State Dept. Awards $43M in Facilities Support Services to Olgoonik Management Services, LLC
Contract Overview
Contract Amount: $43,152,805 ($43.2M)
Contractor: Olgoonik Management Services, LLC
Awarding Agency: Department of State
Start Date: 2009-09-13
End Date: 2017-05-27
Contract Duration: 2,813 days
Daily Burn Rate: $15.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROFESSIONAL AND SUPPORT SERVICES
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of State obligated $43.2 million to OLGOONIK MANAGEMENT SERVICES, LLC for work described as: PROFESSIONAL AND SUPPORT SERVICES Key points: 1. Significant contract value of over $43 million awarded. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2009-2017) suggests a stable, ongoing need. 4. Focus on facilities support services within the Department of State.
Value Assessment
Rating: questionable
Contract value is substantial, but without comparable contract data or pricing details, it's difficult to assess if the price is reasonable. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this size could lead to suboptimal pricing, potentially costing taxpayers more than if competitive bids were solicited.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source award. Lack of transparency in the bidding process limits public scrutiny. Essential facilities support services are being provided, ensuring operational continuity for the Department of State.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited price discovery
Positive Signals
- Firm fixed price contract
- Long-term service provision
Sector Analysis
This contract falls under professional and support services, specifically facilities support. Benchmarks for this sector vary widely based on the specific services and location, but large sole-source contracts warrant scrutiny.
Small Business Impact
The awardee, Olgoonik Management Services, LLC, is listed as not a small business, indicating this large contract did not benefit small business set-asides.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of State's internal controls and contract management practices would be key to accountability.
Related Government Programs
- Facilities Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may mask inefficiencies.
- Lack of detailed pricing justification.
Tags
facilities-support-services, department-of-state, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $43.2 million to OLGOONIK MANAGEMENT SERVICES, LLC. PROFESSIONAL AND SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is OLGOONIK MANAGEMENT SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2009-09-13. End: 2017-05-27.
What was the justification for the sole-source award, and were any efforts made to explore competitive alternatives?
The justification for a sole-source award is critical for understanding why competition was bypassed. Typically, this involves a determination that only one responsible source can provide the required services. Without this justification, it's impossible to assess if the government received the best possible value or if taxpayer funds were used efficiently. Exploring competitive alternatives, even if ultimately deemed unsuitable, is a standard part of responsible procurement.
How was the 'fair and reasonable' price determined for this sole-source contract, and what benchmarks were used?
Determining a fair and reasonable price for a sole-source contract is challenging without competitive bids. Agencies often rely on historical pricing, commercial price lists, or cost-plus-incentive-fee structures to establish a baseline. However, the absence of competition can obscure true market value. A thorough price analysis, potentially involving independent government cost estimates or comparisons to similar, albeit not identical, contracts, is essential for ensuring taxpayer funds are not overspent.
What performance metrics and quality assurance measures were in place to ensure the effectiveness of the facilities support services?
For a contract of this magnitude and duration, robust performance metrics and quality assurance are paramount. These measures ensure that the services provided meet the government's needs and that the contractor is held accountable for performance. Key indicators might include response times, service completion rates, and client satisfaction. Effective oversight would involve regular performance reviews and audits to confirm adherence to contract requirements and identify any areas for improvement.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: Olgoonik Corporation (UEI: 060028750)
Address: 360 W BENSON BLVD STE 302, ANCHORAGE, AK, 99503
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,152,808
Exercised Options: $43,152,808
Current Obligation: $43,152,805
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMMA09D0029
IDV Type: IDC
Timeline
Start Date: 2009-09-13
Current End Date: 2017-05-27
Potential End Date: 2017-05-27 00:00:00
Last Modified: 2019-10-10
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