DoD's $25M EA-18G Facilities Upgrade contract awarded to Alutiiq International Solutions, LLC

Contract Overview

Contract Amount: $25,066,894 ($25.1M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-06

End Date: 2011-12-09

Contract Duration: 1,373 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EA-18G FACILITIES UPGRADES (FLEDS, HANGAR RENOVATION, AND COMPOSITE REPAIR SHOP)

Place of Performance

Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: EA-18G FACILITIES UPGRADES (FLEDS, HANGAR RENOVATION, AND COMPOSITE REPAIR SHOP) Key points: 1. Contract awarded for facility upgrades to support EA-18G aircraft. 2. Project includes hangar renovation and composite repair shop construction. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. Contract duration of 1373 days indicates a significant, multi-year project. 5. Awarded by the Department of the Navy, supporting naval aviation readiness. 6. The contract was competed Full and Open after Exclusion of Sources. 7. The contractor, Alutiiq International Solutions, LLC, is a recognized entity in government contracting.

Value Assessment

Rating: fair

The total contract value of approximately $25 million for facility upgrades is difficult to benchmark without detailed cost breakdowns and scope comparisons. However, the firm-fixed-price nature of the contract implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for value if the scope was well-defined. The duration of the contract (over 3 years) suggests a substantial project, and the final cost should be evaluated against the delivered improvements and their impact on EA-18G operational readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, certain sources were initially excluded before the final award. This suggests a potentially complex procurement process. The presence of two bidders implies a degree of competition, but the specifics of the exclusion criteria and the number of proposals received would provide a clearer picture of the competitive landscape and its impact on price discovery.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. A well-managed competition, even with a limited number of bidders, can lead to competitive pricing. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it did not unduly restrict competition and potentially inflate costs.

Public Impact

Naval aviation personnel and maintenance crews benefit from improved facilities. Enhanced capabilities for EA-18G aircraft maintenance and repair are delivered. The geographic impact is localized to the specific naval air station where the upgrades are performed. Workforce implications include construction jobs during the upgrade period and improved working conditions for maintenance personnel long-term.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope was not fully defined prior to bidding, despite the FFP structure.
Risk associated with the 'Exclusion of Sources' clause potentially limiting competition and impacting final price.
Dependency on contractor performance for timely completion and quality of construction.
Potential for schedule delays impacting operational readiness if construction is not completed as planned.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to a single contractor streamlines management and accountability.
The project directly supports critical naval aviation assets (EA-18G Growler).
The contract duration suggests a comprehensive approach to facility upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting defense infrastructure. The market for such specialized construction services for military facilities is often characterized by a mix of large general contractors and specialized subcontractors. Benchmarking would involve comparing the cost per square foot or per project type against similar military construction projects, considering factors like location, complexity, and specific requirements for aircraft maintenance facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Alutiiq International Solutions, LLC, would manage subcontracting opportunities based on their own business strategy and project needs, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting and project management offices. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified scope within the agreed-upon price. Transparency would be facilitated through contract award databases and potentially through reporting requirements outlined in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Facilities Modernization Programs
Military Construction (MILCON) Projects
Aircraft Maintenance and Repair Infrastructure
Department of Defense Base Operations Support Contracts

Risk Flags

Potential for scope creep if not managed tightly.
Risk of delays impacting operational readiness.
Concerns regarding the 'Exclusion of Sources' limiting competition.
Dependency on contractor's specialized construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. EA-18G FACILITIES UPGRADES (FLEDS, HANGAR RENOVATION, AND COMPOSITE REPAIR SHOP)

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 $25.1 million.

What is the period of performance?

Start: 2008-03-06. End: 2011-12-09.

What is the track record of Alutiiq International Solutions, LLC with the Department of Defense, particularly on similar construction projects?

Alutiiq International Solutions, LLC has a history of contracting with the Department of Defense, including various construction and facilities support services. Analyzing their past performance on similar projects, such as hangar renovations, composite repair facilities, or other specialized military construction, would provide insight into their capabilities, reliability, and adherence to schedule and budget. Reviewing past performance evaluations (e.g., CPARS reports) would be crucial to assess their track record. Specific data on their success rate, any past disputes or contract terminations, and their experience with firm-fixed-price contracts of similar magnitude would inform this assessment.

How does the awarded amount of $25 million compare to similar EA-18G support facility upgrades or comparable military construction projects?

Benchmarking this $25 million contract requires comparing it against similar projects in terms of scope, size, complexity, and location. For instance, comparing the cost per square foot of the hangar renovation or the composite repair shop against other recently completed military construction projects of similar type and scale would be informative. Factors such as the specific technical requirements for EA-18G maintenance (e.g., specialized equipment, environmental controls), the geographic location's labor and material costs, and the overall economic climate at the time of bidding would influence comparability. Without access to detailed cost breakdowns and specific project metrics, a precise value-for-money assessment is challenging, but general comparisons to industry standards for institutional building construction can provide a preliminary indication.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method for this contract?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was intended to be broad, certain potential bidders were excluded based on specific criteria before the final solicitation. This can introduce risks if the exclusion criteria were overly restrictive, thereby limiting the pool of qualified bidders and potentially reducing overall competition. This could lead to less competitive pricing than a truly unrestricted full and open competition. Additionally, the justification for excluding sources needs to be robust to ensure fairness and prevent any appearance of impropriety. The risk lies in potentially foregoing more competitive bids from excluded entities, which could impact the final price paid by the government.

What is the expected impact of these facility upgrades on the operational readiness and maintenance efficiency of the EA-18G Growler fleet?

These facility upgrades are directly intended to enhance the operational readiness and maintenance efficiency of the EA-18G Growler fleet. A modern, well-equipped composite repair shop should reduce turnaround times for critical structural repairs, minimizing aircraft downtime. Similarly, improved hangar facilities can provide better environmental controls, protection from the elements, and more efficient workflows for routine maintenance and servicing. The cumulative effect should be a more capable and readily deployable EA-18G fleet, supporting its crucial electronic warfare mission. Quantifying this impact would ideally involve metrics such as reduced maintenance times, increased aircraft availability rates, or decreased repair costs post-upgrade.

How has spending on EA-18G related infrastructure evolved over the past 5-10 years, and does this contract represent a significant shift or continuation?

Analyzing historical spending on EA-18G related infrastructure requires examining budgets for naval aviation facilities, specifically those supporting electronic warfare aircraft. This contract, valued at approximately $25 million over several years, represents a significant investment in upgrading specialized facilities. To determine if it's a shift or continuation, one would need to compare it to previous investments in similar upgrades or new construction for the EA-18G or comparable platforms. If there has been a period of underinvestment in such facilities, this contract could signify a renewed focus on modernization. Conversely, if such upgrades are part of a regular lifecycle maintenance and modernization schedule, it represents a continuation of established investment patterns.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: N4425507R0006

Offers Received: 2

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, 00

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: $25,687,435

Exercised Options: $25,066,894

Current Obligation: $25,066,894

Contract Characteristics

Cost or Pricing Data: NO

Timeline