DoD's $77.4M Facilities Support Contract with Alutiiq Commercial Enterprises Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $77,401,865 ($77.4M)

Contractor: Alutiiq Commercial Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-16

End Date: 2023-05-13

Contract Duration: 2,004 days

Daily Burn Rate: $38.6K/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: BASE OPERATIONS SUPPORT

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $77.4 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC for work described as: BASE OPERATIONS SUPPORT Key points: 1. The contract's significant value raises questions about cost-effectiveness over its extended duration. 2. Competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants deeper investigation into its impact on price discovery. 3. The absence of small business participation is a notable concern. 4. Facilities Support Services (NAICS 561210) is a broad category, making direct sector benchmarks challenging without more detail.

Value Assessment

Rating: fair

The contract's total award value of $77.4M over approximately 5.5 years suggests a substantial per-year spend. Benchmarking against similar facilities support contracts is needed to assess if this pricing is competitive, especially given the firm-fixed-price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, but the exclusion of certain sources may limit the full breadth of competition and potentially impact price discovery. Further details on the exclusion rationale are necessary.

Taxpayer Impact: The firm-fixed-price contract aims to control costs, but the effectiveness of the limited competition in securing the best possible price for taxpayers requires further analysis.

Public Impact

Taxpayers may be paying more than necessary if the limited competition did not yield the lowest possible price. The lack of small business involvement means potential missed opportunities for smaller, specialized firms to contribute and compete. The long duration of the contract could lead to inefficiencies or outdated service delivery if not actively managed and reviewed. The specific nature of 'Facilities Support Services' impacts a wide range of DoD operations, making its cost and effectiveness crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details
No small business participation
Long contract duration

Positive Signals

Firm-fixed-price contract type
Definitive contract award

Sector Analysis

Facilities Support Services (NAICS 561210) is a critical but broad sector supporting government operations. Spending benchmarks vary widely based on the scope of services (e.g., maintenance, security, logistics). This contract's $77.4M value over 5.5 years places it in the mid-to-high range for large-scale facilities support.

Small Business Impact

The contract data indicates no small business participation (sb: false). This is a missed opportunity for small businesses to engage with a significant federal contract and for the government to leverage specialized capabilities offered by smaller firms.

Oversight & Accountability

The contract's long duration and specific competition method warrant robust oversight to ensure continued value, adherence to scope, and fair pricing. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition details
No small business participation
Long contract duration
Potential for price not being fully optimized

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.4 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC. BASE OPERATIONS SUPPORT

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 $77.4 million.

What is the period of performance?

Start: 2017-11-16. End: 2023-05-13.

What was the specific rationale for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price compared to unrestricted full and o

The rationale for excluding sources is critical to understanding the competitive landscape. If exclusions were based on specific technical requirements or past performance, it might justify a narrower competition. However, if exclusions were less stringent, it could indicate a missed opportunity to achieve a lower price through broader market participation. A thorough review of the justification documentation is needed to assess the impact on price discovery and taxpayer value.

Given the firm-fixed-price structure, what mechanisms are in place to ensure the contractor remains efficient and avoids cost overruns, especially over a nearly six-year period?

While firm-fixed-price contracts shift cost risk to the contractor, effective oversight is still crucial. Mechanisms should include clear performance standards, regular performance evaluations, and potentially incentive structures tied to efficiency or service quality. The government must actively monitor contract performance to ensure the contractor is meeting obligations without compromising quality or incurring hidden costs that could affect long-term value.

How does the $77.4M total award value for facilities support services compare to industry benchmarks for similar scope and duration contracts, and what is the assessed value for money?

Benchmarking this $77.4M contract against similar facilities support services contracts is essential for assessing value for money. Factors like geographic location, specific services included (e.g., janitorial, groundskeeping, minor repairs), and contract duration play a significant role. Without detailed comparative data, it's difficult to definitively state if the price is competitive. However, the substantial value suggests a need for rigorous justification of cost-effectiveness.

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

Solicitation ID: FA481916R6001

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD STE 500, 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: $78,933,850

Exercised Options: $78,933,850

Current Obligation: $77,401,865

Actual Outlays: $38,484,420

Subaward Activity

Number of Subawards: 1331

Total Subaward Amount: $461,412,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline