Treasury's $41.6M contract for seized asset management awarded to Arctic Slope Mission Services LLC

Contract Overview

Contract Amount: $41,609,405 ($41.6M)

Contractor: Arctic Slope Mission Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2017-03-18

End Date: 2021-01-28

Contract Duration: 1,412 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - MANAGEMENT OF SEIZED AND FORFEITED ASSETS CYRBYME-C

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $41.6 million to ARCTIC SLOPE MISSION SERVICES LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - MANAGEMENT OF SEIZED AND FORFEITED ASSETS CYRBYME-C Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract value of $41.6 million over its period of performance suggests a significant investment in asset management services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of services. 4. The contract was a firm fixed-price type, which typically shifts cost risk to the contractor. 5. The duration of 1412 days (approximately 3.8 years) points to a long-term need for these services. 6. The contract was awarded to a single vendor, Arctic Slope Mission Services LLC. 7. The contract was not set aside for small businesses, suggesting larger prime contractors were expected to bid.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for seized asset management. The firm fixed-price structure suggests the government aimed to control costs, but the overall value for money depends on the effectiveness of the services provided by Arctic Slope Mission Services LLC. The contract's duration and total value indicate a substantial commitment, and further analysis would be needed to assess if the outcomes justified the expenditure.

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,' which implies that while the competition was open, certain sources may have been excluded prior to the final award. This suggests a potentially complex procurement process. The fact that it was open competition is generally positive for price discovery, but the exclusion of sources warrants further investigation into the rationale behind it.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and services. This helps ensure that the government is not overpaying for necessary services.

Public Impact

The primary beneficiaries are likely the Department of the Treasury and its agencies, such as the IRS, which require robust management of seized and forfeited assets. The services delivered are professional, scientific, and technical in nature, focusing on the operational aspects of asset management. The geographic impact is centered in the District of Columbia, where the contract was awarded. Workforce implications would involve the personnel employed by Arctic Slope Mission Services LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reasons for excluding certain sources in a 'full and open competition after exclusion of sources' are not detailed, which could obscure potential competitive disadvantages.
Without performance data, it's difficult to assess the true value-for-money achieved by Arctic Slope Mission Services LLC.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' can make it hard to pinpoint the exact nature and efficiency of the services rendered.

Positive Signals

The contract was awarded through a full and open competition, suggesting a deliberate effort to solicit a wide range of potential bidders.
The firm fixed-price contract type generally provides cost certainty for the government.
The contract was awarded to Arctic Slope Mission Services LLC, a known entity in government contracting, implying some level of established capability.

Sector Analysis

The contract falls under the professional, scientific, and technical services sector, specifically NAICS code 541990. This broad category encompasses a wide array of services, including those related to management, consulting, and technical support. The market for such services is vast and competitive, with numerous firms capable of providing specialized expertise. The government frequently procures services within this sector to support its diverse operational needs, making it a significant area of federal spending.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and requirements of the contract were likely geared towards larger firms with the capacity and resources to handle complex asset management tasks. There is no explicit information on subcontracting plans, but for contracts of this size and nature, it is common for prime contractors to engage small businesses for specialized support, though this is not guaranteed without specific set-aside provisions or contractual requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. As a definitive contract, it would be subject to standard contract administration and performance monitoring. Transparency would be facilitated through contract databases like FPDS-NG. Specific Inspector General jurisdiction would depend on the agency's internal structure and the nature of any potential issues arising from the contract's performance.

Related Government Programs

Federal Asset Forfeiture Program
Government Contract Management Services
Professional and Technical Services Procurement
Seized Property Management

Risk Flags

Potential for reduced competition due to source exclusion.
Risk of contractor cost overruns impacting service quality under FFP.
Lack of specific performance metrics makes value assessment difficult.
Broad NAICS code limits clarity on service specifics.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $41.6 million to ARCTIC SLOPE MISSION SERVICES LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS - MANAGEMENT OF SEIZED AND FORFEITED ASSETS CYRBYME-C

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE MISSION SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $41.6 million.

