ARNG RSP-QC & Retention Services contract awarded to Katmai North America, LLC for over $48M

Contract Overview

Contract Amount: $48,227,444 ($48.2M)

Contractor: Katmai North America, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-06

End Date: 2024-07-05

Contract Duration: 1,095 days

Daily Burn Rate: $44.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ARMY NATIONAL GUARD (ARNG) RECRUIT SUSTAINMENT PROGRAM QUALITY CONTROL (RSP-QC) & RETENTION SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.2 million to KATMAI NORTH AMERICA, LLC for work described as: ARMY NATIONAL GUARD (ARNG) RECRUIT SUSTAINMENT PROGRAM QUALITY CONTROL (RSP-QC) & RETENTION SERVICES Key points: 1. Contract provides quality control and retention services for the Army National Guard's Recruit Sustainment Program. 2. The contract was awarded on a 'not available for competition' basis, raising questions about potential cost savings from competition. 3. The contract duration is 1095 days, indicating a long-term need for these services. 4. The firm fixed-price contract type suggests predictable costs for the government, but may limit flexibility. 5. The total award value of approximately $48.2 million over three years warrants scrutiny for value for money. 6. The absence of small business set-aside flags suggests larger contractors are primary recipients.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable data for similar RSP-QC and retention services. The firm fixed-price structure provides cost certainty, but the absence of competition may have led to a higher price than could have been achieved through a competitive process. The per-unit cost is not readily available for direct comparison, making a precise value-for-money assessment difficult. Further analysis would require understanding the specific services delivered and their impact on recruitment and retention metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, meaning it was not openly competed. This approach is typically used when only one source is capable of meeting the requirement. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value. It also raises questions about whether alternative solutions or contractors were adequately considered.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Army National Guard (ARNG) and its recruiters, who receive support in managing and retaining recruits. The services delivered aim to improve the quality of the Recruit Sustainment Program and enhance overall retention rates. The geographic impact is nationwide, supporting ARNG units across all states and territories. Workforce implications include support for ARNG personnel involved in recruitment and retention efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for contractor lock-in due to specialized services.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term contract duration suggests a stable and ongoing need for services.
Focus on quality control and retention is critical for military readiness.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on program management and quality control for a government entity. The market for such specialized support services can be niche, often involving contractors with specific government contracting experience. Comparable spending benchmarks are difficult to establish without more granular data on the scope and nature of RSP-QC and retention services across different branches or agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Katmai North America, LLC, is either a large business or that the nature of the services does not lend itself to small business participation. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the contract terms and performance requirements. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army National Guard Recruit Sustainment Program
Military Recruitment Services
Government Administrative Support Services
Contractor Support for Military Readiness

Risk Flags

Sole-source award raises concerns about potential lack of competition and higher costs.
Limited public information on the specific justification for the sole-source award.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.2 million to KATMAI NORTH AMERICA, LLC. ARMY NATIONAL GUARD (ARNG) RECRUIT SUSTAINMENT PROGRAM QUALITY CONTROL (RSP-QC) & RETENTION SERVICES

Who is the contractor on this award?

The obligated recipient is KATMAI NORTH AMERICA, 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 $48.2 million.

What is the period of performance?

Start: 2021-07-06. End: 2024-07-05.

What is the specific scope of 'Quality Control (QC) & Retention Services' provided under this contract?

The contract details for 'ARMY NATIONAL GUARD (ARNG) RECRUIT SUSTAINMENT PROGRAM QUALITY CONTROL (RSP-QC) & RETENTION SERVICES' suggest a focus on ensuring the effectiveness and efficiency of the ARNG's efforts to recruit and retain personnel. Quality control likely involves monitoring recruitment processes, ensuring compliance with standards, and identifying areas for improvement. Retention services would encompass strategies and activities aimed at keeping new recruits engaged and committed to their service obligation. This could include mentorship programs, career counseling, and addressing potential attrition factors. The exact deliverables and performance metrics would be detailed in the contract's Statement of Work (SOW), which is not publicly available in this data snippet.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a form of sole-source procurement. This typically occurs when only one responsible source is available or capable of meeting the government's needs. Reasons can include unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or specific statutory requirements. Without access to the official justification document (e.g., a Justification and Approval - J&A), the precise reason for this sole-source award remains unknown. This lack of competition limits the government's ability to explore alternative solutions and potentially achieve better pricing through a competitive bidding process.

How does the $48.2 million award value compare to historical spending on similar services for the ARNG?

Direct historical spending comparisons for this specific 'RSP-QC & Retention Services' contract are not readily available from the provided data. The total award value of $48.2 million over three years ($16.07 million annually on average) represents a significant investment. To assess historical trends, one would need to research prior contracts for similar services within the ARNG or Department of the Army, looking at both value and duration. The absence of competition for this award suggests that historical data might have been used to justify the sole-source award, perhaps indicating a continuation of services previously provided by Katmai North America, LLC or a predecessor.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of Katmai North America, LLC's services?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate the success of Katmai North America, LLC's 'Quality Control (RSP-QC) & Retention Services.' Typically, for retention services, KPIs might include metrics such as recruit retention rates, attrition rates within the first year of service, enlistment contract completion rates, and potentially measures of recruit satisfaction or engagement. For quality control, metrics could relate to adherence to ARNG program standards, efficiency of QC processes, and identification of actionable improvements. These KPIs would be defined in the contract's Performance Work Statement (PWS) and would form the basis for performance evaluations and potential award fee determinations.

What is Katmai North America, LLC's track record with the Department of Defense or other federal agencies?

Katmai North America, LLC has a history of contracting with the Department of Defense and other federal agencies. While specific details of their past performance are not in this data snippet, their ability to secure a sole-source contract of this magnitude suggests they possess relevant experience and capabilities. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would reveal the extent of their contract history, the types of services they have provided, their performance ratings on past contracts, and their overall financial stability. This information is crucial for assessing their reliability and suitability for fulfilling the ARNG's requirements.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9133L21R1000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ouzinkie Native Corporation

Address: 11001 O'MALLEY CENTRE DR STE 204, ANCHORAGE, AK, 99515

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, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,227,444

Exercised Options: $48,227,444

Current Obligation: $48,227,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline