Alutiiq Commercial Enterprises LLC awarded $11.1M for base operations support at Fort Eustis

Contract Overview

Contract Amount: $11,059,407 ($11.1M)

Contractor: Alutiiq Commercial Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2022-01-31

Contract Duration: 364 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FT EUSTIS OY2 BASE OPERATION SUPPORT SERVICES TASK ORDER

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC for work described as: FT EUSTIS OY2 BASE OPERATION SUPPORT SERVICES TASK ORDER Key points: 1. The contract value represents a significant investment in maintaining essential base functions. 2. Competition dynamics for this contract are noted as 'Full and Open Competition After Exclusion of Sources', suggesting a potentially competitive but specific bidding process. 3. The firm-fixed-price contract type generally transfers risk to the contractor, potentially leading to more predictable costs. 4. Performance is contextually situated within the broader Department of Defense's need for robust base support services. 5. This contract falls under Facilities Support Services, a critical sector for military readiness. 6. The duration of 364 days indicates a focused, year-long operational period for the services rendered.

Value Assessment

Rating: good

Benchmarking this contract's value against similar base operations support contracts requires access to a broader dataset of comparable awards. However, the $11.1 million award for a one-year duration suggests a substantial scope of services. The firm-fixed-price structure implies that the contractor is responsible for managing costs to meet the agreed-upon price, which can be a good indicator of value if performance is satisfactory. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the award amount appears commensurate with the complexity of base operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The exact reasons for exclusion are not detailed here, but this approach can sometimes limit the pool of potential bidders compared to a truly unrestricted full and open competition. The number of bidders is not specified, making it difficult to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'full and open' aspect suggests an effort to solicit from a broad range of qualified vendors. This approach aims to achieve competitive pricing, benefiting taxpayers by seeking the best value. However, the exclusion of sources warrants further scrutiny to ensure no potential cost savings were foregone.

Public Impact

Military personnel and their families stationed at Fort Eustis benefit from the continuity of essential base services. The contract delivers critical facilities support services, ensuring the operational readiness of the base. The geographic impact is localized to Fort Eustis, Virginia, directly supporting the military installation and its surrounding community. The contract supports the workforce employed by Alutiiq Commercial Enterprises LLC and potentially its subcontractors, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process could limit competitive pressure and potentially lead to higher costs.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The firm-fixed-price nature, while transferring risk, could incentivize cost-cutting that might impact service quality if not closely monitored.

Positive Signals

The award to Alutiiq Commercial Enterprises LLC, a known entity in government contracting, suggests a level of established capability.
The firm-fixed-price contract type provides cost certainty for the government.
The duration of the contract allows for sustained operational support, ensuring consistent service delivery.

Sector Analysis

Facilities Support Services is a broad category within the government contracting sector, encompassing a wide range of maintenance, operations, and management functions for government facilities. This contract, focused on base operations support, is a significant component of this sector. The Department of Defense is a major consumer of these services, with spending often in the billions annually across various installations. Comparable spending benchmarks would involve analyzing other large-scale base operations contracts awarded by the DoD or other federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly provided for this contract. The fact that it was awarded to Alutiiq Commercial Enterprises LLC, which may or may not be a small business itself, and the competition type does not automatically indicate specific small business participation. Further investigation would be needed to determine if small businesses are involved as subcontractors or if there were specific set-aside goals associated with this award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance monitoring, regular reporting requirements from the contractor, and site inspections. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Accountability is enforced through contractual remedies and performance evaluations.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Department of Defense Installation Support
Logistics and Support Services
Government Facilities Management

Risk Flags

Limited Competition Potential
Performance Risk
Cost Overrun Potential (if scope changes)
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC. FT EUSTIS OY2 BASE OPERATION SUPPORT SERVICES TASK ORDER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ COMMERCIAL ENTERPRISES 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 $11.1 million.

What is the period of performance?

Start: 2021-02-01. End: 2022-01-31.

What is the track record of Alutiiq Commercial Enterprises LLC with similar base operations support contracts?

Alutiiq Commercial Enterprises LLC has a history of performing various government contracts, including those related to base operations and support services. Analyzing their past performance on similar contracts awarded by the Department of Defense or other agencies would provide insight into their reliability, efficiency, and ability to manage complex operations. Key metrics to examine would include past performance evaluations, any history of contract disputes or terminations, and their success in meeting performance standards and delivery timelines on previous base support awards. Understanding their experience in similar environments and with similar service scopes is crucial for assessing their capability to successfully execute this current contract.

How does the pricing of this contract compare to market rates for similar base operations support services?

A precise comparison of this contract's pricing to market rates is challenging without access to detailed cost breakdowns and a comprehensive database of comparable contracts. However, the firm-fixed-price nature suggests that the contractor is responsible for managing costs within the $11.1 million award. To benchmark value, one would ideally compare the per-unit costs of specific services (e.g., facility maintenance hours, security personnel rates, utility management fees) against industry averages or rates paid on similar government contracts. The 'Full and Open Competition After Exclusion of Sources' award type also plays a role; if the exclusion significantly limited bidders, the pricing might be less competitive than in a truly unrestricted competition. Further analysis would require detailed service scope and pricing data.

What are the primary risks associated with this base operations support contract?

The primary risks associated with this contract include potential performance deficiencies by the contractor, leading to disruptions in base operations. Given the firm-fixed-price structure, there's a risk that the contractor might cut corners on service quality to maximize profit, especially if cost overruns occur. Another risk stems from the competition type ('Full and Open Competition After Exclusion of Sources'), which could indicate a limited pool of bidders, potentially leading to less competitive pricing or a contractor less incentivized to perform exceptionally. Furthermore, unforeseen operational requirements or changes in base needs could strain the contract's scope and budget if not managed effectively. Contractor workforce stability and availability of skilled personnel also represent potential risks.

How effective is the current contract in ensuring the operational readiness of Fort Eustis?

The effectiveness of this contract in ensuring Fort Eustis's operational readiness is primarily determined by the contractor's performance in delivering the specified base operations support services. These services are fundamental to maintaining the infrastructure, security, and daily functioning of the base, all of which directly contribute to its readiness. Success would be indicated by consistent service delivery, minimal disruptions, and adherence to performance standards outlined in the contract. Without specific performance metrics and evaluation reports, a definitive assessment of effectiveness is difficult. However, the contract's existence and duration suggest a commitment to sustaining these critical functions.

What has been the historical spending trend for base operations support at Fort Eustis?

Analyzing historical spending trends for base operations support at Fort Eustis would require accessing multi-year contract data for this specific installation. This would involve looking at previous contracts for similar services, their values, durations, and the contractors involved. Understanding these patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether the scope of services has changed over time. Such analysis can help identify potential cost efficiencies, budget fluctuations, or shifts in the government's approach to outsourcing base support functions. Without access to this historical data, it's impossible to provide specific spending trends for Fort Eustis.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Tax Exempt, 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: $11,121,522

Exercised Options: $11,121,522

Current Obligation: $11,059,407

Actual Outlays: $2,572,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA480019DA001

IDV Type: IDC

Timeline