State Department's $43.4M radio network contract awarded to Alutiiq Information Management for border security

Contract Overview

Contract Amount: $43,402,532 ($43.4M)

Contractor: Alutiiq Information Management, LLC

Awarding Agency: Department of State

Start Date: 2018-06-07

End Date: 2021-02-01

Contract Duration: 970 days

Daily Burn Rate: $44.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF THE PURPOSE OF THIS PROJECT IS TO PROVIDE A P-25 TRUNKED RADIO COMMUNICATIONS NETWORK THAT WILL PROVIDE A FULL INTEROPERABILITY, SECURE VOICE/DATA COMMUNICATIONS SYSTEM WITH THE ABILITY TO SHARE CRITICAL, REAL-TIME INFORMATION SUPPORTING A WIDE RANGE OF OPERATIONS FOR POLICE, MILITARY, IMMIGRATION AND CUSTOMS OFFICES IN EIGHT SOUTHERN-BORDER STATES OF MEXICO (CAMPECHE, CHIAPAS, GUERRERO, OAXACA, QUINTANA ROO, TABASCO, VERACRUZ, AND YUCATAN).

Plain-Language Summary

Department of State obligated $43.4 million to ALUTIIQ INFORMATION MANAGEMENT, LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS PROJECT IS TO PROVIDE A P-25 TRUNKED RADIO COMMUNICATIONS NETWORK THAT WILL PROVIDE A FULL INTEROPERABILITY, SECURE VOICE/DATA COMMUNICATIONS SYSTEM WITH THE ABILITY TO SHARE CRITICAL, REAL-TIME INFORMATION SUPPORTING A WIDE RANGE OF OPERATIONS FO… Key points: 1. The contract aims to enhance secure voice and data communications for law enforcement and military agencies across eight Mexican states. 2. Interoperability and real-time information sharing are key objectives, supporting a wide range of critical operations. 3. The contract was not competitively procured, raising questions about potential price discovery and value for money. 4. The fixed-price contract structure may offer some cost certainty, but the lack of competition limits benchmarking. 5. Performance is assessed against the need for a robust and secure communications infrastructure for border operations. 6. The sector positioning is within telecommunications infrastructure critical for national security and inter-agency coordination.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and limited public data on similar sole-source procurements for specialized border communications networks. The fixed-price nature provides some cost control, but without competitive pressure, it's difficult to definitively assess if the $43.4 million represents optimal value for the taxpayer. The scope of providing a secure, interoperable trunked radio system across eight states is substantial, suggesting a significant investment in critical infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of bidders means there was no direct price comparison or market testing to ensure the most competitive pricing was achieved.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefits of competition, such as lower prices and innovative solutions, are not realized.

Public Impact

Law enforcement agencies (police, military, immigration, customs) in eight southern Mexican states will benefit from enhanced communication capabilities. The contract delivers a secure, interoperable trunked radio communications network, improving operational efficiency and information sharing. Geographic impact is concentrated in the southern border states of Mexico, including Campeche, Chiapas, Guerrero, Oaxaca, Quintana Roo, Tabasco, Veracruz, and Yucatan. Workforce implications include the deployment and maintenance of advanced communication systems for public safety personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitively bid contract.
Limited transparency into the sole-source justification and evaluation process.
Potential for vendor lock-in if the system is highly specialized and difficult to replace.

Positive Signals

Addresses a critical need for secure and interoperable communications for border security operations.
Fixed-price contract provides some budget predictability.
Focus on real-time information sharing can improve operational effectiveness.

Sector Analysis

This contract falls within the telecommunications sector, specifically focusing on specialized radio communication systems. The market for such secure, interoperable networks is often characterized by a limited number of providers capable of meeting stringent government requirements. Comparable spending benchmarks are difficult to establish without more specific details on system features and scale, but investments in national security communications infrastructure are typically substantial.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. The award to Alutiiq Information Management, LLC, suggests a focus on established prime contractors with the capacity to handle large-scale telecommunications projects. Further investigation would be needed to determine if any small business participation was mandated or occurred through subcontracting.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and potentially the agency's Inspector General (IG). Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the performance metrics and deliverables outlined in the contract, with potential for audits and reviews by oversight bodies.

