Facilities support services contract awarded to Olgoonik Management Services, LLC for over $14.7 million

Contract Overview

Contract Amount: $14,747,769 ($14.7M)

Contractor: Olgoonik Management Services, LLC

Awarding Agency: Department of State

Start Date: 2009-09-24

End Date: 2016-09-29

Contract Duration: 2,562 days

Daily Burn Rate: $5.8K/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: DUNN LORING, FAIRFAX County, VIRGINIA, 22027

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $14.7 million to OLGOONIK MANAGEMENT SERVICES, LLC for work described as: PROFESSIONAL AND SUPPORT SERVICES Key points: 1. The contract was awarded as a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating a pre-established relationship and potentially streamlined procurement. 2. The duration of the contract, spanning over 2500 days, suggests a long-term need for these facilities support services. 3. The firm-fixed-price (FFP) contract type generally shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. 4. The absence of specific competition details for this delivery order warrants further investigation into the original IDIQ's competitive nature. 5. The contract's value, while substantial, needs to be benchmarked against similar facilities support contracts to assess value for money. 6. The contractor, Olgoonik Management Services, LLC, has secured this significant award, highlighting its capacity to handle large-scale government contracts.

Value Assessment

Rating: fair

Benchmarking the value of this $14.7 million contract for facilities support services is challenging without more detailed service descriptions and performance metrics. The firm-fixed-price structure is a positive indicator for cost control, but the lack of competitive bidding for this specific delivery order raises questions about whether the government secured the best possible price. Comparing this to similar long-term facilities management contracts across federal agencies would provide a clearer picture of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a delivery order under an existing IDIQ contract. The provided data indicates it was 'NOT AVAILABLE FOR COMPETITION' for this specific order, suggesting it may have been awarded to a specific vendor under pre-negotiated terms. The level of competition for the original IDIQ contract is crucial for understanding the overall price discovery mechanism. If the IDIQ itself was not broadly competed, the limited competition for this delivery order could mean less favorable pricing.

Taxpayer Impact: The limited competition for this delivery order means taxpayers may not have benefited from the potentially lower prices that could arise from a more robust bidding process. This could lead to higher overall costs for the services rendered.

Public Impact

The Department of State is the primary beneficiary, receiving essential facilities support services. These services likely encompass a range of maintenance, repair, and operational support critical for government facilities. The contract's duration suggests a sustained impact on the operational readiness and efficiency of the facilities it supports. The workforce implications include employment opportunities for individuals employed by Olgoonik Management Services, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific competition details for this delivery order limits assessment of optimal pricing.
The long contract duration could lead to cost escalations if not managed proactively.
The 'NOT AVAILABLE FOR COMPETITION' status for the delivery order warrants scrutiny of the original IDIQ's procurement process.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
The award to Olgoonik Management Services, LLC indicates a level of trust and established capability.
The contract supports essential government operations through facilities management.

Sector Analysis

This contract falls within the Professional and Support Services sector, specifically focusing on Facilities Support Services. This is a broad category encompassing a wide range of activities necessary for the operation and maintenance of government buildings and infrastructure. The market for these services is competitive, with numerous firms offering specialized expertise. The value of this contract, over $14.7 million, places it as a significant award within this sub-sector, likely supporting a substantial facility or multiple locations for the Department of State.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a primary set-aside consideration for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the potential for subcontracting opportunities with Olgoonik Management Services, LLC could exist, offering indirect benefits to the small business ecosystem if actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Department of State's program management officials. Transparency is dependent on the public availability of contract performance reports and any associated Inspector General audits. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost, but effective oversight is still required to ensure service delivery meets contractual requirements.

Related Government Programs

Facilities Maintenance Contracts
Professional and Management Support Services
Department of State Operations Support
Government Building Management
IDIQ Contract Vehicles

Risk Flags

Limited competition for delivery order
Potential for cost overruns if scope is not well-defined
Need for ongoing performance monitoring due to long duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.7 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 $14.7 million.

What is the period of performance?

Start: 2009-09-24. End: 2016-09-29.

What specific facilities support services were included under this contract?

The provided data identifies the contract under NAICS code 561210 for Facilities Support Services. This broad category typically includes services such as building operation and maintenance, groundskeeping, custodial services, pest control, and potentially security services related to facility management. However, the exact scope of work, specific deliverables, and performance standards are not detailed in the summary data. A comprehensive understanding would require reviewing the contract's statement of work (SOW) and any associated task orders or modifications. These services are critical for ensuring the operational integrity and safety of Department of State facilities.

How does the $14.7 million value compare to similar facilities support contracts for the Department of State?

Without access to a comprehensive database of all Department of State facilities support contracts, a direct comparison of the $14.7 million value is difficult. However, this amount suggests a significant contract, likely covering a substantial facility or a portfolio of buildings over its multi-year duration. For context, federal spending on facilities maintenance and management is in the billions annually across all agencies. The value of this specific contract appears to be within the mid-to-large range for a single award, depending on the scope and duration. Further analysis would involve benchmarking against contracts with similar service descriptions, geographic locations, and contract lengths.

What are the potential risks associated with a 'NOT AVAILABLE FOR COMPETITION' delivery order?

A 'NOT AVAILABLE FOR COMPETITION' status for a delivery order, especially under an IDIQ, can indicate several risks. Primarily, it suggests that the government may not have achieved the best possible pricing through open market competition for this specific order. This could be due to sole-source justifications, limited vendor pools, or specific requirements that only one vendor can meet. Taxpayers might incur higher costs than if the order had been competed. Additionally, it can limit opportunities for new or smaller businesses to enter the market and potentially stifle innovation if the same contractor is repeatedly used without competitive pressure.

What is the track record of Olgoonik Management Services, LLC in performing federal facilities support contracts?

Olgoonik Management Services, LLC has been awarded this significant contract, indicating they possess the necessary qualifications and past performance to be considered for such work. To fully assess their track record, one would need to examine their contract history with the federal government, looking at past performance evaluations, any instances of contract disputes or terminations, and the types and scale of services previously provided. A review of federal procurement databases and contract award histories would reveal the extent of their experience in facilities support and their overall performance ratings on previous government contracts.

How does the firm-fixed-price contract type impact cost control and risk for this facilities support services contract?

The firm-fixed-price (FFP) contract type is generally advantageous for the government in terms of cost control and risk transfer. Under an FFP contract, the contractor agrees to a set price for the specified goods or services, regardless of their actual costs. This means that Olgoonik Management Services, LLC assumes the primary financial risk if their costs exceed the agreed-upon price. For the Department of State, this provides budget certainty and protects against cost overruns due to contractor inefficiencies. However, it is crucial that the initial price negotiated is fair and reasonable, and that the scope of work is clearly defined to prevent scope creep that could lead to change orders.

What are the implications of this contract's long duration (2562 days) on service quality and contractor performance?

A contract duration of 2562 days (approximately 7 years) implies a long-term need for the facilities support services provided. This extended period allows the contractor to develop deep expertise in the specific facilities and potentially implement long-term efficiency improvements. It can foster a stable working relationship between the government and the contractor. However, it also necessitates robust oversight mechanisms to ensure consistent service quality and prevent complacency. Regular performance reviews and clear communication channels are essential to manage potential degradation in service over such an extended period and to ensure the contractor remains responsive to evolving needs.

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: $14,747,769

Exercised Options: $14,747,769

Current Obligation: $14,747,769

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0029

IDV Type: IDC

Timeline