DOJ's $903K contract for Hawk's Nest facility management awarded to OLH Technical Services, LLC

Contract Overview

Contract Amount: $903,024 ($903.0K)

Contractor: OLH Technical Services, LLC

Awarding Agency: Department of Justice

Start Date: 2023-03-28

End Date: 2027-03-27

Contract Duration: 1,460 days

Daily Burn Rate: $619/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT SERVICES NEEDED TO MAINTAIN THE HAWK'S NEST FACILITY IN GEORGETOWN, EXUMA, BHS PERIOD OF PERFORMANCE: 3/28/2023-3/27/2028

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Justice obligated $903,023.99 to OLH TECHNICAL SERVICES, LLC for work described as: MANAGEMENT SERVICES NEEDED TO MAINTAIN THE HAWK'S NEST FACILITY IN GEORGETOWN, EXUMA, BHS PERIOD OF PERFORMANCE: 3/28/2023-3/27/2028 Key points: 1. Contract awarded for essential facility management services at the Hawk's Nest facility. 2. The contract duration spans five years, indicating a long-term need for these services. 3. The award was not competitively procured, raising questions about potential cost efficiencies. 4. The fixed-price contract type provides cost certainty for the government. 5. The services are categorized under Facilities Support Services, a common government need. 6. The contract is a purchase order, a less complex award mechanism.

Value Assessment

Rating: fair

The contract value of $903,023.99 over five years for facility management services at a specific location appears reasonable on its face. However, without comparable contract data for similar facilities or services in the region, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract offers some cost predictability. Benchmarking against industry standards for facility maintenance in similar climates and environments would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. The specific reasons for this determination are not provided in the available data. Sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure. Without information on the solicitation process or the number of potential bidders considered, it is difficult to assess the extent of price discovery achieved.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the potentially lower prices that could have resulted from a competitive bidding process.

Public Impact

The primary beneficiaries are the Drug Enforcement Administration (DEA) and its personnel who rely on the maintained Hawk's Nest facility. The services delivered include the upkeep and operational readiness of the Hawk's Nest facility. The geographic impact is localized to Georgetown, Exuma, The Bahamas, where the facility is located. The contract supports the operational infrastructure necessary for DEA activities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for increased costs due to absence of market-driven price negotiation.

Positive Signals

Fixed-price contract provides budget certainty for the duration of the award.
Contract ensures continued operational support for a critical facility.
Award to OLH Technical Services, LLC suggests a known entity is providing the services.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of maintenance, repair, and operational support for buildings and grounds. This contract falls within the professional, scientific, and technical services sector. The market for such services is typically fragmented, with many providers ranging from small local businesses to large national corporations. Government contracts for facility support are common across many agencies, often awarded through various procurement methods depending on the scope and urgency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to OLH Technical Services, LLC, a company whose size is not specified here, means the direct impact on the small business ecosystem is not immediately apparent from this award alone. Further investigation into OLH's subcontracting plans would be needed to assess its impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and contract management divisions, specifically the Drug Enforcement Administration. As a purchase order, it may be subject to less formal oversight than larger, more complex contracts. Transparency is limited by the lack of public detail regarding the sole-source justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice Facilities Management Contracts
Drug Enforcement Administration Operational Support
Overseas Facility Maintenance Contracts
Facilities Support Services (NAICS 561210)

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on contractor's past performance in similar roles.
Overseas location may introduce logistical and cost complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $903,023.99 to OLH TECHNICAL SERVICES, LLC. MANAGEMENT SERVICES NEEDED TO MAINTAIN THE HAWK'S NEST FACILITY IN GEORGETOWN, EXUMA, BHS PERIOD OF PERFORMANCE: 3/28/2023-3/27/2028

Who is the contractor on this award?

The obligated recipient is OLH TECHNICAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $903,023.99.

What is the period of performance?

Start: 2023-03-28. End: 2027-03-27.

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

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification for this determination is not detailed. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, such as in cases of urgent and compelling need, unique capabilities, or when a follow-on contract is required for compatibility. Without further documentation from the Department of Justice or the Drug Enforcement Administration, the precise rationale remains unknown. This lack of transparency can raise concerns about whether competition was genuinely explored or if alternative solutions were adequately considered, potentially impacting the best value achieved for taxpayer funds.

How does the contract value compare to similar facility management contracts for overseas locations?

A direct comparison of the contract value ($903,023.99 over five years) to similar overseas facility management contracts is difficult without more specific data points. Factors such as the size and complexity of the Hawk's Nest facility, the specific services required (e.g., HVAC, security, groundskeeping, janitorial), the local labor costs in Exuma, The Bahamas, and the geopolitical risk associated with the location all influence pricing. Generally, overseas contracts can incur higher costs due to logistics, specialized personnel requirements, and potentially higher overhead. To benchmark effectively, one would need to identify contracts for facilities of comparable size and function in similar international locations, considering the scope of work and the duration. The fixed-price nature suggests a defined scope, but the absence of competitive bidding limits the ability to assess if the price reflects market rates.

What are the potential risks associated with a sole-source award for facility management services?

The primary risk associated with a sole-source award for facility management services is the potential for inflated costs due to the absence of competitive pressure. Without multiple bidders vying for the contract, the awarded contractor may not have the same incentive to offer the most competitive pricing. Additionally, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential alternative providers, which could mean the government is not leveraging the full spectrum of available expertise or innovation. There's also a risk that the contractor may become entrenched, making it difficult to transition to a different provider in the future without significant disruption or cost. Transparency concerns can also arise, as the justification for bypassing competition may not always be fully disclosed.

What is the track record of OLH Technical Services, LLC in providing similar facility management services?

Information regarding the specific track record of OLH Technical Services, LLC in providing facility management services, particularly for overseas government facilities, is not detailed in the provided data. To assess their capabilities and past performance, one would need to review their contract history, client references, and any performance evaluations from previous government contracts. Key areas to investigate would include their experience with similar types of facilities, their ability to manage remote operations, their safety records, and their history of meeting deadlines and budget requirements. Understanding their past performance is crucial for evaluating the reliability and effectiveness of their service delivery for the Hawk's Nest facility.

How does the duration of this contract (5 years) impact the overall value and risk?

A five-year contract duration for facility management services provides stability and continuity, which can be beneficial for maintaining consistent operational standards at the Hawk's Nest facility. This longer period allows the contractor to become deeply familiar with the facility's needs and potentially implement efficiencies over time. From a value perspective, a longer-term commitment might allow for better negotiation of rates compared to multiple short-term contracts, assuming the pricing is competitive. However, it also locks the government into a specific provider and price structure for an extended period. The risk is that if the contractor's performance declines or market conditions change significantly, the government is less agile in seeking alternative solutions. The fixed-price nature mitigates some cost risk, but performance risk remains over the five years.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15DDHQ23R00000011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,539,748

Exercised Options: $1,159,689

Current Obligation: $903,024

Actual Outlays: $615,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline