DoD's $431.9M Facilities Support Contract Awarded to ARCTEC ALASKA JV for Elmendorf AFB

Contract Overview

Contract Amount: $431,944,597 ($431.9M)

Contractor: Arctec Alaska JV

Awarding Agency: Department of Defense

Start Date: 2004-05-20

End Date: 2014-09-30

Contract Duration: 3,785 days

Daily Burn Rate: $114.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 200411!000268!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0011 !A!N! !Y! ! !20040520!20050930!062897256!062897256!062897256!N!ARCTEC ALASKA !3900 C STREET SUITE 802 !ANCHORAGE !AK!99503!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000029388!N!N!000341799129!M123!OPERATION/RADAR & NAVIGATIONAL FACILITIES !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!M!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $431.9 million to ARCTEC ALASKA JV for work described as: 200411!000268!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0011 !A!N! !Y! ! !20040520!20050930!062897256!062897256!062897256!N!ARCTEC ALASKA !3900 C STREET SUITE 802 !ANCHORAGE !AK!99503!22690!020!02!ELMENDORF AFB !ANCH… Key points: 1. Contract awarded for comprehensive facilities support services, including radar and navigational aid maintenance. 2. Long-term contract duration of over 10 years suggests a need for sustained operational support. 3. Awarded as a Definitive Contract with a Fixed Price Award Fee pricing structure. 4. The contract was competed under Full and Open Competition, indicating a broad market solicitation. 5. Small business participation is not explicitly detailed but the prime contractor is a joint venture. 6. Geographic focus on Alaska highlights the unique logistical and operational challenges in the region.

Value Assessment

Rating: fair

The total award amount of $431.9 million over a period of approximately 10 years represents a significant investment in facilities support. Benchmarking this against similar large-scale, long-term base operations support contracts is challenging without more granular data on the specific services provided and their scope. The Fixed Price Award Fee structure aims to incentivize performance while managing costs, but the ultimate value-for-money depends heavily on the achieved award fee amounts and the contractor's efficiency in delivering the required services. Without detailed performance metrics or comparisons to industry benchmarks for specific services like radar and navigational facility maintenance, a definitive assessment of value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under Full and Open Competition, suggesting that the Department of Defense sought to maximize the number of potential bidders and leverage market competition to obtain the best value. The specific number of bidders is not provided, but the 'full and open' designation implies a robust solicitation process. This approach generally leads to more competitive pricing and a wider range of innovative solutions compared to sole-source or limited competition contracts.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of securing services at competitive prices due to a larger pool of interested and capable contractors vying for the award.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Elmendorf Air Force Base in Alaska, who rely on well-maintained facilities and operational radar/navigational systems. Services delivered include comprehensive facilities support and maintenance for critical infrastructure, ensuring the base's operational readiness. The geographic impact is concentrated in Anchorage, Alaska, addressing the specific needs of a remote and strategically important military installation. Workforce implications include the creation and sustainment of jobs, both directly by the prime contractor and indirectly through its supply chain, particularly within the Alaskan economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) can sometimes lead to complacency or reduced urgency if not managed with strong oversight.
Fixed Price Award Fee contracts require careful monitoring of performance metrics to ensure the 'award fee' component is justified and doesn't inflate costs unnecessarily.
The remote location in Alaska may present unique logistical challenges and potentially higher operational costs that could impact overall value.
Dependence on a single large contract for critical base support functions can pose a risk if the contractor faces significant performance issues or financial instability.

Positive Signals

Awarded under Full and Open Competition, indicating a competitive process likely yielding favorable pricing and solutions.
The contractor, ARCTEC ALASKA JV, is a joint venture, which can bring together diverse expertise and resources.
The contract specifies services for radar and navigational facilities, highlighting a focus on critical operational capabilities.
The long-term nature of the contract suggests a stable, ongoing requirement and a commitment to sustained support for Elmendorf AFB.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government and commercial facilities. This sector is characterized by numerous service providers, ranging from small, specialized firms to large, diversified corporations. The market size for facilities management and support services is substantial, with significant government spending allocated annually to ensure the upkeep and functionality of military bases and other federal installations. This specific contract, focusing on a major Air Force base in a challenging geographic location, represents a significant portion of spending within this niche, likely involving complex logistical and technical requirements.

Small Business Impact

While the contract was awarded under Full and Open Competition, the prime contractor is ARCTEC ALASKA JV, a joint venture. The schema does not indicate if this is a small business set-aside or if there are specific subcontracting goals for small businesses. Joint ventures can sometimes be formed to meet size standards or to combine capabilities, but without further information, it's unclear what the direct impact on the broader small business ecosystem will be. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices at Elmendorf AFB. The Fixed Price Award Fee structure implies performance monitoring against defined metrics, with the fee amount contingent on meeting or exceeding these standards. Transparency would be enhanced by public reporting of performance evaluations and award fee determinations, though such details are often not readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Readiness Support
Radar and Navigation Systems Maintenance
Defense Infrastructure Projects

Risk Flags

Long-term contract duration requires sustained oversight.
Fixed Price Award Fee structure necessitates rigorous performance monitoring.
Remote location may introduce logistical and cost complexities.
Potential for scope creep or changes in requirements over the contract's life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $431.9 million to ARCTEC ALASKA JV. 200411!000268!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0011 !A!N! !Y! ! !20040520!20050930!062897256!062897256!062897256!N!ARCTEC ALASKA !3900 C STREET SUITE 802 !ANCHORAGE !AK!99503!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000029388!N!N!000341799129!M123!OPERATION/RADAR & NAVIGATIONAL FACILITIES !S1 !SERVICES !000 !* !561210!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is ARCTEC ALASKA JV.

