Army awards $118M for site preparation, with Alutiiq Manufacturing Contractors securing the deal

Contract Overview

Contract Amount: $65,051,416 ($65.1M)

Contractor: Alutiiq Manufacturing Contractors, LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-23

End Date: 2005-11-21

Contract Duration: 121 days

Daily Burn Rate: $537.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: 200511!501260!2100!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ05C0015 !A!N! !N! ! !20050723!20050930!118261523!118261523!118261523!N!ALUTIIQ MANUFACTURING CONTRACT!3201 C ST STE 700 !ANCHORAGE !AK!99503!59875!161!20!RILEY !RILEY !KANSAS !+000052880627!N!N!000073600000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !238910!E! !3!A!S! ! ! !20200930!B! ! !A! !B!U!J!1!001!N!5A!D!N!Z! ! !Y!A!N!N!E! ! ! !D!A!000!A!B!Y!U!N! ! ! ! !0001! !

Place of Performance

Location: FORT RILEY, GEARY County, KANSAS, 66442

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $65.1 million to ALUTIIQ MANUFACTURING CONTRACTORS, LLC for work described as: 200511!501260!2100!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ05C0015 !A!N! !N! ! !20050723!20050930!118261523!118261523!118261523!N!ALUTIIQ MANUFACTURING CONTRACT!3201 C ST STE 700 !ANCHORAGE !AK!99503!59875!161!20!RILEY !RILE… Key points: 1. The contract value of $118.3 million represents a significant investment in site preparation services. 2. Competition for this contract was limited, potentially impacting price discovery and value for taxpayers. 3. The fixed-price contract type suggests a defined scope, but potential for cost overruns exists if unforeseen issues arise. 4. The contract duration of 121 days indicates a focused, short-term project. 5. The award to Alutiiq Manufacturing Contractors, LLC warrants a review of their past performance and capacity for such a large project. 6. Site preparation is a critical early-stage activity for construction projects, impacting overall project timelines and costs.

Value Assessment

Rating: fair

The awarded amount of $118.3 million for site preparation services appears substantial. Benchmarking this against similar contracts for site preparation in the Department of Defense or for large-scale construction projects would be necessary to fully assess value for money. Without comparable data, it's difficult to definitively state if this represents excellent or questionable pricing. The fixed-price nature of the contract provides some cost certainty, but the absence of detailed cost breakdowns makes a granular value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed on a full and open basis, indicating potential limitations in the bidding process. The specific reasons for this limited competition are not detailed in the provided data. A limited competition can sometimes lead to higher prices due to reduced market pressure. Understanding the number of bidders and the justification for limiting competition is crucial for assessing its impact on price and efficiency.

Taxpayer Impact: Limited competition can mean that taxpayers may not have benefited from the most competitive pricing available in the market. This could translate to a higher overall cost for the services rendered.

Public Impact

The primary beneficiaries are likely the Department of the Army and any associated construction projects requiring extensive site preparation. Services delivered include site preparation, which typically involves clearing, grading, excavation, and potentially utility work. The geographic impact is centered around the area where the site preparation is being conducted, likely within the United States. Workforce implications could include employment opportunities for construction workers, heavy equipment operators, and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the pool of potential bidders, potentially leading to less competitive pricing.
The fixed-price contract type, while offering cost certainty, could expose the government to higher costs if unforeseen site conditions arise.
Lack of detailed cost breakdowns makes it difficult to ascertain the true value for money and identify potential inefficiencies.

Positive Signals

The award to a single contractor, Alutiiq Manufacturing Contractors, LLC, suggests they possess the specialized capabilities required for this project.
The fixed-price contract structure provides a degree of budget predictability for the government.
The contract is for site preparation, a fundamental step that, when executed well, can ensure the success of subsequent construction phases.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on site preparation. The construction industry is a significant part of the US economy, with government contracts forming a substantial portion of its activity. Site preparation is a foundational element for most construction projects, involving tasks like land clearing, grading, excavation, and utility installation. Comparable spending benchmarks would involve looking at other large-scale site preparation contracts awarded by federal agencies, particularly for military or infrastructure projects.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if there are subcontracting requirements for small businesses. Without this information, it's difficult to assess the impact on the small business ecosystem. Typically, larger contracts may include provisions for small business participation to ensure broader economic benefit.

Oversight & Accountability

Oversight mechanisms for this contract would likely involve the contracting officer's representative (COR) from the Department of the Army, who would monitor performance, quality, and adherence to contract terms. Accountability measures are inherent in the fixed-price contract, where the contractor is responsible for delivering the specified scope within the agreed price. Transparency could be enhanced by making detailed performance reports and cost justifications publicly available, though this is not always standard practice.

Related Government Programs

Army Corps of Engineers Construction Contracts
Department of Defense Site Preparation Services
Federal Construction Projects
Infrastructure Development Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns
Lack of Detailed Cost Transparency
Unforeseen Site Conditions Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.1 million to ALUTIIQ MANUFACTURING CONTRACTORS, LLC. 200511!501260!2100!W912DQ!USA ENGINEER DISTRICT KANSAS CTY!W912DQ05C0015 !A!N! !N! ! !20050723!20050930!118261523!118261523!118261523!N!ALUTIIQ MANUFACTURING CONTRACT!3201 C ST STE 700 !ANCHORAGE !AK!99503!59875!161!20!RILEY !RILEY !KANSAS !+000052880627!N!N!000073600000!Y111!OFFICE BUILDINGS !C2 !CONSTRUCTION !000 !* !238910!E! !3!A!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is ALUTIIQ MANUFACTURING CONTRACTORS, 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 $65.1 million.

What is the period of performance?

Start: 2005-07-23. End: 2005-11-21.

What is the track record of Alutiiq Manufacturing Contractors, LLC with federal contracts, particularly in site preparation?

A review of Alutiiq Manufacturing Contractors, LLC's federal contract history would be necessary to assess their track record. This would involve examining past awards, performance evaluations (such as Past Performance Information Retrieval System - PPIRS), and any history of contract disputes or terminations. Understanding their experience with similar-sized projects and their performance in site preparation specifically would provide crucial context for evaluating the current award's risk and potential for success. Without access to this detailed historical data, it's challenging to form a definitive opinion on their capabilities and reliability for this $118 million contract.

How does the $118.3 million contract value compare to typical site preparation costs for similar projects?

To benchmark the $118.3 million contract value, one would need to compare it against historical data for similar site preparation projects undertaken by the Department of Defense or other federal agencies. Key comparison points would include the scope of work (e.g., acreage cleared, volume of excavation, complexity of terrain), the geographic location (which influences labor and material costs), and the duration of the project. If comparable projects of similar scale and complexity have been awarded at significantly lower price points, it could indicate that this contract's value is on the higher side. Conversely, if it aligns with or is below market rates for comparable services, it would suggest better value for money.

What are the primary risks associated with this fixed-price site preparation contract?

The primary risks associated with this fixed-price site preparation contract include unforeseen site conditions (e.g., unexpected soil contamination, underground utilities, difficult geological formations) that could significantly increase costs beyond the contractor's initial estimates. Scope creep, where additional requirements are added beyond the original agreement, also poses a risk. Furthermore, if the contractor underestimated the labor, equipment, or material costs, they might face financial losses, potentially impacting project quality or completion. The limited competition aspect also introduces a risk that the government may not have secured the most cost-effective solution available in the market.

What is the expected effectiveness of this contract in supporting larger Department of the Army construction initiatives?

The effectiveness of this contract is directly tied to its successful and timely completion of site preparation tasks. Effective site preparation is foundational for the subsequent phases of any construction project, ensuring that the groundwork is stable, properly graded, and ready for building. If Alutiiq Manufacturing Contractors, LLC delivers high-quality site preparation on schedule and within budget, it will significantly contribute to the overall effectiveness and efficiency of the larger Department of the Army construction initiative it supports. Conversely, delays or quality issues in site preparation can cascade, leading to cost overruns and schedule slippages for the entire project.

How has federal spending on site preparation services trended in recent years, and where does this contract fit?

Federal spending on site preparation services has likely seen fluctuations influenced by overall infrastructure investment, military base development, and economic conditions. Analyzing historical spending data from agencies like the Army Corps of Engineers or the General Services Administration (GSA) would reveal trends. This $118.3 million contract represents a substantial single award within this category. Its significance can be gauged by comparing its value to the total annual spending on site preparation and understanding whether it's part of a larger, multi-year program or a standalone project. Understanding these broader spending patterns helps contextualize the scale and importance of this particular contract.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' status for taxpayer value?

The 'NOT AVAILABLE FOR COMPETITION' status, as indicated in the data, suggests that this contract was likely awarded under specific circumstances that precluded a full and open competition. This could be due to reasons such as a sole-source justification, emergency procurement, or specific program requirements. When a contract is not competed broadly, taxpayers may not benefit from the competitive pricing that typically drives down costs. The absence of multiple bids means there is less market pressure to ensure the government is receiving the best possible price for the services. Therefore, this status raises concerns about potential overpayment and warrants a thorough review of the justification for not competing the award.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp

Address: 3201 C ST STE 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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline