DoD awards $8.5M IT Help Desk contract to Aleknagik Technology, LLC for 2 years

Contract Overview

Contract Amount: $8,505,274 ($8.5M)

Contractor: Aleknagik Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) HELP DESK AND ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32214

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to ALEKNAGIK TECHNOLOGY, LLC for work described as: INFORMATION TECHNOLOGY (IT) HELP DESK AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. Sole-source award raises questions about competition and potential value. 3. Contract duration of 729 days suggests a need for sustained support. 4. Focus on IT help desk and administrative support indicates essential operational functions. 5. Awarded by the Defense Health Agency, highlighting critical support for healthcare IT infrastructure. 6. Geographic location in Florida may imply specific operational needs or contractor presence.

Value Assessment

Rating: fair

The contract's value of $8.5 million over two years for IT help desk and administrative support appears within a reasonable range for such services, especially within the defense sector. However, without specific details on the scope of services, number of users supported, or service level agreements, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for IT support within the DoD or other federal agencies would be necessary for a more definitive comparison. The firm-fixed-price structure helps control costs but may not fully capture the dynamic nature of IT support needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While sole-source awards can be justified for specific reasons such as unique capabilities or urgent needs, they limit the opportunity for price discovery through competition. The absence of a competitive bidding process means taxpayers may not be receiving the lowest possible price for these services. Further justification for the sole-source nature of this award would be beneficial.

Taxpayer Impact: A sole-source award bypasses the competitive process, potentially leading to higher costs for taxpayers compared to a fully competed contract. This limits the government's ability to leverage market forces to secure the best value.

Public Impact

The Defense Health Agency benefits from sustained IT help desk and administrative support, ensuring operational continuity. Military personnel and civilian staff within the supported facilities will receive essential IT assistance. Services are likely concentrated in Florida, impacting the local workforce and IT service providers in that region. Ensures the smooth functioning of critical healthcare IT systems, indirectly supporting medical readiness and patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.
Contract duration without clear performance milestones could lead to complacency.
Geographic concentration in Florida might not reflect broader DoD IT support needs.

Positive Signals

Firm-fixed-price contract provides budget certainty for the agency.
Focus on essential IT help desk and administrative functions ensures critical support.
Award to a specific LLC suggests a targeted approach to meeting a defined need.

Sector Analysis

The IT services sector, particularly IT help desk and administrative support, is a significant component of federal spending. Agencies rely heavily on these services to maintain their technological infrastructure and ensure operational efficiency. The market for these services is competitive, with numerous small and large businesses offering a wide range of capabilities. This contract, valued at $8.5 million over two years, represents a moderate investment within the broader IT services landscape for the Department of Defense, specifically supporting the Defense Health Agency's mission.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Aleknagik Technology, LLC, a specific entity, does not inherently signal a broader impact on the small business ecosystem unless Aleknagik Technology itself is a small business and plans to utilize small business subcontractors. Without further information on the contractor's size or subcontracting plans, the direct impact on small businesses remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. As a firm-fixed-price contract, the primary oversight focus would be on ensuring the contractor meets the defined scope of work and service level agreements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Administrative Support Services
Defense Health Agency IT Contracts
Information Technology Services

Risk Flags

Sole-source award
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to ALEKNAGIK TECHNOLOGY, LLC. INFORMATION TECHNOLOGY (IT) HELP DESK AND ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ALEKNAGIK TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the specific scope of IT help desk and administrative support services required under this contract?

The contract specifies 'INFORMATION TECHNOLOGY (IT) HELP DESK AND ADMINISTRATIVE SUPPORT SERVICES'. While the exact deliverables are not detailed in the provided data, this typically includes functions such as user support for hardware and software issues, account management, password resets, basic troubleshooting, and administrative tasks related to IT systems. For the Defense Health Agency, this could involve supporting medical IT systems, ensuring compliance with healthcare regulations (like HIPAA), and maintaining the operational readiness of IT infrastructure critical for healthcare delivery and administration. The firm-fixed-price nature suggests a well-defined scope of work is expected.

How does the $8.5 million contract value compare to similar IT help desk and administrative support contracts within the federal government?

Benchmarking this $8.5 million contract requires comparing it against similar IT help desk and administrative support contracts, ideally within the Department of Defense or for agencies of similar size and complexity. The contract duration is approximately two years (729 days). A rough annual value is around $4.25 million. This figure needs to be contextualized by the number of users supported, the complexity of the IT environment, and the specific service level agreements. Without access to a comprehensive database of comparable federal contracts, a precise benchmark is difficult. However, for a dedicated IT support function serving a significant user base within a major federal agency, this value appears to be within a plausible range, though the sole-source nature warrants scrutiny for potential overpricing compared to a competitive award.

What are the primary risks associated with a sole-source award for IT support services?

The primary risk associated with a sole-source award for IT support services is the lack of competitive pressure, which can lead to higher costs for the government than might be achieved through a competitive bidding process. This reduces the government's ability to negotiate the best possible price and terms. Another risk is potential complacency from the contractor, as there is no immediate threat of losing the contract to a competitor. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, or potentially a reliance on a single vendor that may not possess unique capabilities, thereby limiting flexibility and innovation. Ensuring the contractor's performance meets expectations is crucial, as alternatives may be limited in the short term.

What is Aleknagik Technology, LLC's track record with federal IT support contracts?

Information regarding Aleknagik Technology, LLC's specific track record with federal IT support contracts is not detailed in the provided data. To assess their performance, one would need to examine their contract history, including past performance evaluations, any awards or penalties, and the types and values of previous contracts. Understanding their experience with similar services, particularly within the defense or healthcare sectors, would be crucial. A review of federal procurement databases (like SAM.gov or FPDS) and past performance information would be necessary to evaluate their reliability, technical capabilities, and history of meeting contractual obligations for IT help desk and administrative support.

How does the geographic location (Florida) influence the delivery of these IT support services for the Defense Health Agency?

The geographic location in Florida (ST: FLORIDA, SN: FLORIDA) suggests that the IT help desk and administrative support services will be primarily delivered or managed from this state. For the Defense Health Agency (DHA), this could mean supporting specific military treatment facilities, administrative offices, or personnel located within Florida. It might also indicate that Aleknagik Technology, LLC has a significant operational presence or headquarters in Florida. This geographic focus could streamline support for regional DHA operations, potentially reducing response times and travel costs for on-site support if needed. However, it also raises questions about whether this location is optimal for supporting the DHA's broader national or global IT infrastructure needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11500 SUKDU WAY STE 150, ANCHORAGE, AK, 99515

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: $17,717,357

Exercised Options: $8,505,274

Current Obligation: $8,505,274

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline