State Dept. Awards $4.1M for Helpdesk Support to PacArctic, LLC, with Limited Competition
Contract Overview
Contract Amount: $4,112,157 ($4.1M)
Contractor: Pacarctic, LLC
Awarding Agency: Department of State
Start Date: 2022-03-20
End Date: 2026-06-30
Contract Duration: 1,563 days
Daily Burn Rate: $2.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: LABOR HOURS
Sector: IT
Official Description: REQUIREMENT FOR HELPDESK SUPPORT SERVICES.
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of State obligated $4.1 million to PACARCTIC, LLC for work described as: REQUIREMENT FOR HELPDESK SUPPORT SERVICES. Key points: 1. Spending of $4.1M on helpdesk services. 2. Sole provider identified: PacArctic, LLC. 3. Contract awarded via delivery order, raising competition concerns. 4. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: questionable
The contract value of $4.1M for helpdesk support over approximately 4 years appears high without a competitive benchmark. The pricing structure is based on labor hours, which can lead to cost overruns if not managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competition may have resulted in a higher price than could have been achieved through a more open bidding process.
Taxpayer Impact: Taxpayer funds are being spent without assurance of the best possible price due to the absence of competitive bidding.
Public Impact
Citizens rely on effective government IT support. Lack of competition may mean less efficient use of taxpayer money. Transparency in contract awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for cost overruns
- Lack of clear performance metrics
Positive Signals
- Essential service provision
- Defined contract duration
Sector Analysis
The IT services sector, particularly helpdesk support, is highly competitive. Benchmarks for similar contracts often show significant price variations based on scope and service level agreements. This award's value should be compared against industry standards for similar government contracts.
Small Business Impact
The data does not indicate whether small businesses were considered or subcontracted for this award. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract will be critical to ensure that PacArctic, LLC delivers the required helpdesk support effectively and within budget. The Department of State should monitor performance closely.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition raises cost concerns.
- Labor hour contract type can lead to cost overruns.
- Lack of transparency in award justification.
- Potential for suboptimal value for taxpayer money.
Tags
administrative-management-and-general-ma, department-of-state, ak, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $4.1 million to PACARCTIC, LLC. REQUIREMENT FOR HELPDESK SUPPORT SERVICES.
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 $4.1 million.
What is the period of performance?
Start: 2022-03-20. End: 2026-06-30.
What is the justification for awarding this contract on a limited competition basis?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A full justification for this determination, such as a specific urgent need or a unique capability possessed only by PacArctic, LLC, would be required by federal acquisition regulations. Without this, the limited competition raises concerns about potential missed savings.
How does the labor hour pricing compare to industry benchmarks for similar helpdesk services?
Without specific details on the labor categories, rates, and estimated hours, a direct comparison is difficult. However, labor hour contracts can be prone to cost escalation if not meticulously managed and monitored for efficiency. Benchmarking against other government contracts for similar IT support services would be necessary to assess value.
What performance metrics are in place to ensure the effectiveness of the helpdesk support?
The provided data does not specify performance metrics or service level agreements (SLAs). Effective oversight requires clearly defined metrics such as response times, resolution rates, and customer satisfaction. The Department of State should ensure robust performance monitoring is in place to guarantee the quality and efficiency of the services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: LABOR HOURS (Z)
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: $4,662,648
Exercised Options: $4,144,532
Current Obligation: $4,112,157
Actual Outlays: $867,297
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 19AQMM20D0061
IDV Type: IDC
Timeline
Start Date: 2022-03-20
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-27
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