State Department awards $10.26M IT services contract to Olgoonik Worldwide Services LLC for 3 years

Contract Overview

Contract Amount: $10,261,964 ($10.3M)

Contractor: Olgoonik Worldwide Services LLC

Awarding Agency: Department of State

Start Date: 2024-03-01

End Date: 2027-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) EXPERTISE, TECHNICAL KNOWLEDGE, STAFF SUPPORT, AND OTHER RELATED RESOURCES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $10.3 million to OLGOONIK WORLDWIDE SERVICES LLC for work described as: INFORMATION TECHNOLOGY (IT) EXPERTISE, TECHNICAL KNOWLEDGE, STAFF SUPPORT, AND OTHER RELATED RESOURCES Key points: 1. Contract provides IT expertise, technical knowledge, and staff support. 2. Olgoonik Worldwide Services LLC, an Alaska-based firm, secured the award. 3. The contract is a firm-fixed-price definitive contract. 4. It is set to run for three years, from March 2024 to February 2027. 5. The award was not competed, raising questions about potential cost savings. 6. The North American Industry Classification System (NAICS) code is 541519, indicating 'Other Computer Related Services'.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The firm-fixed-price structure suggests a defined scope, but the lack of competition makes it difficult to assess if the $10.26 million over three years represents a competitive price. Comparisons to similar IT support contracts would be necessary to determine if the pricing is aligned with market rates for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While sole-source awards can sometimes be justified for specialized capabilities or urgent needs, the lack of competition here limits the government's ability to explore alternative solutions or secure the best possible pricing through a competitive bidding process.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment.

Public Impact

The Department of State benefits from essential IT expertise and technical support. This contract ensures the continuity of critical IT services for the agency. The services provided are likely to support domestic and potentially international operations of the State Department. The contract supports a firm based in Alaska, potentially contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in government spending.
Without competitive benchmarking, it's difficult to ascertain true value for money.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract duration of three years offers stability for IT service delivery.
The contractor, Olgoonik Worldwide Services LLC, is an established entity.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is highly competitive, with numerous firms offering a wide range of technical support, consulting, and infrastructure management. Government spending in this area is substantial, supporting agency operations and modernization efforts. Comparable spending benchmarks would typically involve analyzing other IT support contracts awarded by federal agencies of similar size and scope.

Small Business Impact

The data indicates that this contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary awardee is likely a larger entity, and the impact on the small business ecosystem may be limited unless subcontracting opportunities are pursued independently by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

IT Support Services
Professional, Scientific, and Technical Services
Computer Systems Design and Related Services
Federal IT Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.3 million to OLGOONIK WORLDWIDE SERVICES LLC. INFORMATION TECHNOLOGY (IT) EXPERTISE, TECHNICAL KNOWLEDGE, STAFF SUPPORT, AND OTHER RELATED RESOURCES

Who is the contractor on this award?

The obligated recipient is OLGOONIK WORLDWIDE SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2024-03-01. End: 2027-02-28.

What is the track record of Olgoonik Worldwide Services LLC with federal contracts, particularly with the Department of State?

Olgoonik Worldwide Services LLC has a history of receiving federal contracts. While specific details on their track record with the Department of State require deeper analysis of contract databases, their ability to secure this sole-source award suggests a prior relationship or demonstrated capability. Further investigation into past performance reviews, contract modifications, and any past issues or successes would provide a more comprehensive understanding of their reliability and effectiveness as a government contractor. Examining their portfolio of previous awards can also indicate their specialization and experience in IT services.

How does the $10.26 million value compare to similar IT support contracts awarded by the Department of State or other agencies?

Direct comparison of the $10.26 million value is difficult without detailed service scope and performance metrics. However, for a three-year IT support contract, this figure is within a plausible range for agencies like the Department of State, which have complex IT needs. To assess value, one would benchmark against contracts for similar IT services (e.g., help desk, network support, cybersecurity) awarded to similarly sized contractors. The lack of competition for this specific award makes a definitive value assessment challenging, as market-driven pricing is absent. A comprehensive analysis would involve reviewing multiple comparable contracts to identify average costs per service or per user.

What are the primary risks associated with a sole-source IT services contract of this magnitude?

The primary risks associated with this sole-source IT services contract include potential overpricing due to the absence of competitive pressure, limited innovation from the contractor if there's no incentive to exceed basic requirements, and a reduced ability for the government to switch providers if performance is unsatisfactory or market conditions change. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider. Furthermore, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or conflicts of interest, increasing the risk of waste, fraud, or abuse.

What specific IT services will Olgoonik Worldwide Services LLC be providing under this contract?

The contract broadly covers 'INFORMATION TECHNOLOGY (IT) EXPERTISE, TECHNICAL KNOWLEDGE, STAFF SUPPORT, AND OTHER RELATED RESOURCES.' This suggests a comprehensive suite of IT services. These could include help desk support, network administration, system maintenance, cybersecurity assistance, IT project management, and potentially specialized technical consulting. The exact nature and depth of these services would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's difficult to pinpoint the exact deliverables, but the broad description indicates a need for ongoing, multifaceted IT support for the Department of State's operations.

What is the historical spending pattern for IT services at the Department of State, and how does this contract fit within that pattern?

The Department of State, like many large federal agencies, consistently spends significant amounts on IT services to maintain its global operations, secure communications, and manage vast amounts of data. Historical spending patterns reveal a continuous need for IT support, infrastructure, and modernization. This $10.26 million contract, spread over three years, represents a portion of that overall IT budget. Its fit within the pattern depends on whether it replaces existing services, expands capabilities, or addresses new requirements. Analyzing past IT contract awards by the State Department would reveal trends in service types, contractor choices, and spending levels, providing context for this specific award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $15,135,085

Exercised Options: $11,319,212

Current Obligation: $10,261,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline