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

Positive Signals

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

Risk Flags

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 ServicesOther Professional, Scientific, and Technical ServicesAll 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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