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

Positive Signals

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

Risk Flags

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: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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