DoD's $17.6M Security Systems Contract Awarded to Alutiiq Global Solutions Raises Value Questions
Contract Overview
Contract Amount: $17,596,186 ($17.6M)
Contractor: Alutiiq Global Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-26
End Date: 2011-05-11
Contract Duration: 1,688 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SECURITY SYSTEMS SERVICES
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to ALUTIIQ GLOBAL SOLUTIONS, LLC for work described as: SECURITY SYSTEMS SERVICES Key points: 1. The contract's value proposition is unclear due to the absence of detailed performance metrics and competitive benchmarking. 2. Limited competition for this contract may have impacted price discovery and potentially led to suboptimal value for taxpayers. 3. The contract's duration and cost-plus fixed fee structure warrant scrutiny for potential cost overruns. 4. Performance context is limited, making it difficult to assess the effectiveness of security systems services provided. 5. This contract falls within the broader 'Security and Protection Services' sector, a critical area for government operations. 6. The lack of small business participation is noted, with no set-aside or subcontracting requirements specified.
Value Assessment
Rating: questionable
The total award of $17.6 million over its period of performance (approximately 4.7 years) does not provide sufficient detail for a robust value assessment. Without specific deliverables, performance metrics, or comparison to similar contracts for security systems services, it is difficult to benchmark the value for money. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher costs if not managed tightly, especially when compared to fixed-price contracts for well-defined services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one vendor, Alutiiq Global Solutions, LLC, was considered for this award. The lack of competition limits the government's ability to solicit multiple bids and negotiate the best possible price and terms. Consequently, the government may not have achieved the most favorable outcome in terms of cost and service quality.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive pricing. Without competing offers, the government cannot be assured it received the best value, potentially leading to higher overall expenditure for the services rendered.
Public Impact
The Department of the Navy benefits from the provision of security systems services, crucial for maintaining operational security. Services delivered likely include installation, maintenance, and monitoring of security systems to protect government assets and personnel. The geographic impact is concentrated in Alaska (ST: AK, SN: ALASKA), where the contractor is based and services are likely performed. Workforce implications include employment opportunities for individuals with expertise in security systems installation and maintenance, primarily within the Alaska region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and suboptimal value.
- Cost-plus fixed fee contract type can incentivize higher spending if not rigorously overseen.
- Absence of performance metrics makes it hard to evaluate service effectiveness.
- No small business participation noted, potentially limiting opportunities for smaller firms.
Positive Signals
- Contract awarded to a single vendor suggests a potentially specialized capability or existing relationship.
- The contract addresses a critical need for security systems services within the Department of Defense.
Sector Analysis
This contract falls under the 'Security and Protection Services' industry, a vital sector for government operations. The market for security systems services is competitive, encompassing a wide range of providers from large corporations to specialized small businesses. Government spending in this area is substantial, driven by the need to protect sensitive facilities, information, and personnel. Benchmarking this contract's value is challenging without more specific service details, but it represents a portion of the overall federal expenditure on security infrastructure and services.
Small Business Impact
This contract does not appear to have included a small business set-aside, nor is there information indicating subcontracting goals for small businesses. The award to Alutiiq Global Solutions, LLC, a single entity, suggests that opportunities for small businesses to participate in this specific contract were limited or non-existent. This could mean a missed opportunity to leverage the innovation and agility of the small business sector and potentially impact the broader small business ecosystem supporting federal contracts.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant Department of the Navy program office. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and justification of costs. Transparency is limited due to the sole-source nature of the award and the lack of publicly available performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Security Services Contracts
- Federal Protective Services
- Physical Security Systems Procurement
- Government Facilities Security Management
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type may incentivize higher costs.
- Lack of performance metrics hinders value assessment.
- No small business participation noted.
Tags
department-of-defense, department-of-the-navy, security-systems-services, sole-source, cost-plus-fixed-fee, alaska, large-contract, information-technology, security-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to ALUTIIQ GLOBAL SOLUTIONS, LLC. SECURITY SYSTEMS SERVICES
Who is the contractor on this award?
The obligated recipient is ALUTIIQ GLOBAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2006-09-26. End: 2011-05-11.
What is the specific scope of 'Security Systems Services' covered under this contract?
The data provided categorizes this contract under NAICS code 561621, 'Security Systems Services (except Locksmiths)'. This typically encompasses the installation, integration, maintenance, and monitoring of electronic security systems such as alarm systems, access control systems, video surveillance (CCTV), and related hardware and software. However, the specific services rendered under this particular $17.6 million contract with Alutiiq Global Solutions, LLC are not detailed in the provided data. Without a Statement of Work (SOW) or contract line item details, it's impossible to ascertain the precise nature and extent of the security systems services provided, beyond the general industry classification.
How does the $17.6 million award compare to similar security systems contracts awarded by the Department of Defense?
Direct comparison of the $17.6 million award is difficult without knowing the specific services, duration, and geographic scope. However, federal spending on security systems services is substantial. Contracts for similar services can range from a few hundred thousand dollars for localized installations to tens or hundreds of millions for large-scale, multi-year enterprise-wide solutions. The Cost Plus Fixed Fee (CPFF) nature of this contract, combined with its sole-source award, makes direct benchmarking against competitively bid fixed-price contracts challenging. To provide a meaningful comparison, one would need to analyze contracts with similar service requirements, contract types, and performance periods within the DoD or other federal agencies.
What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for security systems?
The primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for security systems are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved through a competitive bidding process. The government may not be getting the best value for its money. Secondly, the CPFF structure, while providing flexibility, shifts much of the cost risk to the government. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can incentivize cost overruns if not meticulously monitored, as the contractor's profit is fixed regardless of the final cost. Effective oversight, detailed cost tracking, and robust performance management are crucial to mitigate these risks.
What was the rationale for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification or rationale for this sole-source determination is not included in the data. Common reasons for sole-source awards include: urgency of need, unique capabilities possessed by only one contractor, essential follow-on work where only one contractor can perform, or circumstances where public interest would not be served by a competitive process. Without further documentation (e.g., Justification and Approval document), the precise reason remains unknown.
What is the track record of Alutiiq Global Solutions, LLC in performing federal security contracts?
The provided data indicates Alutiiq Global Solutions, LLC was awarded this $17.6 million contract for Security Systems Services. To assess their track record, one would need to examine their past performance on this and other federal contracts. This includes reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, timely delivery, quality of work, and adherence to budget. Without access to these broader performance records, it's difficult to definitively assess their overall track record beyond the award of this specific contract.
How has federal spending on security systems services evolved over time, and where does this contract fit?
Federal spending on security systems services has generally trended upwards, driven by evolving threats, technological advancements, and increased emphasis on securing critical infrastructure and sensitive information. This $17.6 million contract, awarded in 2006 and ending in 2011, represents a specific investment during that period. Analyzing historical spending patterns would involve looking at aggregate data for NAICS code 561621 and related security service categories across different agencies. This contract's size and duration place it as a mid-to-large value contract for its time, contributing to the overall federal expenditure aimed at maintaining physical and electronic security.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Afognak Native Corp (UEI: 052089695)
Address: 3201 C STREET, SUITE 700, ANCHORAGE, AK, 00
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $25,263,238
Exercised Options: $25,263,238
Current Obligation: $17,596,186
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0017406D0026
IDV Type: IDC
Timeline
Start Date: 2006-09-26
Current End Date: 2011-05-11
Potential End Date: 2011-05-11 00:00:00
Last Modified: 2014-07-21
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