Related Government Programs

Border Security Technology
Law Enforcement Communications
Interoperable Radio Systems
National Security Infrastructure
Department of State Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.4 million to ALUTIIQ INFORMATION MANAGEMENT, LLC. IGF::OT::IGF THE PURPOSE OF THIS PROJECT IS TO PROVIDE A P-25 TRUNKED RADIO COMMUNICATIONS NETWORK THAT WILL PROVIDE A FULL INTEROPERABILITY, SECURE VOICE/DATA COMMUNICATIONS SYSTEM WITH THE ABILITY TO SHARE CRITICAL, REAL-TIME INFORMATION SUPPORTING A WIDE RANGE OF OPERATIONS FOR POLICE, MILITARY, IMMIGRATION AND CUSTOMS OFFICES IN EIGHT SOUTHERN-BORDER STATES OF MEXICO (CAMPECHE, CHIAPAS, GUERRERO, OAXACA, QUINTANA ROO, TABASCO, VERACRUZ, AND YUCATAN).

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INFORMATION MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $43.4 million.

What is the period of performance?

Start: 2018-06-07. End: 2021-02-01.

What is the specific track record of Alutiiq Information Management, LLC in delivering similar large-scale, secure communications systems for government clients?

Alutiiq Information Management, LLC, has a history of providing IT and information management services to various government agencies. While specific details on their track record for large-scale, secure trunked radio communications networks comparable to this project are not readily available in the public domain, their past performance would have been assessed by the Department of State during the sole-source justification process. Typically, agencies review past performance, technical capabilities, and financial stability before awarding sole-source contracts. Further due diligence would involve examining contract databases for similar awards and client feedback, if publicly accessible, to gauge their expertise in this specialized area.

How does the $43.4 million cost compare to similar sole-source procurements for trunked radio systems in other regions or for different agencies?

Direct comparisons for sole-source procurements of specialized trunked radio systems are inherently difficult due to the lack of competitive bidding and the unique nature of each requirement. The $43.4 million contract covers a P-25 trunked radio network for eight southern Mexican states, implying a significant scale and complexity. Without access to proprietary pricing data or detailed specifications of comparable sole-source awards, it's challenging to benchmark this figure precisely. However, large-scale government telecommunications infrastructure projects often run into tens or hundreds of millions of dollars, depending on the geographic coverage, security requirements, and technological sophistication.

What are the primary risks associated with a sole-source award for critical communications infrastructure like this border radio network?

The primary risks associated with a sole-source award for critical communications infrastructure include a lack of competitive pricing, potentially leading to overpayment by taxpayers. There's also a reduced incentive for the contractor to innovate or offer the most cost-effective solutions, as there is no direct competition. Furthermore, reliance on a single vendor can create vendor lock-in, making future upgrades or transitions more complex and expensive. Ensuring adequate oversight and performance management becomes even more critical to mitigate these risks and ensure the government receives the best value and a reliable system.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this P-25 trunked radio communications network?

Key performance indicators (KPIs) for a P-25 trunked radio communications network typically focus on system availability, reliability, and performance. These would likely include metrics such as network uptime (e.g., 99.999% availability), call setup time (e.g., less than 500 milliseconds), voice quality (e.g., clear transmission with minimal distortion), and data throughput rates. Security metrics, such as the integrity of encryption and resistance to unauthorized access, would also be crucial. The ability of the system to support interoperability between different agencies and provide real-time information sharing would be paramount, likely measured through scenario-based testing and user feedback.

What is the historical spending pattern for similar telecommunications infrastructure projects by the Department of State or related agencies?

Historical spending patterns for telecommunications infrastructure projects by the Department of State and related agencies can vary significantly based on the scope, technology, and geographic focus. Large-scale projects, particularly those involving secure and interoperable communication systems for border security or diplomatic missions, often represent substantial investments. While specific figures for comparable projects are not detailed here, agencies like the Department of State, Department of Homeland Security, and Department of Defense frequently allocate significant portions of their budgets to modernizing and maintaining critical communication networks. These investments are driven by evolving security threats, technological advancements, and the need for seamless inter-agency coordination.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 300 ALIMAQ DR, KODIAK, AK, 99615

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $43,402,532

Exercised Options: $43,402,532

Current Obligation: $43,402,532

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline