DoD's $28.2M Facilities Support Services Contract with Katmai Information Technologies Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $28,242,036 ($28.2M)

Contractor: Katmai Information Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2017-06-30

Contract Duration: 2,099 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RANGE OPERATIONS AND MAINTENANCE, CPFF

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to KATMAI INFORMATION TECHNOLOGIES, LLC for work described as: RANGE OPERATIONS AND MAINTENANCE, CPFF Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services, suggesting effective price negotiation. 2. While competed, the 'after exclusion of sources' designation warrants scrutiny regarding the breadth of initial competition. 3. The Cost Plus Fixed Fee (CPFF) structure introduces potential for cost overruns if not rigorously managed. 4. Performance context is limited without specific metrics, but the contract duration implies sustained service delivery. 5. This contract falls within the broader Facilities Support Services sector, a critical component of government operations. 6. The absence of small business set-asides or prime subcontracting goals may limit opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total obligated amount of $28.2 million over its period of performance suggests a moderate annual spend. Benchmarking against similar facilities support contracts indicates that the pricing structure, particularly the fixed fee component within the CPFF, appears to be within a reasonable range. However, a deeper analysis of the specific services rendered and their associated costs would be necessary for a more definitive value assessment. The absence of detailed performance data makes it challenging to fully evaluate the cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation was broad, certain sources were excluded before the final award. The number of bidders (9) suggests a degree of interest, but the exclusion of sources raises questions about the extent of true market competition. This procurement method can sometimes lead to less competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition, despite multiple bidders, may have resulted in a higher price for taxpayers than if all potential sources had been allowed to compete without exclusion.

Public Impact

The Department of the Army benefits from consistent facilities support services, ensuring operational readiness. Services likely include maintenance, repair, and operational support for government facilities. The contract's performance in Texas (TX) indicates a geographic focus for these services. The contract supports a workforce involved in facility management and maintenance operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not closely monitored.
The 'exclusion of sources' in the competition raises concerns about the potential for missed cost savings.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
No small business subcontracting goals were identified, potentially limiting opportunities for small businesses.

Positive Signals

The contract was awarded to a single entity, suggesting a clear point of accountability for service delivery.
The duration of the contract (2011-2017) implies a stable, long-term relationship and consistent service provision.
The number of bidders (9) indicates some level of market interest and potential for competitive tension.

Sector Analysis

This contract falls under the Facilities Support Services sector, which encompasses a wide range of services essential for the operation and maintenance of government and commercial properties. This sector is highly competitive, with numerous providers offering specialized services. The total federal spending in this category is substantial, reflecting the government's extensive real estate holdings and operational needs. This specific contract represents a portion of the Department of Defense's investment in maintaining its infrastructure.

Small Business Impact

The contract does not appear to have been awarded as a small business set-aside, nor are there explicit indications of significant small business subcontracting goals. This suggests that larger businesses were the primary focus of this procurement. Consequently, the direct impact on the small business ecosystem may be limited, with opportunities primarily arising if the prime contractor voluntarily engages small businesses for subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the CPFF structure, with the fixed fee contingent on meeting contract requirements. Transparency is generally facilitated through contract databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Property Management
Logistics and Support Services
Department of Defense Infrastructure

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion.
Lack of transparency in specific performance metrics.
Absence of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to KATMAI INFORMATION TECHNOLOGIES, LLC. RANGE OPERATIONS AND MAINTENANCE, CPFF

Who is the contractor on this award?

The obligated recipient is KATMAI INFORMATION TECHNOLOGIES, 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 $28.2 million.

What is the period of performance?

Start: 2011-10-01. End: 2017-06-30.

What is the track record of Katmai Information Technologies, LLC with federal contracts, particularly in facilities support?

Katmai Information Technologies, LLC has a history of performing federal contracts, including those related to facilities support and base operations. Reviewing their past performance on similar contracts, especially those with the Department of Defense, can provide insights into their reliability, quality of service, and ability to manage complex requirements. Information on contract awards, modifications, and any past performance evaluations available through federal procurement databases would be crucial for a comprehensive assessment. Their experience with Cost Plus Fixed Fee (CPFF) contracts is also a relevant factor, as this contract type requires robust financial management and oversight.

How does the pricing of this contract compare to similar facilities support contracts awarded by the Department of Defense?

Benchmarking the pricing of this $28.2 million contract against similar facilities support services procured by the Department of Defense is essential for assessing value for money. This involves comparing the per-unit costs for specific services (e.g., janitorial, HVAC maintenance, groundskeeping) or the overall contract value relative to the scope of work and facility size. Factors such as geographic location, contract duration, and the specific services included can influence pricing. A detailed comparison would reveal if Katmai Information Technologies' pricing is competitive or if it represents a premium, potentially due to the limited competition or specific contract requirements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a guaranteed profit margin. This structure can incentivize contractors to incur higher costs if oversight is not stringent, as their fee remains constant regardless of the actual expenses. For facilities support, risks include unexpected repair needs, fluctuating utility costs, or scope creep if not managed carefully. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear performance standards to ensure the contractor remains efficient.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signifies a procurement process that began with broad solicitation but subsequently excluded certain potential offerors before the final award. This could occur for various reasons, such as pre-qualification requirements or specific technical capabilities that only a subset of the market possesses. While it aims to ensure qualified bidders, it inherently limits the competitive pool compared to unrestricted full and open competition. The implication for taxpayers is that the exclusion of sources might have led to a less competitive environment, potentially resulting in a higher price than if all capable firms had been allowed to bid without restriction.

How has federal spending on Facilities Support Services evolved over the years, and where does this contract fit in?

Federal spending on Facilities Support Services has historically been substantial, reflecting the government's vast infrastructure needs across various agencies. This sector typically sees consistent demand, driven by the maintenance and operational requirements of federal buildings, bases, and installations. This $28.2 million contract, awarded between 2011 and 2017, represents a specific investment by the Department of the Army within this broader spending category. Analyzing historical spending patterns in Facilities Support Services can reveal trends in contract values, types of services procured, and the prevalence of different contract vehicles, providing context for the significance and typical scale of such awards.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124J11R0013

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 701 E TUDOR RD STE 215, 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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,544,717

Exercised Options: $46,458,964

Current Obligation: $28,242,036

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,380,375

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline