DoD awards $13.97M contract for power line construction to TOGIAK LOGISTICS SERVICES, LLC

Contract Overview

Contract Amount: $13,967,836 ($14.0M)

Contractor: Togiak Logistics Services, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2025-09-23

Contract Duration: 358 days

Daily Burn Rate: $39.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 2024 OIR EBOM - ATG 50HZ

Plain-Language Summary

Department of Defense obligated $14.0 million to TOGIAK LOGISTICS SERVICES, LLC for work described as: 2024 OIR EBOM - ATG 50HZ Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration is 358 days, suggesting a focused project scope. 3. Awarded by the Department of the Army, aligning with defense infrastructure needs. 4. The North American Industry Classification System (NAICS) code 237130 points to specialized construction services. 5. No small business set-aside was utilized for this procurement. 6. The contract is a definitive contract, implying a clear agreement on terms and conditions.

Value Assessment

Rating: fair

The contract value of $13.97 million for power and communication line construction appears within a reasonable range for specialized infrastructure projects of this nature. Without specific details on the scope of work, location, and complexity, a direct comparison to similar contracts is challenging. However, the firm-fixed-price structure suggests that the contractor has assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. Further analysis would require benchmarking against projects with similar technical requirements and geographic settings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed among multiple vendors. The specific reasons for this sole-source award are not detailed in the provided data. Sole-source procurements can sometimes lead to higher prices due to the lack of competitive pressure. The absence of a competitive bidding process limits the government's ability to explore a wider range of potential contractors and potentially secure more favorable pricing or innovative solutions.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the lack of a bidding process. This could result in a higher overall cost for the government compared to a fully competed contract.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive improved power and communication infrastructure. The services delivered involve the construction of power and communication lines, crucial for operational readiness. The geographic impact is likely localized to a specific military installation or area requiring infrastructure upgrades. Workforce implications may include the employment of skilled construction labor for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce transparency in the procurement process.
Limited information on the specific technical requirements makes value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a specific logistics services company suggests alignment with operational needs.
Definitive contract structure indicates a well-defined agreement.

Sector Analysis

The construction of power and communication lines falls under the broader infrastructure and utilities sector. This contract is specific to defense-related infrastructure, which often involves unique security and operational requirements. The market for such specialized construction services can be competitive, but government contracts, especially those with sole-source justifications, may operate differently. Benchmarking would involve looking at similar construction projects for federal agencies, particularly within the Department of Defense, to assess cost-effectiveness and project timelines.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. The absence of these provisions suggests that the primary contractor, TOGIAK LOGISTICS SERVICES, LLC, will likely manage the project with its own resources or through larger subcontractors. This could limit opportunities for small businesses to participate in this specific project, potentially impacting the broader small business ecosystem within this sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Operations Support
Defense Infrastructure Projects
Utility System Construction

Risk Flags

Sole-source award may limit competitive pricing.
Lack of detailed scope of work makes value assessment difficult.
No small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to TOGIAK LOGISTICS SERVICES, LLC. 2024 OIR EBOM - ATG 50HZ

Who is the contractor on this award?

The obligated recipient is TOGIAK LOGISTICS SERVICES, 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 $14.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-23.

What is the track record of TOGIAK LOGISTICS SERVICES, LLC in performing similar power and communication line construction contracts for the federal government?

Information regarding TOGIAK LOGISTICS SERVICES, LLC's specific track record in performing power and communication line construction contracts for the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous projects. Without this historical data, it is difficult to definitively assess their capability and reliability for this specific undertaking. Further due diligence would involve searching federal procurement databases and past performance repositories to gather more insights into their experience and performance metrics on similar federal contracts.

How does the awarded amount of $13.97 million compare to the estimated value or budget for this type of construction project?

The provided data does not include the government's estimated value or budget for this power and communication line construction project. Therefore, a direct comparison to assess if $13.97 million is high or low is not possible. Benchmarking against similar projects, considering factors like geographic location, complexity of terrain, length of lines, and specific technical requirements (e.g., voltage, type of communication), would be necessary to determine if the awarded amount represents good value for money. The firm-fixed-price nature of the contract suggests the contractor has committed to this price, but without a baseline estimate, its competitiveness remains unverified.

What are the specific risks associated with a sole-source award for this type of construction project?

The primary risk associated with a sole-source award for construction projects like this is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not achieve the most cost-effective solution. Other risks include limited innovation, as the government does not benefit from the diverse approaches potential competitors might offer. Furthermore, sole-source awards can sometimes indicate a lack of market research or a failure to identify qualified alternative sources, which could point to underlying issues in the procurement planning process. Transparency is also reduced, making it harder to justify the expenditure to taxpayers.

What is the expected impact of this contract on the operational readiness and infrastructure of the Department of the Army?

This contract is expected to have a positive impact on the operational readiness and infrastructure of the Department of the Army by ensuring the reliable supply of power and communication services. Upgraded or newly constructed lines are critical for supporting command and control systems, logistical operations, and the daily functioning of military installations. Improved infrastructure can enhance the security and resilience of these essential services, reducing the risk of disruptions that could impede military operations. The successful completion of this project will contribute to maintaining a robust and modern defense infrastructure.

Are there any historical spending patterns with TOGIAK LOGISTICS SERVICES, LLC or for similar power and communication line construction contracts within the Department of Defense?

The provided data does not offer historical spending patterns for TOGIAK LOGISTICS SERVICES, LLC or for similar power and communication line construction contracts within the Department of Defense. To analyze historical spending, one would need to access comprehensive federal procurement databases to track the company's contract awards over time and compare the volume and value of similar projects awarded to other contractors. Understanding these patterns is crucial for identifying trends, assessing cost-effectiveness over time, and evaluating the government's reliance on specific contractors or contract types for essential infrastructure services.

What are the key performance indicators (KPIs) that will be used to measure the success of this construction contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided award data, typical metrics for construction contracts of this nature would include adherence to the project schedule, completion within the firm-fixed-price budget, quality of workmanship meeting specified standards, safety compliance on-site, and successful integration of the new power and communication lines with existing systems. The contracting officer's representative (COR) would likely monitor these aspects throughout the contract duration. Performance evaluations at contract completion would assess the contractor's overall success against these implicit or explicit KPIs.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912BU24R0073

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4141 B STREET, ANCHORAGE, AK, 99503

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: $23,316,575

Exercised Options: $13,967,836

Current Obligation: $13,967,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline