DoD Awards $101M Contract for Utility Services Support in Alaska, Competition Method Raises Questions

Contract Overview

Contract Amount: $10,122,016 ($10.1M)

Contractor: C. H. Guernsey & Company

Awarding Agency: Department of Defense

Start Date: 2023-01-09

End Date: 2026-03-08

Contract Duration: 1,154 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT SERVICES FOR THE POST-AWARD CONTRACTING ACTIVITIES OF UTILITY SERVICES CONTRACTS IN FORT GREELY, FORT WAINWRIGHT, AND JOINT BASE ELMENDORF RICHARDSON (JBER), ALASKA.

Place of Performance

Location: DELTA JUNCTION, SOUTHEAST FAIRBANKS County, ALASKA, 99737

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to C. H. GUERNSEY & COMPANY for work described as: SUPPORT SERVICES FOR THE POST-AWARD CONTRACTING ACTIVITIES OF UTILITY SERVICES CONTRACTS IN FORT GREELY, FORT WAINWRIGHT, AND JOINT BASE ELMENDORF RICHARDSON (JBER), ALASKA. Key points: 1. Contract focuses on post-award administrative management and general consulting for utility services. 2. The contract is a delivery order under a larger contract, indicating potential for follow-on work. 3. The use of 'Full and Open Competition' is noted, but the specific impact on price discovery needs further examination. 4. Alaska's remote location and specialized utility needs may influence market dynamics and competition.

Value Assessment

Rating: fair

The contract value of $101.2 million over approximately 3.8 years appears substantial for administrative support services. Benchmarking against similar contracts for post-award support in remote military installations is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad solicitation. However, the specific details of the bidding process and how it ensured optimal price discovery for specialized utility support services in Alaska are not detailed.

Taxpayer Impact: Taxpayer funds are being used for essential administrative support of utility services at key Alaskan military bases. Ensuring competitive pricing and efficient service delivery is crucial for maximizing taxpayer value.

Public Impact

Ensures continuity of essential utility services at three major Alaskan military installations. Supports the operational readiness of Fort Greely, Fort Wainwright, and JBER. Provides administrative oversight for complex utility contracts in a challenging geographic environment. Potential for long-term support contracts in a specialized niche.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited insight into the specific deliverables and performance metrics.
Potential for cost overruns if not closely managed.
Dependence on a single contractor for critical administrative functions.

Positive Signals

Awarded under full and open competition.
Supports critical infrastructure at multiple installations.
Long-term contract provides stability for service provision.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting utility operations. Spending in this sector for defense logistics can vary significantly based on installation size, geographic location, and the complexity of the utility systems managed.

Small Business Impact

The data indicates that small businesses were not awarded this contract (ss: false, sb: false). Further analysis would be needed to determine if opportunities were available or if the scope of work inherently favored larger, specialized firms.

Oversight & Accountability

The contract is managed by the Defense Logistics Agency, which is responsible for providing logistics support to the U.S. Armed Forces. Oversight will likely involve monitoring contractor performance, adherence to contract terms, and financial accountability to ensure efficient use of funds.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for cost creep if scope is not tightly managed.
Dependence on contractor expertise in a niche area.
Geographic challenges in Alaska may impact oversight and contractor performance.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to C. H. GUERNSEY & COMPANY. SUPPORT SERVICES FOR THE POST-AWARD CONTRACTING ACTIVITIES OF UTILITY SERVICES CONTRACTS IN FORT GREELY, FORT WAINWRIGHT, AND JOINT BASE ELMENDORF RICHARDSON (JBER), ALASKA.

Who is the contractor on this award?

The obligated recipient is C. H. GUERNSEY & COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2023-01-09. End: 2026-03-08.

What specific administrative management and general management consulting services are included in this contract, and how do they directly contribute to the efficiency of utility services?

The contract likely encompasses services such as contract administration, performance monitoring, compliance verification, financial tracking, and reporting related to the utility services contracts. These functions are crucial for ensuring that utility providers meet their contractual obligations, maintain operational efficiency, and adhere to regulatory standards, thereby supporting the overall mission readiness of the military installations.

Given the remote location and specialized nature of utility services in Alaska, what measures were in place during the full and open competition to ensure genuine price discovery and prevent potential

While 'full and open competition' suggests a broad solicitation, specific measures for price discovery in remote, specialized markets are critical. This could include detailed cost breakdowns, independent government cost estimates, robust evaluation criteria emphasizing value for money, and potentially market research to understand regional cost drivers. Without these details, it's difficult to confirm optimal price discovery.

How will the performance of C. H. Guernsey & Company be evaluated to ensure effective support and prevent potential risks associated with long-term administrative contracts?

Performance evaluation will likely involve key performance indicators (KPIs) tied to contract deliverables, such as timely reporting, accurate financial oversight, and effective issue resolution. Regular performance reviews, site visits, and feedback from the supported installations will be crucial. The government will monitor adherence to the firm-fixed-price structure to manage financial risks and ensure accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP060022Q0800

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5555 NORTH GRAND BOULEVARD, OKLAHOMA CITY, OK, 73112

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,329,792

Exercised Options: $10,329,792

Current Obligation: $10,122,016

Actual Outlays: $814,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA19D00DM

IDV Type: FSS

Timeline