DoD spent $13.8M on student transportation in Guam, with Alutiiq Pacific, LLC securing the contract

Contract Overview

Contract Amount: $13,856,410 ($13.9M)

Contractor: Alutiiq Pacific, LLC

Awarding Agency: Department of Defense

Start Date: 2008-06-11

End Date: 2013-12-31

Contract Duration: 2,029 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STUDENT TRANSPORTATION SERVICES

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96931

Plain-Language Summary

Department of Defense obligated $13.9 million to ALUTIIQ PACIFIC, LLC for work described as: STUDENT TRANSPORTATION SERVICES Key points: 1. The contract value of $13.8 million over approximately 5 years represents a significant investment in student mobility for military families. 2. Alutiiq Pacific, LLC, a large business, was awarded this contract, indicating a focus on established providers for essential services. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a specific justification for limiting the initial pool. 4. The fixed-price nature of the contract aims to provide cost certainty for the Department of Defense Education Activity. 5. The duration of the contract, extending over 2000 days, points to a long-term need for reliable student transportation services. 6. The contract's geographic focus on Guam highlights the unique logistical challenges and requirements for supporting military installations abroad.

Value Assessment

Rating: fair

Benchmarking the value of this student transportation contract is challenging without specific service level agreements and detailed operational costs. However, the total award of $13.8 million over roughly five years suggests an average annual expenditure of approximately $2.77 million. This figure needs to be assessed against the number of students served, routes covered, and the specific demands of operating in Guam. Comparisons to similar contracts for student transportation at other overseas military bases would provide a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, potentially due to specific requirements or prior performance. The fact that there were two bidders suggests a degree of competition, but the exclusion of sources raises questions about the breadth of the competitive landscape and whether the most advantageous pricing was achieved.

Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers compared to a truly open competition with a wider range of potential bidders. Understanding the rationale behind the source exclusion is crucial for assessing the value for money.

Public Impact

Military families and their children stationed in Guam benefit from reliable and safe daily transportation to and from educational facilities. The contract ensures the continuity of essential support services for the Department of Defense Education Activity, facilitating the educational mission. The services provided directly impact the quality of life for service members and their dependents stationed at U.S. military installations in Guam. The contract supports local employment opportunities in Guam through the provision of transportation services, including drivers and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • The 'Exclusion of Sources' clause in the competition method warrants further investigation to ensure it did not unduly restrict competition and potentially inflate costs.
  • Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's effectiveness and efficiency beyond basic service delivery.
  • The long contract duration could lead to complacency or reduced incentive for innovation if not managed with rigorous oversight.

Positive Signals

  • The contract was awarded to Alutiiq Pacific, LLC, indicating a provider with existing capabilities and potentially a track record with government contracts.
  • The firm fixed-price contract structure provides budget predictability for the Department of Defense Education Activity.
  • The contract's existence demonstrates a commitment to supporting the educational needs of military dependents in a remote location like Guam.

Sector Analysis

Student transportation services, particularly for government entities like the Department of Defense, represent a niche but critical segment of the broader transportation and logistics sector. This contract falls under the umbrella of support services essential for maintaining military readiness and personnel welfare. The market for such services is often characterized by specific regulatory requirements, geographic challenges, and the need for reliable, secure operations. Comparable spending benchmarks would typically involve analyzing contracts for similar services at other overseas bases or for large school districts with complex logistical needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Alutiiq Pacific, LLC is identified as a large business. This means that opportunities for small business subcontracting were not mandated as part of a set-aside strategy. The impact on the small business ecosystem in Guam would depend on whether Alutiiq Pacific, LLC proactively engages small businesses for subcontracting roles, which is not detailed in this summary data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense Education Activity (DoDEA) and potentially the contracting officer's representative (COR). Accountability measures would be embedded within the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational reports may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

  • Department of Defense Education Activity (DoDEA) Operations
  • Military Base Support Services
  • Student Transportation Contracts
  • Logistics and Transportation Services

Risk Flags

  • Limited competition due to source exclusion.
  • Potential for cost overruns if operational challenges in Guam are underestimated by the contractor.
  • Dependence on a single contractor for a critical service.

Tags

student-transportation, department-of-defense, department-of-defense-education-activity, guam, firm-fixed-price, large-business, limited-competition, bus-transportation, school-transportation, support-services, overseas-operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to ALUTIIQ PACIFIC, LLC. STUDENT TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is ALUTIIQ PACIFIC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of Defense Education Activity).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2008-06-11. End: 2013-12-31.

What is the track record of Alutiiq Pacific, LLC with government contracts, particularly in transportation services?

Alutiiq Pacific, LLC has a history of securing government contracts, including those related to logistics and support services. While specific details on their performance in student transportation are not provided in this summary, their ability to win a contract of this magnitude from the Department of Defense suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes, would offer a more comprehensive understanding of their reliability and capability in delivering student transportation services.

How does the per-student cost of this contract compare to similar student transportation services at other overseas military installations?

Direct per-student cost comparison is not feasible with the provided data alone, as it lacks the number of students served and specific service details. However, the total contract value of $13.8 million over approximately five years, serving military families in Guam, can be used as a baseline. To benchmark effectively, one would need to gather data on the number of students transported daily, the average route distance, and the frequency of service for this contract. This information would then be compared against similar metrics from DoDEA contracts at other overseas bases or Department of Defense contracts for student transportation in comparable geographic or logistical environments.

What are the specific risks associated with providing student transportation in Guam, and how does the contract address them?

Providing student transportation in Guam presents unique risks including logistical challenges due to the island's geography, potential for severe weather events (typhoons), and the need to navigate local traffic and infrastructure. Additionally, ensuring the safety and security of students, particularly in an overseas environment, is paramount. The contract likely addresses these risks through specific clauses related to vehicle maintenance, driver qualifications and background checks, emergency procedures, and adherence to safety regulations. The firm fixed-price nature also shifts some financial risk to the contractor, incentivizing them to manage operational challenges efficiently.

What is the historical spending pattern for student transportation services by the Department of Defense Education Activity in Guam?

The provided data focuses on a single contract awarded in 2008 with an end date in 2013, totaling $13.8 million. To understand historical spending patterns, one would need to examine DoDEA's budget allocations and contract awards for student transportation in Guam over a longer period, potentially including contracts preceding and succeeding this one. Analyzing trends in spending, contract values, and the number of awarded contracts would reveal whether this $13.8 million award represents a typical investment, an increase, or a decrease in funding for these services in the region.

What are the implications of the 'Full and Open Competition After Exclusion of Sources' procurement method on cost-effectiveness for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was intended to be open, specific criteria or reasons led to the exclusion of certain potential bidders. This can impact cost-effectiveness for taxpayers in several ways. If the exclusions were justified and based on essential qualifications or security requirements, it might lead to a smaller pool of highly capable contractors, potentially resulting in competitive bids within that narrowed field. However, if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices than would be achieved in a truly open market with a broader range of bidders. The transparency and justification for these exclusions are key to assessing the impact on taxpayer value.

Industry Classification

NAICS: Transportation and WarehousingSchool and Employee Bus TransportationSchool and Employee Bus Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 00

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,856,410

Exercised Options: $13,856,410

Current Obligation: $13,856,410

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2008-06-11

Current End Date: 2013-12-31

Potential End Date: 2013-12-31 00:00:00

Last Modified: 2014-05-05

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