Aleut Construction LLC awarded $15.2M contract for DLA SIAD Improvements at Herlong, California

Contract Overview

Contract Amount: $15,234,400 ($15.2M)

Contractor: Aleut Construction LLC

Awarding Agency: Department of Defense

Start Date: 2025-10-10

End Date: 2027-10-24

Contract Duration: 744 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: USACE SPK DBB CONSTRUCTION - DLA SIAD IMPROVEMENTS, HERLONG, CALIFORNIA

Place of Performance

Location: HERLONG, LASSEN County, CALIFORNIA, 96113

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to ALEUT CONSTRUCTION LLC for work described as: USACE SPK DBB CONSTRUCTION - DLA SIAD IMPROVEMENTS, HERLONG, CALIFORNIA Key points: 1. Contract awarded to Aleut Construction LLC for facility improvements. 2. Project involves construction and institutional building. 3. Contract type is Firm Fixed Price, indicating defined costs. 4. Duration of the contract is 744 days. 5. Geographic focus is Herlong, California. 6. This contract is a definitive contract award.

Value Assessment

Rating: fair

The contract value of $15.2 million for DLA SIAD Improvements appears to be within a reasonable range for a construction project of this nature, though specific benchmarks for 'SIAD Improvements' are not readily available. The firm fixed price structure suggests that the government has a clear understanding of the costs involved, which can be beneficial. However, without detailed cost breakdowns or comparisons to similar projects with identical scopes, a definitive assessment of value for money is challenging. The award amount is significantly higher than the bid bond amount ($20,476), which is typical for construction contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, which makes it difficult to assess the impact on competition. A limited competition can sometimes lead to higher prices if the available bidders are few or have significant market power.

Taxpayer Impact: The exclusion of certain sources, even if justified, may have reduced competitive pressure, potentially impacting the final price paid by taxpayers.

Public Impact

The primary beneficiaries are the Defense Logistics Agency (DLA) and the U.S. Army Corps of Engineers (USACE) through improved facility infrastructure. The services delivered include construction and improvements to SIAD facilities. The geographic impact is localized to Herlong, California. The contract will likely involve a workforce of construction laborers and skilled tradespeople in the Herlong area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could impact price discovery.
Lack of detailed scope for 'SIAD Improvements' makes value assessment difficult.
Firm Fixed Price contracts can shift cost overrun risks to the contractor, but initial pricing may be higher to account for this.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to Aleut Construction LLC, a known entity in construction.
Project aims to improve critical DLA infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports infrastructure development, military base improvements, and government facility upgrades. The total value of federal construction contracts can range from billions to tens of billions annually, depending on economic conditions and national priorities. This specific contract, valued at $15.2 million, represents a moderate-sized project within the federal construction landscape.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to bid and potentially win. There is no explicit information provided regarding subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though large prime contractors may still engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, specifically the U.S. Army Corps of Engineers (USACE), which is responsible for managing construction projects. Accountability measures are inherent in the firm fixed price contract type, requiring the contractor to deliver the specified improvements within the agreed-upon cost. Transparency is facilitated through contract award databases, though detailed project progress and spending reports may be less publicly accessible.

Related Government Programs

USACE Construction Contracts
DLA Facility Modernization
Defense Infrastructure Projects
Federal Building Construction

Risk Flags

Limited competition due to source exclusion.
Potential for inflated pricing in FFP contracts without robust competition.
Scope of 'SIAD Improvements' is not fully defined, impacting value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to ALEUT CONSTRUCTION LLC. USACE SPK DBB CONSTRUCTION - DLA SIAD IMPROVEMENTS, HERLONG, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is ALEUT CONSTRUCTION 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 $15.2 million.

What is the period of performance?

Start: 2025-10-10. End: 2027-10-24.

What is the track record of Aleut Construction LLC in performing similar federal construction contracts?

Information regarding Aleut Construction LLC's specific track record with federal contracts, particularly those involving 'SIAD Improvements' or similar defense logistics agency facility upgrades, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government projects. Without this historical data, it is difficult to definitively gauge their experience and reliability for this specific type of work. Further research into federal procurement databases and contractor performance systems would be necessary to provide a detailed analysis of their past performance.

How does the awarded amount of $15.2 million compare to similar DLA SIAD Improvement projects?

Benchmarking the $15.2 million award for DLA SIAD Improvements is challenging without specific details on the scope of 'SIAD Improvements' and comparable projects. SIAD (Security, Information, and Administrative Data) improvements can encompass a wide range of upgrades, from IT infrastructure to physical security enhancements and administrative space renovations. If this contract primarily involves IT upgrades, the cost might be high. If it's mainly physical construction, it could be moderate. A direct comparison would require identifying other DLA contracts with identical or very similar scopes of work and geographic locations, which are not provided here. The firm fixed price nature suggests costs were estimated and agreed upon, but without comparative data, assessing if it represents optimal value is difficult.

What are the primary risks associated with this firm fixed price contract for the government?

The primary risk for the government in a Firm Fixed Price (FFP) contract like this one is the potential for the contractor to inflate the initial price to cover unforeseen costs or risks they anticipate during performance. While FFP shifts cost overrun risk to the contractor, if the initial price is too high due to aggressive risk premiums or inadequate competition, the government may end up paying more than necessary. Another risk is contractor performance; if the contractor lacks the expertise or resources, delays or quality issues could arise, impacting the DLA's operations. Ensuring robust oversight and clear performance standards are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for program effectiveness?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, specific entities were deliberately excluded. The implications for program effectiveness are mixed. On one hand, if the exclusions were based on legitimate technical requirements or security concerns, it might ensure that only qualified contractors capable of meeting stringent standards participate, potentially leading to a more effective outcome. On the other hand, if the exclusions were arbitrary or overly restrictive, it could limit the number of capable bidders, potentially reducing innovation and leading to a less optimal solution or higher costs, which could indirectly affect program effectiveness by consuming more resources.

What is the historical spending trend for DLA SIAD Improvements or similar facility upgrades?

Historical spending trends for 'DLA SIAD Improvements' specifically are not detailed in the provided data. However, federal spending on facility upgrades and infrastructure modernization for agencies like the Defense Logistics Agency (DLA) is generally substantial and fluctuates based on modernization needs, budget allocations, and strategic priorities. DLA's mission involves managing supply chains, and maintaining efficient, secure, and modern facilities is critical. Spending in this area is often driven by requirements for enhanced security, technological integration, energy efficiency, and general maintenance. Analyzing broader trends in defense infrastructure spending or specific DLA capital improvement budgets would provide context, but granular data on 'SIAD Improvements' is needed for a precise historical analysis.

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: W9123825RA019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Aleut Corporation

Address: 12355 SUNRISE VALLEY DR STE 300D, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $15,234,400

Exercised Options: $15,234,400

Current Obligation: $15,234,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline