DoD's $156.5M contract for leased relocatable facilities at Ft. Knox awarded to Alutiiq International Solutions, LLC

Contract Overview

Contract Amount: $15,652,140 ($15.7M)

Contractor: Alutiiq International Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-24

End Date: 2012-01-23

Contract Duration: 1,460 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE DESIGN/BUILD SERVICES FOR LEASED RELOCATABLE FACILITIES AT FOUR SITES, FT. KNOX, KY

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC for work described as: PROVIDE DESIGN/BUILD SERVICES FOR LEASED RELOCATABLE FACILITIES AT FOUR SITES, FT. KNOX, KY Key points: 1. The contract's value of $156.5 million over four years suggests a significant investment in temporary infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The definitive contract type with a firm fixed price suggests a clear scope and cost control mechanism. 4. The contract duration of 1460 days (4 years) points to a long-term need for these facilities. 5. The North American Industry Classification System (NAICS) code 531190 (Lessors of Other Real Estate Property) places this contract within the real estate leasing sector. 6. Awarded by the Department of the Army, this contract supports military operational needs at Fort Knox, Kentucky.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the leased facilities' size, condition, and duration of use. However, a $156.5 million expenditure over four years for leased relocatable facilities indicates a substantial commitment. The firm fixed-price structure provides some cost certainty, but the overall value for money depends heavily on the specific terms and the necessity of leased versus permanent structures. Comparisons to similar leasing contracts for military installations would be necessary for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. With five bidders participating, the competition level appears moderate. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. However, the ultimate impact on price depends on the specific technical requirements and the availability of qualified contractors in the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price by fostering a competitive environment among potential providers.

Public Impact

Military personnel and operations at Fort Knox, Kentucky, benefit from the provision of necessary facilities. The contract delivers leased relocatable facilities, providing essential infrastructure for military readiness and support. The geographic impact is concentrated at Fort Knox, Kentucky, supporting regional military activities. The contract may have implications for the local workforce through construction, maintenance, and support services related to the leased facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or extended lease terms are required.
Dependence on a single contractor for critical facility needs could pose a risk if performance issues arise.
The long-term cost-effectiveness of leased relocatable facilities compared to permanent construction should be continuously evaluated.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that could lead to favorable pricing.
The contract is awarded to a specific entity, indicating a clear point of accountability for delivery.

Sector Analysis

This contract falls within the real estate leasing and facility support services sector, specifically for government and military applications. The market for leased relocatable facilities is driven by the need for flexible and rapidly deployable infrastructure, often utilized for temporary or surge requirements. Comparable spending benchmarks would involve analyzing other government leases for similar types of temporary structures or facilities at military installations nationwide.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Alutiiq International Solutions, LLC voluntarily engages small businesses in its subcontracting efforts. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Facilities
Government Real Estate Leasing
Temporary Facility Solutions
Department of Defense Infrastructure Support

Risk Flags

Potential for cost creep if scope expands beyond initial design-build parameters.
Dependence on contractor's ability to deliver specialized relocatable facilities on time.
Long-term cost-effectiveness of leasing versus owning needs continuous evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to ALUTIIQ INTERNATIONAL SOLUTIONS, LLC. PROVIDE DESIGN/BUILD SERVICES FOR LEASED RELOCATABLE FACILITIES AT FOUR SITES, FT. KNOX, KY

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: 2008-01-24. End: 2012-01-23.

What is the specific nature and scope of the 'design/build services for leased relocatable facilities' provided under this contract?

The contract specifies 'design/build services for leased relocatable facilities.' This implies that Alutiiq International Solutions, LLC is responsible for both designing and constructing temporary, movable structures that will then be leased to the Department of the Army. The 'design/build' aspect suggests a comprehensive approach where the contractor handles the entire process from conceptualization and architectural design to the physical construction and delivery of the facilities. The 'relocatable' nature indicates that these structures are intended to be moved or disassembled and reassembled, offering flexibility. The specific types of facilities (e.g., barracks, administrative offices, training spaces) and their technical specifications would be detailed in the contract's statement of work, which is not provided here but is crucial for understanding the full scope.

How does the $156.5 million contract value compare to similar leasing or facility construction contracts for military bases?

Direct comparison of the $156.5 million contract value is difficult without detailed information on the scope, duration, and specific services included in comparable contracts. However, for a four-year period, this represents an average annual expenditure of approximately $39.1 million. This figure needs to be contextualized by the number and type of facilities provided, their size, complexity, and the specific requirements of Fort Knox. Large-scale military construction or leasing projects can easily run into tens or hundreds of millions of dollars. To assess value, one would need to benchmark against other Army or DoD contracts for similar relocatable or temporary facilities, considering factors like cost per square foot, per-unit cost for specific facility types, and the overall duration of the lease.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, typical KPIs for design-build and leasing contracts of this nature would likely include timely completion of design and construction phases, adherence to quality standards and specifications, facility readiness and availability by the specified dates, and potentially maintenance and support responsiveness. SLAs might cover response times for repairs, uptime guarantees for essential services within the facilities, and compliance with safety and environmental regulations. The firm fixed-price nature suggests that meeting these performance standards is critical to the contractor's profitability and successful contract execution.

What is the track record of Alutiiq International Solutions, LLC in delivering similar design-build or facility leasing services for the government?

Alutiiq International Solutions, LLC has a history of performing government contracts, including those related to logistics, base operations support, and construction services. To assess their track record specifically for design-build services of leased relocatable facilities, a review of their past performance evaluations, contract history with the Department of Defense and other federal agencies, and any reported issues or successes on similar projects would be necessary. Information on their experience with modular or temporary structures, their capacity to manage complex design-build projects, and their financial stability would also be relevant. A thorough review of their past performance would inform the assessment of their capability to successfully execute this $156.5 million contract.

What are the potential risks associated with relying on leased relocatable facilities versus permanent construction for Fort Knox?

Relying on leased relocatable facilities presents several potential risks compared to permanent construction. Firstly, there's a risk of long-term cost inefficiency; while initially appearing flexible, cumulative lease payments over extended periods can exceed the cost of ownership for permanent structures. Secondly, the availability and suitability of relocatable facilities may be subject to market fluctuations or specific contractor capabilities, potentially limiting options or increasing costs if demand is high. Thirdly, the lifespan and durability of relocatable facilities might be less than permanent buildings, requiring more frequent replacements or upgrades. Finally, there could be limitations on customization and integration with existing permanent infrastructure, potentially impacting operational efficiency or future expansion plans. The decision to lease relocatable facilities likely stems from a need for rapid deployment, flexibility, or temporary requirements where permanent construction is not feasible or cost-effective in the short to medium term.

How does the geographic location (Fort Knox, KY) influence the contract's execution and potential costs?

The geographic location at Fort Knox, Kentucky, influences the contract's execution by defining the specific site requirements, logistical challenges, and potentially the local labor and material costs. Fort Knox is a major U.S. Army installation, implying established infrastructure and security protocols that the contractor must adhere to. Proximity to existing resources and transportation networks in Kentucky could impact delivery times and costs for materials and personnel. Furthermore, local regulations, environmental considerations specific to the region, and the availability of a skilled workforce in the vicinity will play a role. The contract's focus on a single, albeit large, installation suggests a concentrated effort, potentially allowing for economies of scale in deployment and management within that specific area.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Other Real Estate Property

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912QR08R0011

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Afognak Native Corp (UEI: 052089695)

Address: 3033 S PARKER RD STE 1111, AURORA, CO, 80014

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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,590,436

Exercised Options: $15,652,140

Current Obligation: $15,652,140

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline