DoD's $546M Facilities Support Services Contract Awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $546,541,274 ($546.5M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2003-03-31

End Date: 2015-10-30

Contract Duration: 4,596 days

Daily Burn Rate: $118.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $546.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: Key points: 1. The contract represents a significant investment in maintaining critical facilities. 2. Competition dynamics for this large-scale contract are crucial for ensuring fair pricing. 3. The duration of the contract suggests a need for long-term, stable service provision. 4. Performance context will be key to understanding the value delivered over its lifespan. 5. This contract falls within the broader Facilities Support Services sector, a vital component of government operations. 6. The firm-fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this $546 million contract requires detailed analysis of the specific services rendered and the prevailing market rates for facilities support at the time of award. Without a direct comparison to similar, contemporaneous contracts for comparable scope and scale, assessing value for money is challenging. The firm-fixed-price nature suggests an attempt to control costs, but the ultimate value depends on the contractor's efficiency and the government's oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The specific number of bidders and the evaluation criteria would provide further insight into the robustness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential facilities support services. Services likely include maintenance, repair, and operational support for various Army facilities. The geographic impact is concentrated where the supported facilities are located, primarily within Virginia. Workforce implications may include direct employment by the contractor and potential impacts on government facility management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm-fixed-price structure.
Ensuring consistent service quality across a long-duration contract can be challenging.
Dependence on a single contractor for critical facilities operations poses a risk.
Adequacy of government oversight to manage performance and prevent contractor inefficiencies.
The long contract duration might limit opportunities to leverage newer technologies or more cost-effective solutions introduced later.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
Long contract duration allows for stable, long-term facility management.
Contractor's established presence (implied by the award) may indicate experience.
The contract supports critical infrastructure for the Department of Defense.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of activities necessary for the operation and maintenance of government buildings and infrastructure. This sector is characterized by numerous service providers, ranging from large corporations to specialized small businesses. The total federal spending in this sector is substantial, reflecting the government's extensive real estate holdings and operational needs. This contract fits within the larger trend of outsourcing non-core functions to specialized contractors to achieve efficiency and focus on mission objectives.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it explicitly indicate subcontracting goals for small businesses in the provided data. The large scale and nature of facilities support services often lend themselves to prime contracts awarded to larger entities. However, the prime contractor may engage small businesses for specialized services or as subcontractors, contributing to the small business ecosystem indirectly. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and a contract specialist within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Information Technology Support Services
Professional Services
Construction and Engineering Services

Risk Flags

Long contract duration may limit flexibility
Potential for cost escalation not fully captured in FFP
Dependence on single contractor for critical services
Need for robust performance monitoring over extended period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $546.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ALLIANT TECHSYSTEMS OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $546.5 million.

What is the period of performance?

Start: 2003-03-31. End: 2015-10-30.

What specific facilities support services are included under this $546 million contract?

The provided data indicates the contract falls under NAICS code 561210, Facilities Support Services. This broad category typically encompasses a wide array of services essential for the operation and maintenance of physical infrastructure. Specific services could include, but are not limited to, building operations and maintenance, groundskeeping, custodial services, pest control, refuse collection, security systems maintenance, and potentially minor repair and renovation work. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. Given the significant value and duration, it likely covers comprehensive support for a substantial portfolio of facilities.

How does the $546 million value compare to similar facilities support contracts awarded by the Department of Defense?

The $546 million value for a facilities support contract awarded by the Department of the Army is substantial, reflecting a significant commitment to maintaining its infrastructure. To benchmark this effectively, one would need to compare it against other large-scale, long-duration facilities support contracts awarded by the DoD or other federal agencies in recent years. Factors such as the number and type of facilities supported, geographic scope, and the specific services included are critical for a meaningful comparison. Without access to a database of comparable contracts, it's difficult to definitively state whether this represents a high, low, or average investment. However, contracts of this magnitude typically cover extensive operational requirements over many years.

What are the potential risks associated with a firm-fixed-price contract of this duration (over 12 years)?

Firm-fixed-price (FFP) contracts aim to provide cost certainty, but they carry inherent risks, especially over a long duration like this contract's 4596 days (over 12 years). For the government, the primary risk is that the contractor may not perform optimally if the price is too high, or conversely, the contractor might cut corners on quality to maintain profitability if the price is too low or costs escalate unexpectedly. For the contractor, the risk lies in unforeseen cost increases due to inflation, material price volatility, or changes in labor costs, which they must absorb. Additionally, over such a long period, technological advancements or changes in operational requirements might make the contracted services less efficient or outdated, yet the FFP structure may hinder flexibility to adapt without costly change orders.

What does the 'full and open competition' designation imply for the contractor selection and pricing?

The 'full and open competition' designation signifies that the Department of the Army solicited proposals from all responsible sources and that no restrictions were placed on the types of businesses that could bid. This is the preferred method of government contracting as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. For pricing, this generally translates into more competitive bids as contractors vie for the award. It suggests that the government likely received multiple proposals and had a range of pricing options to evaluate, theoretically leading to a more favorable price for the taxpayer compared to sole-source or limited competition scenarios.

How might the long contract duration (over 12 years) impact the government's ability to adapt to changing needs or technologies?

A contract spanning over 12 years presents a significant challenge for government adaptability. During this extended period, the needs of the Department of the Army and the available technologies in facilities support are likely to evolve considerably. The firm-fixed-price nature, while offering cost certainty, can make incorporating new technologies or adapting to shifting requirements difficult and potentially expensive through change orders. The government might find itself locked into a specific service delivery model or technology that becomes suboptimal over time. This necessitates robust contract management and potentially pre-negotiated mechanisms for incorporating innovation or addressing obsolescence to mitigate the risk of the contract becoming outdated.

What is the significance of the contract being awarded to 'ALLIANT TECHSYSTEMS OPERATIONS LLC' in the context of federal contracting?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) is a well-established defense contractor. Its involvement in a $546 million facilities support contract indicates its capability to manage large, complex service agreements. For the Department of the Army, awarding such a significant contract to a known entity suggests a level of trust in their past performance and capacity. In the broader federal contracting landscape, large companies like Alliant often play a crucial role in delivering essential services across various domains, leveraging their scale, expertise, and resources. Their participation underscores the trend of major defense contractors expanding their service offerings beyond traditional defense systems into areas like facilities management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: STATE ROUTE 114, RADFORD, VA, 24143

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline