Alutiiq Commercial Enterprises LLC awarded $285.6M for Facilities Support Services by the Air Force

Contract Overview

Contract Amount: $285,554,566 ($285.6M)

Contractor: Alutiiq Commercial Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2016-06-01

End Date: 2021-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $142.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF CIVIL ENGINEER (CE) SERVICES-OPERATIONS MANAGEMENT

Place of Performance

Location: TINKER AFB, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $285.6 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC for work described as: IGF::CL,CT::IGF CIVIL ENGINEER (CE) SERVICES-OPERATIONS MANAGEMENT Key points: 1. Contract value represents significant investment in facilities maintenance and operations. 2. Full and open competition suggests a robust bidding process. 3. Definitive contract structure indicates a long-term service agreement. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contract duration of nearly 5 years highlights the sustained need for these services. 6. Geographic focus on Oklahoma for service delivery.

Value Assessment

Rating: good

The contract value of $285.6 million over approximately 5 years for facilities support services appears reasonable given the scope. Benchmarking against similar large-scale facilities management contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be favorable for the government if managed effectively. However, without detailed performance metrics and cost breakdowns, a definitive assessment of cost efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. With 7 bidders, the competition level appears healthy, suggesting that multiple firms were interested and capable of performing the services. This level of competition is generally conducive to achieving competitive pricing and ensuring that the government receives a fair market value for the services rendered.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of the Air Force facilities in Oklahoma, ensuring operational readiness and maintenance. Services delivered include operations management and general facilities support, crucial for base infrastructure. Geographic impact is concentrated within Oklahoma, supporting local economic activity through contract execution. Workforce implications include direct and indirect employment opportunities for skilled labor in facilities management and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term definitive contracts if not managed tightly.
Reliance on a single contractor for critical facilities operations could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract aligns contractor incentives with cost control.
Multiple bidders indicate a competitive market for these services.
Long-term nature of the contract allows for specialized knowledge development by the contractor.

Sector Analysis

Facilities Support Services represent a significant segment within the broader professional, scientific, and technical services sector. This contract, valued at over $285 million, falls within the upper echelon of spending for this category. The market is characterized by a mix of large, established government contractors and specialized service providers. The Air Force's requirement for comprehensive operations management and maintenance aligns with industry standards for base support, often involving significant infrastructure and personnel management.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor, Alutiiq Commercial Enterprises LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering Services
Logistics and Maintenance Contracts
Government Facilities Management

Risk Flags

Potential for contractor performance issues on long-term contracts.
Risk associated with reliance on a single entity for critical infrastructure support.
Need for robust government oversight to ensure value and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $285.6 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC. IGF::CL,CT::IGF CIVIL ENGINEER (CE) SERVICES-OPERATIONS MANAGEMENT

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 $285.6 million.

What is the period of performance?

Start: 2016-06-01. End: 2021-11-30.

What is the historical spending trend for facilities support services by the Department of the Air Force in Oklahoma?

Analyzing historical spending trends for facilities support services by the Department of the Air Force in Oklahoma requires access to detailed procurement data over multiple fiscal years. While this specific contract represents a significant outlay of $285.6 million from 2016 to 2021, it is one data point. Broader trends would involve examining annual spending on similar contracts, including base operations support, maintenance, and repair services. Factors influencing these trends include changes in military readiness requirements, base infrastructure modernization projects, and shifts in contracting strategies (e.g., consolidation of services, increased use of performance-based contracts). Without a longitudinal dataset, it's difficult to ascertain if this contract's value is indicative of a rising, falling, or stable spending pattern in the region for these types of services.

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

Determining the per-unit cost for services under this contract and comparing it to industry benchmarks is complex without a detailed breakdown of the services provided and their associated costs. Facilities support services encompass a wide range of activities, from janitorial and groundskeeping to complex mechanical and electrical system maintenance. Industry benchmarks often vary significantly based on geographic location, facility type (e.g., office buildings, industrial complexes, military installations), and the specific service mix. For a meaningful comparison, one would need to identify comparable metrics, such as cost per square foot for maintenance, cost per service call, or labor hour rates for specific trades, and then benchmark these against industry reports or data from similar government contracts. Given the $285.6 million value over nearly five years, the average annual cost is approximately $57 million, but this aggregate figure doesn't allow for granular per-unit analysis without further data.

What is Alutiiq Commercial Enterprises LLC's track record with similar large-scale facilities support contracts?

Alutiiq Commercial Enterprises LLC has a history of performing government contracts, including those related to facilities support and base operations. Examining their contract portfolio reveals experience with various agencies, often involving logistical and operational support services. For contracts of this magnitude ($285.6 million), it is crucial to review their performance history, including past performance evaluations, any contract disputes or terminations, and their ability to manage complex projects with multiple service lines. Information on their success in meeting performance requirements, adhering to schedules, and managing costs on similar large-scale endeavors would be key indicators of their capability and reliability for this specific Air Force contract. Publicly available contract databases can provide insights into the types and values of contracts they have held previously.

What are the key performance indicators (KPIs) used to measure the success of this facilities support contract?

Key Performance Indicators (KPIs) for a facilities support contract of this nature typically focus on service delivery, operational efficiency, and compliance. Common KPIs include response times for service requests (e.g., maintenance, repairs), completion rates for scheduled preventive maintenance, facility uptime percentages for critical systems (like HVAC, power), energy efficiency metrics, safety incident rates, and customer satisfaction scores from facility users. For a firm fixed-price contract, adherence to these KPIs often directly impacts contractor payment or potential incentives/penalties. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and would be actively monitored by the government's COR to ensure the contractor is meeting the required standards for operations management and facility upkeep.

How has the exclusion of sources in this 'full and open' competition potentially impacted pricing and competition?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be broad, certain potential bidders were deliberately excluded based on specific criteria outlined in the solicitation. This exclusion could potentially limit the number of highly qualified bidders, thereby reducing the intensity of competition compared to a truly unrestricted full and open competition. If the excluded sources represented significant market players or offered unique capabilities, their absence might lead to less aggressive pricing from the remaining bidders. Conversely, if the exclusions were based on ensuring specific qualifications or capabilities were met, it might lead to a pool of more capable bidders, potentially resulting in higher quality service, albeit possibly at a less competitive price point than if all potential sources were allowed.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810115R0007

Offers Received: 7

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: $345,664,809

Exercised Options: $335,839,747

Current Obligation: $285,554,566

Actual Outlays: $9,349,806

Subaward Activity

Number of Subawards: 2318

Total Subaward Amount: $636,994,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline