Logistics contract for aircraft refueling in Alaska awarded to Olgoonik Logistics, LLC for over $19 million

Contract Overview

Contract Amount: $19,241,961 ($19.2M)

Contractor: Olgoonik Logistics, LLC

Awarding Agency: Department of Defense

Start Date: 2018-11-01

End Date: 2027-10-31

Contract Duration: 3,286 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8505899842!ALONGSIDE AIRCRAFT REFUELING

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to OLGOONIK LOGISTICS, LLC for work described as: 8505899842!ALONGSIDE AIRCRAFT REFUELING Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include performance in remote Alaskan environments. 4. Contract duration extends through October 2027, indicating long-term need. 5. Services fall under warehousing and storage, supporting critical defense operations. 6. Fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of over $19 million spread across nearly 9 years suggests a moderate annual expenditure. Benchmarking against similar large-scale logistics and refueling contracts in remote or challenging environments would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure generally indicates a commitment to cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 8 bidders participating, the level of competition was robust, which typically leads to more favorable pricing and better value for the government. This broad competition suggests that the market has multiple capable providers for these specialized services.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential aircraft refueling services in Alaska.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and its operational units requiring aircraft refueling capabilities in Alaska. The contract ensures the continuous availability of critical refueling services for military aircraft operating in the region. Geographic impact is concentrated in Alaska, supporting military readiness and operations within this strategic area. Workforce implications may include employment opportunities for logistics and refueling specialists in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Performance risks associated with operating in Alaska's extreme weather and remote locations.
Potential for cost overruns if unforeseen logistical challenges arise, despite fixed-price terms.
Dependence on a single contractor for a critical support function in a strategic region.

Positive Signals

Awarded under full and open competition, indicating a healthy market and competitive pricing.
Firm fixed-price contract type provides cost certainty and limits government exposure to price fluctuations.
Long contract duration suggests a stable, ongoing requirement and potential for contractor efficiency through experience.

Sector Analysis

This contract falls within the broader logistics and support services sector, specifically focusing on specialized aircraft refueling. The market for defense logistics is substantial, with significant government spending allocated to ensuring operational readiness in various theaters. This contract represents a portion of that spending, supporting critical infrastructure and services in a geographically important area like Alaska.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) and the contracting officer's representative (COR). Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Defense Logistics Agency (DLA) Fuel Contracts
Air Force Base Support Contracts
Arctic Logistics Support
Aircraft Fueling Services
Government Warehousing and Storage Contracts

Risk Flags

Performance risk in remote/extreme environments
Logistical challenges specific to Alaska
Potential for supply chain disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to OLGOONIK LOGISTICS, LLC. 8505899842!ALONGSIDE AIRCRAFT REFUELING

Who is the contractor on this award?

The obligated recipient is OLGOONIK LOGISTICS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2018-11-01. End: 2027-10-31.

What is the historical spending pattern for aircraft refueling services in Alaska by the Department of Defense?

Historical spending data for aircraft refueling services in Alaska by the Department of Defense is not directly available in the provided snippet. However, the award of this definitive contract with a duration of nearly nine years and a value exceeding $19 million suggests a consistent and significant requirement for these services in the region. Analyzing past DLA or specific military branch spending in Alaska for fuel and related logistics would provide context. Trends might show increasing or decreasing demand based on geopolitical factors, force posture changes, or operational tempo. Without specific historical data, we infer a sustained need based on the current contract's scale and duration.

How does the per-unit cost of refueling under this contract compare to similar contracts or market rates?

The provided data does not include specific per-unit cost details (e.g., cost per gallon of fuel) for this contract, making a direct comparison difficult. The contract is a firm fixed-price award, which implies that the unit prices were negotiated and agreed upon at the time of award. To assess value, one would need to compare these negotiated unit prices against industry benchmarks for aviation fuel in Alaska, or against prices paid under similar DLA contracts at other locations. Factors like transportation, storage, and specialized handling in remote areas can significantly influence unit costs. The absence of this specific data point prevents a definitive assessment of per-unit cost competitiveness.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for an aircraft refueling contract of this magnitude, typical KPIs would likely include fuel availability (e.g., response time for refueling requests), fuel quality assurance, safety compliance (e.g., incident rates), and accurate record-keeping. SLAs would define the expected standards for these metrics, with potential penalties for non-performance and incentives for exceeding expectations. The contracting officer's representative (COR) would be responsible for monitoring contractor performance against these agreed-upon terms.

What is the track record of Olgoonik Logistics, LLC in performing similar government contracts?

Information regarding the specific track record of Olgoonik Logistics, LLC in performing similar government contracts is not included in the provided data snippet. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or contract terminations. Given that they were awarded this significant contract under full and open competition with 8 bidders, it suggests they possess the necessary qualifications and experience. Further due diligence would involve examining their performance on prior DLA or similar logistics contracts.

What are the potential risks associated with the contractor's performance in remote Alaskan environments?

Performing logistics and refueling services in remote Alaskan environments presents several unique risks. These include extreme weather conditions (cold, snow, ice, limited daylight) that can disrupt operations, impact equipment reliability, and increase logistical challenges for fuel delivery and storage. The vast distances and limited infrastructure in many parts of Alaska can lead to higher transportation costs and longer lead times for supplies and maintenance. Furthermore, environmental regulations and the need for specialized equipment and personnel trained for Arctic conditions add complexity. Olgoonik Logistics, LLC must have robust contingency plans to mitigate these risks and ensure continuous service delivery.

How does the total contract value compare to the contract duration and the number of bidders?

The total contract value of $19,241,960.56 spans a duration of 3,286 days (approximately 9 years), resulting in an average annual value of roughly $5.85 million. This value was determined through a full and open competition involving 8 bidders. The substantial number of bidders suggests a competitive market for these services, which typically helps in achieving a reasonable price relative to the scope and duration. The value appears proportionate to the long-term, specialized nature of providing aircraft refueling in a challenging geographic area like Alaska, especially when considering the competitive landscape that shaped the final price.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE60318R0515

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

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

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $20,069,907

Exercised Options: $19,241,961

Current Obligation: $19,241,961

Actual Outlays: $2,549,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline