DoD's $26.7M Waveform Operations Contract Awarded to University of Alaska Fairbanks Raises Oversight Questions
Contract Overview
Contract Amount: $26,662,798 ($26.7M)
Contractor: University of Alaska Fairbanks
Awarding Agency: Department of Defense
Start Date: 2021-04-01
End Date: 2026-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $14.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: IMS WAVEFORM OPERATIONS AND MAINTENANCE
Place of Performance
Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99775
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $26.7 million to UNIVERSITY OF ALASKA FAIRBANKS for work described as: IMS WAVEFORM OPERATIONS AND MAINTENANCE Key points: 1. The contract's value of $26.7 million over five years is significant for specialized technical services. 2. Limited competition is a key concern, with the award method suggesting potential lack of market research. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially obscuring specific service value. 4. The absence of small business participation is noted, despite the contract's size and duration.
Value Assessment
Rating: questionable
The contract type is Cost No Fee, which offers limited incentive for cost control. Benchmarking is difficult due to the broad NAICS code and lack of competition, making it hard to assess if the $26.7M price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers and limiting opportunities for other qualified vendors.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for specialized technical services due to the absence of competitive bidding. The broad classification of services makes it difficult for the public to understand the specific nature of the work performed. Limited transparency in the procurement process raises concerns about accountability and efficient use of federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Broad NAICS Code
- No Small Business Set-Aside
- Cost No Fee Contract Type
Positive Signals
- Long-term contract provides stability
- Awarded to a known entity (University of Alaska Fairbanks)
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is challenging without more specific service details, but large, long-term contracts in this sector often undergo rigorous competition to ensure value.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This is a missed opportunity to support small businesses, especially given the contract's duration and value.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the price is fair and the services are essential. The broad NAICS code also complicates effective oversight.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Broad NAICS code obscures service details and value.
- Cost No Fee contract type offers weak cost control incentives.
- No small business participation noted.
- Long contract duration (5 years) increases risk exposure.
Tags
all-other-professional-scientific-and-te, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to UNIVERSITY OF ALASKA FAIRBANKS. IMS WAVEFORM OPERATIONS AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF ALASKA FAIRBANKS.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $26.7 million.
What is the period of performance?
Start: 2021-04-01. End: 2026-03-31.
What specific technical services are included under 'All Other Professional, Scientific, and Technical Services' for IMS Waveform Operations, and how were these services justified as sole-source?
The specific services are not detailed in the provided data, falling under the broad NAICS code 541990. Justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required services, often due to unique capabilities, proprietary data, or urgent needs. Without further documentation, the rationale remains unclear.
What is the potential cost overrun risk associated with a 'Cost No Fee' contract awarded without competition for specialized technical services?
Cost No Fee contracts offer minimal incentive for the contractor to control costs, as the government agrees to pay all allowable costs regardless of efficiency. When awarded without competition, the government lacks a benchmark to assess reasonableness, increasing the risk of paying inflated prices and potential cost overruns if the scope or complexity is underestimated.
How does the lack of competition and broad service classification impact the overall effectiveness and value for money of this $26.7M DoD contract?
The lack of competition significantly hinders the government's ability to secure the best value and potentially lower prices through market forces. The broad service classification makes it difficult to assess if the specific services procured are truly effective for their intended purpose or if alternative, more cost-effective solutions exist, potentially diminishing overall value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HDTRA121R0001
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 2145 N. TANANA LOOP, FAIRBANKS, AK, 99775
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $27,317,699
Exercised Options: $27,317,699
Current Obligation: $26,662,798
Actual Outlays: $8,871,015
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $2,265,767
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-05
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