DoD's $31.7M security contract with Alutiiq Pacific, LLC awarded under full and open competition

Contract Overview

Contract Amount: $31,759,847 ($31.8M)

Contractor: Alutiiq Pacific, LLC

Awarding Agency: Department of Defense

Start Date: 2015-02-27

End Date: 2021-02-15

Contract Duration: 2,180 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SECURITY AND ACCESS CONTROL CONTRACT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to ALUTIIQ PACIFIC, LLC for work described as: IGF::OT::IGF SECURITY AND ACCESS CONTROL CONTRACT Key points: 1. The contract value of $31.7 million over its period of performance suggests a significant investment in security services. 2. Awarded under 'Full and Open Competition After Exclusion of Sources,' this indicates a competitive process with specific source exclusions. 3. The definitive contract type implies a flexible agreement for services over a period. 4. The duration of 2180 days (approximately 6 years) points to a long-term need for these security services. 5. The contract's focus on security guards and patrol services aligns with critical infrastructure protection needs. 6. The fixed-price contract type helps manage cost certainty for the government. 7. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $31.7 million contract is challenging without specific service details and performance metrics. However, the duration of approximately six years suggests a sustained need. The fixed-price nature provides cost predictability. Further analysis would require comparing per-unit costs for guards and patrol hours against similar contracts in Alaska or other high-cost regions, and assessing if the awarded price reflects market rates for the level of security provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, certain sources were excluded from consideration. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower competitive pool than a purely 'full and open' competition. This could impact price discovery if qualified bidders were prevented from participating.

Taxpayer Impact: While the competition was not entirely unrestricted, the exclusion of sources may have limited the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price. Taxpayers benefit from competition, but the exclusion could have led to a higher-than-optimal price.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive enhanced security and protection. Services delivered include security guards and patrol services, crucial for maintaining a safe and secure environment. The geographic impact is concentrated in Alaska (AK), indicating a need for security in this specific region. Workforce implications include the employment of security personnel, likely a mix of civilian guards and potentially specialized security staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about whether the most competitive pricing was achieved.
Lack of specific performance metrics makes it difficult to assess the true value for money and effectiveness of the security services.
The contract duration of nearly six years might lead to complacency or reduced incentive for innovation if not actively managed.

Positive Signals

Awarded under a competitive process, even with exclusions, suggests some level of market vetting.
The firm fixed-price contract type offers cost certainty to the government, mitigating budget risks.
The long-term nature of the contract indicates a stable and ongoing requirement for these essential security services.

Sector Analysis

This contract falls within the security and protective services sector, specifically focusing on guard and patrol services (NAICS code 561612). This sector is critical for government operations, providing physical security for facilities, personnel, and assets. The market size for government security contracts is substantial, driven by national security needs and the protection of federal property. This contract represents a significant portion of spending within this niche for the Department of the Army in Alaska.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, Alutiiq Pacific, LLC, is likely a larger entity, and its subcontracting practices would be governed by general federal acquisition regulations rather than specific small business goals tied to this award.

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 structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Security Contracts
Federal Protective Services
Alaska Regional Security Contracts
Guard and Patrol Services Contracts
Definitive Contracts
Fixed-Price Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed performance metrics makes value assessment difficult.
Geographic isolation of Alaska may increase costs and logistical complexity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to ALUTIIQ PACIFIC, LLC. IGF::OT::IGF SECURITY AND ACCESS CONTROL CONTRACT

Who is the contractor on this award?

The obligated recipient is ALUTIIQ PACIFIC, 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 $31.8 million.

What is the period of performance?

Start: 2015-02-27. End: 2021-02-15.

What is the track record of Alutiiq Pacific, LLC with federal contracts, particularly within the Department of Defense?

Alutiiq Pacific, LLC has a history of receiving federal contracts, primarily within the Department of Defense. Analyzing their contract portfolio reveals a pattern of awards related to base operations support, security services, and logistics. Their performance history on previous contracts, including any past performance evaluations or documented issues, would be crucial for a comprehensive assessment. While this specific contract was awarded under 'Full and Open Competition After Exclusion of Sources,' understanding their broader federal contracting experience provides context on their capabilities and reliability in fulfilling government requirements. Further investigation into specific past performance ratings and any contract modifications or disputes would offer deeper insights into their track record.

How does the awarded price of $31.7 million compare to market rates for similar security services in Alaska?

Determining the precise value for money requires a detailed breakdown of services rendered (e.g., number of guards, hours of patrol, specific security technologies deployed) and comparing these to market rates for similar services in Alaska. Alaska's unique logistical challenges and cost of living often result in higher service costs compared to the continental U.S. Without specific unit pricing data, a direct comparison is difficult. However, the contract's duration of nearly six years suggests a substantial, long-term requirement. Benchmarking against other large-scale security contracts awarded by federal agencies in Alaska, or even state and municipal contracts, could provide a comparative perspective on pricing trends and the reasonableness of the $31.7 million award.

What are the specific risks associated with a 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type presents specific risks. While it aims for competition, the exclusion of certain sources means that the government may not have considered all potentially capable offerors. This could lead to a less competitive environment than a purely 'full and open' process, potentially resulting in higher prices or suboptimal solutions. The risk lies in whether the excluded sources possessed unique capabilities or offered more competitive pricing. Furthermore, the justification for excluding sources needs to be robust to ensure fairness and prevent potential protests. Transparency regarding the reasons for exclusion is vital for taxpayer confidence and ensuring the government secured the best possible value.

What is the expected effectiveness and performance of the security services provided under this contract?

The effectiveness and performance of the security services are expected to align with the requirements outlined in the contract's Statement of Work (SOW). As a definitive contract for security guards and patrol services, the primary goal is to maintain a secure environment, deter threats, and respond to incidents within Department of Defense facilities in Alaska. Performance is typically measured against specific metrics defined in the SOW, such as response times, post orders adherence, and incident reporting accuracy. The fixed-price nature incentivizes the contractor to meet these requirements efficiently. However, the ultimate effectiveness depends on the quality of personnel, training, supervision, and the government's own oversight and quality assurance processes.

How does this contract's spending compare to historical federal spending on security services in Alaska?

This $31.7 million contract represents a significant investment in security services for the Department of Defense in Alaska over its approximately six-year period. To compare historical spending, one would need to aggregate data on all federal contracts for security guards and patrol services awarded within Alaska across relevant agencies (e.g., DoD, DHS, GSA) over previous fiscal years. Analyzing trends in contract values, number of awards, and average contract durations would reveal whether this award is an anomaly, an increase, or consistent with past spending patterns. Factors such as increased geopolitical activity, evolving threat landscapes, or specific base infrastructure projects could influence historical spending levels and provide context for this contract's value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9113M14R0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 400, 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, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,256,605

Exercised Options: $33,256,605

Current Obligation: $31,759,847

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $489,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline