State Department awards $3.98M for passport center construction, with limited competition

Contract Overview

Contract Amount: $3,980,065 ($4.0M)

Contractor: Pacarctic, LLC

Awarding Agency: Department of State

Start Date: 2024-08-23

End Date: 2026-06-04

Contract Duration: 650 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PHASE 2 OF THE PROJECT FOR BUILDING 16 NEW PASSPORT CENTERS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $4.0 million to PACARCTIC, LLC for work described as: PHASE 2 OF THE PROJECT FOR BUILDING 16 NEW PASSPORT CENTERS Key points: 1. The contract focuses on administrative management and general management consulting services for building new passport centers. 2. The award is a delivery order under a larger contract, indicating a phased approach to project execution. 3. The contract type is Time and Materials, which can pose cost control risks if not closely managed. 4. The project duration is 650 days, spanning from August 2024 to June 2026. 5. The geographic focus is Washington D.C., impacting local administrative and construction sectors. 6. The contract was not openly competed, raising questions about potential cost efficiencies and best value.

Value Assessment

Rating: questionable

The contract value of $3.98 million for administrative and management consulting for building passport centers appears to be a specific task order. Without knowing the scope of the 'building 16 new passport centers' project and the specific services provided under this order, a direct value-for-money assessment is difficult. However, the Time and Materials pricing structure, coupled with limited competition, suggests a higher risk of cost overruns compared to fixed-price contracts. Benchmarking this against similar large-scale construction project management contracts would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source or limited competition scenario. The specific reason for this limited competition is not detailed in the provided data. Without open competition, it is challenging to ascertain if the government received the best possible pricing and terms. The absence of multiple bids means potential cost savings that could arise from a competitive bidding process are likely foregone.

Taxpayer Impact: The lack of open competition means taxpayers may not be benefiting from the most cost-effective solution. Without a competitive bidding process, the government may have paid a premium for the services rendered.

Public Impact

Citizens requiring passport services will benefit from the expansion of passport centers, potentially leading to reduced wait times and improved accessibility. The project will involve administrative management and consulting services, supporting the Department of State's operational capacity. The primary geographic impact is in Washington D.C., where the administrative and management activities will be centered. The contract may indirectly impact the workforce through the need for administrative support and project management personnel, though direct job creation figures are not specified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns without strict oversight.
Limited competition (sole-source) raises concerns about achieving best value and competitive pricing.
The scope of 'building 16 new passport centers' is broad and the specific services under this order require further clarification for full assessment.
The contract is a delivery order, suggesting it's part of a larger, potentially more complex, contracting vehicle.

Positive Signals

The contract supports a critical government function: passport services, indicating a necessary investment.
The phased approach through delivery orders allows for management of a large project over time.
The project aims to expand infrastructure, which is a tangible and beneficial outcome for public service delivery.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and management. The value of the U.S. management consulting market is substantial, with significant government spending in this area to support various agency operations and strategic initiatives. This specific contract relates to infrastructure development for a public service, a common area for government consulting engagements. Benchmarking would involve comparing the per-hour rates or project management fees to similar government contracts for large-scale facility development or administrative support.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false. This suggests that the prime contractor, PACARCTIC, LLC, is not a small business, and there is no explicit indication of small business set-aside provisions for this particular delivery order. Further investigation into the prime contract under which this delivery order was issued would be necessary to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours and material costs is crucial to ensure compliance and prevent overcharging. Transparency could be enhanced by making the specific details of the 'not available for competition' justification publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Department of State Facilities Management
Passport Services Modernization
Government Administrative Support Contracts
Construction Project Management Services

Risk Flags

Limited competition raises concerns about best value.
Time and Materials contract type poses cost control risks.
Lack of detailed scope of work in summary data hinders full assessment.
No small business subcontracting plan explicitly mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.0 million to PACARCTIC, LLC. PHASE 2 OF THE PROJECT FOR BUILDING 16 NEW PASSPORT CENTERS

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 $4.0 million.

What is the period of performance?

Start: 2024-08-23. End: 2026-06-04.

What specific services are included under this $3.98 million delivery order for building passport centers?

The provided data classifies this contract under NAICS code 541611 (Administrative Management and General Management Consulting Services). This suggests the services likely involve project management, planning, coordination, and administrative support related to the construction or renovation of 16 new passport centers. However, the exact deliverables, scope of work, and specific consulting tasks are not detailed in the summary data. A full review of the contract statement of work (SOW) would be required to understand the precise services being procured, including any architectural, engineering, or construction management components that fall under the administrative umbrella.

Why was this contract awarded on a sole-source basis, and what is the justification?

The data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Government agencies typically sole-source contracts when only one responsible source can satisfy the agency's needs. Common justifications include unique capabilities, urgent and compelling needs, or follow-on work to a previous contract where competition is impractical. Without the specific justification document from the Department of State, the precise reason for this sole-source award remains unknown. This lack of competition limits the government's ability to leverage market forces for potentially better pricing and terms.

How does the Time and Materials (T&M) contract type impact cost control and value for taxpayers?

Time and Materials (T&M) contracts are inherently less predictable in terms of final cost compared to fixed-price contracts. Under a T&M structure, the government pays the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. While T&M contracts can offer flexibility for projects with undefined scopes, they carry a significant risk of cost overruns if not meticulously monitored. For taxpayers, this means the final cost could exceed initial estimates, and effective oversight by the government is paramount to ensure that hours billed and materials used are reasonable and necessary for the project's completion.

What is the historical spending pattern for PACARCTIC, LLC with the Department of State or similar agencies?

The provided data does not include historical spending information for PACARCTIC, LLC. To assess the contractor's track record and pricing consistency, a review of federal procurement databases (like FPDS or USASpending) would be necessary. This would reveal the total value of contracts awarded to PACARCTIC, LLC, the agencies they have served, the types of services provided, and potentially their performance ratings on past contracts. Understanding their history, particularly with the Department of State, could offer insights into their reliability and cost-competitiveness.

What is the overall project scope and budget for the 'building 16 new passport centers' initiative?

The provided data represents a single delivery order valued at $3.98 million for administrative and management consulting services related to building 16 new passport centers. This figure is likely only a portion of the total project cost. The phrase 'building 16 new passport centers' implies a significant infrastructure undertaking. The total budget for this initiative, including construction, equipment, staffing, and all associated services, is not specified. This delivery order appears to be a component of a larger, multi-year effort by the Department of State to expand its passport processing capabilities.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract?

The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for administrative and management consulting services, KPIs might relate to project timelines, budget adherence, quality of reports or recommendations, and stakeholder satisfaction. The effectiveness of the passport center expansion project would ultimately be measured by factors such as reduced application processing times, increased capacity, and improved customer service. The Department of State's contracting officer would be responsible for monitoring performance against any established metrics outlined in the full contract.

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

Solicitation ID: 19AQMM19R0403

Pricing Type: TIME AND MATERIALS (Y)

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: $3,980,065

Exercised Options: $3,980,065

Current Obligation: $3,980,065

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM19D0154

IDV Type: IDC

Timeline