DoD's $157M transitional facilities contract awarded to Alutiiq International Solutions in 2007 lacked competition

Contract Overview

Contract Amount: $15,745,809 ($15.7M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2007-04-18

End Date: 2008-04-07

Contract Duration: 355 days

Daily Burn Rate: $44.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY07 BRIGADE COMPLEX - TRANSITIONAL FACILITIES

Place of Performance

Location: FORT LEWIS, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: FY07 BRIGADE COMPLEX - TRANSITIONAL FACILITIES Key points: 1. The contract was awarded on a non-competitive basis, raising questions about potential overpayment and value for money. 2. Limited competition suggests a potential lack of market pressure to drive down costs. 3. The fixed-price contract type may offer cost certainty but could also lead to contractor windfalls if costs were underestimated. 4. The duration of the contract (355 days) is relatively short, suggesting a specific, time-bound need. 5. The award to Alutiiq International Solutions in 2007 warrants a review of their past performance and pricing on similar contracts. 6. The absence of small business participation is noted, with no indication of set-asides or subcontracting plans.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for similar transitional facility projects in 2007. The firm fixed-price nature suggests a defined scope, but without competitive bids, it's difficult to ascertain if the $157 million price represented a fair market value. The absence of competition inherently limits the ability to assess pricing against market alternatives, raising concerns about whether taxpayers received the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed openly. The data indicates 'NOT AVAILABLE FOR COMPETITION,' suggesting a specific reason for bypassing the standard competitive process, such as a unique capability or urgent need. The lack of multiple bidders means there was no direct price comparison or negotiation leverage derived from market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This limits the government's ability to secure the most cost-effective solution.

Public Impact

The primary beneficiaries of this contract were likely the Department of Defense personnel requiring transitional facilities. The services delivered involved the construction of commercial and institutional buildings, specifically transitional facilities. The geographic impact was in Washington (WA), indicated by the 'SN' field. Workforce implications would include construction labor and project management, though specific numbers are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Limited transparency into the justification for sole-source award.
No clear indication of small business involvement or subcontracting opportunities.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award was made to Alutiiq International Solutions, LLC, a known entity.
Contract was awarded by the Department of the Army, a major DoD component.

Sector Analysis

This contract falls within the Construction sector, specifically commercial and institutional building construction. The market for such services is typically robust, with numerous firms capable of undertaking large-scale projects. However, the specific nature of 'transitional facilities' might imply specialized requirements. In 2007, the construction industry was experiencing various market conditions, and large government contracts like this represented significant opportunities.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside ('sb': false). There is also no information suggesting any subcontracting requirements for small businesses. This suggests that small businesses were not a primary focus for this particular award, potentially limiting their participation in this significant federal spending.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and potentially the Department of Defense's Inspector General. However, specific details on the oversight applied to this sole-source award are not provided. Transparency is limited due to the non-competitive nature and the age of the data.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Department of Defense Construction Contracts
Transitional Housing Projects

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. FY07 BRIGADE COMPLEX - TRANSITIONAL FACILITIES

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 $15.7 million.

What is the period of performance?

Start: 2007-04-18. End: 2008-04-07.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION' (ct: 'NOT AVAILABLE FOR COMPETITION'). This typically implies a justification such as urgent and compelling need, unique capabilities of the contractor, or a national security imperative that precluded a competitive solicitation. Without access to the original contract file or justification documents, the precise reason remains unknown. However, such justifications are usually documented and approved by appropriate authorities within the Department of the Army.

How does the $157 million cost compare to similar transitional facility projects in 2007?

Direct comparison is difficult without specific project details (size, scope, location specifics, duration) and access to a database of similar contracts from 2007. The 'transitional facilities' designation could refer to various types of temporary structures. Given the sole-source nature, it's plausible the price was higher than if it had been competitively bid. Benchmarking would require identifying contracts with comparable square footage, construction complexity, and geographic region, which are not readily available from the provided summary data.

What is Alutiiq International Solutions, LLC's track record with the Department of Defense?

Alutiiq International Solutions, LLC has a history of contracting with the Department of Defense and other federal agencies. As of the data provided, they were awarded this significant contract in 2007. A comprehensive review of their track record would involve examining their portfolio of past contracts, including performance reviews, any past performance issues, and the types of services they have provided to the DoD. Their involvement in multiple projects suggests they are an established government contractor.

What were the potential risks associated with this sole-source contract?

The primary risk associated with a sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value. Other risks include contractor performance issues, schedule delays, or scope creep, which are inherent in any large construction project. The absence of a competitive process can also reduce transparency and accountability compared to an open solicitation.

What is the historical spending pattern for transitional facilities by the Department of the Army?

Historical spending on transitional facilities by the Department of the Army can vary significantly based on military readiness needs, troop deployments, and base realignment initiatives. This $157 million contract in 2007 represents a substantial investment. Analyzing broader spending patterns would require examining annual budgets and contract awards over multiple fiscal years, looking for trends in the types of facilities procured, the average contract values, and the procurement methods used (competitive vs. sole-source).

Were there any performance issues or contract modifications noted for this award?

The provided summary data does not include details on contract modifications, performance issues, or disputes related to this specific award. Typically, such information would be found in more detailed contract databases or agency procurement records. The duration of 355 days suggests a project that was likely completed within its initial timeframe, but without further data, performance assessment is not possible.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DW07R0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3909 ARCTIC BLVD. SUITE 400, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,745,809

Exercised Options: $15,745,809

Current Obligation: $15,745,809

Contract Characteristics

Cost or Pricing Data: NO

Timeline