DoD's $15M Fort Lewis facility construction contract awarded to Alutiiq International Solutions, completed on time

Contract Overview

Contract Amount: $14,973,392 ($15.0M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-29

End Date: 2011-07-10

Contract Duration: 741 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND CONSTRUCTION OF COMPANY OPERATIONS FACILITY FOR 5TH BATTALION, 5TH AIR DEFENSE ARTILLERY AT FORT LEWIS, WA.

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: DESIGN AND CONSTRUCTION OF COMPANY OPERATIONS FACILITY FOR 5TH BATTALION, 5TH AIR DEFENSE ARTILLERY AT FORT LEWIS, WA. Key points: 1. The contract aimed to construct a facility for the 5th Battalion, 5th Air Defense Artillery at Fort Lewis, WA. 2. The project was awarded under full and open competition, indicating a broad market search. 3. The final cost was within the initial award amount, suggesting good cost control. 4. The contract duration was met, pointing to effective project management. 5. The specific nature of the facility suggests a focus on enhancing military operational readiness. 6. The award to a single contractor implies a clear selection based on competitive proposals.

Value Assessment

Rating: good

The contract's final value of approximately $15 million appears reasonable for a specialized military facility construction project. Benchmarking against similar government construction contracts for barracks or operational facilities of comparable size and complexity would provide a more precise value assessment. However, the absence of significant cost overruns suggests that the initial pricing was well-aligned with project requirements and market conditions at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means the solicitation was broadly advertised, but specific sources might have been excluded based on pre-qualification criteria or other factors. The presence of two bidders suggests a moderate level of competition. While more than two bidders would generally indicate stronger price discovery, two bidders still provide a basis for comparison and negotiation.

Taxpayer Impact: The competitive nature of this award, even with two bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the soldiers of the 5th Battalion, 5th Air Defense Artillery, who will utilize the new facility for their operations. The construction project delivered a dedicated operations facility, enhancing the unit's readiness and capabilities. The geographic impact is localized to Fort Lewis, Washington, supporting the military infrastructure in that region. The project likely involved a workforce of construction laborers, engineers, and project managers, contributing to local employment during the construction period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in construction projects if not managed tightly.
Reliance on a single contractor for a critical facility could pose risks if performance issues arise.
The 'exclusion of sources' clause warrants understanding the specific reasons for exclusion to ensure fairness.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Project completed within the scheduled duration, indicating effective project management.
Final cost appears to be in line with the awarded amount, suggesting good financial control.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Government construction projects, particularly for military installations, often represent substantial investments. The market for such specialized construction is competitive, with firms needing specific expertise and security clearances. This contract fits within the Department of Defense's ongoing efforts to modernize and maintain its infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract, as the awardee is Alutiiq International Solutions, LLC, which may not be classified as a small business for all contract types. Further investigation into subcontracting plans would be necessary to determine the extent of small business involvement. Without specific set-aside requirements, the opportunity for small businesses to participate would depend on their ability to compete as prime contractors or secure subcontracts.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring compliance with terms and specifications. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction Projects
Base Realignment and Closure (BRAC) Facilities
Department of Defense Facilities Management
Army Corps of Engineers Construction Contracts

Risk Flags

Potential for cost overruns in construction projects.
Risk of schedule delays due to unforeseen circumstances.
Need for clear definition of 'exclusion of sources' criteria.
Reliance on contractor's past performance for project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. DESIGN AND CONSTRUCTION OF COMPANY OPERATIONS FACILITY FOR 5TH BATTALION, 5TH AIR DEFENSE ARTILLERY AT FORT LEWIS, WA.

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INTERNATIONAL SOLUTIONS, 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 $15.0 million.

What is the period of performance?

Start: 2009-06-29. End: 2011-07-10.

What is the track record of Alutiiq International Solutions, LLC with federal contracts, particularly in construction?

Alutiiq International Solutions, LLC has a history of performing federal contracts, primarily within the Department of Defense. Their portfolio includes various services ranging from base operations support to construction and logistics. For construction projects specifically, their track record would need to be assessed based on performance reviews, past performance questionnaires, and any documented issues on similar projects. Examining their success rate on competitive bids and their ability to deliver projects on time and within budget provides insight into their reliability as a contractor for complex infrastructure development.

How does the final cost of $14.97 million compare to similar military facility construction projects awarded around 2009?

Benchmarking this $14.97 million contract requires comparing it to similar projects awarded in the 2009 timeframe for facilities of comparable size, function, and location. Factors such as square footage, specific construction materials, technological integration (e.g., HVAC, security systems), and site preparation complexities at Fort Lewis would influence cost. Without access to a detailed cost breakdown or a database of comparable projects with specific metrics, a precise comparison is difficult. However, for a dedicated operations facility for a military battalion, this figure appears within a plausible range, assuming standard construction practices and materials.

What were the specific reasons for excluding other potential sources in this 'full and open competition after exclusion of sources' award?

The designation 'full and open competition after exclusion of sources' implies that while the solicitation was broadly advertised, certain potential offerors were excluded based on specific, documented reasons. These reasons could include failure to meet mandatory pre-qualification criteria, such as possessing specific certifications, security clearances, past performance requirements, or technical capabilities essential for the project. Alternatively, it might relate to specific government mandates or socio-economic program requirements that limited the pool of eligible bidders. A thorough review of the solicitation documents and any associated justifications for source exclusion would clarify the precise rationale.

What is the assessed risk level associated with this type of construction contract for military operational facilities?

Construction contracts for military operational facilities carry inherent risks, including potential cost overruns due to unforeseen site conditions, material price fluctuations, or design changes. Schedule delays can also occur due to weather, labor issues, or supply chain disruptions. Furthermore, projects involving specialized military requirements may introduce unique technical risks. However, the Department of Defense typically employs robust risk management strategies, including detailed planning, stringent oversight, performance bonds, and liquidated damages clauses, to mitigate these risks. The successful completion of this project on time and within budget suggests that risks were effectively managed.

How has federal spending on military construction and facilities evolved since the award of this contract in 2009?

Federal spending on military construction and facilities has fluctuated significantly since 2009, influenced by factors such as ongoing military operations, strategic shifts, and budget appropriations. Following the peak of major overseas contingency operations, there has been a sustained focus on modernizing domestic infrastructure, including barracks, training facilities, and operational readiness centers. Budgetary constraints, sequestration, and evolving defense priorities have also shaped spending patterns. While specific figures vary annually, the overall trend indicates a continued, albeit sometimes constrained, investment in maintaining and upgrading military installations to meet contemporary defense needs.

What is the significance of the 'firm fixed price' contract type for this construction project?

A 'firm fixed price' (FFP) contract type is generally preferred by the government when the scope of work is well-defined and the risks of cost overruns are manageable. For this construction project, an FFP contract means the contractor, Alutiiq International Solutions, LLC, agreed to a set price for completing the facility. This shifts the primary risk of cost overruns to the contractor. While it provides budget certainty for the government, it also necessitates a thorough pre-award assessment of the contractor's ability to accurately estimate costs and manage the project effectively to ensure profitability.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3033 S PARKER RD STE 1111, AURORA, CO, 06

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, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,973,392

Exercised Options: $14,973,392

Current Obligation: $14,973,392

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HN08D0024

IDV Type: IDC

Timeline