HHS awards $3.36M for campus shuttle services, with C2 Alaska LLC securing the contract

Contract Overview

Contract Amount: $3,358,464 ($3.4M)

Contractor: C2 Alaska, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-06

End Date: 2027-01-17

Contract Duration: 741 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TRANSPORTATION AND TRANSIT SERVICES CAMPUS ONSITE SHUTTLE CIRCULATOR

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20901

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.4 million to C2 ALASKA, LLC for work described as: TRANSPORTATION AND TRANSIT SERVICES CAMPUS ONSITE SHUTTLE CIRCULATOR Key points: 1. The contract value of $3.36 million over approximately two years suggests a moderate investment in essential campus transportation. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could lead to favorable pricing. 3. The firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs for the government. 4. The North American Industry Classification System (NAICS) code 812930 points to services related to parking and transportation infrastructure. 5. The contract duration of 741 days (approximately 2 years) aligns with typical service contracts of this nature. 6. The award was made by the Department of Health and Human Services (HHS) to C2 Alaska, LLC.

Value Assessment

Rating: good

The contract value of $3.36 million for approximately two years of shuttle services appears reasonable for a federal agency campus. Benchmarking against similar contracts for campus transportation services would provide a more precise assessment of value for money. The firm-fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the 'full and open' nature suggests a broad solicitation. This approach is intended to maximize competition and achieve the best possible pricing and terms.

Taxpayer Impact: A fully and openly competed contract generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

Employees and visitors of the Food and Drug Administration (FDA) campus in Maryland will benefit from reliable shuttle services. The contract ensures the provision of transportation services, facilitating movement within the campus. The geographic impact is localized to the FDA's facilities in Maryland. The contract supports jobs within the transportation services sector, likely benefiting the local workforce in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reasons for excluding certain sources in the 'full and open competition after exclusion of sources' are not detailed, which could obscure potential competitive advantages lost.
Lack of detailed performance metrics or service level agreements in the provided data makes it difficult to assess the quality of service expected.
The contract's reliance on a single awardee, C2 Alaska, LLC, means that the government's options are limited to this contractor for the duration of the contract.

Positive Signals

The use of 'full and open competition' suggests an effort to ensure a wide range of potential contractors could bid, promoting a fair marketplace.
The firm-fixed-price contract type provides cost certainty for the government, minimizing the risk of unexpected price increases.
The contract is awarded to C2 Alaska, LLC, which may have a proven track record in providing similar services, though this is not detailed here.

Sector Analysis

The transportation and transit services sector for federal agencies is a critical component of operational efficiency, particularly for large campuses. This contract falls within the broader professional, scientific, and technical services industry, specifically addressing logistical support. Comparable spending benchmarks for campus shuttle services can vary significantly based on campus size, geographic location, and service frequency, but a $3.36 million contract over two years for a federal facility is within a typical range for such specialized support.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the competition was open to all eligible businesses, regardless of size. While there is no explicit subcontracting requirement mentioned, the prime contractor, C2 Alaska, LLC, may choose to engage small businesses for specific components of the service, which would contribute to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' procurement and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is generally maintained through federal procurement databases where contract awards are reported. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance.

Related Government Programs

Federal Fleet Management
Campus Operations Support
Logistics and Transportation Services
Government Facility Management

Risk Flags

Potential for limited competition due to source exclusion
Lack of detailed performance metrics in summary data
Contractor's past performance not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.4 million to C2 ALASKA, LLC. TRANSPORTATION AND TRANSIT SERVICES CAMPUS ONSITE SHUTTLE CIRCULATOR

Who is the contractor on this award?

The obligated recipient is C2 ALASKA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2025-01-06. End: 2027-01-17.

What is the track record of C2 Alaska, LLC in providing similar transportation services to federal agencies?

Information regarding C2 Alaska, LLC's specific track record in providing similar transportation services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Federal procurement databases and agency performance rating systems (like Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for such information. Without this data, it is difficult to definitively assess their experience and reliability for this specific shuttle service contract.

How does the awarded amount of $3.36 million compare to similar campus shuttle service contracts awarded by other federal agencies?

The awarded amount of $3.36 million for approximately two years of shuttle services for the FDA campus in Maryland is a moderate figure. To benchmark effectively, one would need to compare it against contracts for similar-sized federal facilities or campuses with comparable ridership and service requirements. Factors such as geographic location (cost of labor and fuel), service frequency, operating hours, and the number of shuttle routes significantly influence pricing. A preliminary comparison suggests this amount is within a reasonable range, but a detailed analysis of contract scope and market conditions would be necessary for a definitive value-for-money assessment.

What are the primary risks associated with this firm-fixed-price contract for shuttle services?

The primary risks associated with this firm-fixed-price contract, while generally favorable for the government by providing cost certainty, lie in potential contractor underperformance or unforeseen operational challenges. If C2 Alaska, LLC underestimates operational costs (e.g., fuel, maintenance, labor), they may struggle to maintain service quality or could face financial difficulties, potentially impacting service continuity. Conversely, if the pricing was set too high due to limited competition or inaccurate cost estimation by the contractor, taxpayers may be overpaying. The government's risk is primarily in ensuring the contractor has the capacity and incentive to deliver the required service levels consistently.

What are the expected performance metrics or service level agreements (SLAs) for this shuttle service?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) for this shuttle service contract. Typically, such contracts would include detailed requirements regarding on-time performance, vehicle maintenance schedules, driver qualifications, passenger capacity, route adherence, and customer service standards. The absence of this information in the summary data makes it challenging to evaluate the expected quality and reliability of the service. A thorough review of the full contract document would be necessary to ascertain these critical performance expectations.

What is the historical spending pattern for campus shuttle services at the FDA or similar HHS facilities?

Historical spending patterns for campus shuttle services at the FDA or similar HHS facilities are not detailed in the provided data. To establish such a pattern, one would need to analyze past contracts for shuttle services at these locations, noting award amounts, contract durations, and the number of competitors. This analysis would reveal trends in cost, competition levels, and contractor performance over time. Understanding historical spending is crucial for assessing whether the current $3.36 million award represents an increase, decrease, or stable expenditure compared to previous service provisions.

What is the significance of the 'After Exclusion of Sources' clause in the contract competition type?

The 'After Exclusion of Sources' clause within 'Full and Open Competition' indicates that while the competition was intended to be broad, certain potential sources were deliberately excluded. The reasons for exclusion must be justified and documented, often relating to factors like national security, proprietary information, or specific technical requirements that only a limited number of entities can meet. This clause can potentially limit the breadth of competition, which might impact price discovery and innovation compared to a truly unrestricted 'full and open' competition. Taxpayers benefit when exclusions are strictly necessary and well-justified, preventing artificial market limitations.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › Parking Lots and Garages

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5253 PRUE RD STE 230, SAN ANTONIO, TX, 78240

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $11,489,766

Exercised Options: $3,358,464

Current Obligation: $3,358,464

Actual Outlays: $1,655,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40125D00005

IDV Type: IDC

Timeline