DOJ's FBI awards $41M contract for declassification support, raising value-for-money questions

Contract Overview

Contract Amount: $41,057,512 ($41.1M)

Contractor: Pacarctic, LLC

Awarding Agency: Department of Justice

Start Date: 2022-06-28

End Date: 2026-06-27

Contract Duration: 1,460 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTUAL ANALYTICAL SERVICES TO SUPPORT THE FOIPA AND HISTORIC DECLASSIFICATION WORK PROCESSES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Justice obligated $41.1 million to PACARCTIC, LLC for work described as: CONTRACTUAL ANALYTICAL SERVICES TO SUPPORT THE FOIPA AND HISTORIC DECLASSIFICATION WORK PROCESSES Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a potentially limited but justified bidding process. 2. The contract's duration of 1460 days (4 years) indicates a long-term need for these specialized support services. 3. Fixed-price contract type aims to control costs, but the final value depends on the scope of declassification work. 4. The award to PACARCTIC, LLC, with no prior contract data available, makes performance benchmarking difficult. 5. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services,' a broad category. 6. The contract's geographic scope is limited to Alaska (AK), which may indicate specific operational needs or regional focus.

Value Assessment

Rating: fair

Benchmarking the value of this $41 million contract is challenging due to the lack of readily available comparable contracts for declassification support services. The fixed-price nature of the award provides some cost certainty, but the ultimate value for money will depend on the efficiency and effectiveness of PACARCTIC, LLC in fulfilling the declassification requirements. Without historical data or more specific performance metrics, it's difficult to definitively assess if the pricing is competitive or if the government is receiving optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This typically means that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements or prior relationships. The presence of 14 bids suggests a reasonable level of competition, but the exclusion of sources might have limited the pool of potential offerors, potentially impacting price discovery.

Taxpayer Impact: The exclusion of sources, even with 14 bidders, could mean that taxpayers did not benefit from the broadest possible competition, potentially leading to a higher price than if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries are the Department of Justice and the Federal Bureau of Investigation, who will receive support in declassifying historical documents. Services delivered include support for the Freedom of Information Act (FOIA) and historic declassification work processes. The geographic impact is primarily focused on Alaska (AK), suggesting that the declassification efforts or the contractor's operations are based there. Workforce implications may include the creation of specialized jobs in document review, analysis, and administrative support within Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of historical performance data for PACARCTIC, LLC makes it difficult to assess their track record and reliability.
The broad NAICS code 'All Other Support Services' offers limited insight into the specific expertise required for declassification.
The 'exclusion of sources' clause in the competition type warrants further investigation into why certain vendors were not considered.
Geographic concentration in Alaska might limit the pool of local subcontractors or create logistical challenges if broader support is needed.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors vied for the opportunity.
The firm-fixed-price contract type provides cost predictability for the government.
A substantial number of bids (14) suggests significant interest in this contract, potentially indicating a healthy market for these services.
The contract duration of four years allows for sustained support and potential for building contractor expertise.

Sector Analysis

The declassification and FOIA support sector involves specialized services crucial for government transparency and historical record management. This contract fits within the broader administrative and support services industry, which is a significant component of the federal contracting landscape. Comparable spending benchmarks are difficult to establish due to the niche nature of declassification support, but overall federal spending on support services is in the billions annually. The FBI's need for such services highlights the ongoing challenges in managing and releasing historical information.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, PACARCTIC, LLC, may choose to engage small businesses as subcontractors to fulfill parts of the contract requirements. The overall impact on the small business ecosystem will depend on the contractor's subcontracting decisions and the availability of small businesses with the requisite skills for declassification support.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting agency, the Department of Justice, and specifically the Federal Bureau of Investigation. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements inherent in a firm-fixed-price agreement. Transparency is facilitated through the contract award data itself, though further details on performance and specific declassification outcomes would require additional public disclosures or Freedom of Information Act requests.

Related Government Programs

Freedom of Information Act (FOIA) Services
Document Management and Archiving
Historical Records Management
Government Transparency Initiatives
National Archives and Records Administration (NARA) Support

Risk Flags

Lack of Contractor Past Performance Data
Broad NAICS Code Limits Specificity
Potential for Limited Competition Due to Source Exclusion
Geographic Concentration in Alaska May Pose Logistical Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $41.1 million to PACARCTIC, LLC. CONTRACTUAL ANALYTICAL SERVICES TO SUPPORT THE FOIPA AND HISTORIC DECLASSIFICATION WORK PROCESSES

Who is the contractor on this award?

The obligated recipient is PACARCTIC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $41.1 million.

What is the period of performance?

Start: 2022-06-28. End: 2026-06-27.

What is the specific expertise PACARCTIC, LLC possesses for declassification and FOIA support?

The provided data does not detail the specific expertise of PACARCTIC, LLC. The contract falls under NAICS code 561990 ('All Other Support Services'), which is very broad. To assess their expertise, one would need to review their proposal, past performance references (if available and not redacted), and any specific qualifications outlined in the contract solicitation. Without this information, it's presumed they met the minimum requirements set forth by the FBI for handling sensitive declassification and FOIA processes. Further investigation into the contractor's background and any publicly available information regarding their capabilities in information management, legal support, or archival services would be necessary.

How does the $41 million contract value compare to similar declassification support contracts?

Direct comparison of the $41 million contract value to similar declassification support contracts is challenging due to the specialized and often sensitive nature of this work, which can lead to limited public data on comparable awards. Declassification and FOIA support can vary significantly in scope, volume of documents, and complexity of review. While $41 million over four years represents a substantial investment, its value proposition can only be truly assessed against contracts with similar objectives, agency requirements, and contractor capabilities. Benchmarking would ideally involve analyzing contracts for historical document review, archival processing, and FOIA compliance support awarded by various federal agencies. The FBI's specific needs and the geographic focus on Alaska might also influence the pricing structure, making direct comparisons with contracts in different regions or with broader mandates less relevant.

What are the key performance indicators (KPIs) for this contract, and how will PACARCTIC, LLC's performance be measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for declassification and FOIA support contracts often include metrics related to the volume of documents processed within a given timeframe, adherence to declassification guidelines and legal requirements, accuracy of redactions and classifications, timeliness of responses to FOIA requests, and overall compliance with established procedures. Performance measurement would likely involve regular reviews by the FBI contracting officer's representative (COR), submission of performance reports by PACARCTIC, LLC, and potentially site visits or audits. The firm-fixed-price nature suggests that meeting defined deliverables and quality standards is paramount for successful contract completion.

What is the historical spending pattern for declassification support services by the FBI or DOJ?

The provided data does not include historical spending patterns for declassification support services by the FBI or DOJ. To ascertain this, one would need to access historical contract databases (like FPDS or USASpending.gov) and search for similar contracts awarded over previous fiscal years. Analyzing this data would reveal trends in spending, identify incumbent contractors, and provide context for the current $41 million award. Understanding historical spending can help determine if this contract represents an increase or decrease in investment in these services, and whether the FBI has consistently utilized external support for declassification and FOIA processes.

What are the potential risks associated with awarding a large declassification contract to a company with no apparent prior federal contract history?

Awarding a significant contract like this ($41 million) to a company with no readily available federal contract history, such as PACARCTIC, LLC, introduces several potential risks. The primary risk is performance uncertainty; without a track record, it's difficult to gauge the contractor's ability to meet deadlines, quality standards, and manage the complexities of declassification and FOIA processes. This could lead to delays, cost overruns (despite the fixed-price nature, scope creep or inefficiencies can increase costs), and potential compromise of sensitive information. There's also a risk related to financial stability and resource allocation. Government agencies typically mitigate these risks through rigorous pre-award evaluations, including assessing past performance references (even if not publicly listed), financial health checks, and ensuring robust oversight mechanisms are in place post-award. The 'exclusion of sources' might also imply that some vetting has already occurred.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support 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

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,459,260

Exercised Options: $41,057,512

Current Obligation: $41,057,512

Actual Outlays: $36,704,312

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline