State Department awards $2M+ for facility management, highlighting potential for cost efficiencies in support services

Contract Overview

Contract Amount: $2,016,059 ($2.0M)

Contractor: Alutiiq Essential Services LLC

Awarding Agency: Department of State

Start Date: 2024-08-16

End Date: 2025-08-13

Contract Duration: 362 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FACILITY MANAGERS SUPPORT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $2.0 million to ALUTIIQ ESSENTIAL SERVICES LLC for work described as: FACILITY MANAGERS SUPPORT Key points: 1. Value for money appears reasonable given the scope of facility management services required. 2. Competition dynamics indicate a full and open process, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with performance dependent on contractor's ability to manage diverse facility needs. 4. Performance context is crucial for ensuring operational continuity and safety within State Department facilities. 5. Sector positioning places this contract within the broader facilities support services market, a critical component of government operations.

Value Assessment

Rating: good

The contract value of over $2 million for a one-year period for facility management services seems aligned with market rates for similar government contracts. Benchmarking against other federal contracts for facilities support in similar geographic regions would provide a more precise value assessment. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple bidders were likely considered. This competitive process is designed to ensure fair pricing and access to a wide range of qualified contractors. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and encouraging innovation from service providers.

Public Impact

Benefits the Department of State by ensuring the operational readiness and maintenance of its facilities. Delivers essential services including maintenance, repair, and general upkeep of government buildings. Geographic impact is focused on facilities within Alaska, supporting federal operations in the region. Workforce implications include the potential for direct and indirect employment opportunities for facility management professionals and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Dependence on contractor's ability to recruit and retain skilled facility management personnel in Alaska.
Ensuring consistent service quality across potentially diverse facility types and locations.

Positive Signals

Awarded through full and open competition, suggesting a competitive price.
Contract duration provides stability for service delivery.
Focus on essential facility support services ensures critical infrastructure remains operational.

Sector Analysis

The facilities support services sector is a significant segment of the government contracting market, encompassing a wide range of services from janitorial to complex building systems maintenance. This contract fits within the broader category of professional, scientific, and technical services, specifically focusing on operational support. Comparable spending benchmarks for facility management across federal agencies can range widely depending on the size and complexity of the facilities managed.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor utilizes small business subcontractors. Further analysis of subcontracting plans would be necessary to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and delivery requirements. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Veterans Affairs Facility Operations

Risk Flags

Potential for cost creep in labor-hour contracts.
Geographic challenges in Alaska may impact service delivery and costs.
Contractor's ability to meet performance standards requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.0 million to ALUTIIQ ESSENTIAL SERVICES LLC. FACILITY MANAGERS SUPPORT

Who is the contractor on this award?

The obligated recipient is ALUTIIQ ESSENTIAL 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 $2.0 million.

What is the period of performance?

Start: 2024-08-16. End: 2025-08-13.

What is the track record of Alutiiq Essential Services LLC in providing facility management services to the federal government?

Alutiiq Essential Services LLC has a history of performing various support services for federal agencies. A detailed review of their past performance, including contract awards, past performance evaluations, and any reported disputes or challenges, would be necessary to fully assess their track record. Information from sources like the Federal Procurement Data System (FPDS) and agency-specific contract databases can provide insights into their experience with similar facility management contracts, their performance quality, and their ability to meet contractual obligations. Understanding their past performance on contracts of similar size and scope, particularly within challenging geographic locations like Alaska, is crucial for evaluating their capability to successfully execute this current award.

How does the awarded amount compare to similar facility management contracts awarded by the Department of State or other agencies?

The awarded amount of approximately $2 million for a one-year period for facility management services in Alaska needs to be benchmarked against comparable contracts. Factors such as the square footage of facilities managed, the types of services included (e.g., HVAC, electrical, plumbing, groundskeeping, security), and the specific geographic location significantly influence pricing. Contracts for facility management can vary widely; for instance, a contract covering a large embassy complex in a major city might be substantially higher than one for a smaller regional office. Without specific details on the scope of services and the facilities covered under this award, a precise comparison is difficult. However, the 'full and open competition' aspect suggests the price was vetted against market offerings.

What are the primary risks associated with this facility management contract, and how are they being mitigated?

Key risks include potential cost overruns due to unforeseen maintenance issues or inefficient labor utilization, contractor performance failures leading to disruptions in facility operations, and challenges in recruiting and retaining qualified personnel in remote locations like Alaska. Mitigation strategies typically involve clearly defined performance standards, robust oversight mechanisms by the contracting officer's representative (COR), regular performance reviews, and contract clauses that allow for remedies in case of non-performance. The use of labor hours also necessitates careful monitoring to ensure efficiency. The competitive nature of the award may also incentivize the contractor to perform well to secure future work.

What is the expected effectiveness of these facility management services in supporting the Department of State's mission in Alaska?

The effectiveness of these services is critical for ensuring the Department of State's facilities in Alaska are safe, secure, and operational. Well-maintained facilities are essential for diplomatic functions, housing personnel, and protecting sensitive information. The contract's effectiveness will be measured by the contractor's ability to proactively address maintenance needs, respond promptly to emergencies, and maintain a high standard of upkeep across all assigned properties. Successful execution should lead to reduced downtime, lower long-term repair costs, and a more secure working environment for State Department personnel, thereby directly supporting the agency's mission continuity and operational effectiveness in the region.

What are the historical spending patterns for facility management services by the Department of State, and how does this contract fit?

Historical spending patterns for facility management by the Department of State are generally substantial, reflecting the global footprint and diverse needs of its diplomatic missions and domestic facilities. The State Department consistently invests in maintaining its infrastructure to ensure security and operational readiness. This specific contract, valued at over $2 million for a one-year period in Alaska, represents a portion of that overall spending. Analyzing past spending on similar services in Alaska or comparable regions would provide context on whether this award is in line with historical trends or represents an increase or decrease in investment for facility support in that specific area. Such analysis helps in understanding budget allocation and resource prioritization.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,540,647

Exercised Options: $2,540,647

Current Obligation: $2,016,059

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0040

IDV Type: IDC

Timeline