What is the period of performance?

Start: 2017-03-18. End: 2021-01-28.

What specific types of seized and forfeited assets were managed under this contract?

The provided data does not specify the exact types of seized and forfeited assets managed under Contract Number IGF::CT::IGF FOR CRITICAL FUNCTIONS - MANAGEMENT OF SEIZED AND FORFEITED ASSETS CYRBYME-C. However, given the contracting agency (Department of the Treasury, specifically the IRS), these assets could potentially include financial instruments, real estate, vehicles, luxury goods, or other property seized during investigations related to financial crimes, tax evasion, or other illicit activities. The broad NAICS code 541990 (All Other Professional, Scientific, and Technical Services) suggests a wide range of support functions rather than direct handling of all asset types. Detailed asset categories would typically be outlined in the contract's statement of work.

How does the $41.6 million contract value compare to similar contracts for asset management services?

Comparing the $41.6 million contract value requires identifying comparable contracts based on service scope, duration, and agency. Contracts for managing seized and forfeited assets can vary significantly based on the volume and complexity of assets. Without specific details on the services provided by Arctic Slope Mission Services LLC and the volume of assets managed, a direct comparison is difficult. However, for a contract spanning approximately 3.8 years (1412 days), $41.6 million represents an average annual value of roughly $10.9 million. This figure needs to be benchmarked against other federal contracts for similar asset management, logistics, and disposition services to determine if it represents a competitive price point.

What were the key performance indicators (KPIs) used to evaluate Arctic Slope Mission Services LLC's performance?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for asset management services, KPIs might include metrics related to the efficiency of asset disposition (e.g., time to sell, sale price achieved relative to market value), accuracy of inventory management, compliance with legal and regulatory requirements, security of stored assets, and cost-effectiveness of management operations. The effectiveness of Arctic Slope Mission Services LLC would be assessed against these or similar metrics defined in the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP).

What is the track record of Arctic Slope Mission Services LLC in managing federal contracts, particularly those involving asset management?

Arctic Slope Mission Services LLC (ASMS) has a history of performing federal contracts. While the provided data focuses on this specific $41.6 million contract, ASMS has been awarded other contracts across various agencies, including the Department of Defense and Department of Homeland Security, often in areas related to logistics, base operations support, and professional services. Their experience in managing complex government contracts suggests a capacity to handle significant procurements. However, a comprehensive assessment of their track record would require reviewing their performance history across all contracts, including any past performance evaluations or awards/debarments.

What are the potential risks associated with a firm fixed-price contract for asset management?

A primary risk with a firm fixed-price (FFP) contract, like this one, is that the contractor (Arctic Slope Mission Services LLC) may face financial strain if costs exceed their initial estimates, potentially leading to reduced service quality or attempts to cut corners. Conversely, if the contractor's costs are significantly lower than anticipated, the government might have overpaid relative to the actual effort expended. For asset management, risks also include potential issues with asset security, accurate valuation, timely disposition, and compliance with forfeiture laws, which could lead to financial losses or legal challenges if not managed diligently by the contractor.

How does the 'exclusion of sources' in the competition impact taxpayer value?

The 'exclusion of sources' clause in a 'full and open competition after exclusion of sources' procurement introduces a layer of complexity regarding taxpayer value. While the competition is 'open' to eligible bidders, the prior exclusion of certain potential competitors could limit the overall pool of offers. If the excluded sources were capable of providing the services at a lower cost or with higher quality, their exclusion might result in a less competitive outcome, potentially leading to higher prices or less optimal service delivery for the taxpayer. The rationale for exclusion is critical; if based on legitimate pre-qualification criteria or past performance issues, it could be justified. However, if arbitrary, it could stifle competition and negatively impact value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TIRNO16R00006

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,653,961

Exercised Options: $41,609,405

Current Obligation: $41,609,405

Actual Outlays: $18,075,642

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline