DoD's $424.5M Alaska Radar System O&M Contract Awarded to ARCTEC ALASKA JV Under Full and Open Competition
Contract Overview
Contract Amount: $424,540,886 ($424.5M)
Contractor: Arctec Alaska JV
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2025-12-20
Contract Duration: 3,733 days
Daily Burn Rate: $113.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF OPERATION&MAINTENANCE OF ALASKA RADAR SYSTEM
Place of Performance
Location: JBER, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $424.5 million to ARCTEC ALASKA JV for work described as: IGF::CT::IGF OPERATION&MAINTENANCE OF ALASKA RADAR SYSTEM Key points: 1. The contract is for operation and maintenance of the Alaska Radar System, a critical defense asset. 2. ARCTEC ALASKA JV secured the award through full and open competition. 3. The contract value is substantial at over $424 million. 4. The duration extends to December 2025, indicating a long-term need. 5. The firm fixed price contract type suggests cost certainty for the government.
Value Assessment
Rating: good
The firm fixed price contract type provides cost certainty. Benchmarking against similar facilities support services contracts is difficult without more granular data on the specific services provided for the radar system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing all eligible contractors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition is expected to yield a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures continued operation of vital radar systems for national defense. Supports critical infrastructure in remote Alaska locations. Provides long-term employment opportunities within the sector. Maintains surveillance capabilities for the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise.
- Dependence on a single contractor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Long contract duration indicates sustained need and potential for economies of scale.
Sector Analysis
This contract falls under Facilities Support Services, a broad category often associated with government operations and maintenance. Spending in this sector can vary significantly based on the complexity and location of the facilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is not explicitly identified as an SMB. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Standard oversight mechanisms for large defense contracts would apply, including performance monitoring and financial audits.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Geographic location challenges
- Potential for scope creep
- Contractor performance risk
- Dependence on specialized personnel
Tags
facilities-support-services, department-of-defense, ak, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $424.5 million to ARCTEC ALASKA JV. IGF::CT::IGF OPERATION&MAINTENANCE OF ALASKA RADAR SYSTEM
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 $424.5 million.
What is the period of performance?
Start: 2015-10-01. End: 2025-12-20.
What is the historical performance of ARCTEC ALASKA JV on similar contracts?
Information on ARCTEC ALASKA JV's historical performance is crucial for assessing reliability and value. Past performance reviews, on-time delivery rates, and adherence to budget on previous contracts would provide insight into their capability to manage this complex radar system operation and maintenance effectively.
Are there any identified risks associated with operating critical radar systems in remote Alaskan environments?
Operating in remote Alaskan environments presents unique risks including extreme weather, logistical challenges for personnel and equipment, and potential environmental concerns. These factors could impact maintenance schedules, response times for emergencies, and overall operational costs, requiring robust contingency planning.
How does the per-unit cost of this contract compare to similar radar system maintenance contracts?
A direct per-unit cost comparison is challenging without specific service breakdowns. However, the overall contract value relative to the system's criticality and operational scope, especially given the remote location, should be evaluated against industry benchmarks for similar defense infrastructure maintenance.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA521514R0007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 9327 JERSTAD AVE, ANCHORAGE, AK, 99506
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $459,762,294
Exercised Options: $455,730,103
Current Obligation: $424,540,886
Actual Outlays: $3,199,305
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-01
Current End Date: 2025-12-20
Potential End Date: 2027-09-28 00:00:00
Last Modified: 2026-01-05
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