Labor Department's $28.3M bridge contract to Alutiiq Education & Training, LLC, awarded without competition

Contract Overview

Contract Amount: $28,287,134 ($28.3M)

Contractor: Alutiiq Education & Training, LLC

Awarding Agency: Department of Labor

Start Date: 2016-08-31

End Date: 2018-08-31

Contract Duration: 730 days

Daily Burn Rate: $38.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF WESTOVER BRIDGE CONTRACT

Place of Performance

Location: CHICOPEE, HAMPDEN County, MASSACHUSETTS, 01022

State: Massachusetts Government Spending

Plain-Language Summary

Department of Labor obligated $28.3 million to ALUTIIQ EDUCATION & TRAINING, LLC for work described as: IGF::OT::IGF WESTOVER BRIDGE CONTRACT Key points: 1. The contract's value of $28.3 million represents a significant investment in educational and training services. 2. Awarded as a sole-source contract, it bypasses standard competitive processes, raising questions about potential cost efficiencies. 3. The fixed-firm price structure aims to control costs, but the lack of competition limits benchmarking opportunities. 4. Performance duration of two years suggests a focused scope of work, but long-term value is yet to be determined. 5. The contract falls under the 'Other Technical and Trade Schools' NAICS code, indicating a focus on specialized vocational training. 6. No small business set-aside was applied, suggesting the primary contractor is not a small business or the contract scope did not lend itself to such a designation.

Value Assessment

Rating: questionable

Benchmarking the value of this $28.3 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the price reflects fair market value or if alternative, more cost-effective solutions were overlooked. The fixed-firm price offers some cost certainty, but the absence of competition prevents a direct comparison to similar services procured through open bidding. Further analysis would require understanding the specific services rendered and their necessity to justify the expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there were no other bidders to compare against, potentially limiting the government's ability to secure the most favorable pricing and terms. This method can sometimes lead to higher costs compared to fully competed contracts.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced assurance that the government secured the best possible price. Without competitive pressure, the awarded price might be higher than what could have been achieved through an open bidding process, potentially leading to less efficient use of public funds.

Public Impact

The primary beneficiaries are likely individuals seeking vocational or technical training under the purview of the Department of Labor. The contract facilitates the delivery of educational and training services, though the specific nature of these services is not detailed. The geographic impact is likely concentrated in Massachusetts, where the contract was awarded. Workforce implications could include the creation or sustainment of jobs within the educational services sector, particularly for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for cost overruns.
Sole-source awards can limit opportunities for other qualified vendors, potentially stifling market innovation.
The absence of detailed service descriptions makes it difficult to assess the true value and necessity of the contract.
Limited transparency in the procurement process hinders public and internal oversight.
The contract's duration and value warrant scrutiny to ensure continued alignment with government objectives.

Positive Signals

The fixed-firm price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contractor, Alutiiq Education & Training, LLC, is presumably qualified to deliver the specified services.
The contract duration of two years allows for a defined period of service delivery and performance evaluation.
Awarding to a specific entity suggests a strategic decision to leverage particular expertise or capabilities.

Sector Analysis

The contract falls under the 'Other Technical and Trade Schools' sector, which is part of the broader educational services industry. This sector is characterized by institutions providing vocational training and specialized skills development. The market size for such services can be substantial, driven by workforce development needs and individual career advancement goals. This specific contract, valued at $28.3 million, represents a significant procurement within this niche, potentially serving a substantial number of individuals or fulfilling a critical training requirement for the Department of Labor.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary focus was on fulfilling the service requirement directly by the awarded contractor, Alutiiq Education & Training, LLC. Consequently, the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM). As a definitive contract awarded without competition, it warrants close monitoring to ensure the contractor meets performance expectations and that the expenditure remains justified. Transparency is limited by the sole-source nature, but internal audits and performance reviews should be in place. The Inspector General's office may also have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Labor Workforce Development Programs
Federal Vocational Training Initiatives
Government Educational Services Contracts
Sole-Source Procurement Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency in procurement justification.
Potential for cost inefficiencies due to lack of competition.
Contract performance details are not specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $28.3 million to ALUTIIQ EDUCATION & TRAINING, LLC. IGF::OT::IGF WESTOVER BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is ALUTIIQ EDUCATION & TRAINING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2016-08-31. End: 2018-08-31.

What specific educational or training services does this $28.3 million contract cover?

The provided data indicates the contract falls under NAICS code 611519, 'Other Technical and Trade Schools.' This suggests the services are related to vocational training and specialized technical education. However, the specific curriculum, target audience, and learning objectives are not detailed in the summary data. Without this information, it is difficult to ascertain the precise nature of the training provided, such as whether it focuses on specific trades, digital skills, or other vocational areas. Further documentation, such as the contract statement of work, would be necessary to fully understand the scope of services delivered under this significant federal investment.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE.' This implies that the Department of Labor determined that only one vendor, Alutiiq Education & Training, LLC, could fulfill the requirement. Common justifications for sole-source awards include unique capabilities, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previous sole-source award where only one vendor possesses the necessary knowledge or proprietary data. Without additional context from the agency's justification for other than full and open competition (JOFOC), the specific rationale remains unclear. This lack of competition limits the government's ability to ensure it received the best possible price and value.

How does the $28.3 million contract value compare to similar educational service contracts awarded by the federal government?

Comparing this $28.3 million contract requires context regarding the specific services and duration. However, as a sole-source award for educational services, its size is substantial. Federal spending on education and training is diverse, ranging from large-scale academic research grants to specific vocational programs. Contracts of this magnitude often involve significant scope, such as training a large cohort of individuals or providing highly specialized technical instruction. Benchmarking against similar sole-source awards in the 'Other Technical and Trade Schools' category would be most relevant, but such data is not readily available. Generally, larger contract values, especially without competition, necessitate rigorous justification and oversight to ensure taxpayer funds are used effectively.

What is the track record of Alutiiq Education & Training, LLC with federal contracts, particularly with the Department of Labor?

The provided data identifies Alutiiq Education & Training, LLC as the contractor for this $28.3 million definitive contract. However, it does not offer details on the company's past performance, contract history, or specific track record with the Department of Labor or other federal agencies. To assess their reliability and past performance, one would typically need to consult federal procurement databases (like SAM.gov or FPDS) for a history of awarded contracts, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without this information, it's impossible to evaluate their suitability beyond the agency's initial determination for this sole-source award.

What are the potential risks associated with a sole-source contract of this value?

A sole-source contract of $28.3 million carries several inherent risks. Firstly, the lack of competition means the government may not be achieving the best possible price, potentially leading to inefficient use of taxpayer funds. Secondly, without multiple bidders, there's less incentive for the contractor to innovate or provide exceptional service beyond the contract minimums. Thirdly, the absence of a competitive process can raise concerns about fairness and transparency in government procurement. Finally, if the contractor fails to perform adequately, the government has limited immediate alternatives due to the sole-source nature, potentially leading to disruptions in service delivery or costly contract renegotiations.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corporation

Address: 3909 ARCTIC BLVD STE 500, 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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,287,134

Exercised Options: $28,287,134

Current Obligation: $28,287,134

Actual Outlays: $1,591,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline