DoD's $126.9M Security Services Contract with Alutiiq Global Solutions Faces Scrutiny
Contract Overview
Contract Amount: $44,564,603 ($44.6M)
Contractor: Alutiiq Global Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-21
End Date: 2015-04-15
Contract Duration: 3,493 days
Daily Burn Rate: $12.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAS::21 2040::TAS 200512!502701!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0127 !A!N! !N! ! !20050921!20100930!126925267!126925267!118261523!N!ALUTIIQ GLOBAL SOLUTIONS, LLC !3201 C STREET, SUITE 700 !ANCHORAGE !AK!99503!30000!150!68!YONA !KWAJALEIN !* !+000000450000!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E! !3! ! ! ! ! !20200930!B! ! !A! !B!Y!U!1!001!N!5A!Z!Y!Z! ! !N!A!N!N!E! ! ! !D!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $44.6 million to ALUTIIQ GLOBAL SOLUTIONS, LLC for work described as: TAS::21 2040::TAS 200512!502701!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0127 !A!N! !N! ! !20050921!20100930!126925267!126925267!118261523!N!ALUTIIQ GLOBAL SOLUTIONS, LLC !3201 C STREET, SUITE 700 !ANCHORAGE !AK!99503!30000!150!68!YONA … Key points: 1. The contract awarded to Alutiiq Global Solutions, LLC for security services is for a significant amount, raising questions about value. 2. The 'NOT AVAILABLE FOR COMPETITION' status suggests a lack of competitive bidding, potentially impacting price discovery. 3. The contract's duration and cost warrant a closer look to ensure taxpayer funds are used efficiently. 4. Security services are a critical function, but the procurement method here needs careful review for potential risks.
Value Assessment
Rating: questionable
The contract value of $126.9M over its life is substantial. Without competitive benchmarks, it's difficult to assess if this price is reasonable compared to similar security guard services procured by the government or in the private sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This significantly limits the government's ability to leverage market forces to achieve the best possible price and value.
Taxpayer Impact: The lack of competition may have resulted in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying for security services due to the lack of competitive bidding. The long-term nature of the contract raises concerns about sustained value and potential for cost creep. The reliance on a single provider for critical security functions could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Essential service provision
- Established vendor relationship
Sector Analysis
This contract falls under the Security Guards and Patrol Services sector. Spending in this area is consistent across government agencies, but competitive procurement is key to ensuring cost-effectiveness.
Small Business Impact
There is no indication in the provided data whether Alutiiq Global Solutions, LLC is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation warrants further oversight to ensure the justification for limited competition was sound and that proper procedures were followed.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Long-term commitment without demonstrated best value
- Limited transparency in procurement justification
Tags
security-guards-and-patrol-services, department-of-defense, ak, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.6 million to ALUTIIQ GLOBAL SOLUTIONS, LLC. TAS::21 2040::TAS 200512!502701!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0127 !A!N! !N! ! !20050921!20100930!126925267!126925267!118261523!N!ALUTIIQ GLOBAL SOLUTIONS, LLC !3201 C STREET, SUITE 700 !ANCHORAGE !AK!99503!30000!150!68!YONA !KWAJALEIN !* !+000000450000!N!N!000000000000!S206!GUARD SERVICES !S1 !SERVICES !000 !* !561612!E
Who is the contractor on this award?
The obligated recipient is ALUTIIQ GLOBAL 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 $44.6 million.
What is the period of performance?
Start: 2005-09-21. End: 2015-04-15.
What was the specific justification for awarding this contract on a limited or sole-source basis, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review of the contract file would be necessary to ascertain the specific justification, such as urgency, unique capabilities, or lack of sources. The adequacy of this justification and documentation is crucial for ensuring proper procurement practices and taxpayer value.
How does the performance of Alutiiq Global Solutions compare to industry standards and other government contracts for similar security services?
Assessing performance requires access to contract performance reports, customer satisfaction surveys, and any documented issues or awards. Benchmarking against similar contracts, especially those awarded competitively, would reveal if the government is receiving comparable value and quality for the price paid under this limited-source agreement.
What is the projected cost-effectiveness of this contract over its full duration, considering potential cost increases or scope changes?
The contract's total value is $126.9M. Analyzing the cost-plus-fixed-fee structure and historical spending trends is essential. Understanding the baseline fixed fee and how costs have been managed is key to determining if the overall expenditure remains cost-effective and aligned with initial projections.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Afognak Native Corp (UEI: 052089695)
Address: 3201 C STREET, SUITE 700, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $52,237,824
Current Obligation: $44,564,603
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-09-21
Current End Date: 2015-04-15
Potential End Date: 2015-04-15 00:00:00
Last Modified: 2020-01-15
More Contracts from Alutiiq Global Solutions, LLC
- Federal Contract — $115.5M (Department of Defense)
- 200608!601294!2100!w912qr!usa Engineer Dist Louisville !w912qr06c0032 !A!N! !N! ! !20060623!20060120!126925267!126925267!118261523!n!alutiiq Global Solutions, LLC !3201 C Street, Suite 700 !anchorage !ak!99503!28540!093!21!fort Knox !hardin !kentucky !+000048651449!n!n!000048651449!y163!troop Housing Facilities !C2 !construction !000 !NOT Discernable !236220!E! !3! ! ! ! ! !99990909!B! ! !A! !a!u!j!1!002!b! !D!N!Z! ! !n!a!n!n!e! ! ! !a!a!000!a!b!y!s!n! !Y! ! !0001! ! — $51.0M (Department of Defense)
- Champ — $42.9M (Department of Defense)
- Readiness and Surge Support Services — $39.8M (Department of Homeland Security)
- Contractor to Provide Demolition, Abatement, and Construction Services for the Blast Package #2 (perimeter Hardening) for Phase 1B AT the Main Department of State Building in Washington, DC — $20.1M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)