State Department awards $2.4M facilities support contract to Alutiiq Essential Services LLC for one year

Contract Overview

Contract Amount: $2,432,924 ($2.4M)

Contractor: Alutiiq Essential Services LLC

Awarding Agency: Department of State

Start Date: 2024-08-14

End Date: 2025-08-14

Contract Duration: 365 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FMSS FAC SUPPORT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $2.4 million to ALUTIIQ ESSENTIAL SERVICES LLC for work described as: FMSS FAC SUPPORT Key points: 1. Contract provides essential facilities support services, crucial for operational continuity. 2. The award was made under full and open competition after exclusion of sources, indicating a competitive process. 3. Performance period is one year, suggesting a need for agile and responsive service delivery. 4. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of effort. 5. Geographic focus is Alaska, potentially indicating specialized needs for remote or harsh environments. 6. The value of the contract is modest, suggesting it may be a component of a larger facilities management strategy.

Value Assessment

Rating: good

The contract value of $2.43 million for a one-year facilities support services delivery order appears reasonable given the scope. Benchmarking against similar facilities support contracts is challenging without more detailed service descriptions. However, the 'Labor Hours' pricing structure suggests that the cost will be directly tied to the effort expended, which can be cost-effective if managed efficiently. The award to Alutiiq Essential Services LLC, a known entity in government contracting, suggests a degree of pre-qualification and potential for reliable performance.

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'. This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, possibly related to prior performance or specific capabilities. The fact that it was not a completely unrestricted full and open competition warrants further investigation into the reasons for exclusion. The number of bidders is not specified, but the designation suggests at least some level of competition was pursued.

Taxpayer Impact: The 'Full and Open Competition After Exclusion of Sources' designation suggests that while competition was sought, potential bidders were limited. This could potentially lead to less aggressive pricing than a truly unrestricted competition, though the specific reasons for exclusion would be key to understanding the impact on taxpayer value.

Public Impact

The Department of State benefits from the continuity of essential facilities operations, ensuring secure and functional workspaces. Services delivered include facilities support, which can encompass maintenance, repair, and operational upkeep of government buildings. The geographic impact is concentrated in Alaska, potentially supporting diplomatic or operational missions in that region. Workforce implications include the potential for direct or subcontracted labor to perform the services, creating employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Labor Hours' contract type requires diligent oversight to prevent cost overruns and ensure efficient use of personnel.
The 'Exclusion of Sources' clause in the competition method needs clarification to ensure maximum value for taxpayer dollars.
Specific performance metrics and service level agreements are not detailed, posing a risk to quality assurance.

Positive Signals

Award to an established contractor like Alutiiq Essential Services LLC suggests a baseline of capability and experience.
The contract is for a defined period (one year), allowing for reassessment and potential re-competition to ensure ongoing value.
Facilities support is a critical function, and ensuring its reliable provision is a positive indicator of operational focus.

Sector Analysis

Facilities Support Services fall under the broader commercial and professional services sector. This sector is characterized by a wide range of providers, from large corporations to specialized small businesses. Government contracts for facilities support are common across many agencies, often involving maintenance, repair, janitorial, and operational services for federal buildings. The market size for such services is substantial, driven by the government's extensive real estate portfolio. This contract represents a specific, localized need within that larger market.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Alutiiq Essential Services LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the public nature of contract awards, though detailed performance data may not always be readily available. 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
Other Agency Facilities Support Services

Risk Flags

Potential for cost overruns due to 'Labor Hours' pricing structure.
Limited competition due to 'Exclusion of Sources' clause.
Lack of detailed performance metrics in the provided data.
Geographic specificity (Alaska) may indicate unique logistical or environmental challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.4 million to ALUTIIQ ESSENTIAL SERVICES LLC. FMSS FAC 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 $2.4 million.

What is the period of performance?

Start: 2024-08-14. End: 2025-08-14.

What is the track record of Alutiiq Essential Services LLC with the Department of State and similar facilities support contracts?

Alutiiq Essential Services LLC has a history of performing government contracts, including those with the Department of State. Analyzing their past performance on similar facilities support contracts would involve reviewing contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or issues. A positive track record with the State Department suggests familiarity with their requirements and operational environment. Conversely, any past performance issues would raise concerns about the reliability and effectiveness of this current award. Without specific performance data for this contractor on comparable contracts, a definitive assessment is difficult, but their presence in the contracting space indicates a level of established capability.

How does the awarded value of $2.43 million compare to similar facilities support contracts in Alaska or for the Department of State?

Benchmarking the $2.43 million award requires comparing it to contracts with similar scope, duration, and geographic location. Facilities support services can vary widely in their components, from basic janitorial to complex building systems maintenance. Contracts in Alaska may command higher prices due to logistical challenges and the cost of living. For the Department of State, facilities support is critical for embassies and consulates, often involving security and specialized infrastructure. A direct comparison would ideally involve analyzing contracts for similar square footage, service levels, and labor rates in comparable regions. Given the 'Labor Hours' pricing, the total cost is contingent on actual hours worked, making a direct value comparison less straightforward than a fixed-price contract. However, the annual value provides a baseline for assessing the scale of the operation.

What are the specific risks associated with a 'Labor Hours' contract type for facilities support?

The primary risk with a 'Labor Hours' contract type for facilities support is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, the government pays for the actual hours worked by the contractor's personnel, plus a fixed hourly labor rate. This necessitates robust oversight from the government to ensure that hours are reasonable, necessary, and directly related to the contract's objectives. Without strong monitoring, contractors may be incentivized to extend work hours or employ more personnel than strictly required, leading to increased costs for the taxpayer. Additionally, defining clear performance standards and deliverables is crucial to ensure that increased labor hours translate into commensurate service quality and outcomes.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for program effectiveness and cost?

The 'Full and Open Competition After Exclusion of Sources' designation suggests a competitive process was initiated, but certain potential bidders were deliberately excluded. The implications for program effectiveness and cost depend heavily on the justification for these exclusions. If sources were excluded based on a well-defined need for specialized capabilities or prior performance issues with specific contractors, then the remaining competition might still yield effective solutions and reasonable prices. However, if the exclusions were arbitrary or overly restrictive, it could limit the pool of qualified bidders, potentially leading to higher prices and reduced innovation. Understanding the specific criteria used for exclusion is key to assessing whether this approach maximized value for the government and taxpayers.

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

The Department of State, like other federal agencies with significant real estate holdings, historically spends substantial amounts on facilities support services. This includes maintenance, repair, security infrastructure, and operational upkeep for domestic facilities and overseas posts. Annual spending can fluctuate based on infrastructure needs, modernization projects, and geopolitical requirements. This $2.43 million contract for one year in Alaska represents a specific, localized expenditure within that broader pattern. It is likely one of many such contracts the Department utilizes to manage its diverse portfolio of facilities. Analyzing historical spending would reveal trends in contract values, types, and geographic distribution, helping to contextualize this award within the Department's overall facilities management budget.

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: $3,944,683

Exercised Options: $3,944,683

Current Obligation: $2,432,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0040

IDV Type: IDC

Timeline