DOE Awards $31.5M Firm Fixed Price Contract for Vehicle Maintenance Facility to Qayaq Government Solutions
Contract Overview
Contract Amount: $31,454,651 ($31.5M)
Contractor: Qayaq Government Solutions LLC
Awarding Agency: Department of Energy
Start Date: 2025-09-29
End Date: 2028-03-31
Contract Duration: 914 days
Daily Burn Rate: $34.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT A NEW VEHICLE MAINTENANCE FACILITY (VMF) FOR THE OFFICE OF SECURE TRANSPORTATION'S (OST), AGENT OPERATION CENTRAL COMMAND (AOCC)
Place of Performance
Location: AMARILLO, POTTER County, TEXAS, 79120
State: Texas Government Spending
Plain-Language Summary
Department of Energy obligated $31.5 million to QAYAQ GOVERNMENT SOLUTIONS LLC for work described as: DESIGN AND CONSTRUCT A NEW VEHICLE MAINTENANCE FACILITY (VMF) FOR THE OFFICE OF SECURE TRANSPORTATION'S (OST), AGENT OPERATION CENTRAL COMMAND (AOCC) Key points: 1. The contract is for the design and construction of a new Vehicle Maintenance Facility (VMF) for the Office of Secure Transportation. 2. The total award is $31,454,651 with a duration of 914 days. 3. The contract was not competed, raising questions about price discovery and potential value. 4. The sector is Commercial and Institutional Building Construction, with a North American Industry Classification System (NAICS) code of 236220.
Value Assessment
Rating: questionable
The contract is firm fixed price, which can offer cost certainty. However, without competition, it's difficult to benchmark the pricing against similar projects to determine if it represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible price for this construction project.
Public Impact
Taxpayers may be overpaying due to the lack of competition. The project aims to improve operational capabilities for the Office of Secure Transportation. The construction will take place in Texas, potentially creating local jobs. The facility is critical for maintaining specialized transportation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Firm fixed price contract
- Addresses critical infrastructure need
Sector Analysis
The Commercial and Institutional Building Construction sector involves significant investment. Benchmarking this award against similar government or private sector VMF construction projects would be necessary to fully assess its value.
Small Business Impact
The data indicates this contract was awarded to Qayaq Government Solutions LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Energy's Office of Secure Transportation is responsible for this award. Standard oversight mechanisms for federal construction projects should apply, but the lack of competition warrants closer scrutiny.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price determination
Tags
commercial-and-institutional-building-co, department-of-energy, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $31.5 million to QAYAQ GOVERNMENT SOLUTIONS LLC. DESIGN AND CONSTRUCT A NEW VEHICLE MAINTENANCE FACILITY (VMF) FOR THE OFFICE OF SECURE TRANSPORTATION'S (OST), AGENT OPERATION CENTRAL COMMAND (AOCC)
Who is the contractor on this award?
The obligated recipient is QAYAQ GOVERNMENT SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $31.5 million.
What is the period of performance?
Start: 2025-09-29. End: 2028-03-31.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a unique capability or urgent need. Without this information, it's impossible to assess how the price was determined to be fair and reasonable, raising concerns about potential overpayment and lack of value for taxpayer funds.
What are the specific risks associated with a sole-source construction contract of this magnitude?
The primary risk of a sole-source construction contract of this magnitude is the lack of competitive pressure, which can lead to inflated pricing and reduced quality. There's also a risk of vendor lock-in, limited innovation, and potential for cost overruns if the initial price wasn't rigorously vetted. Oversight is crucial to mitigate these risks.
How will the effectiveness of the new Vehicle Maintenance Facility be measured post-construction?
The effectiveness of the new VMF will likely be measured by its ability to support the OST's mission, including reduced downtime for vehicles, improved maintenance turnaround times, and enhanced operational readiness. Key performance indicators could include maintenance completion rates, facility utilization, and cost savings compared to previous maintenance arrangements.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233125RNA000277
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6700 ARCTIC SPUR RD, ANCHORAGE, AK, 99518
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: $31,454,651
Exercised Options: $31,454,651
Current Obligation: $31,454,651
Actual Outlays: $2,587,322
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-29
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-29
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