GSA Awards $20M for State Dept. Building Hardening, Lacking Competition

Contract Overview

Contract Amount: $20,057,055 ($20.1M)

Contractor: Alutiiq Global Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2008-12-10

End Date: 2016-03-31

Contract Duration: 2,668 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR TO PROVIDE DEMOLITION, ABATEMENT, AND CONSTRUCTION SERVICES FOR THE BLAST PACKAGE #2 (PERIMETER HARDENING) FOR PHASE 1B AT THE MAIN DEPARTMENT OF STATE BUILDING IN WASHINGTON, DC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $20.1 million to ALUTIIQ GLOBAL SOLUTIONS LLC for work described as: CONTRACTOR TO PROVIDE DEMOLITION, ABATEMENT, AND CONSTRUCTION SERVICES FOR THE BLAST PACKAGE #2 (PERIMETER HARDENING) FOR PHASE 1B AT THE MAIN DEPARTMENT OF STATE BUILDING IN WASHINGTON, DC Key points: 1. Significant investment in critical infrastructure for the Department of State. 2. Sole-source award raises questions about price discovery and potential overspending. 3. Long contract duration (2668 days) suggests a complex, multi-year project. 4. Construction sector spending benchmark for similar projects needs review.

Value Assessment

Rating: questionable

The contract value of $20,005,705.02 for demolition, abatement, and construction is difficult to assess without competitive bids. The lack of competition makes it challenging to determine if this price is reasonable compared to market rates for similar large-scale building hardening projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method limits price discovery and may not result in the most cost-effective outcome for taxpayers.

Taxpayer Impact: The absence of competition for a $20M contract raises concerns about potential overpayment and inefficient use of taxpayer funds.

Public Impact

Enhances security for a key federal facility, protecting national interests. Project completion impacts the operational capacity and safety of the Department of State. Potential for disruption during construction activities in Washington, D.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. The $20M award is substantial and requires careful benchmarking against similar government and private sector projects to ensure value for money.

Small Business Impact

The data indicates this was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the General Services Administration to ensure the contractor is meeting all performance requirements and that costs are justified.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, general-services-administration, dc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.1 million to ALUTIIQ GLOBAL SOLUTIONS LLC. CONTRACTOR TO PROVIDE DEMOLITION, ABATEMENT, AND CONSTRUCTION SERVICES FOR THE BLAST PACKAGE #2 (PERIMETER HARDENING) FOR PHASE 1B AT THE MAIN DEPARTMENT OF STATE BUILDING IN WASHINGTON, DC

Who is the contractor on this award?

The obligated recipient is ALUTIIQ GLOBAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2008-12-10. End: 2016-03-31.

What justification was provided for the sole-source award, and was a market research analysis conducted to confirm the absence of viable competitive options?

The provided data does not include the justification for the sole-source award. Typically, agencies must document extensive market research to demonstrate that competition is not feasible. Without this documentation, it's impossible to assess if the government adequately explored competitive avenues before resorting to a sole-source procurement, which is generally less desirable due to potential price inflation and reduced innovation.

How was the $20 million price determined without competitive bidding, and what mechanisms are in place to ensure cost reasonableness throughout the contract's duration?

Without competition, determining cost reasonableness is challenging. The agency likely relied on cost-plus or other pricing structures, potentially including profit margins and indirect costs. Robust oversight, including detailed cost audits and progress reviews, would be essential to validate expenditures and prevent overruns. Benchmarking against historical data or similar sole-source contracts could offer some comparative insight.

What specific security enhancements does 'perimeter hardening' entail, and how does this project align with the Department of State's overall security strategy?

Perimeter hardening typically involves physical security upgrades to the building's exterior and immediate surroundings to prevent unauthorized access or attacks. This could include reinforced barriers, improved surveillance, access control systems, and blast-resistant features. The project's alignment with the State Department's security strategy would depend on a comprehensive threat assessment and the specific vulnerabilities being addressed by this phase of construction.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-11P-08-MK-C-0062

Offers Received: 1

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, 80014

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,057,055

Exercised Options: $20,057,055

Current Obligation: $20,057,055

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2008-12-10

Current End Date: 2016-03-31

Potential End Date: 2016-03-31 00:00:00

Last Modified: 2016-01-18

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