DoD Awards $25.8M Contract for Recruit Sustainment Program Services to Katmai North America

Contract Overview

Contract Amount: $25,866,748 ($25.9M)

Contractor: Katmai North America, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-27

End Date: 2026-04-05

Contract Duration: 647 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS AN AWARD FOR RECRUIT SUSTAINMENT PROGRAM (RSP) SERVICES, CONSISTING OF ONE BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS (AS WELL AS ONE OPTION EXTENSION PURSUANT TO FAR 52.217-8).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to KATMAI NORTH AMERICA, LLC for work described as: THIS IS AN AWARD FOR RECRUIT SUSTAINMENT PROGRAM (RSP) SERVICES, CONSISTING OF ONE BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS (AS WELL AS ONE OPTION EXTENSION PURSUANT TO FAR 52.217-8). Key points: 1. Contract awarded for essential recruit sustainment services. 2. Katmai North America, LLC is the prime contractor. 3. The contract includes a base period and four option periods. 4. Services are categorized under Office Administrative Services. 5. The award is for the Department of the Army.

Value Assessment

Rating: good

The contract value of $25.87 million over approximately 2 years appears reasonable for specialized administrative support services. Benchmarking against similar contracts for program management and administrative support is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential military personnel support. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Ensures continued support for military recruits, aiding retention and readiness. Supports administrative functions critical to military personnel programs. Funds allocated to a private contractor for specialized services. Potential for improved recruit transition and integration into service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best value.
Contract duration and option periods require careful monitoring.
Performance metrics and oversight are crucial for success.

Positive Signals

Addresses a critical need for recruit sustainment.
Awarded to a known entity with relevant capabilities.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls under administrative services, a common area of government spending. Benchmarks for similar administrative support contracts vary widely based on scope and complexity, but this award appears within a typical range for specialized program support.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Oversight will be critical to ensure Katmai North America, LLC meets performance requirements and delivers value for taxpayer dollars, especially given the limited competition.

Related Government Programs

Office Administrative Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Contract performance requires diligent oversight.
Potential for scope creep in option periods.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to KATMAI NORTH AMERICA, LLC. THIS IS AN AWARD FOR RECRUIT SUSTAINMENT PROGRAM (RSP) SERVICES, CONSISTING OF ONE BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS (AS WELL AS ONE OPTION EXTENSION PURSUANT TO FAR 52.217-8).

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 $25.9 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-04-05.

What specific services are included in the Recruit Sustainment Program (RSP) and how do they contribute to overall military readiness?

The Recruit Sustainment Program (RSP) typically provides support to National Guard and Reserve members before and during their initial entry training. Services often include administrative assistance, logistical support, and educational/career counseling to help recruits manage civilian responsibilities while fulfilling military obligations. This program is vital for improving recruit retention rates and ensuring a smoother transition into active service, ultimately contributing to a more stable and ready military force.

What are the risks associated with awarding a contract through 'full and open competition after exclusion of sources' compared to unrestricted full and open competition?

Excluding sources limits the pool of potential bidders, which can reduce competition and potentially lead to higher prices or less innovative solutions. While it might be justified for specific technical reasons or to ensure participation from certain types of contractors, it carries the risk of not achieving the best possible value for the government. Robust justification and market research are essential to ensure this approach is necessary and does not unduly restrict competition.

How will the effectiveness of Katmai North America's services be measured to ensure the $25.87 million investment is justified?

Effectiveness will likely be measured through Key Performance Indicators (KPIs) tied to recruit retention rates, successful completion of training pipelines, and participant satisfaction surveys. The contracting officer's representative (COR) will monitor performance against contract deliverables and service level agreements. Regular performance reviews and feedback mechanisms will be employed to ensure the contractor meets objectives and provides value, justifying the significant investment.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9133L24R1020

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ouzinkie Native Corporation

Address: 11001 OMALLEY 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: $77,938,303

Exercised Options: $25,868,930

Current Obligation: $25,866,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline