Air Force awards $27.5M contract for OTC classes and course material maintenance to Aleut Management Services, LLC

Contract Overview

Contract Amount: $27,520,821 ($27.5M)

Contractor: Aleut Management Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-25

End Date: 2026-04-30

Contract Duration: 613 days

Daily Burn Rate: $44.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE INSTRUCTION OF OTC CLASSES AND MAINTENANCE OF COURSE MATERIALS.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to ALEUT MANAGEMENT SERVICES, LLC for work described as: THE INSTRUCTION OF OTC CLASSES AND MAINTENANCE OF COURSE MATERIALS. Key points: 1. Contract value of $27.5M for training services over approximately two years. 2. Sole-source award indicates limited competition, potentially impacting price. 3. Firm Fixed Price contract type shifts cost risk to the contractor. 4. Performance period spans from August 2024 to April 2026. 5. Contractor, Aleut Management Services, LLC, is based in Colorado. 6. NAICS code 611430 suggests a focus on professional and management development training.

Value Assessment

Rating: fair

The contract value of $27.5M for approximately two years of training services appears to be within a reasonable range for professional development and course material maintenance. However, without specific details on the scope of training, number of personnel, or types of courses, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale training contracts would be necessary for a more definitive evaluation. The firm fixed-price nature of the contract suggests the government has secured a predictable cost, but the absence of competition could mean the price is not as optimized as it could be.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This typically occurs when a specific capability is required that only one contractor can provide, or in situations where urgency or a lack of market research leads to a non-competitive award. The limited competition means that the government did not benefit from the price discovery mechanisms that multiple bidders would typically provide, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a competitive bidding process, there is a risk that the awarded price is higher than what could have been achieved in an open market.

Public Impact

The primary beneficiaries are Department of the Air Force personnel requiring professional and management development training. Services include the instruction of OTC (Officer Training Course or similar) classes and the ongoing maintenance of associated course materials. The geographic impact is likely concentrated where Air Force training facilities are located, though the specific locations are not detailed. Workforce implications include the provision of instructors and curriculum developers by Aleut Management Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for taxpayer dollars.
Lack of detailed scope of work makes it difficult to fully assess value for money.
Contract duration of nearly two years without clear performance metrics raises questions about ongoing effectiveness.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
Contractor has a defined period of performance, providing clear expectations.
Award to a specific company suggests a potentially specialized or required capability.

Sector Analysis

The professional and management development training sector is a significant part of the broader education and training services industry. Federal agencies, particularly large ones like the Department of Defense, are substantial consumers of these services to ensure their workforce remains skilled and compliant. Spending in this sector often focuses on specialized training, leadership development, and technical skills. Comparable spending benchmarks would typically look at per-student costs for similar courses or the overall annual training budgets of large government organizations.

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. Therefore, this specific award does not directly contribute to the small business contracting goals. The impact on the small business ecosystem is neutral for this particular contract, as it does not appear to involve set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded within the contract terms, particularly the firm fixed-price structure and the defined period of performance. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and specific course content are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Acquisition Workforce Development Program
Professional Development Training Services
Military Officer Training Programs
Contractor-Provided Educational Services

Risk Flags

Sole-source award requires justification and could indicate limited market availability or competition.
Lack of detailed scope and performance metrics hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to ALEUT MANAGEMENT SERVICES, LLC. THE INSTRUCTION OF OTC CLASSES AND MAINTENANCE OF COURSE MATERIALS.

Who is the contractor on this award?

The obligated recipient is ALEUT MANAGEMENT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2024-08-25. End: 2026-04-30.

What is the specific nature of the 'OTC classes' being provided, and what is the expected student throughput?

The provided data does not specify the exact nature of the 'OTC classes' beyond their classification under NAICS code 611430 (Professional and Management Development Training). 'OTC' could potentially refer to Officer Training Course, Officer Candidate School, or another specialized program. Without further details, it's impossible to determine the specific curriculum, learning objectives, or the number of personnel expected to attend. This information is crucial for assessing the relevance and effectiveness of the training. The contract value of $27.5 million over approximately 20 months suggests a significant training operation, potentially involving hundreds or thousands of students, but precise figures are needed for a robust analysis.

How does the $27.5M contract value compare to historical spending on similar training services by the Air Force or DoD?

Comparing the $27.5M contract value requires context regarding the scope and duration of services. If this contract covers a broad range of mandatory professional development for a large cohort of Air Force personnel over nearly two years, the cost might be reasonable. However, without knowing the specific number of courses, training hours per course, and the number of students, a direct comparison is difficult. Historical data for similar sole-source contracts for professional development or officer training would be the most relevant benchmark. If the Air Force has previously competed similar training requirements and achieved lower prices, or if other agencies procure comparable services at a lower per-student cost, this award might warrant further scrutiny regarding its value for money.

What are the key performance indicators (KPIs) or quality standards associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or quality standards for this contract. However, as a Firm Fixed Price (FFP) contract, the primary performance expectation is the successful delivery of the specified training services and course material maintenance according to the contract's statement of work. Quality is typically assessed through metrics such as student pass rates, post-training evaluations, instructor qualifications, and the timeliness and accuracy of course material updates. The Air Force's program office would be responsible for monitoring these aspects, and any deficiencies could lead to contract remedies, although the FFP structure incentivizes the contractor to meet standards to avoid penalties and ensure payment.

What is the track record of Aleut Management Services, LLC in providing similar federal training services?

Aleut Management Services, LLC has a track record of performing federal contracts, including those within the professional services and training domains. While specific details on their past performance related to 'OTC classes' or extensive course material maintenance are not provided in this summary, their ability to secure a sole-source award from the Department of the Air Force suggests they possess capabilities deemed necessary by the agency. A deeper dive into their contract history, including past performance reviews and any reported issues on previous government contracts, would be necessary to fully assess their reliability and expertise for this specific requirement.

Given the sole-source nature, what efforts were made to ensure fair and reasonable pricing?

For sole-source contracts, agencies are required to conduct price analysis to ensure the price is fair and reasonable. This typically involves reviewing the contractor's cost and pricing data, comparing the proposed price to historical prices paid for similar items or services, using independent government cost estimates, or analyzing market research data. The specific methods used for this $27.5M contract would be documented in the contract file. The absence of competition means that the government relies heavily on its own analysis and the contractor's provided data, making the thoroughness of this price analysis critical for taxpayer protection.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING 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: 5775 MARK DABLING BLVD, COLORADO SPRINGS, CO, 80919

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $89,326,270

Exercised Options: $27,634,665

Current Obligation: $27,520,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline