Fort Eustis Base Operations Support contract awarded to Alutiiq Commercial Enterprises LLC for over $22.6 million

Contract Overview

Contract Amount: $22,644,522 ($22.6M)

Contractor: Alutiiq Commercial Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2025-08-31

Contract Duration: 548 days

Daily Burn Rate: $41.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FORT EUSTIS BASE OPERATIONS SUPPORT (BOS) BRIDGE

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC for work described as: FORT EUSTIS BASE OPERATIONS SUPPORT (BOS) BRIDGE Key points: 1. Contract value appears reasonable for comprehensive base operations support services. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Contract duration of 548 days presents moderate performance risk. 4. Services are critical for maintaining essential functions at Fort Eustis. 5. Positioned within the facilities support services sector, a common area for base support. 6. No small business set-aside noted, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $22.6 million for a 548-day period for base operations support is within a typical range for such services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if it represents the best value for the government. The firm-fixed-price structure provides cost certainty but shifts performance risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor was solicited. This significantly limits the opportunity for price competition and may result in higher costs than if multiple vendors had competed. The rationale for a sole-source award would need to be thoroughly justified to ensure it was necessary and in the government's best interest.

Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure to drive down prices.

Public Impact

Service members and civilian personnel at Fort Eustis benefit from the continuity of essential base operations. Services include facility maintenance, logistics support, and other operational functions critical to base readiness. The geographic impact is concentrated at Fort Eustis, Virginia. Workforce implications include the potential for continued employment for personnel supporting these functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to inflated pricing.
Sole-source awards require strong justification to ensure fair pricing.
Performance monitoring is crucial to ensure contractor meets all requirements.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contractor has been awarded this type of support previously.
Services are essential for base functionality and readiness.

Sector Analysis

This contract falls under the Facilities Support Services sector (NAICS 561210), which encompasses a broad range of services necessary for the operation and maintenance of facilities. This sector is a significant component of government contracting, particularly for military installations. Comparable spending benchmarks for base operations support can vary widely based on the size and complexity of the installation, but contracts often run into tens or hundreds of millions of dollars over multiple years.

Small Business Impact

The contract data indicates that this was not competed and there is no indication of a small business set-aside. This means that opportunities for small businesses to participate in this specific contract, either as the prime contractor or through subcontracting, are not explicitly mandated by the award terms. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance metrics and deliverables would be monitored to ensure compliance with the contract terms. Transparency is generally maintained through contract databases, though the specifics of sole-source justifications may be less publicly detailed.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for cost overruns if performance is not closely monitored.
Contract duration requires careful performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC. FORT EUSTIS BASE OPERATIONS SUPPORT (BOS) BRIDGE

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 $22.6 million.

What is the period of performance?

Start: 2024-03-01. End: 2025-08-31.

What is the track record of Alutiiq Commercial Enterprises LLC in performing similar base operations support contracts for the Department of Defense?

Alutiiq Commercial Enterprises LLC has a history of performing various support services for the Department of Defense. While specific details on past base operations support contracts of similar scale and scope would require deeper database analysis, their presence as a prime contractor suggests experience in managing complex service delivery. Reviewing past performance evaluations and contract awards would provide a clearer picture of their capabilities, reliability, and past success in meeting government requirements. It is important to note that performance on one contract does not guarantee success on another, but it does offer insights into their operational capacity and management approach.

How does the awarded value of $22.6 million compare to similar base operations support contracts at other Department of Defense installations of comparable size?

Benchmarking this $22.6 million contract against similar base operations support (BOS) contracts at other Department of Defense (DoD) installations requires careful consideration of numerous factors, including the size of the installation, the scope of services included (e.g., maintenance, security, transportation, utilities), the duration of the contract, and the prevailing economic conditions at the time of award. BOS contracts can range significantly, from a few million dollars for smaller bases or specific service bundles to hundreds of millions for large, complex installations with extensive service requirements. Without a competitive process, it's challenging to definitively state if this price is optimal. However, for a multi-year contract covering comprehensive support at a significant installation, $22.6 million might be considered within a reasonable range, though a competitive award would likely yield a more precise understanding of fair market value.

What are the primary risks associated with a sole-source award for essential base operations support?

The primary risks associated with a sole-source award for essential base operations support include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a diminished opportunity for the government to secure the best possible value. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. If the chosen contractor underperforms, the government's options for recourse may be more limited and time-consuming compared to a situation with multiple bidders. Ensuring robust contract oversight and performance management becomes even more critical in sole-source scenarios to mitigate these inherent risks and protect taxpayer interests.

What is the expected impact of this contract on the operational readiness and efficiency of Fort Eustis?

This contract is expected to have a positive impact on the operational readiness and efficiency of Fort Eustis by ensuring the continuous provision of essential base operations support services. These services are fundamental to the daily functioning of the installation, encompassing areas such as facility maintenance, groundskeeping, transportation, and potentially other logistical functions. By outsourcing these critical tasks to Alutiiq Commercial Enterprises LLC, the military personnel and civilian staff at Fort Eustis can focus on their core missions rather than being diverted by administrative or operational support duties. The firm-fixed-price nature of the contract aims to provide cost predictability, contributing to efficient resource allocation for the base.

How has federal spending on Facilities Support Services (NAICS 561210) evolved over the past five years, and how does this contract fit into that trend?

Federal spending on Facilities Support Services (NAICS 561210) has generally seen a steady increase over the past five years, driven by the ongoing need to maintain and operate numerous government facilities, including military bases, administrative buildings, and research centers. Factors such as aging infrastructure, increased security requirements, and the expansion of government operations contribute to this trend. This $22.6 million contract for Fort Eustis Base Operations Support fits within this broader spending pattern as a significant, albeit specific, allocation within the Facilities Support Services category. While this single contract represents a modest portion of the total federal expenditure in this sector, it highlights the consistent demand for comprehensive support services required to keep critical government installations functioning effectively.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA480024R0001

Offers Received: 1

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: $28,779,919

Exercised Options: $28,779,919

Current Obligation: $22,644,522

Actual Outlays: $73,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline