FEMA's $39.8M readiness and surge support contract awarded to Alutiiq Global Solutions, LLC
Contract Overview
Contract Amount: $39,822,585 ($39.8M)
Contractor: Alutiiq Global Solutions, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2006-06-30
End Date: 2011-05-03
Contract Duration: 1,768 days
Daily Burn Rate: $22.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: Other
Official Description: READINESS AND SURGE SUPPORT SERVICES
Place of Performance
Location: HOPE, HEMPSTEAD County, ARKANSAS, 71801
State: Arkansas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $39.8 million to ALUTIIQ GLOBAL SOLUTIONS, LLC for work described as: READINESS AND SURGE SUPPORT SERVICES Key points: 1. The contract value of $39.8 million over its period of performance suggests a significant need for ongoing support services. 2. The award was made under a 'not available for competition' status, indicating limited or no prior competitive bidding. 3. The duration of 1768 days (approximately 4.8 years) points to a long-term requirement for these services. 4. The North American Industry Classification System (NAICS) code 484110 for General Freight Trucking, Local, suggests a focus on logistics and transportation. 5. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar framework. 6. The contract was awarded to Alutiiq Global Solutions, LLC, a single entity, raising questions about the breadth of market engagement.
Value Assessment
Rating: questionable
Without a competitive bidding process, it is difficult to benchmark the value for money. The total award of $39.8 million over nearly five years for readiness and surge support services, including general freight trucking, needs further context to assess if it aligns with market rates. The absence of competition raises concerns about potential overpricing or suboptimal service delivery compared to what might be achieved through a more open process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a 'not available for competition' status, meaning it was not openly competed. This typically occurs when only one source is capable of meeting the requirement, or in specific emergency situations. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially limiting the government's ability to secure the most favorable terms.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. This procurement approach bypasses the standard process designed to ensure cost-effectiveness through market competition.
Public Impact
The primary beneficiaries are likely the Department of Homeland Security (FEMA) and its operational units requiring readiness and surge support. Services delivered include general freight trucking and local transportation, crucial for logistical operations during emergencies or heightened readiness periods. The geographic impact is noted as Arkansas (ST: AR, SN: ARKANSAS), suggesting a regional focus for this specific delivery order. Workforce implications could involve the direct employment by Alutiiq Global Solutions, LLC, and potentially indirect employment through subcontractors, supporting logistical and transportation needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about price reasonableness and potential for inflated costs.
- The 'not available for competition' status requires scrutiny to ensure it was appropriately justified.
- Limited transparency into the selection process due to the sole-source nature of the award.
Positive Signals
- The contract provides essential readiness and surge support, critical for FEMA's mission.
- The long duration suggests a stable, ongoing need that the contractor is fulfilling.
- Award to a single entity may indicate a specialized capability or a pre-existing relationship deemed necessary for immediate support.
Sector Analysis
The logistics and transportation sector, particularly within government contracting, is highly competitive. However, specific niche services or urgent requirements can sometimes lead to non-competitive awards. FEMA's need for readiness and surge support, especially in areas like general freight trucking, falls under the broader umbrella of essential services that ensure operational continuity during crises. Comparable spending benchmarks for similar surge logistics contracts are difficult to ascertain without more detailed service descriptions and competitive data.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. The 'not available for competition' status often bypasses standard small business considerations unless specific justifications are made. Further analysis would be needed to determine if small businesses were excluded or if subcontracting opportunities were mandated.
Oversight & Accountability
Oversight mechanisms for this contract would typically fall under FEMA's contracting officer and program managers. Inspector General jurisdiction would apply to investigate potential fraud, waste, or abuse. Transparency is limited due to the non-competitive nature of the award; however, contract modifications and performance reports would be subject to review.
Related Government Programs
- FEMA Readiness Support Contracts
- Department of Homeland Security Logistics Services
- General Freight Trucking Contracts
- Emergency Response Logistics
- Surge Capacity Support Services
Risk Flags
- Non-competitive award justification requires verification.
- Potential for suboptimal pricing due to lack of competition.
- Limited transparency into contractor selection process.
Tags
logistics, transportation, fema, department-of-homeland-security, readiness-support, surge-support, sole-source, delivery-order, arkansas, alutiiq-global-solutions, general-freight-trucking
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $39.8 million to ALUTIIQ GLOBAL SOLUTIONS, LLC. READINESS AND SURGE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ALUTIIQ GLOBAL SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $39.8 million.
What is the period of performance?