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 $431.9 million.

What is the period of performance?

Start: 2004-05-20. End: 2014-09-30.

What is the historical spending pattern for facilities support services at Elmendorf AFB prior to this contract?

Detailed historical spending data for facilities support services specifically at Elmendorf AFB before the award of FA500004C0011 is not directly available within the provided data snippet. However, the award amount of $431.9 million over approximately 10 years suggests an average annual spending of roughly $43 million. This figure should be compared against previous contracts for similar services at the base. Understanding the historical spending context is crucial for assessing whether the current contract represents an increase, decrease, or stable level of investment in facilities support. Factors such as inflation, changes in base requirements, and scope adjustments would influence year-over-year spending. A comprehensive review would involve analyzing contract histories for Base Operations Support (BOS), maintenance, repair, and specialized services like radar systems over the past decade or more to establish a baseline and identify trends.

How does the per-unit cost of specific services under this contract compare to industry benchmarks?

The provided data does not include granular details on the per-unit costs for specific services rendered under this contract (e.g., cost per square foot for facility maintenance, cost per hour for specialized repair, cost per system for radar upkeep). Therefore, a direct comparison to industry benchmarks is not possible with the current information. To perform such an analysis, one would need access to the contract's detailed CLINs (Contract Line Item Numbers) and associated pricing, as well as reliable industry cost data for comparable services in similar geographic regions, particularly considering the unique challenges of operating in Alaska. Benchmarking would typically involve comparing rates for labor, materials, and overhead against established cost-estimating guides or data from similar government or commercial contracts.

What is ARCTEC ALASKA JV's track record with similar large-scale facilities support contracts for the Department of Defense?

Information regarding ARCTEC ALASKA JV's specific track record with similar large-scale facilities support contracts for the Department of Defense is not detailed in the provided data. As a joint venture, its performance history might be a composite of its member companies' experiences or specific to projects undertaken under the JV entity. To assess their track record, one would need to investigate past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards and completions, and any history of disputes or contract modifications. Understanding their experience with managing complex logistics, operating in remote locations like Alaska, and maintaining critical infrastructure such as radar and navigational facilities would be key indicators of their capability and reliability for this significant contract.

What are the key performance indicators (KPIs) used to determine the 'Award Fee' for ARCTEC ALASKA JV?

The specific Key Performance Indicators (KPIs) that determine the 'Award Fee' for ARCTEC ALASKA JV under contract FA500004C0011 are not detailed in the provided data. In Fixed Price Award Fee contracts, these KPIs are typically outlined in the contract's Performance Work Statement (PWS) or a separate schedule. They usually relate to aspects such as timeliness of service delivery, quality of work, adherence to safety standards, customer satisfaction, and achievement of specific operational readiness goals for facilities and systems. The government's evaluation of the contractor's performance against these KPIs dictates the portion of the potential award fee that is earned. Without access to the PWS or evaluation criteria, a precise understanding of what drives the award fee is not possible.

What is the potential risk associated with the long duration (over 10 years) of this contract?

The primary risk associated with a long contract duration, such as this over 10-year facilities support contract, is the potential for cost escalation beyond initial projections due to unforeseen economic factors (inflation, material cost increases) or changes in operational requirements that may not be fully captured in the initial pricing. There's also a risk of contractor complacency if performance management and oversight are not consistently rigorous throughout the contract's life. Furthermore, technological advancements or shifts in military strategy could render certain aspects of the contracted services less relevant or necessitate significant modifications, potentially leading to contract disputes or inefficiencies. Ensuring robust contract modification clauses and continuous performance monitoring are critical to mitigating these risks.

How does the 'Definitive Contract' type impact flexibility and potential for modifications?

A Definitive Contract, like FA500004C0011, is typically used for a known scope of work with a fixed price or ceiling. While it provides a clear framework, its flexibility for modifications depends on the specific clauses within the contract. Generally, significant changes to the scope, quantity, or delivery schedule may require formal contract modifications, often necessitating negotiation and potentially impacting the price. The 'Fixed Price Award Fee' aspect suggests that while the base price is fixed, the final amount paid can vary based on performance. Modifications would need to be carefully managed to ensure they align with the original intent of the competition and do not unduly increase costs or alter the fundamental nature of the services procured without proper justification and potential re-competition if the changes are substantial.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 3900 C STREET SUITE 802, ANCHORAGE, AK, 99503

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,238,177

Exercised Options: $237,902,752

Current Obligation: $431,944,597

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline