State Department's $25M administrative support contract for training center awarded to Alutiiq International Solutions

Contract Overview

Contract Amount: $24,942,956 ($24.9M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of State

Start Date: 2009-05-21

End Date: 2015-08-07

Contract Duration: 2,269 days

Daily Burn Rate: $11.0K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMIN SUPPORT STAFF FOR SECD DIVISION AT DS TRAINING CENTER

Place of Performance

Location: DUNN LORING, FAIRFAX County, VIRGINIA, 22027

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $24.9 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: ADMIN SUPPORT STAFF FOR SECD DIVISION AT DS TRAINING CENTER Key points: 1. Contract provided essential administrative support services, ensuring smooth operations at a key training facility. 2. The fixed-price contract structure likely provided cost certainty for the government. 3. A single award delivery order suggests a specific need or existing relationship. 4. The contract duration of nearly 6 years indicates a long-term requirement for these services. 5. Performance was managed by the Department of State, aligning with its internal operational needs.

Value Assessment

Rating: fair

Benchmarking the value of administrative support services can be challenging without specific performance metrics. The total award amount of approximately $25 million over nearly six years averages to roughly $4.2 million annually. This figure needs to be compared against the scale and complexity of the DS Training Center's operations and the specific roles filled by the administrative staff. Without detailed breakdowns of staffing levels and duties, a precise value-for-money assessment is difficult. However, the duration and consistent funding suggest the services were deemed necessary and reasonably priced for the period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order. This indicates that the Department of State likely identified a specific contractor, Alutiiq International Solutions, LLC, as the only responsible source capable of fulfilling the requirement. Sole-source awards can occur for various reasons, including unique capabilities, urgent needs, or when it's deemed more efficient to modify an existing contract. The lack of broader competition means that the government did not explore potentially lower prices or innovative solutions from other vendors.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries were the Department of State and its personnel at the training center, who received consistent administrative support. Services delivered included office administrative support, crucial for the daily functioning of the division. The geographic impact is localized to the specific training center location within Virginia. The contract supported administrative roles, contributing to the overall workforce within the Department of State's operational support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may reduce opportunities for other qualified vendors to participate.
Contract duration of nearly 6 years without re-competition could indicate a missed opportunity for market research and price adjustments.

Positive Signals

Consistent administrative support ensured operational continuity at a critical training facility.
Fixed-price contract provides budget predictability for the awarding agency.
Long-term award suggests a stable and reliable service provider was identified.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative and support functions. The market for such services is broad, encompassing numerous small and large businesses. Government spending in this area is substantial, supporting a wide range of agency operations. Comparable spending benchmarks would typically involve analyzing the cost of similar administrative support contracts across various federal agencies, considering factors like location, scope of work, and required skill sets.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Alutiiq International Solutions, LLC, a company that may or may not be classified as a small business depending on its size standards for this specific NAICS code, does not automatically imply a focus on the small business ecosystem. Further analysis would be needed to determine if subcontracting plans were mandated or utilized.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of State's contracting officers and program managers responsible for the training center. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is generally facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Administrative Support Services
Federal Training Center Operations Support
Professional and Administrative Services Contracts
Government Office Support

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics makes value assessment difficult.
Contract duration without re-competition could indicate missed market opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.9 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. ADMIN SUPPORT STAFF FOR SECD DIVISION AT DS TRAINING CENTER

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INTERNATIONAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2009-05-21. End: 2015-08-07.

What specific administrative functions were performed under this contract, and how did they contribute to the training center's mission?

The contract primarily covered 'Office Administrative Services' (NAICS code 561110). This typically includes tasks such as managing correspondence, scheduling meetings, maintaining records, preparing reports, handling travel arrangements, and providing general clerical support. These functions are critical for the smooth day-to-day operation of any large organizational unit, including a training center. By ensuring that administrative tasks were efficiently handled by Alutiiq International Solutions, the Department of State could allow its core personnel and instructors to focus on training development and delivery, thereby directly supporting the center's mission of educating and preparing personnel.

How does the average annual cost of this contract compare to similar administrative support contracts within the federal government?

The contract's total value was approximately $24.9 million over a period of roughly 2,269 days (about 6.2 years), averaging around $4.0 million per year. Benchmarking this requires comparing it to contracts for similar administrative support services across federal agencies, considering factors like the number of personnel supported, the complexity of the administrative tasks, and geographic location. For instance, a contract supporting a large agency headquarters might have a higher annual cost due to broader scope and higher security requirements, while a smaller, more specialized support contract might be lower. Without specific details on the size and operational tempo of the DS Training Center, a precise comparison is difficult, but $4 million annually for comprehensive administrative support at a significant training facility is within a plausible range for federal contracts of this nature.

What were the potential risks associated with awarding this contract as a sole-source delivery order, and how might they have been mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure, and the missed opportunity to discover potentially more innovative or cost-effective solutions from other vendors. Another risk is that the government might not have fully explored the market's capabilities. Mitigation strategies could have included thorough market research prior to the sole-source determination to ensure no other viable sources existed, negotiating aggressively on price based on historical data or independent cost estimates, and clearly defining performance standards and metrics to ensure value was received despite the lack of competition. Robust oversight during contract performance would also be crucial.

What is the track record of Alutiiq International Solutions, LLC in performing federal contracts, particularly those involving administrative support?

Alutiiq International Solutions, LLC has a history of performing various federal contracts, including those related to logistics, base operations support, and professional services. While specific details on their performance for this particular Department of State contract are not provided in the summary data, their ability to secure a multi-year, sole-source delivery order suggests a level of trust and perceived capability by the awarding agency. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on other contracts, would provide a more comprehensive understanding of their track record in delivering administrative support services.

How has federal spending on administrative support services, like those provided under this contract, evolved over time, and what are the current trends?

Federal spending on administrative support services has remained a significant component of government expenditures, reflecting the vast operational needs of federal agencies. Trends indicate a continuous demand for these services across various sectors, including defense, state, and civilian agencies. While specific dollar amounts fluctuate based on agency priorities and budget cycles, there's a general move towards optimizing these functions through technology and strategic sourcing. Agencies often seek efficiencies, leading to varied contract vehicles, including fixed-price arrangements like the one detailed here. The use of sole-source awards, while sometimes necessary, is often scrutinized in favor of more competitive procurement methods to ensure best value for taxpayer dollars. Current trends also emphasize performance-based contracts and the integration of administrative support with broader mission objectives.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD. SUITE 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,954,556

Exercised Options: $24,954,556

Current Obligation: $24,942,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA07D0044

IDV Type: IDC

Timeline