DoD's $60M Facilities Support Contract Awarded to Alutiiq Commercial Enterprises LLC

Contract Overview

Contract Amount: $60,386,539 ($60.4M)

Contractor: Alutiiq Commercial Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-23

End Date: 2022-11-30

Contract Duration: 372 days

Daily Burn Rate: $162.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE OPERATIONAL SERVICES (BOS) BRIDGE

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $60.4 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC for work described as: BASE OPERATIONAL SERVICES (BOS) BRIDGE Key points: 1. Contract value of $60.4M for Base Operational Services (BOS) Bridge. 2. Awarded to Alutiiq Commercial Enterprises LLC by the Department of the Air Force. 3. Contract type is Firm Fixed Price, with a duration of 372 days. 4. Services fall under Facilities Support Services (NAICS 561210). 5. No indication of small business participation.

Value Assessment

Rating: fair

The contract value of $60.4M for a 372-day period appears to be within a reasonable range for comprehensive base operational services. However, without specific service details or benchmarks for similar contracts, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially resulted in a higher cost than if multiple vendors had bid.

Taxpayer Impact: The absence of competition for a $60.4M contract raises concerns about potential overspending of taxpayer funds.

Public Impact

Military bases rely on these services for essential operations and readiness. Lack of competition could impact the quality and cost-effectiveness of services. Transparency in sole-source awards is crucial for public trust. Potential for cost savings through competitive bidding on future contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
No small business participation

Positive Signals

Essential operational support for the Air Force
Firm Fixed Price contract provides cost certainty

Sector Analysis

Facilities Support Services are critical for maintaining government installations. Spending in this sector can vary widely based on the size and complexity of the facility. This $60.4M contract for a bridge period suggests a significant operational requirement.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Future contracting opportunities should explore avenues for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer money. Robust oversight is needed to justify the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for overpayment due to lack of competition.
No small business participation noted.
Contract duration is relatively short (bridge contract), suggesting a potential for future, larger, and possibly competed awards.
Transparency regarding the justification for sole-source is limited.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.4 million to ALUTIIQ COMMERCIAL ENTERPRISES LLC. BASE OPERATIONAL SERVICES (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 $60.4 million.

What is the period of performance?

Start: 2021-11-23. End: 2022-11-30.

What was the justification for awarding this significant contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves specific circumstances such as urgent need, unique capabilities, or the unavailability of other sources. Without further details, it's unclear if alternatives were explored. A thorough review of the justification documentation is necessary to assess the validity of the sole-source decision and ensure it aligns with federal procurement regulations.

How does the per-unit cost or overall pricing of this contract compare to industry benchmarks for similar facilities support services?

A comprehensive comparison requires detailed service breakdowns and market research data. Given the $60.4M value over approximately one year, the pricing appears substantial. Benchmarking against similar-sized contracts for base operations, factoring in geographic location and specific service requirements, would be essential to determine if the pricing is competitive or if potential cost efficiencies were missed due to the lack of competition.

What measures are in place to ensure the effectiveness and quality of services provided under this sole-source contract, given the absence of competitive pressure?

Effectiveness and quality assurance under sole-source contracts rely heavily on robust contract management and performance monitoring by the contracting agency. This includes clear performance standards, regular inspections, user feedback mechanisms, and defined remedies for deficiencies. The Department of the Air Force must actively manage the contract to ensure Alutiiq Commercial Enterprises LLC meets all requirements and delivers value.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA813721R0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp

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, Not Designated a Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,265,685

Exercised Options: $64,265,685

Current Obligation: $60,386,539

Subaward Activity

Number of Subawards: 199

Total Subaward Amount: $31,161,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline