DoD Spends $18.5M on Cold Weather Kits from Bethel Services, Inc. for Alaska
Contract Overview
Contract Amount: $18,469,372 ($18.5M)
Contractor: Bethel Services, Incorporated
Awarding Agency: Department of Defense
Start Date: 2011-08-16
End Date: 2013-04-30
Contract Duration: 623 days
Daily Burn Rate: $29.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COLD WEATHER KITS
Place of Performance
Location: BETHEL, BETHEL County, ALASKA, 99559
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $18.5 million to BETHEL SERVICES, INCORPORATED for work described as: COLD WEATHER KITS Key points: 1. Significant expenditure on specialized cold weather kits highlights logistical needs in extreme environments. 2. Sole-source award to Bethel Services, Inc. raises questions about competition and potential cost savings. 3. The contract duration of 623 days suggests a substantial operational requirement. 4. Focus on packing and crating indicates a critical component of supply chain management for sensitive equipment.
Value Assessment
Rating: questionable
The contract value of $18.5M for cold weather kits is substantial. Without comparable contract data or a clear justification for the sole-source award, assessing its value relative to market rates is difficult. The lack of competition may have led to a higher price than could have been achieved through a competitive process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and competition, potentially resulting in a higher cost to taxpayers. The justification for this approach is not detailed in the provided data.
Taxpayer Impact: The sole-source nature of this award limits the opportunity for competitive bidding, which could have potentially lowered the cost for taxpayers.
Public Impact
Ensures operational readiness of military personnel in harsh Alaskan conditions. Supports logistical capabilities for the Department of the Army in remote or challenging environments. Potential for higher costs due to lack of competitive bidding. Highlights the importance of specialized equipment for specific mission requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Addresses critical operational need
- Supports personnel in extreme environments
Sector Analysis
The Department of Defense frequently procures specialized equipment for extreme climates. Spending on logistical support and specialized kits like these is common, particularly in regions like Alaska. Benchmarks for similar packing and crating services vary widely based on complexity and volume.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to fulfill this requirement.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the justification was sound and that taxpayer funds were used efficiently. A review of the procurement process could identify opportunities for future competition.
Related Government Programs
- Packing and Crating
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- No indication of small business participation.
- Contract duration is significant, requiring sustained funding.
- Lack of detailed justification for sole-source award.
Tags
packing-and-crating, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.5 million to BETHEL SERVICES, INCORPORATED. COLD WEATHER KITS
Who is the contractor on this award?
The obligated recipient is BETHEL SERVICES, INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.5 million.
What is the period of performance?
Start: 2011-08-16. End: 2013-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are used when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or lack of competition. A thorough review would be necessary to confirm the validity of the justification and explore if any competitive alternatives were overlooked.
How does the unit cost of these cold weather kits compare to industry benchmarks for similar specialized packing and crating services?
Without specific details on the components and complexity of the 'cold weather kits' and the exact services provided under 'packing and crating,' a precise unit cost benchmark is difficult to establish. However, given the sole-source nature and the substantial total value, it is prudent to investigate if the pricing aligns with market rates for comparable specialized logistical support.
What is the long-term impact of relying on sole-source contracts for essential logistical items like cold weather kits?
Sole-source contracts can lead to reduced competition, potentially higher prices, and a lack of innovation over time. For essential items, this can create a dependency on a single vendor, posing a risk if that vendor faces financial difficulties or cannot scale to meet demand. It also limits opportunities for other capable businesses to enter the market and provide competitive solutions.
Industry Classification
NAICS: Transportation and Warehousing › Other Support Activities for Transportation › Packing and Crating
Product/Service Code: TEXTILE/LEATHER/FUR; TENT; FLAG
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
Parent Company: Bethel Native Corporation (UEI: 089331862)
Address: 460 RIDGECREST DR, BETHEL, AK, 00
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $18,469,372
Exercised Options: $18,469,372
Current Obligation: $18,469,372
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-08-16
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2012-09-12
More Contracts from Bethel Services, Incorporated
- Construct 7 Units Family Housing AT Cordova, AK — $25.0M (Department of Homeland Security)
- Platoon Expeditionary Camp (pecs) — $22.7M (Department of Defense)
- Cold Weather Kits — $22.2M (Department of Defense)
- ELM280 LO Phase II — $21.2M (Department of Defense)
- Construct Readiness Center/Headquarters — $18.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)