DoD's $13.9M contract for duplex construction awarded to Alutiiq International Solutions, LLC

Contract Overview

Contract Amount: $13,960,521 ($14.0M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-05-21

End Date: 2009-12-02

Contract Duration: 560 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT DUPLEX COF'S

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: CONSTRUCT DUPLEX COF'S Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $13.9 million falls within a moderate spending range for construction projects of this nature. 3. Fixed-price contract type indicates that the contractor bears the risk of cost overruns. 4. The project duration of 560 days suggests a substantial construction undertaking. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The contract was awarded in Alaska, indicating a specific geographic focus for this construction effort.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed project specifications and comparable construction costs in Alaska during 2008-2009. However, the firm fixed-price nature suggests that the initial pricing was deemed acceptable by the Army, transferring cost overrun risk to the contractor. The award amount of $13.9 million for duplex construction would need to be compared against per-unit costs for similar housing units in the region and time period to fully assess value for money.

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 broad, certain sources were initially excluded before the final award. This suggests a deliberate strategy to ensure a competitive environment while potentially focusing on specific capabilities. The presence of two bidders indicates some level of competition, but the exact number of interested parties and the reasons for excluding other sources would provide a clearer picture of the competitive landscape.

Taxpayer Impact: A full and open competition, even with initial exclusions, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. The existence of multiple bidders helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries of this contract are the military personnel and their families who will reside in the constructed duplexes. The services delivered include the construction of housing units, directly impacting military readiness and quality of life. The geographic impact is localized to Alaska, where the construction project is situated. The contract supports the construction workforce in Alaska, potentially creating jobs for skilled laborers and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' aspect of the competition warrants further investigation to understand the rationale and potential impact on overall competition.
Lack of detailed cost breakdowns makes it difficult to assess the reasonableness of the pricing beyond the fixed-price nature.
The specific type and scope of 'duplex' construction are not detailed, limiting a precise comparison to other projects.

Positive Signals

The contract was awarded under full and open competition, indicating an effort to solicit a wide range of potential bidders.
The firm fixed-price contract type shifts cost overrun risk to the contractor, which is generally favorable for the government.
The project duration is clearly defined, providing a timeline for delivery and completion.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for military housing construction is a significant segment within the broader defense spending landscape. Comparable spending benchmarks would involve analyzing other military housing projects, particularly those in remote or challenging environments like Alaska, to assess cost-effectiveness. The size of this contract, at $13.9 million, is moderate for a construction project of this scale.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engaged small businesses as subcontractors. Further analysis would be needed to determine if subcontracting plans were in place or if small businesses participated indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant contracting command within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering the specified construction within the agreed-upon price. Transparency is facilitated by the public availability of contract data, though detailed project management and inspection reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Family Housing Construction
Department of Defense Construction Contracts
Alaska Construction Projects

Risk Flags

Competition level requires further clarification due to 'Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. CONSTRUCT DUPLEX COF'S

Who is the contractor on this award?

The obligated recipient is ALUTIIQ INTERNATIONAL 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 $14.0 million.

What is the period of performance?

Start: 2008-05-21. End: 2009-12-02.

What was the specific rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?

The rationale for excluding certain sources in a 'Full and Open Competition After Exclusion of Sources' award typically stems from pre-qualification requirements, specific technical capabilities, or past performance criteria deemed essential for the project's success. For this Department of the Army contract, it's possible that only firms with demonstrated experience in constructing duplexes in similar climates or with specific security clearances were initially considered. Without access to the solicitation details and pre-award documentation, the precise reasons remain speculative. However, such exclusions are intended to ensure that the pool of bidders possesses the necessary qualifications, potentially leading to a more efficient and successful project execution, while still maintaining a competitive environment among the qualified entities.

How does the $13.9 million contract value compare to similar duplex construction projects for the military in Alaska during the 2008-2009 period?

Comparing the $13.9 million contract value for duplex construction to similar projects in Alaska between 2008 and 2009 requires access to a broader dataset of military construction contracts from that era and region. Factors such as the number of units, square footage per unit, specific amenities, site preparation requirements, and prevailing labor and material costs in Alaska would significantly influence project costs. Given Alaska's unique logistical challenges and higher cost of living, construction expenses are generally higher than in the contiguous United States. A preliminary assessment suggests that $13.9 million for duplex construction could be reasonable if it encompasses multiple units or complex site development, but a definitive value-for-money judgment necessitates a detailed comparison with projects of identical scope and specifications.

What are the potential risks associated with a firm fixed-price contract for a construction project of this magnitude and duration?

A firm fixed-price (FFP) contract, while generally favorable to the government by capping costs, carries inherent risks for the contractor, which can indirectly affect the project. For a $13.9 million construction project lasting 560 days, the primary risk for the contractor is underestimating costs. Unforeseen site conditions, material price escalations, labor shortages, or delays caused by factors beyond the contractor's control (e.g., weather, permitting issues) can lead to significant financial losses for the contractor. If the contractor faces severe financial distress, it could jeopardize project completion, potentially leading to delays, disputes, or even contract termination. The government's risk is primarily related to ensuring the contractor has the financial stability and expertise to absorb potential cost overruns and deliver the project as specified.

What is the typical performance track record of Alutiiq International Solutions, LLC, particularly in Department of Defense construction contracts?

Assessing the performance track record of Alutiiq International Solutions, LLC requires a review of their contract history with the Department of Defense and other federal agencies. Information on past performance, including on-time delivery, quality of work, adherence to budget (where applicable), and any disputes or claims, would be crucial. Companies that consistently win and successfully execute large construction contracts, especially for the DoD, generally possess a strong track record. However, without specific performance data for this contractor related to similar construction projects, it is difficult to provide a definitive assessment. A review of contract databases and performance evaluation reports (if publicly available) would be necessary to gauge their reliability and expertise.

How does the NAICS code 236220 (Commercial and Institutional Building Construction) align with the specific requirements of constructing military duplexes?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' broadly encompasses the construction of non-residential buildings. While military duplexes are residential in nature, the construction process, project management, and regulatory compliance often share similarities with commercial building projects. This includes adherence to building codes, safety standards, and project scheduling. Many construction firms that specialize in commercial and institutional buildings also possess the capabilities and experience to undertake residential construction, particularly multi-family dwellings like duplexes, especially when they involve robust infrastructure and site development typical of military installations. Therefore, this NAICS code is a reasonable classification for such a project, indicating the contractor's general area of expertise.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911KB08R0016

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD STE 400, ANCHORAGE, AK, 00

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

Financial Breakdown

Contract Ceiling: $13,960,521

Exercised Options: $13,960,521

Current Obligation: $13,960,521

Contract Characteristics

Cost or Pricing Data: NO

Timeline