ARLLUK TECHNOLOGY SOLUTIONS LLC Awarded $8.7M for Defense Information Systems Agency Software Support

Contract Overview

Contract Amount: $8,688,784 ($8.7M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-10

End Date: 2027-06-09

Contract Duration: 1,825 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE LEGACY APPLICATION SOFTWARE AND DEVELOPMENT SUPPORT CONTRACT PROVIDES TECHNICAL AND SOFTWARE DEVELOPMENT SUPPORT FOR THE DEFENSE INFORMATION SYSTEM AGENCY'S BUSINESS SYSTEMS PORTFOLIO MANAGEMENT OFFICE.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $8.7 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: THE LEGACY APPLICATION SOFTWARE AND DEVELOPMENT SUPPORT CONTRACT PROVIDES TECHNICAL AND SOFTWARE DEVELOPMENT SUPPORT FOR THE DEFENSE INFORMATION SYSTEM AGENCY'S BUSINESS SYSTEMS PORTFOLIO MANAGEMENT OFFICE. Key points: 1. Contract focuses on critical business systems support for DISA. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (5 years) suggests a need for sustained support. 4. Firm-fixed-price structure aims to control costs, but requires careful oversight. 5. Contractor's performance history will be key to assessing value. 6. Geographic location in Alaska may indicate specialized support needs or limited local competition.

Value Assessment

Rating: fair

The contract value of $8.7 million over five years averages to approximately $1.74 million annually. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, given the sole-source nature, it's difficult to assess if this represents competitive pricing or if alternative solutions could be more cost-effective. The firm-fixed-price contract type provides cost certainty, but the overall value proposition hinges on the contractor's ability to deliver the required services efficiently and effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or authorized by statute. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had bid. It is crucial to understand the justification for this sole-source award to ensure it was indeed necessary and that the government did not forgo potential cost savings.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price for the services rendered.

Public Impact

Provides essential technical and software development support for DISA's business systems. Ensures the continued operation and modernization of critical defense information infrastructure. Supports the Defense Information System Agency's mission to provide information capabilities. Impacts the efficiency and effectiveness of internal DISA operations. Workforce implications are primarily for the contractor's personnel assigned to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost efficiencies.
Long contract duration requires sustained monitoring for performance and value.
Lack of detailed service scope makes independent value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contractor is responsible for providing specialized software development support.
Award supports critical defense information systems.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital part of the broader IT services industry. This sector encompasses a wide range of activities, including custom software development, IT consulting, and systems integration. The Defense Information System Agency (DISA) is a significant consumer of these services, as maintaining and upgrading complex defense information systems requires specialized expertise. Comparable spending in this sector for government IT support can range from millions to billions of dollars annually, depending on the scope and complexity of the systems supported.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Defense, specifically the Defense Information Systems Agency. Accountability measures will be tied to the performance standards outlined in the contract and the firm-fixed-price structure. Transparency regarding the sole-source justification and ongoing performance metrics will be key to assessing effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information System Agency (DISA) IT Support Contracts
Department of Defense Software Development Services
Legacy Application Modernization Contracts
Business Systems Portfolio Management Support

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration requires sustained oversight.
Limited public information on specific services and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.7 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. THE LEGACY APPLICATION SOFTWARE AND DEVELOPMENT SUPPORT CONTRACT PROVIDES TECHNICAL AND SOFTWARE DEVELOPMENT SUPPORT FOR THE DEFENSE INFORMATION SYSTEM AGENCY'S BUSINESS SYSTEMS PORTFOLIO MANAGEMENT OFFICE.

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2022-06-10. End: 2027-06-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided information. Typically, sole-source awards are justified under circumstances such as: only one responsible source being available; a statute authorizing or requiring non-competitive award; or in certain emergency situations. Without the official justification document (e.g., a Justification and Approval or J&A), it is impossible to ascertain the precise reasons DISA determined that full and open competition was not feasible or appropriate for this particular contract. This lack of transparency is a key area for further investigation.

How does the annual cost of this contract compare to similar IT support contracts within the Department of Defense?

The annual cost for this contract is approximately $1.74 million ($8.7M / 5 years). Directly comparing this to similar IT support contracts within the DoD is challenging without more granular data on the specific services provided, the complexity of the systems supported, and the contractor's overhead structure. However, given that this is a sole-source award for legacy application software and development support, the price may not be as competitive as if it had undergone a full and open competition. Benchmarking would ideally involve analyzing contracts for similar system portfolios (e.g., business systems management) awarded competitively, looking at metrics like cost per developer hour, cost per system supported, or cost as a percentage of system lifecycle cost. The absence of such comparative data makes a definitive value assessment difficult.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected performance standards, quality of service, and timeliness of delivery for the software development and support services. Typically, for such contracts, KPIs might include system uptime, bug resolution time, successful deployment rates, and adherence to project timelines. SLAs would outline the specific metrics and acceptable thresholds for these KPIs, often with associated remedies or penalties for non-performance. The absence of this information hinders the ability to objectively assess the contractor's performance and the overall effectiveness of the contract.

What is ARLLUK TECHNOLOGY SOLUTIONS LLC's track record with similar government contracts, particularly within DISA or the DoD?

Information regarding ARLLUK TECHNOLOGY SOLUTIONS LLC's specific track record with similar government contracts, especially within DISA or the broader DoD, is not provided in the data. To assess their capability and past performance, one would typically review contract databases for previous awards, performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any history of contract modifications, disputes, or terminations. A positive track record with relevant agencies and contract types would increase confidence in their ability to successfully execute this current contract. Conversely, a history of poor performance or unresolved issues would raise significant concerns about value and risk.

What is the potential risk associated with relying on a single contractor for critical defense software support over a five-year period?

The primary risk associated with relying on a single contractor (ARLLUK TECHNOLOGY SOLUTIONS LLC) for critical defense software support over five years is vendor lock-in and a potential decrease in service quality or innovation over time. Without competition, the contractor may have less incentive to proactively improve services or offer cost reductions. Furthermore, if the contractor experiences financial difficulties, key personnel departures, or strategic shifts, it could significantly disrupt DISA's operations. The sole-source nature exacerbates this risk, as transitioning to a new vendor mid-contract would be complex and costly. Robust oversight, clear performance metrics, and contingency planning are essential to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC104722R0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR, 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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,893,995

Exercised Options: $9,006,549

Current Obligation: $8,688,784

Actual Outlays: $2,830,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline