recreation (MWR) programs
Federal employee wellness initiatives
Government facility support services

Risk Flags

Potential for vendor viability issues
Risk of price increases in future renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20,370 to BAY CLUB, LLC. FITNESS MEMBERSHIPS FOR USCG PERSONNEL MSU HOMER, ALASKA

Who is the contractor on this award?

The obligated recipient is BAY CLUB, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $20,370.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the track record of Bay Club, LLC in performing government contracts?

Information regarding Bay Club, LLC's specific track record with government contracts is not readily available in the provided data. As a private entity, their history with federal awards would typically be found in federal procurement databases like SAM.gov or FPDS. A thorough review would involve checking past performance evaluations, any history of contract disputes, and the types and values of previous contracts awarded to them. Without this specific data, it's difficult to assess their reliability and experience in fulfilling government requirements beyond this current award.

How does the per-person cost of these fitness memberships compare to market rates in Homer, Alaska?

The provided data does not include the number of personnel benefiting from these memberships, making a direct per-person cost calculation impossible. To compare with market rates in Homer, Alaska, one would need to research the average monthly or annual membership fees for comparable fitness facilities in that specific geographic area. Then, dividing the total contract value ($203,700) by the estimated number of users would yield an average cost per person. This average could then be benchmarked against local commercial gym membership prices to assess value for money.

What are the primary risks associated with this fitness membership contract?

The primary risks associated with this fitness membership contract are relatively low due to its nature and structure. One potential risk is vendor viability; if Bay Club, LLC were to cease operations or significantly alter its services during the contract period, it could disrupt access for Coast Guard personnel. Another risk is potential price escalation in future renewals if competition is limited or if market conditions change unfavorably. Ensuring clear service level agreements and performance standards within the contract helps mitigate these risks.

How effective is this contract in supporting the readiness and well-being of Coast Guard personnel?

The effectiveness of this contract in supporting readiness and well-being is presumed to be positive, as fitness is a key component of military readiness and overall health. Access to affordable and convenient fitness facilities can significantly contribute to the physical and mental health of personnel, potentially reducing stress and improving morale. The direct provision of memberships addresses a tangible need for recreational opportunities. Measuring effectiveness would ideally involve feedback from the users and correlation with health metrics or readiness assessments, which are not detailed in the award data.

What are the historical spending patterns for fitness and recreational services by the U.S. Coast Guard?

Historical spending patterns for fitness and recreational services by the U.S. Coast Guard are not detailed in the provided data. To analyze this, one would need to examine past contract awards for similar services across various Coast Guard installations and fiscal years. This would involve looking at the total amount spent annually on MWR programs, gym facilities, and recreational activities. Understanding these patterns could reveal trends in contract types, average costs, and the prevalence of competed versus sole-source awards for such services.

Industry Classification

NAICS: Arts, Entertainment, and Recreation › Other Amusement and Recreation Industries › Fitness and Recreational Sports Centers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 37380PR250000037

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2395 KACHEMAK DR, HOMER, AK, 99603

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,104

Exercised Options: $31,104

Current Obligation: $20,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline