DoD Awards $17.8M Warehousing Contract to Olgoonik Federal, LLC for Distribution Support

Contract Overview

Contract Amount: $17,810,365 ($17.8M)

Contractor: Olgoonik Federal, LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-12

End Date: 2026-09-30

Contract Duration: 353 days

Daily Burn Rate: $50.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUPPORT OPERATIONS OF THE FACILITIES, EQUIPMENT, LABOR, SUPPLIES, ETC. AT THE DISTRIBUTION AND WAREHOUSING FACILITIES.

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36201

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to OLGOONIK FEDERAL, LLC for work described as: SUPPORT OPERATIONS OF THE FACILITIES, EQUIPMENT, LABOR, SUPPLIES, ETC. AT THE DISTRIBUTION AND WAREHOUSING FACILITIES. Key points: 1. Contract focuses on essential support operations for distribution and warehousing facilities. 2. Olgoonik Federal, LLC is the awardee under a full and open competition. 3. The contract duration is 353 days, ending September 30, 2026. 4. This award falls under the General Warehousing and Storage sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar warehousing contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for competitive pricing but the exclusions might limit the pool of bidders.

Taxpayer Impact: Taxpayer funds are being used for essential logistics support, with the expectation of competitive pricing achieved through the awarded contract.

Public Impact

Ensures continued operational support for critical DoD distribution and warehousing. Supports military readiness by maintaining essential supply chain infrastructure. Potential impact on local employment in Alabama where facilities are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Exclusion of sources in competition may limit optimal pricing.
Contract duration is relatively short, potentially leading to frequent re-competes.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Supports critical defense logistics operations.
Awardee is a known entity in federal contracting.

Sector Analysis

This contract falls within the General Warehousing and Storage sector (NAICS 493110), which is crucial for maintaining supply chains. Spending in this sector is generally stable, driven by the needs of government agencies for storage and distribution.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities exist within this award.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard oversight mechanisms for cost-plus contracts should be in place to monitor costs and performance.

Related Government Programs

General Warehousing and Storage
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Exclusion of sources in competition.
Lack of detailed cost breakdown for benchmarking.
No specific performance metrics provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to OLGOONIK FEDERAL, LLC. SUPPORT OPERATIONS OF THE FACILITIES, EQUIPMENT, LABOR, SUPPLIES, ETC. AT THE DISTRIBUTION AND WAREHOUSING FACILITIES.

Who is the contractor on this award?

The obligated recipient is OLGOONIK FEDERAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2025-10-12. End: 2026-09-30.

What is the estimated total cost for the fixed fee component of this Cost Plus Fixed Fee contract?

The provided data does not specify the fixed fee amount. Cost Plus Fixed Fee (CPFF) contracts have two main components: the estimated cost of performing the work and a fixed fee, which is the contractor's profit. Understanding the fixed fee is crucial for assessing the contractor's incentive structure and potential profitability, which indirectly impacts overall value for the government.

How did the exclusion of sources impact the competitiveness and final price of this contract?

The contract specifies 'Full and Open Competition After Exclusion of Sources.' While competitive, the exclusion of certain sources could limit the number of bidders, potentially leading to a less competitive environment and a higher price than if all potential sources were allowed. The impact on price is difficult to quantify without knowing which sources were excluded and why.

What performance metrics will be used to evaluate Olgoonik Federal, LLC's support operations?

Performance metrics are not detailed in the provided summary. Effective oversight of this contract will require clearly defined metrics for the support operations, including timeliness, accuracy, cost control, and adherence to safety and security protocols. These metrics should be outlined in the contract's Performance Work Statement (PWS).

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, ANCHORAGE, AK, 99503

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: $17,810,365

Exercised Options: $17,810,365

Current Obligation: $17,810,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: SP330021D5002

IDV Type: IDC

Timeline