State Department awards $6.4M facilities support contract to PacArctic, LLC, with no competition

Contract Overview

Contract Amount: $6,369,120 ($6.4M)

Contractor: Pacarctic, LLC

Awarding Agency: Department of State

Start Date: 2018-09-16

End Date: 2026-08-31

Contract Duration: 2,906 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR TRANSITION AND PROGRAM MANAGEMENT SERVICES TO COVER 4 FACILITIES NATIONWIDE.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $6.4 million to PACARCTIC, LLC for work described as: TASK ORDER FOR TRANSITION AND PROGRAM MANAGEMENT SERVICES TO COVER 4 FACILITIES NATIONWIDE. Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings. 2. Long contract duration (2018-2026) suggests a need for stable, long-term support. 3. Services cover four facilities nationwide, indicating a broad geographic scope. 4. The firm fixed-price contract type aims to control costs, but initial award value is significant. 5. Lack of competition may limit opportunities for other capable vendors and innovation. 6. Contractor has a track record with the VA, suggesting some level of past performance. 7. The specific services are facilities support, a critical but often overlooked operational area.

Value Assessment

Rating: questionable

The contract's value of $6.4 million over its duration needs careful benchmarking against similar facilities support contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value. The firm fixed-price structure is a positive indicator for cost control, but the absence of competition means there's no direct market pressure to ensure optimal pricing. Further analysis would require comparing the scope of services and the number of facilities supported to other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not openly competed. This typically occurs when only one vendor is deemed capable of meeting the requirement, or in specific circumstances like follow-on work or urgent needs. The lack of competition means potential bidders were not given an opportunity to propose their services, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, the government cannot be assured it received the best possible price for these essential facilities support services.

Public Impact

The Department of State benefits from consistent and dedicated support for its four facilities. Employees and visitors at these facilities will experience maintained operational environments. The contract supports the core functions of the State Department by ensuring facility readiness. Geographic impact is nationwide, affecting operations across multiple locations. Workforce implications are primarily for the contractor, PacArctic, LLC, who will manage and execute the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially increases costs.
Long contract duration may not adapt well to changing facility needs or technological advancements.
Lack of defined small business subcontracting goals raises concerns about small business participation.
Limited transparency on the specific justification for sole-source award.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Contractor has prior experience with the VA, suggesting some level of operational capability.
Services are critical for maintaining operational readiness of State Department facilities.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of service providers, from large corporations to specialized small businesses. Government spending in this area is substantial, supporting the maintenance, operation, and management of federal buildings and infrastructure nationwide. Benchmarking this contract's value would involve comparing its per-facility cost and scope of services against other government contracts for similar facility management and support, often categorized under NAICS code 561210.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the lack of specific subcontracting plans or goals mentioned in the provided data raises concerns about the potential impact on the small business ecosystem. Without explicit requirements for small business participation, it is less likely that subcontracting opportunities will be directed towards small businesses, potentially limiting their access to this federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award; however, contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Veterans Affairs (VA) Facilities Management
Other Agency Facilities Support Services

Risk Flags

Non-competitive award
Long contract duration
Lack of defined small business subcontracting goals

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.4 million to PACARCTIC, LLC. TASK ORDER FOR TRANSITION AND PROGRAM MANAGEMENT SERVICES TO COVER 4 FACILITIES NATIONWIDE.

Who is the contractor on this award?

The obligated recipient is PACARCTIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2018-09-16. End: 2026-08-31.

What is PacArctic, LLC's track record with the federal government, particularly with the Department of State?

The provided data indicates PacArctic, LLC has a contract with the Department of State for these facilities support services. Additionally, the 'st': 'VA' and 'sn': 'VIRGINIA' fields suggest a prior or concurrent relationship with the Department of Veterans Affairs, likely involving facilities support or related services. A comprehensive review of PacArctic's federal contracting history, accessible through databases like SAM.gov or FPDS, would reveal the full scope of their past performance, including contract values, performance ratings, and any past issues or commendations. This information is crucial for assessing their capability to fulfill the current contract's requirements effectively.

How does the $6.4 million contract value compare to similar facilities support contracts awarded by the government?

Benchmarking the $6.4 million contract value requires comparing it against similar facilities support contracts, considering factors like the number of facilities, geographic scope, and specific services provided. Contracts under NAICS code 561210 (Facilities Support Services) awarded by agencies like GSA, DoD, or other large civilian agencies can serve as comparators. Given this contract covers four facilities nationwide, the average cost per facility would be approximately $1.6 million over the contract's life. Without detailed service scopes, a precise comparison is difficult, but this figure should be evaluated against the average cost per facility for similar government-wide contracts to determine if it represents good value, especially considering the non-competitive award.

What are the specific risks associated with awarding a facilities support contract on a sole-source basis?

The primary risk of a sole-source award for facilities support is the potential for inflated costs due to a lack of competition. Without competing bids, the government may not achieve the best possible price. Another risk is reduced innovation, as there's less incentive for the sole provider to introduce cost-saving technologies or methods. Furthermore, it limits the government's ability to leverage the expertise of other qualified vendors in the market. Dependence on a single contractor can also pose a risk if that contractor experiences financial difficulties or performance issues, potentially disrupting critical facility operations.

How effective is the firm fixed-price (FFP) contract type in managing costs for long-term facilities support?

The Firm Fixed-Price (FFP) contract type is generally effective in managing costs for long-term facilities support because it shifts the risk of cost overruns to the contractor. The contractor agrees to a set price for the defined scope of work, providing cost certainty for the government. This structure incentivizes the contractor to control their own costs efficiently. However, for long-term contracts, it's crucial that the initial scope of work is well-defined and that mechanisms exist to address potential changes or unforeseen circumstances without significantly increasing the price. The FFP structure is beneficial here as it sets a clear baseline for all services rendered.

What is the historical spending pattern for facilities support services at the Department of State?

Historical spending patterns for facilities support services at the Department of State would reveal the agency's reliance on such contracts over time. Analyzing past awards, including their values, durations, and whether they were competed or sole-sourced, provides context for the current $6.4 million award. A trend of increasing, decreasing, or stable spending in this category can indicate evolving needs or budget priorities. Understanding if similar contracts have been consistently awarded to the same vendors or if there's a history of competitive bidding for these services is also important for assessing value and market dynamics.

What are the implications of the contract's long duration (2018-2026) for service quality and adaptability?

The contract's extended duration, spanning nearly eight years, suggests a need for stable, long-term facilities support. This can be beneficial for ensuring continuity of operations and allowing the contractor to develop deep expertise in managing the specific facilities. However, such a long period also presents risks. Service quality could potentially decline if oversight is not rigorous, or if the contractor becomes complacent. Furthermore, the rapidly evolving nature of facility management technologies and best practices means that a contract established in 2018 might not fully incorporate the latest innovations by its 2026 end date, potentially limiting adaptability and efficiency gains.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM18Q0169

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,208,227

Exercised Options: $7,151,815

Current Obligation: $6,369,120

Actual Outlays: $1,197,760

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM18D0117

IDV Type: IDC

Timeline