DoD awards $23.5M IT support contract to Aleknagik Technology, LLC for 5 years

Contract Overview

Contract Amount: $23,524,731 ($23.5M)

Contractor: Aleknagik Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-01

End Date: 2026-08-01

Contract Duration: 1,826 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MISSION SERVER AND DATABASE APPLICATION IT SUPPORT SERVICES

Place of Performance

Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to ALEKNAGIK TECHNOLOGY, LLC for work described as: MISSION SERVER AND DATABASE APPLICATION IT SUPPORT SERVICES Key points: 1. Contract value of $23.5M over five years suggests a significant investment in IT infrastructure. 2. The award to a single vendor raises questions about competitive pricing and potential for cost savings. 3. A firm-fixed-price contract type generally shifts risk to the contractor, potentially stabilizing costs. 4. The contract duration of 1826 days indicates a long-term need for these IT services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract's geographic scope is limited to Illinois, suggesting a localized IT support requirement.

Value Assessment

Rating: fair

The contract value of $23.5 million over five years averages to approximately $4.7 million annually. Without specific benchmarks for similar IT support services within the Department of Defense or comparable agencies, it is difficult to definitively assess value for money. The firm-fixed-price structure aims to control costs, but the absence of competitive bidding limits the ability to benchmark against market rates. Further analysis would require comparing the scope of services and pricing to other government contracts for similar IT support.

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. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like urgent needs or when a previous contract was not successful. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices through market forces.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and may result in higher prices for taxpayers compared to competitively awarded contracts.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will receive essential IT support. Services delivered include mission server and database application IT support, crucial for operational continuity. The geographic impact is focused on Illinois, where the services will be rendered. Workforce implications may include the direct employment of IT professionals by Aleknagik Technology, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Potential for vendor lock-in due to sole-source award.
Limited transparency into pricing due to absence of bids.

Positive Signals

Firm-fixed-price contract type helps manage cost certainty.
Long-term contract duration provides stability for IT support.
Specific NAICS code suggests a focused service offering.

Sector Analysis

The IT services sector is a critical component of government operations, encompassing a wide range of support functions from network management to application development. The federal government is a significant consumer of IT services, with spending often concentrated in areas like defense, intelligence, and civilian agency modernization. Contracts like this, for mission-critical server and database support, are common across various agencies. Benchmarking this contract's value would ideally involve comparing its per-year cost to similar IT support contracts awarded by other federal agencies or within the private sector for comparable service levels and scope.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The sole-source nature of the award further limits the direct opportunities for small businesses to participate in this specific contract. Future analysis could explore if Aleknagik Technology, LLC itself is a small business and if they intend to subcontract any portion of the work to other small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is limited due to the sole-source nature of the award, as competitive proposals are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense IT Support Services
IT Infrastructure Management
Database Administration Services
Mission Critical IT Operations
Federal IT Services Contracts

Risk Flags

Sole-source award limits price competition.
Lack of publicly available performance data for contractor.
Potential for higher costs due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to ALEKNAGIK TECHNOLOGY, LLC. MISSION SERVER AND DATABASE APPLICATION IT 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-08-01.

What is the track record of Aleknagik Technology, LLC in performing similar IT support services for the federal government?

Information regarding Aleknagik Technology, LLC's specific track record in performing similar IT support services for the federal government is not detailed in the provided data. To assess their capabilities and past performance, a review of their contract history, past performance evaluations (if available through government databases like the Contractor Performance Assessment Reporting System - CPARS), and any publicly available project portfolios would be necessary. Understanding their experience with mission server and database application support, particularly within a defense context, is crucial for evaluating the likelihood of successful contract execution. Without this historical data, the assessment of their reliability and expertise remains incomplete.

How does the annual cost of this contract compare to similar IT support contracts within the Department of Defense?

The annual cost of this contract is approximately $4.7 million ($23.5 million / 5 years). Benchmarking this against similar IT support contracts within the Department of Defense requires access to a broader dataset of federal contract awards. Factors such as the scope of services (e.g., number of users supported, complexity of systems, specific technologies), geographic location, and contract type (firm-fixed-price vs. cost-plus) significantly influence pricing. Without comparative data on contracts with similar characteristics, it is challenging to definitively state whether this contract represents a good or poor value. A comprehensive analysis would involve identifying comparable contracts and adjusting for these variables to establish a fair market price range.

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

The primary risks associated with a sole-source award for IT support services include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There is also a potential for reduced innovation and service quality, as the contractor may face less pressure to improve performance when there are no competing alternatives. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future. This can also limit opportunities for small businesses and other potential vendors to enter the market or expand their federal footprint. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

What is the expected effectiveness of Aleknagik Technology, LLC in delivering mission server and database application IT support?

The expected effectiveness of Aleknagik Technology, LLC in delivering mission server and database application IT support is contingent upon their technical capabilities, past performance, and the clarity of the contract's performance work statement (PWS). As this is a sole-source award, the government has presumably determined that Aleknagik Technology, LLC possesses the unique qualifications or capabilities necessary to meet the specific requirements. However, without access to their performance history or detailed technical proposals, a definitive assessment of their expected effectiveness is difficult. The firm-fixed-price contract structure incentivizes the contractor to perform efficiently, but the government must still actively monitor performance against defined metrics and service level agreements (SLAs) to ensure mission success.

How has federal spending on IT support services in the 'Other Computer Related Services' category evolved over the past five years?

Federal spending on IT support services within the 'Other Computer Related Services' (NAICS 541519) category has generally seen a consistent increase over the past five years, driven by the ongoing digital transformation initiatives across government agencies. Agencies are increasingly reliant on robust IT infrastructure, including servers and databases, to support their missions. This trend is fueled by the need for enhanced cybersecurity, cloud migration efforts, and the modernization of legacy systems. While specific figures for this category fluctuate annually based on agency budgets and priorities, the overall trajectory indicates a sustained and significant investment in these types of services to maintain and improve government IT capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 1016 W 6TH AVE STE 401, ANCHORAGE, AK, 99501

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: $33,125,185

Exercised Options: $23,712,427

Current Obligation: $23,524,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline