State Department awards $14.1M in facilities support services to Olgoonik Management Services, LLC

Contract Overview

Contract Amount: $14,142,672 ($14.1M)

Contractor: Olgoonik Management Services, LLC

Awarding Agency: Department of State

Start Date: 2009-09-24

End Date: 2010-05-19

Contract Duration: 237 days

Daily Burn Rate: $59.7K/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 $14.1 million to OLGOONIK MANAGEMENT SERVICES, LLC for work described as: PROFESSIONAL AND SUPPORT SERVICES Key points: 1. The contract was awarded on a not available for competition basis, raising questions about potential cost savings through broader bidding. 2. The duration of the contract was 237 days, suggesting a short-term need for services. 3. The firm fixed price contract type provides cost certainty for the government. 4. The base award amount was $5,967,400, with the total award reaching $14,142,672.17, indicating significant potential for task order growth. 5. The contract falls under facilities support services, a common requirement across government agencies. 6. The small business status of the contractor is not specified, impacting potential set-aside considerations.

Value Assessment

Rating: fair

The total award of $14.1M for facilities support services over a 237-day period appears substantial. Without comparable contract data for similar services in Alaska, it is difficult to definitively benchmark the value. However, the significant increase from the base award to the total award suggests a high degree of flexibility in task order issuance, which could lead to cost efficiencies if managed well, or potential overspending if not carefully monitored. The firm fixed price nature of the contract provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'not available for competition' basis. This typically means that the agency determined that only one source was capable of fulfilling the requirement. The lack of open competition limits the government's ability to explore a wider range of pricing and service offerings from multiple vendors, potentially impacting the final price and the overall value received.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. A sole-source award bypasses the market forces that usually drive down costs when multiple companies vie for a contract.

Public Impact

The primary beneficiary of this contract is the Department of State, which receives essential facilities support services. These services likely include maintenance, repair, and operational support for government facilities in Alaska. The geographic impact is concentrated in Alaska, supporting the State Department's operations in that region. The contract supports a workforce involved in facility management and maintenance, contributing to local employment in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to a higher price than could have been achieved through a competitive process.
The significant difference between the base award and the total award warrants scrutiny to ensure funds were used efficiently and effectively.
The 'not available for competition' justification needs to be robust to ensure taxpayer funds are protected.

Positive Signals

The firm fixed price contract type offers predictability in costs for the government.
The contract specifies a clear period of performance, allowing for focused service delivery.
The award to a single contractor can streamline management and oversight for the agency.

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 services necessary for the operation and maintenance of physical infrastructure. The market for these services is typically large and diverse, with many providers ranging from small local businesses to large multinational corporations. The Department of State, like other federal agencies, relies heavily on such contracts to maintain its operational capabilities.

Small Business Impact

Information regarding whether this contract involved small business set-asides or subcontracting opportunities is not available in the provided data. The contractor's small business status is also not specified. Further investigation would be needed to determine the impact on the small business ecosystem and whether opportunities were made available to smaller entities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of State. As a delivery order under a larger contract, the specific oversight mechanisms would depend on the terms of the parent contract. Transparency regarding the justification for the sole-source award and the utilization of funds would be key areas for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Operations and Maintenance
Government Property Management
Professional and Management Support Services
Department of State Contracts

Risk Flags

Sole-source award may limit price competition.
Significant difference between base and total award requires monitoring.
Justification for 'not available for competition' needs thorough review.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.1 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 $14.1 million.

What is the period of performance?

Start: 2009-09-24. End: 2010-05-19.

What was the specific justification for awarding this contract on a 'not available for competition' basis?

The justification for a 'not available for competition' award typically stems from circumstances where only one responsible source is capable of providing the required services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or specific statutory requirements. For this Department of State contract, the exact reason would be detailed in a Justification and Approval (J&A) document. Without access to this document, we can only speculate on potential reasons such as specialized knowledge of the facilities, unique security requirements, or a critical and immediate need that precluded a lengthy competitive process. This lack of transparency can be a concern for ensuring fair competition and optimal use of taxpayer funds.

How does the total award amount compare to the base award, and what does this imply?

The total award of $14,142,672.17 is significantly higher than the base award of $5,967,400. This substantial difference implies that the contract was structured to allow for a broad range of potential task orders or modifications over its period of performance. While a higher total award ceiling can provide flexibility for the agency to address evolving needs, it also necessitates diligent oversight to ensure that all awarded task orders are necessary, cost-effective, and aligned with the original contract's intent. It suggests that the initial scope might have been conservative or that unforeseen requirements arose, leading to substantial additional work being assigned under the contract.

What is the typical cost range for similar facilities support services contracts awarded by the federal government?

The cost range for federal facilities support services contracts can vary dramatically based on the scope of services, geographic location, contract type, and duration. Contracts can range from a few hundred thousand dollars for localized, short-term maintenance to billions of dollars for comprehensive, long-term global support. For a contract of this magnitude ($14.1M) in Alaska, it suggests a significant scope of services, potentially encompassing a large facility or multiple sites. Benchmarking requires detailed comparison of service lines, labor rates, and overhead. However, given the sole-source nature, it's harder to ascertain if this specific award represents a competitive market rate.

What are the potential risks associated with a sole-source contract for facilities support?

The primary risk associated with a sole-source contract for facilities support is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may have less incentive to offer the most competitive pricing. Additionally, there's a risk that the agency might not be aware of or have access to the most innovative or efficient service delivery methods available in the market. Sole-source awards can also raise concerns about fairness and equal opportunity for other capable businesses. Effective oversight and robust negotiation by the contracting agency are crucial to mitigate these risks and ensure value for taxpayer money.

What is the significance of the contract being a 'Delivery Order'?

A 'Delivery Order' typically indicates that this contract is a task order issued against a larger, pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means that the $14.1M award is not for a standalone contract but represents a specific order for goods or services placed under a broader agreement. The advantage of this structure is often faster procurement and pre-negotiated terms and pricing. However, it also means that the competition and oversight context should ideally be considered within the framework of the parent IDIQ contract, which may have its own set of justifications for competition and pricing.

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: $14,142,672

Exercised Options: $14,142,672

Current Obligation: $14,142,672

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0029

IDV Type: IDC

Timeline