DoD Awards $7M Agile Integration Contract to Arlluk Technology Solutions for Lean Agile Center of Excellence

Contract Overview

Contract Amount: $7,012,736 ($7.0M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-30

End Date: 2026-03-31

Contract Duration: 1,097 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD OF AGILE INTEGRATION TO BUILD AND IMPLEMENT A LEAN AGILE CENTER OF EXCELLENCE.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: AWARD OF AGILE INTEGRATION TO BUILD AND IMPLEMENT A LEAN AGILE CENTER OF EXCELLENCE. Key points: 1. Contract awarded for building and implementing a Lean Agile Center of Excellence. 2. Arlluk Technology Solutions LLC is the sole awardee. 3. The contract is a definitive contract with a firm fixed price. 4. The period of performance is approximately 3 years, ending March 31, 2026.

Value Assessment

Rating: questionable

The contract value is $7,012,735.79. Without comparable contracts or detailed pricing breakdowns, it is difficult to assess if this represents excellent value. The firm fixed price structure provides cost certainty but doesn't inherently guarantee optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition raises concerns about potential overspending and reduced value for taxpayer funds.

Public Impact

Development of a Lean Agile Center of Excellence could improve government efficiency. Sole-source award limits transparency and competitive benefits. Taxpayers may not receive the best possible price due to lack of competition. The contract duration of nearly three years allows for significant project development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited price discovery

Positive Signals

Potential for improved efficiency through Agile Center of Excellence

Sector Analysis

The IT services sector, particularly in areas like agile development and process improvement, sees significant government spending. Benchmarks for similar 'Other Computer Related Services' contracts vary widely, but sole-source awards often deviate from competitive norms.

Small Business Impact

The awardee, Arlluk Technology Solutions LLC, is not indicated as a small business in this data. The contract was not set aside for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the objectives of the Agile Center of Excellence are met efficiently.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Limited transparency in contractor selection.
Need for strong internal oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. AWARD OF AGILE INTEGRATION TO BUILD AND IMPLEMENT A LEAN AGILE CENTER OF EXCELLENCE.

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2023-03-30. End: 2026-03-31.

What specific capabilities or unique qualifications does Arlluk Technology Solutions LLC possess that justified a sole-source award for this critical Agile Center of Excellence initiative?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or an urgent need that only a specific contractor can fulfill. Without further documentation, it's unclear if Arlluk Technology Solutions LLC demonstrated such exceptional qualifications, or if administrative factors led to this procurement approach. Understanding this is key to assessing if the government truly explored all viable options.

How will the effectiveness and efficiency gains from the Lean Agile Center of Excellence be measured and reported, especially given the lack of competitive pressure on pricing?

Measuring the effectiveness of an Agile Center of Excellence requires clearly defined Key Performance Indicators (KPIs) related to project delivery speed, quality, cost savings, and stakeholder satisfaction. Given the sole-source nature, robust internal tracking and transparent reporting mechanisms are crucial to demonstrate value to taxpayers. The agency must proactively validate that the center is achieving its intended outcomes without the natural checks and balances of a competitive market.

What is the estimated cost savings or efficiency improvement anticipated from establishing this Lean Agile Center of Excellence, and how does this projected benefit justify the $7M investment?

The justification for the $7M investment should be tied to quantifiable benefits, such as reduced project timelines, lower development costs, improved software quality, or increased agency agility. A clear business case outlining these projected savings and improvements is essential. Without this, it's difficult to ascertain if the expenditure represents a wise use of funds, especially considering the absence of competitive bidding which might have driven down costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Address: 3800 CENTERPOINT DR, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $23,029,127

Exercised Options: $7,654,941

Current Obligation: $7,012,736

Actual Outlays: $1,294,649

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline