State Department awards $46.4M facilities support contract to Alutiiq Information Management, LLC

Contract Overview

Contract Amount: $46,359,680 ($46.4M)

Contractor: Alutiiq Information Management, LLC

Awarding Agency: Department of State

Start Date: 2020-09-29

End Date: 2025-07-31

Contract Duration: 1,766 days

Daily Burn Rate: $26.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERNATIONAL MAINTENANCE NEW CONTRACT AWARD

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $46.4 million to ALUTIIQ INFORMATION MANAGEMENT, LLC for work described as: INTERNATIONAL MAINTENANCE NEW CONTRACT AWARD Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of nearly five years may indicate a need for stable, ongoing services. 3. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. Facilities support services are critical for operational continuity of government facilities. 5. The firm fixed-price contract type shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific scope of facilities support services and the underlying IDIQ vehicle it was awarded from. However, a nearly five-year duration for a firm-fixed-price contract at this value suggests a moderate level of risk for the contractor. Without competitive bidding, it's difficult to definitively assess if the pricing represents the best value for the government. Further analysis would require comparing the per-unit costs or service rates against similar facilities support contracts or market benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of State did not solicit bids from multiple offerors. This approach is typically used when only one contractor is capable of providing the required services, or in specific circumstances like follow-on work to a previous contract. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards limit taxpayer value by foregoing the potential for cost savings that arise from competitive bidding. This can result in the government paying more than necessary for the services rendered.

Public Impact

The Department of State benefits from the continuity of essential facilities support services, ensuring operational readiness. Services likely include maintenance, repair, and management of government facilities, contributing to a safe and functional working environment. The contract's impact is primarily concentrated within the geographic locations where the Department of State operates facilities. The contract supports jobs within the facilities management and maintenance sectors, contributing to the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of transparency in the procurement process due to sole-source nature.
Contract duration may lock in services without periodic re-evaluation of market alternatives.

Positive Signals

Firm fixed-price structure transfers cost overrun risk to the contractor.
Long-term contract suggests a stable, ongoing need for these critical services.
Award to Alutiiq Information Management, LLC indicates potential past performance or specialized capability.

Sector Analysis

Facilities support services represent a significant segment of the government contracting market, encompassing a wide range of activities from routine maintenance to complex building management. This contract falls within the broader professional, scientific, and technical services sector. The market for these services is competitive, but specific niche requirements or existing relationships can lead to sole-source awards. Benchmarking requires detailed service scope comparison, but annual spending on facilities maintenance and management across federal agencies is in the billions.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The award to Alutiiq Information Management, LLC, a company that may or may not be classified as small depending on its size standards, means that opportunities for small business participation are not explicitly mandated by this award notice. Further investigation into Alutiiq's size status and subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for facilities. As a delivery order under a potential IDIQ, oversight may also be influenced by the terms of the parent contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Homeland Security Facilities Management
Public Buildings Service Contracts

Risk Flags

Sole-source award raises concerns about competition and potential value for money.
Lack of detailed service scope in award data hinders comprehensive analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.4 million to ALUTIIQ INFORMATION MANAGEMENT, LLC. INTERNATIONAL MAINTENANCE NEW CONTRACT AWARD

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 $46.4 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-07-31.

What is the specific scope of 'Facilities Support Services' covered under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 561210, which corresponds to Facilities Support Services. This broad category typically encompasses a range of services including operation, maintenance, cleaning, and security of buildings and grounds. Specific services under this contract could include HVAC maintenance, plumbing, electrical repairs, janitorial services, landscaping, pest control, and potentially space management. Without the full contract details or statement of work, the precise deliverables remain unspecified. However, given the duration and value, it likely covers a comprehensive suite of services essential for maintaining the operational integrity and safety of Department of State facilities.

How does the $46.4 million value compare to similar facilities support contracts awarded by the Department of State or other agencies?

Direct comparison of the $46.4 million value is difficult without knowing the specific services included and the geographic scope. However, federal agencies routinely award large contracts for facilities support. For instance, the General Services Administration (GSA) manages vast portfolios and awards numerous contracts for building operations and maintenance that can run into tens or hundreds of millions of dollars annually. The Department of State itself manages numerous overseas embassies and domestic facilities, each requiring significant support. A contract of this magnitude over nearly five years suggests a substantial scope, potentially covering multiple facilities or a very large single complex. Benchmarking would require detailed analysis of service levels, square footage managed, and geographic location against comparable contracts.

What are the key risks associated with a sole-source award for facilities support services?

The primary risk of a sole-source award for facilities support services is the potential for reduced value for money. Without competition, the government loses the opportunity to leverage market forces to drive down prices and encourage innovation. This can lead to the contractor charging higher rates than might be achievable in a competitive environment. Additionally, sole-source awards can sometimes indicate a lack of planning or a reliance on a single vendor, which can create dependency and limit flexibility. There's also a risk that the contractor may not feel the same pressure to perform at the highest level compared to a situation where they are competing against other capable firms for future business.

What is Alutiiq Information Management, LLC's track record with federal facilities support contracts?

Information regarding Alutiiq Information Management, LLC's specific track record with federal facilities support contracts is not detailed in the provided data. However, the award of this significant contract by the Department of State suggests the company possesses the necessary qualifications, experience, and potentially past performance history deemed acceptable by the agency. To fully assess their track record, one would need to review contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or issues. The fact that this is a sole-source award might imply a pre-existing relationship or a recognized specialized capability.

What are the implications of the 'Firm Fixed Price' contract type for this facilities support agreement?

The 'Firm Fixed Price' (FFP) contract type means that the contractor, Alutiiq Information Management, LLC, is obligated to perform the specified facilities support services for a predetermined price, regardless of their actual costs incurred. This structure shifts the majority of the cost risk from the government to the contractor. If the contractor's expenses for labor, materials, or overhead exceed their estimates, their profit margin will decrease. Conversely, if they manage their costs efficiently, their profit could increase. For the government, FFP provides cost certainty, making budgeting more predictable. However, it can also lead to higher initial prices as contractors factor in potential risks and contingencies.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3909 ARCTIC BLVD STE 500, ANCHORAGE, AK, 99503

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: $46,359,680

Exercised Options: $46,359,680

Current Obligation: $46,359,680

Actual Outlays: $15,086,224

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,609,731

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0112

IDV Type: IDC

Timeline