Start: 2006-06-30. End: 2011-05-03.
What specific services fall under 'Readiness and Surge Support Services' for FEMA in this contract?
The provided data indicates the North American Industry Classification System (NAICS) code is 484110, which corresponds to 'General Freight Trucking, Local'. This suggests that the core services likely involve the transportation and delivery of goods and materials within a specific geographic area, likely Arkansas in this instance. 'Readiness and Surge Support' implies these services are intended to ensure FEMA has the logistical capacity available to respond quickly to emergencies or to scale up operations during periods of increased demand. This could include pre-positioning supplies, rapid deployment of resources, or maintaining transportation networks when normal channels are disrupted. The contract's duration of nearly five years further supports the idea of maintaining a standing logistical capability.
Why was this contract 'not available for competition'?
The designation 'not available for competition' signifies that the contract was awarded without soliciting bids from multiple sources. Common justifications for such awards include: 1) Only one responsible source is available or uniquely qualified to provide the required service. 2) An urgent and compelling need exists, and competition is impractical. 3) The contract is a follow-on to a previously competed contract where only the original contractor can provide the service due to proprietary knowledge or integration. Without specific details from FEMA regarding the justification for this particular award, it is presumed that one of these conditions was met, though the lack of competition inherently limits transparency and potential cost savings.
How does the contract value of $39.8 million compare to similar FEMA logistics contracts?
Direct comparison of the $39.8 million contract value is challenging without knowing the precise scope, duration, and specific services rendered. However, FEMA frequently utilizes contracts for logistics and transportation to support its disaster response and preparedness missions. Values can range significantly based on the scale of anticipated needs, geographic coverage, and the type of services (e.g., warehousing, transportation, specialized equipment). Given this contract spans nearly five years (1768 days), the annual average is approximately $8.2 million. This figure needs to be assessed against FEMA's overall logistics budget and the criticality of the services provided by Alutiiq Global Solutions, LLC to determine its relative significance and cost-effectiveness.
What is the track record of Alutiiq Global Solutions, LLC with federal contracts?
Alutiiq Global Solutions, LLC has a history of receiving federal contracts, primarily with agencies such as the Department of Defense and the Department of Homeland Security. Their contract portfolio often includes services related to logistics, base operations support, and construction. Examining their past performance, particularly with FEMA or similar agencies, would provide insight into their reliability, quality of service, and adherence to contract terms. A review of their contract history might reveal patterns in award types (competitive vs. sole-source) and their success in fulfilling requirements, which can inform the assessment of risk associated with this specific $39.8 million award.
What are the potential risks associated with a sole-source award for essential support services?
Sole-source awards, like this one to Alutiiq Global Solutions, LLC, carry inherent risks. The primary risk is the potential for reduced value for money, as the absence of competition means the government cannot leverage market forces to drive down prices or improve service offerings. There's also a risk of complacency from the contractor, knowing they are the sole provider. Furthermore, the justification for a sole-source award must be rigorously scrutinized to ensure it was truly warranted and not an administrative convenience. If the justification was weak, it could indicate potential mismanagement or a lack of strategic sourcing by the agency. Finally, reliance on a single provider can create vulnerabilities if that provider experiences performance issues or financial instability.
How does the geographic focus on Arkansas impact the overall effectiveness of this contract?
The designation of Arkansas (ST: AR, SN: ARKANSAS) as the state associated with this delivery order suggests a localized operational focus for these specific readiness and surge support services. While FEMA's mission is national, specific contracts or delivery orders are often tailored to regional needs or logistical hubs. A regional focus can enhance efficiency and responsiveness within that area by concentrating resources and expertise. However, it also raises questions about whether this localized approach adequately supports broader national surge requirements or if similar contracts exist for other regions. The effectiveness hinges on whether Arkansas serves as a critical staging ground or operational area for FEMA's preparedness and response activities.
Industry Classification
NAICS: Transportation and Warehousing › General Freight Trucking › General Freight Trucking, Local
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFEHQ-06-R-0054
Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
Evaluated Preference: NONE
Contractor Details
Parent Company: Afognak Native Corp (UEI: 052089695)
Address: 3909 ARTIC BLVD STE 400, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $39,822,585
Exercised Options: $39,822,585
Current Obligation: $39,822,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ06D0592
IDV Type: IDC
Timeline
Start Date: 2006-06-30
Current End Date: 2011-05-03
Potential End Date: 2011-05-03 00:00:00
Last Modified: 2016-09-16
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