HUD awards $8.1M for audio, video, and wireless services to Arlluk Technology Solutions LLC

Contract Overview

Contract Amount: $8,130,842 ($8.1M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2022-09-13

End Date: 2026-09-12

Contract Duration: 1,460 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUDIO VIDEO, COLLABORATION AND SECURE WIRELESS SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $8.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: AUDIO VIDEO, COLLABORATION AND SECURE WIRELESS SERVICES Key points: 1. Contract value appears reasonable given the scope of IT infrastructure and services required. 2. Limited competition may have impacted overall value for money. 3. Contract duration of four years presents a moderate risk for technology obsolescence. 4. Services are critical for agency operations and communication. 5. This contract falls within the IT services sector, a common area for federal spending. 6. The firm fixed-price structure shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of $8.1 million over four years for comprehensive audio, video, collaboration, and secure wireless services seems within a reasonable range for a federal agency of HUD's size. Benchmarking against similar IT infrastructure and managed services contracts for federal agencies suggests that the overall price is competitive, especially considering the inclusion of secure wireless capabilities. The firm fixed-price (FFP) nature of the contract indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. While sole-source awards can be justified for specific capabilities or urgent needs, they typically result in less competitive pricing compared to full and open competition. The absence of multiple bidders limits the government's ability to leverage market forces to secure the best possible price and terms. Further justification for the sole-source award would be needed to fully assess its impact.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution available in the market. The lack of competition prevents price discovery through bidding, potentially leading to higher overall expenditure.

Public Impact

The Department of Housing and Urban Development (HUD) benefits directly through enhanced communication and collaboration capabilities. Services include audio, video, and secure wireless infrastructure, supporting daily operations and remote work. The contract's geographic impact is primarily within the District of Columbia, where HUD's headquarters are located. Workforce implications include the potential need for IT support staff to manage and maintain the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
Contract duration of four years could lead to technology obsolescence if not managed proactively.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality.
The specific nature of 'secure wireless' requires careful monitoring to ensure compliance with federal security standards.

Positive Signals

Firm Fixed Price contract shifts cost overrun risk to the contractor.
The contract addresses critical IT infrastructure needs for agency operations.
Awarding to a single vendor can streamline implementation and management if the vendor has specialized expertise.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT facilities management and network services. The IT services market is vast and highly competitive, with significant federal spending allocated annually. This contract represents a portion of HUD's investment in maintaining and upgrading its core communication and collaboration infrastructure. Comparable spending benchmarks for similar IT managed services contracts within federal agencies can range widely based on scope and duration, but an $8.1 million award over four years for comprehensive services is a substantial investment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal based on this information. Without specific subcontracting plans, it's difficult to assess the indirect benefits to small businesses that might supply components or specialized services to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within HUD's IT department. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency could be enhanced by making the sole-source justification publicly available and detailing performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Chief Information Officer-Solutions and Partners (CIO-SP) Contracts
Federal Enterprise Architecture (FEA)

Risk Flags

Sole-source award may indicate limited market availability or a lack of competitive bidding.
Contract duration of four years poses a risk of technology obsolescence.
Lack of detailed performance data makes objective assessment of value difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $8.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. AUDIO VIDEO, COLLABORATION AND SECURE WIRELESS SERVICES

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2022-09-13. End: 2026-09-12.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the absence of adequate competition. For this contract, awarded to Arlluk Technology Solutions LLC, the specific reason for not competing it broadly is not detailed in the provided data. Common justifications include that only one vendor possesses the necessary security clearances, proprietary technology, or specialized expertise required for the audio, video, collaboration, and secure wireless services. Without access to the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state the rationale. However, sole-source awards are generally scrutinized to ensure they are truly necessary and do not simply circumvent the competitive process, which could lead to higher costs for taxpayers.

How does the $8.1 million contract value compare to similar IT services contracts at HUD or other agencies?

Comparing the $8.1 million contract value requires context regarding the specific services and duration. Over four years, this averages to $2.025 million annually. For comprehensive audio, video, collaboration, and secure wireless services, this figure appears reasonable for a federal agency. Many agencies procure similar services through various contract vehicles, including IT Schedule 70 (now IT Schedule 84) or task orders under larger IDIQs. For instance, contracts for managed network services, unified communications, or secure Wi-Fi deployments for agencies of similar size can range from hundreds of thousands to several million dollars annually. The firm fixed-price nature also suggests a defined scope, making direct comparisons with cost-reimbursable contracts less meaningful. Without detailed service level agreements (SLAs) and specific deliverables, a precise benchmark is challenging, but the overall value seems aligned with typical federal IT infrastructure investments.

What are the potential risks associated with a four-year contract for technology services?

A four-year contract for technology services, particularly in the rapidly evolving fields of audio, video, collaboration, and wireless networking, carries inherent risks of technology obsolescence. The pace of innovation means that hardware and software deployed at the beginning of the contract could be outdated by its end. This necessitates careful contract management, including provisions for technology refresh or upgrades, to ensure the government continues to receive modern and efficient solutions. Another risk is vendor lock-in, especially if the chosen technologies are proprietary. Furthermore, if the scope of work is not precisely defined or if requirements change significantly, the firm fixed-price nature could lead to disputes or the need for costly contract modifications. Proactive vendor engagement and regular reviews are crucial to mitigate these risks.

What performance metrics or service level agreements (SLAs) are in place to ensure service quality?

The provided data does not include specific performance metrics or Service Level Agreements (SLAs) associated with this contract. In a typical federal contract for IT services, SLAs would define measurable standards for uptime, response times, resolution times for issues, network performance, and security compliance. These metrics are crucial for evaluating the contractor's performance and ensuring the government receives the value it is paying for. Without these details, assessing the quality of services delivered by Arlluk Technology Solutions LLC is difficult. It is expected that such metrics would be detailed within the contract's statement of work (SOW) or performance work statement (PWS) and would be actively monitored by HUD's contracting officer's representative (COR).

How does this contract align with HUD's overall IT modernization or digital transformation goals?

This contract for audio, video, collaboration, and secure wireless services directly supports HUD's IT modernization and digital transformation efforts by providing the foundational infrastructure for modern communication. Enhanced collaboration tools and reliable wireless connectivity are essential for enabling a more agile workforce, supporting remote work capabilities, and improving internal and external communication. These services are critical for agencies aiming to adopt cloud-based solutions, improve data sharing, and streamline operational processes. By investing in these core IT components, HUD is positioning itself to better leverage other digital technologies and services, thereby contributing to its broader goals of improving service delivery and operational efficiency.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615622R00021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR, 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: $12,655,147

Exercised Options: $8,130,842

Current Obligation: $8,130,842

Actual Outlays: $2,773,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline