DoD's $4.35M Robotic Process Automation Support contract awarded to Alaska Northstar Resources LLC

Contract Overview

Contract Amount: $4,353,217 ($4.4M)

Contractor: Alaska Northstar Resources LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2024-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $4.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ROBOTIC PROCESS AUTOMATION SUPPORT

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $4.4 million to ALASKA NORTHSTAR RESOURCES LLC for work described as: ROBOTIC PROCESS AUTOMATION SUPPORT Key points: 1. Contract value of $4.35M for Robotic Process Automation Support. 2. Awarded to Alaska Northstar Resources LLC. 3. Contract duration of 1095 days. 4. Service is categorized under Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 5. Contract type is Delivery Order. 6. No small business set-aside was utilized. 7. The contract was not competed. 8. The contract was awarded as a sole-source action.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of detailed performance metrics and comparable contract data. The total contract value of $4.35 million over three years suggests a significant investment in robotic process automation (RPA) support. Without specific deliverables or service level agreements, it's difficult to assess if this represents a fair price for the services rendered. Further analysis would require understanding the scope of work and the specific RPA solutions implemented.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the opportunity for multiple vendors to bid, potentially leading to higher prices and reduced innovation. The rationale for a sole-source award is not provided, which raises questions about the justification for not seeking competitive proposals. The lack of competition means the government did not benefit from a broader market exploration.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for services, as the absence of competition removes the downward pressure on pricing that typically occurs in a competitive bidding process.

Public Impact

The Department of the Air Force benefits from this contract by receiving support for robotic process automation. This support likely aims to improve efficiency and automate repetitive tasks within the agency. The geographic impact is primarily within the state of Alabama, where the contractor is located. Workforce implications are not explicitly detailed but may involve the integration of RPA solutions with existing personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source award raises concerns about transparency and fairness.
Absence of detailed performance metrics makes value assessment difficult.

Positive Signals

Contract supports the adoption of potentially efficiency-driving RPA technology.
Award to a single contractor streamlines the acquisition process.
Contract duration provides stability for service delivery.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on Robotic Process Automation (RPA). RPA is a rapidly growing area within IT, aimed at automating rule-based, repetitive tasks previously performed by humans. The market for RPA solutions and support services is expanding, with significant investment from both government and commercial entities seeking to enhance operational efficiency. Comparable spending in this area can vary widely based on the complexity and scale of automation initiatives.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in this specific contract are limited. The absence of set-asides or subcontracting goals may not directly benefit the small business ecosystem for this particular award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the terms and conditions outlined in the delivery order, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed performance data.

Related Government Programs

Robotic Process Automation Services
IT Professional Services
Cloud Computing Services
Data Processing Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on performance metrics.
Potential for vendor lock-in due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.4 million to ALASKA NORTHSTAR RESOURCES LLC. ROBOTIC PROCESS AUTOMATION SUPPORT

Who is the contractor on this award?

The obligated recipient is ALASKA NORTHSTAR RESOURCES 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 $4.4 million.

What is the period of performance?

Start: 2021-09-30. End: 2024-09-29.

What specific robotic process automation solutions or services are being provided under this contract?

The provided data indicates the contract is for 'ROBOTIC PROCESS AUTOMATION SUPPORT' but does not specify the exact solutions or services. This could encompass a range of activities, such as the development, implementation, maintenance, or optimization of RPA software bots. These bots are designed to mimic human actions and interact with digital systems to automate repetitive, rule-based tasks. Without further details, it's impossible to ascertain if the contract covers software licensing, consulting, integration, or ongoing support for specific RPA platforms like UiPath, Automation Anywhere, or Blue Prism.

How does the $4.35 million contract value compare to similar RPA support contracts within the Department of Defense?

Directly comparing this $4.35 million contract value to similar RPA support contracts within the DoD is difficult without access to a comprehensive database of comparable sole-source or competed RPA procurements. The value is substantial, suggesting a significant scope of work or a long-term engagement. However, the lack of competition for this award means there's no market-driven price benchmark. To assess value, one would need to compare the specific deliverables and service levels against other DoD contracts for similar IT automation services, considering factors like duration, complexity, and contractor expertise.

What are the key performance indicators (KPIs) used to measure the success of this Robotic Process Automation Support contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for RPA support, KPIs might include metrics such as the number of processes automated, the time saved through automation, reduction in error rates, return on investment (ROI) of automation initiatives, and user satisfaction. The absence of defined KPIs makes it challenging to objectively assess the contractor's performance and the overall effectiveness of the RPA support in achieving the Department of the Air Force's objectives.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source justification. Common reasons for sole-source awards include unique capabilities of a specific contractor, urgent and compelling needs where only one source can reasonably fulfill the requirement, or when a follow-on contract is being awarded to the original source of an item or service. Without the specific justification document (e.g., a Justification and Approval document), the exact rationale remains unknown, but it suggests that competitive bidding was deemed impractical or impossible under the circumstances.

What is the track record of Alaska Northstar Resources LLC in providing Robotic Process Automation support to the federal government?

Information regarding Alaska Northstar Resources LLC's specific track record in providing Robotic Process Automation (RPA) support to the federal government is not detailed in the provided data. While the company has been awarded this $4.35 million contract, it does not offer insight into their past performance, expertise in RPA, or successful delivery of similar services on previous contracts. A thorough assessment would require reviewing past performance evaluations, contract histories, and any available client testimonials or case studies related to their RPA capabilities.

How does the contract duration of 1095 days (3 years) impact the overall value and risk associated with this procurement?

A 1095-day contract duration provides a stable, three-year period for the delivery of Robotic Process Automation support. This extended timeframe can offer value by allowing for deeper integration of RPA solutions and fostering a stronger working relationship between the contractor and the agency. It also provides predictability for resource planning. However, a longer duration can also increase risk, particularly if the technology landscape or agency needs evolve rapidly. Without clear performance metrics and oversight, a long-term sole-source contract carries a higher risk of cost overruns or service underperformance compared to shorter, competed contracts.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 315 LINCOLN ST STE 300, SITKA, AK, 99835

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,376,263

Exercised Options: $5,376,263

Current Obligation: $4,353,217

Actual Outlays: $3,672,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877121DG001

IDV Type: IDC

Timeline