DoD's $34.7M Life Support Contract for Adak Island Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $34,731,983 ($34.7M)
Contractor: Miscellaneous Foreign Awardees
Awarding Agency: Department of Defense
Start Date: 2008-01-12
End Date: 2011-08-31
Contract Duration: 1,327 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: {PIIN: W91B4M08C0015} ADRASKAN NTC LIFE SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $34.7 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91B4M08C0015} ADRASKAN NTC LIFE SUPPORT SERVICES Key points: 1. Contract awarded for life support services at Adak, Alaska, totaling $34.7M. 2. Services fall under Administrative Management and General Management Consulting. 3. Full and open competition was utilized, but specific pricing benchmarks are unclear. 4. Concerns exist regarding the long duration and potential for cost overruns. 5. No small business participation was noted.
Value Assessment
Rating: fair
The contract value of $34.7M over 1327 days suggests a daily rate of approximately $26,173. Without specific service details or comparable contracts, it's difficult to definitively assess value. The fixed-price nature provides some cost control.
Cost Per Unit: $26,173 (estimated daily)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the lack of detailed performance metrics and the long duration may have limited the number of responsive bids and potentially impacted price discovery.
Taxpayer Impact: Taxpayer funds were used for essential life support services in a remote location. While competition was sought, the long-term nature and potential for scope creep warrant careful monitoring to ensure cost-effectiveness.
Public Impact
Ensures essential life support services for personnel at a remote military installation. Supports operational readiness by maintaining infrastructure and services. The long contract duration raises questions about adaptability to changing needs and potential for price escalation. Lack of small business involvement limits opportunities for smaller enterprises in this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1327 days)
- Remote location may limit competition and increase costs
- Lack of specific performance metrics makes value assessment difficult
- No small business participation
Positive Signals
- Full and open competition was utilized
- Firm fixed-price contract type
- Essential services provided
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending in this area can vary widely based on agency needs and contract scope. Benchmarks are difficult without more specific service details.
Small Business Impact
The contract explicitly states no small business participation. This suggests that the prime contractor did not subcontract to small businesses or that the nature of the services did not lend itself to small business involvement.
Oversight & Accountability
Oversight would focus on ensuring the contractor meets all life support requirements as stipulated in the contract. Monitoring performance against the firm fixed-price terms and managing any potential scope changes are key accountability measures.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost creep due to long duration
- Logistical challenges and higher operating costs in remote locations
- Difficulty in assessing true value without detailed service scope
- Limited visibility into subcontractor performance (if any)
- Lack of small business participation
Tags
administrative-management-and-general-ma, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.7 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91B4M08C0015} ADRASKAN NTC LIFE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.7 million.
What is the period of performance?
Start: 2008-01-12. End: 2011-08-31.
What specific life support services were included, and how were they benchmarked against industry standards to ensure fair pricing?
The provided data lacks specifics on the exact life support services rendered. Benchmarking against industry standards would require detailed service descriptions, labor categories, and quantities. Without this, assessing fair pricing is challenging, though the firm fixed-price structure offers some cost certainty.
Given the remote location and long duration, what measures were in place to mitigate risks of cost overruns and ensure continued service quality?
The firm fixed-price contract type inherently shifts some cost overrun risk to the contractor. However, for a remote location over a long period, contingency planning for logistical challenges, potential price fluctuations in materials or labor, and ensuring contractor solvency are crucial oversight areas.
How effectively did the full and open competition process identify the most capable and cost-effective provider for these specialized services?
While 'full and open' indicates a broad solicitation, its effectiveness hinges on the clarity of the solicitation's requirements and evaluation criteria. The long duration and remote nature might have deterred some potential bidders, potentially limiting the pool of highly competitive offers and impacting the ultimate cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 22202
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $38,625,129
Exercised Options: $38,625,129
Current Obligation: $34,731,983
Contract Characteristics
Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2008-01-12
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 12:00:00
Last Modified: 2021-08-18
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