NOAA's $43M FCDAS Operations & Maintenance contract awarded to Arctic Slope Technical Services shows fair value with 5 bidders

Contract Overview

Contract Amount: $43,180,811 ($43.2M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2016-09-01

End Date: 2022-05-31

Contract Duration: 2,098 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FAIRBANKS COMMAND AND DATA ACQUISITION STATION (FCDAS) OPERATIONS AND MAINTENANCE SERVICES.

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99701

State: Alaska Government Spending

Plain-Language Summary

Department of Commerce obligated $43.2 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF FAIRBANKS COMMAND AND DATA ACQUISITION STATION (FCDAS) OPERATIONS AND MAINTENANCE SERVICES. Key points: 1. The contract's value appears reasonable given the duration and scope of services. 2. Competition was robust, with five bidders participating, suggesting a healthy market. 3. The firm-fixed-price structure helps mitigate cost overrun risks. 4. Performance context is crucial for understanding the long-term value of these services. 5. This contract falls within the facilities support services sector, a common government need. 6. The award to a single contractor indicates successful price discovery through competition.

Value Assessment

Rating: good

The contract's total value of approximately $43.2 million over nearly six years suggests a reasonable annual spend for comprehensive facilities support. Benchmarking against similar contracts for remote station operations and maintenance is challenging due to unique geographic and operational factors. However, the firm-fixed-price contract type generally provides cost certainty. The number of bidders indicates a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while full and open competition was intended, specific sources were excluded. With five bidders, the competition level was moderate, suggesting that the market for these specialized services is not overly saturated but sufficient to drive price discovery. The exclusion of certain sources warrants further investigation to understand its impact on overall competition and pricing.

Taxpayer Impact: The moderate competition level, despite exclusions, likely resulted in a fair price for taxpayers. However, understanding the rationale behind source exclusions is key to ensuring maximum value.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific missions reliant on the Fairbanks Command and Data Acquisition Station (FCDAS). Services delivered include essential operations and maintenance for critical infrastructure, ensuring uninterrupted data collection and transmission. The geographic impact is localized to Alaska, supporting federal operations in a remote and challenging environment. Workforce implications include the direct employment of personnel by Arctic Slope Technical Services and potential indirect economic benefits within the local Alaskan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if excluded sources were critical for competitive pricing.
Dependence on a single contractor for essential, remote operations carries inherent risk.
The specific reasons for excluding sources are not detailed, raising questions about the extent of competition.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost overruns.
A moderate number of bidders (5) suggests a viable market for these services.
The contract duration provides stability for essential operations.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS 561210), which encompasses a broad range of services for the operation of buildings and other facilities. Government spending in this sector is substantial, covering everything from janitorial services to complex infrastructure management. This specific contract is for specialized operations and maintenance at a critical data acquisition station in a remote location, highlighting a niche within the broader facilities support market. Comparable spending benchmarks are difficult to establish precisely due to the unique operational environment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Arctic Slope Technical Services, Inc., may engage small businesses as subcontractors, but this is not mandated by the contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the National Oceanic and Atmospheric Administration (NOAA), likely through contracting officers and program managers responsible for the Fairbanks Command and Data Acquisition Station (FCDAS). Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Facilities Operations
Remote Sensing Data Acquisition
Government IT Infrastructure Support
Arctic Operations and Logistics
Federal Facilities Maintenance

Risk Flags

Potential for limited competition due to source exclusions.
Reliance on a single contractor for critical remote operations.
Unique environmental and logistical challenges in Alaska.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $43.2 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. IGF::OT::IGF FAIRBANKS COMMAND AND DATA ACQUISITION STATION (FCDAS) OPERATIONS AND MAINTENANCE SERVICES.

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $43.2 million.

What is the period of performance?

Start: 2016-09-01. End: 2022-05-31.

What is the track record of Arctic Slope Technical Services, Inc. in performing similar government contracts, particularly in remote or challenging environments?

Arctic Slope Technical Services, Inc. (ASTS) has a history of performing government contracts, often focusing on logistics, base operations support, and technical services, particularly in remote and Arctic regions. Their experience often includes supporting military installations and federal agencies in Alaska. While specific performance details for this FCDAS contract are not provided in the summary data, ASTS's general profile suggests they are positioned to handle the operational complexities of such a facility. A deeper dive into past performance reviews, any contract modifications, and dispute history would provide a more comprehensive understanding of their reliability and effectiveness in similar roles.

How does the awarded price compare to industry benchmarks for similar remote station operations and maintenance services?

Directly comparing the awarded price of approximately $43.2 million over nearly six years to industry benchmarks for remote station operations and maintenance is challenging due to the unique nature of the Fairbanks Command and Data Acquisition Station (FCDAS). Factors such as extreme climate, limited accessibility, specialized equipment, and critical data transmission requirements significantly influence costs. While the firm-fixed-price structure and the number of bidders (5) suggest a competitive outcome, precise benchmarking would require access to detailed cost breakdowns and data from comparable, albeit likely scarce, contracts in similarly demanding environments. The annual average cost of roughly $7.2 million per year needs to be evaluated against the specific scope and criticality of the FCDAS operations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include operational disruptions due to the remote and harsh Alaskan environment, potential contractor performance issues, and the inherent risks of relying on a single entity for critical infrastructure maintenance. Mitigation strategies are primarily embedded in the contract structure: the firm-fixed-price (FFP) nature limits the government's financial exposure to cost overruns, provided the scope remains unchanged. Performance standards and service level agreements, though not detailed here, would typically be included to hold the contractor accountable. NOAA's contracting officer and program management team are responsible for ongoing oversight, including monitoring performance, addressing issues promptly, and potentially invoking contract remedies if necessary. The exclusion of certain sources also presents a potential risk if it limited the competitive pool.

What is the historical spending pattern for FCDAS operations and maintenance services, and how does this contract compare?

The provided data covers a single contract award from September 1, 2016, to May 31, 2022, totaling approximately $43.2 million. This represents the spending for this specific period and contractor. To understand the historical spending pattern, data from previous contracts for FCDAS operations and maintenance would be needed. Without prior contract information, it's impossible to determine if this $43.2 million award represents an increase, decrease, or stable level of spending compared to previous periods. Analyzing trends over multiple contract cycles would reveal patterns in cost escalation, service scope changes, and contractor competition over time.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for the fairness and competitiveness of the award?

The 'Full and Open Competition After Exclusion of Sources' designation implies that the government initially intended to compete the contract broadly but subsequently excluded specific potential offerors. This could occur for various reasons, such as national security concerns, past performance issues with certain contractors, or specific technical requirements that only a limited number of firms could meet. While it still represents a form of open competition among the remaining eligible sources, the exclusion of some potentially capable bidders could limit the overall competitive pressure and potentially impact the final price. The fact that five bidders participated suggests that the exclusion did not entirely stifle competition, but the rationale behind the exclusions is crucial for a complete assessment of fairness and value.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AB-133E-16-RP-0058

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,823,202

Exercised Options: $43,188,870

Current Obligation: $43,180,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline