DoD Awards $16.7M Contract for Fuel Management Services in Alaska
Contract Overview
Contract Amount: $16,696,547 ($16.7M)
Contractor: Olgoonik Federal, LLC
Awarding Agency: Department of Defense
Start Date: 2016-10-14
End Date: 2025-10-31
Contract Duration: 3,304 days
Daily Burn Rate: $5.1K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF!8503685608!AF FUELS MANAGEM
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to OLGOONIK FEDERAL, LLC for work described as: IGF::OT::IGF!8503685608!AF FUELS MANAGEM Key points: 1. Contract value of $16.7 million over its term. 2. Competition was limited, conducted under Simplified Acquisition Procedures (SAP). 3. Risk is moderate due to the long duration and fixed-price nature. 4. Sector is Defense Logistics, focusing on warehousing and storage.
Value Assessment
Rating: good
The contract value appears reasonable for a long-term fuel management service in a remote location like Alaska. Benchmarking against similar DoD contracts for logistical support in austere environments would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition approach. This method may not always yield the lowest possible price compared to full and open competition, but it can be efficient for smaller dollar values.
Taxpayer Impact: While the specific price discovery mechanism under SAP isn't detailed, the firm fixed-price structure aims to control costs for taxpayers. The total value is substantial, making efficient pricing crucial.
Public Impact
Ensures critical fuel supply chain operations for the Department of Defense in Alaska. Supports military readiness by providing essential logistical services. Potential impact on local economy through contract execution and associated activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Long contract duration (over 9 years) increases risk of cost escalation or performance issues.
- Geographic location in Alaska presents logistical challenges and higher operational costs.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Contract supports essential defense operations.
- Long-term nature allows for stable planning and execution.
Sector Analysis
This contract falls within the Defense Logistics sector, specifically focusing on warehousing and storage of fuels. Spending in this area is critical for maintaining military operational capabilities, especially in remote or challenging environments like Alaska.
Small Business Impact
The contract was awarded to OLGOONIK FEDERAL, LLC, which may be a small business or have small business participation. Further analysis is needed to determine the extent of small business involvement and its impact.
Oversight & Accountability
Oversight will be managed by the Defense Logistics Agency. The long duration and remote location necessitate robust oversight to ensure performance standards and cost control are maintained throughout the contract lifecycle.
Related Government Programs
- Other Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price increases due to long-term nature.
- Logistical challenges in Alaska could impact service delivery.
- Reliance on a single awardee for critical services.
- Limited competition may not guarantee best value.
Tags
other-warehousing-and-storage, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to OLGOONIK FEDERAL, LLC. IGF::OT::IGF!8503685608!AF FUELS MANAGEM
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 $16.7 million.
What is the period of performance?
Start: 2016-10-14. End: 2025-10-31.
What was the specific justification for using Simplified Acquisition Procedures (SAP) for a contract valued at $16.7 million?
The justification for using SAP likely stems from specific procurement regulations allowing it for certain types of services or for contracts awarded to specific types of entities, such as Alaska Native Corporations or small businesses, which often operate in remote areas. The nature of fuel management services in a remote location might also influence the procurement strategy to ensure timely and efficient award.
How does the firm fixed-price structure mitigate risks associated with the long duration and remote location of this fuel management contract?
The firm fixed-price structure shifts the risk of cost overruns to the contractor, OLGOONIK FEDERAL, LLC. This is particularly important given the contract's long duration (over 9 years) and the inherent logistical challenges and higher operational costs associated with working in Alaska. It provides the DoD with budget certainty, although it requires careful initial pricing by the contractor.
What performance metrics and quality assurance measures are in place to ensure effective fuel management services over the contract's lifespan?
Effective performance relies on clearly defined metrics within the contract, such as fuel availability, delivery timeliness, safety compliance, and inventory accuracy. The Defense Logistics Agency would typically employ a quality assurance surveillance plan (QASP) to monitor contractor performance against these metrics, ensuring the DoD receives the required services and taxpayer funds are used efficiently.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: SPE60016R0501
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, 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: $16,696,547
Exercised Options: $16,696,547
Current Obligation: $16,696,547
Actual Outlays: $2,388,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-10-14
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-10-01
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