DoD's $14.7M Facilities Support Services Contract Awarded to Alutiiq International Solutions, LLC

Contract Overview

Contract Amount: $14,765,002 ($14.8M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-19

End Date: 2013-09-27

Contract Duration: 1,834 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MESS SERVICES

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92277

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: MESS SERVICES Key points: 1. The contract was awarded as a definitive contract with a firm fixed price. 2. The contract duration was 1834 days, spanning nearly five years. 3. The award was made to Alutiiq International Solutions, LLC. 4. The contract falls under Facilities Support Services, with NAICS code 561210. 5. The contract was not competed, raising questions about price discovery. 6. The contract was awarded by the Department of the Navy, part of the Department of Defense. 7. The contract was performed in California.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The firm fixed-price structure suggests a defined scope, but the lack of competition makes it difficult to assess if the pricing represents optimal value for the government. Without details on the services rendered and their quality, a definitive value assessment is not possible. The total value of $14.7 million over nearly five years indicates a significant investment in facilities support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can satisfy the agency's needs. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms. It also raises concerns about whether alternative solutions or more cost-effective providers were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent, potentially reducing the incentive for the contractor to offer the most competitive pricing.

Public Impact

The Department of Defense benefits from the provision of essential facilities support services. The contract ensures the maintenance and operation of facilities critical to naval operations in California. The services provided likely support military personnel and their families by maintaining living and working environments. The contract supports jobs within the facilities management and support services sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than could have been achieved through an open bidding process.
The sole-source nature of the award warrants scrutiny to ensure the government's needs were genuinely unique and could not be met by other qualified vendors.
Without competitive data, it's difficult to ascertain if the contractor's pricing is aligned with market rates for similar services.
The long duration of the contract (nearly five years) could lead to price escalation if not managed carefully, despite the firm fixed-price structure.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, assuming the scope of work is well-defined.
The award to Alutiiq International Solutions, LLC, suggests a pre-existing relationship or demonstrated capability to meet specific DoD requirements.
The contract duration indicates a stable, long-term need for these facilities support services, suggesting a critical function.
Performance in California likely supports significant naval operations, contributing to national security objectives.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and maintenance of buildings and grounds. This contract, under NAICS code 561210, likely includes services such as maintenance, repair, custodial, and potentially groundskeeping. The federal government is a major consumer of such services, with significant spending allocated to maintaining its vast real estate portfolio. Comparable spending benchmarks would typically involve analyzing other large-scale facilities management contracts awarded by various government agencies, particularly those with similar operational requirements and geographic concentrations.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the prime contractor, Alutiiq International Solutions, LLC, is not obligated to meet small business subcontracting goals as part of this award. The absence of set-asides means that opportunities for small businesses to participate in this contract are likely limited to those they can secure directly from the prime contractor, rather than through mandated subcontracting plans. This could reduce the flow of federal dollars into the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is dependent on the level of detail made public regarding contract performance and modifications. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle. The firm fixed-price nature may simplify some aspects of oversight by focusing on deliverable completion rather than cost reconciliation.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Property Management
Logistics and Support Services
Department of Defense Procurement

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for cost overruns due to lack of competition over a long duration.
Limited transparency on specific services rendered and performance metrics.
Absence of small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. MESS SERVICES

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INTERNATIONAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2008-09-19. End: 2013-09-27.

What specific facilities support services were included in this $14.7 million contract?

The provided data indicates the contract falls under NAICS code 561210, 'Facilities Support Services.' While specific line items are not detailed, this category typically encompasses a broad range of services essential for the operation and upkeep of government facilities. These can include, but are not limited to, routine maintenance and repair of buildings and grounds, custodial services, pest control, refuse collection, security systems maintenance, and potentially energy management. The exact scope would be defined in the contract's Statement of Work (SOW), which is not publicly available in this data snippet. Given the significant value and duration, it likely covers comprehensive support for a substantial facility or complex of facilities.

How does the $14.7 million value compare to similar facilities support contracts awarded by the Department of the Navy?

Comparing the $14.7 million value requires access to a broader dataset of similar contracts. However, for a nearly five-year duration (1834 days), this value averages approximately $3 million per year. This figure is substantial but not necessarily outside the norm for large-scale facilities support contracts, especially those supporting critical military installations. The Department of the Navy manages numerous facilities globally, and contracts for comprehensive support can range from a few million to tens or even hundreds of millions of dollars annually, depending on the size, complexity, and location of the installation. Without specific details on the services and scope, a precise comparison is difficult, but it represents a significant investment.

What are the potential risks associated with awarding a nearly five-year contract on a sole-source basis?

The primary risk of a sole-source award for a long-term contract is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not be receiving the most cost-effective solution available in the market. There's also a risk that the contractor may become complacent over the contract's duration, potentially leading to a decline in service quality if oversight is not rigorous. Furthermore, if the initial justification for a sole-source award was flawed, or if market conditions change, the government is locked into a potentially suboptimal arrangement for an extended period, limiting its ability to seek better value elsewhere.

What is the significance of the 'Facilities Support Services' category (NAICS 561210) for the Department of Defense?

Facilities Support Services are fundamental to the operational readiness and effectiveness of the Department of Defense (DoD). These services ensure that military bases, installations, and administrative buildings are maintained, functional, and safe for personnel. This includes everything from basic upkeep like cleaning and landscaping to more complex tasks like maintaining HVAC systems, electrical infrastructure, and plumbing. Reliable facilities support is crucial for troop morale, operational continuity, and the overall mission accomplishment of the DoD. Contracts in this category represent a significant portion of the DoD's non-personnel spending, reflecting the vast physical infrastructure they manage.

How has federal spending on Facilities Support Services (NAICS 561210) trended over the past decade?

Federal spending on Facilities Support Services (NAICS 561210) has generally shown a consistent and significant level over the past decade, reflecting the government's ongoing need to maintain its extensive infrastructure. While specific year-over-year fluctuations can occur due to budget cycles, agency priorities, and major infrastructure projects, the overall trend indicates sustained demand. Factors such as aging federal buildings requiring more maintenance, increased emphasis on energy efficiency, and the need to support a growing or shifting military presence can influence spending levels. Analyzing historical data from sources like USAspending.gov would reveal precise trends, but it's safe to assume this category remains a substantial area of federal expenditure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Education, Training, Employment, and Social Services R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,765,002

Exercised Options: $14,765,002

Current Obligation: $14,765,002

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline