Department of Defense awards $26.2M contract for CRTC Support Services to Bering Sea Environmental LLC

Contract Overview

Contract Amount: $26,245,202 ($26.2M)

Contractor: Bering SEA Environmental LLC

Awarding Agency: Department of Defense

Start Date: 2016-08-31

End Date: 2022-03-31

Contract Duration: 2,038 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CRTC SUPPORT SERVICES

Place of Performance

Location: GULFPORT, PINELLAS County, FLORIDA, 33707

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to BERING SEA ENVIRONMENTAL LLC for work described as: IGF::OT::IGF CRTC SUPPORT SERVICES Key points: 1. Contract value of $26.2M over approximately 6.7 years suggests a moderate annual spend. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The definitive contract type with a firm fixed price suggests a clear scope and predictable costs. 4. The contractor, Bering Sea Environmental LLC, has secured this significant award, highlighting their capabilities in facility management. 5. The contract duration of 2038 days (approx. 5.6 years) is substantial, implying a long-term need for these services. 6. The award was made by the Department of the Army, a major component of the DoD.

Value Assessment

Rating: fair

The total contract value of $26.2 million over nearly seven years averages to approximately $3.9 million annually. Without specific benchmarks for CRTC support services, it's difficult to definitively assess value for money. However, the firm fixed-price structure provides cost certainty. Further analysis would require comparing this annual spend to similar contracts for comparable facilities management services within the Department of Defense or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 4 bids indicates a degree of competition, which is generally positive for price discovery. However, the specific number of bidders does not inherently guarantee the most competitive pricing without further context on the bidding landscape and the qualifications of the bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives competitive offers.

Public Impact

The primary beneficiaries are likely the personnel and operations within the CRTC facilities managed under this contract. The services delivered are essential for the functioning and maintenance of critical computer facilities. The geographic impact is concentrated in Florida, where the contract is being performed. Workforce implications include employment opportunities for individuals with expertise in computer facilities management and related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen operational complexities.
Risk of contractor performance issues impacting critical facility operations.
Dependence on a single contractor for an extended period could limit flexibility.
The specific nature of 'CRTC Support Services' is broad and may encompass a wide range of tasks, making performance monitoring complex.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost predictability for the government.
Long contract duration indicates a stable, ongoing requirement and potential for contractor efficiency.
The contractor, Bering Sea Environmental LLC, has secured a significant federal contract, implying a level of established capability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for IT infrastructure and facility support services is substantial within the federal government, with agencies constantly seeking to maintain and upgrade their computing environments. Comparable spending benchmarks would involve analyzing other contracts for similar facility management services across various government departments, particularly those with large data centers or IT hubs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary focus is on large business competition. However, the prime contractor may voluntarily engage small businesses for subcontracting opportunities, which would contribute to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Infrastructure Management Services
Data Center Operations Support
Computer Systems Management
Federal IT Services Contracts
Department of Defense IT Spending

Risk Flags

Contract duration may lead to vendor lock-in.
Potential for scope creep if 'CRTC Support Services' is not clearly defined.
Performance risks associated with long-term IT facility management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to BERING SEA ENVIRONMENTAL LLC. IGF::OT::IGF CRTC SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BERING SEA ENVIRONMENTAL 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 $26.2 million.

What is the period of performance?

Start: 2016-08-31. End: 2022-03-31.

What is the specific nature of 'CRTC Support Services' and what are the key performance indicators (KPIs) for this contract?

The provided data abbreviates the contract description as 'CRTC SUPPORT SERVICES' and lists the North American Industry Classification System (NAICS) code as 541513, 'Computer Facilities Management Services'. This suggests the services likely encompass the operation, maintenance, and management of computer facilities, which could include hardware maintenance, network support, environmental controls (power, cooling), physical security, and potentially software installation and patching. Key performance indicators (KPIs) are not detailed in the provided data but would typically be outlined in the contract's Statement of Work (SOW). Common KPIs for such services might include system uptime percentages, response times for service requests, incident resolution times, adherence to security protocols, and successful completion of scheduled maintenance. The absence of specific KPIs in the summary data makes a detailed assessment of performance effectiveness challenging without reviewing the full contract documentation.

How does the annual cost of this contract compare to similar IT facility management contracts within the Department of Defense?

The contract's total value is $26.2 million over approximately 6.7 years, averaging about $3.9 million per year. To benchmark this against similar contracts, one would need to identify other Department of Defense (DoD) contracts for computer facilities management (NAICS 541513) or related IT infrastructure support services awarded around the same period, with comparable durations and scopes. Factors such as facility size, criticality, geographic location, and the specific services included (e.g., hardware maintenance, network operations, cybersecurity support) would need to be considered for a fair comparison. Without access to a comprehensive database of comparable contract data and detailed service descriptions, it is difficult to definitively state whether $3.9 million annually represents a high, low, or average cost for these types of services within the DoD. The firm fixed-price nature suggests a negotiated price based on anticipated costs and profit.

What is the track record of Bering Sea Environmental LLC in performing federal contracts, particularly those related to IT facility management?

The provided data indicates that Bering Sea Environmental LLC is the contractor for this $26.2 million contract. To assess their track record, one would need to examine their past performance on federal contracts. This would involve searching contract databases (like FPDS) for other awards to Bering Sea Environmental LLC, noting the agencies involved, contract types, values, durations, and the services performed. Particular attention should be paid to contracts with similar NAICS codes (e.g., 541513) or service descriptions related to IT facility management, operations, and maintenance. Information on past performance evaluations, any contract disputes, or terminations would also be crucial. A history of successful contract completion, positive performance reviews, and experience with large-scale IT support services would indicate a strong track record, while a pattern of issues could raise concerns about their capability to fulfill this current contract effectively.

What are the potential risks associated with a firm fixed-price contract of this duration for IT facility management?

Firm fixed-price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, for a long-duration contract (nearly 7 years) involving complex IT facility management, there are inherent risks. If the initial cost estimate or scope of work proves inaccurate, the contractor might incur losses, potentially leading to reduced service quality, attempts to cut corners, or even contract termination. Conversely, if the contractor significantly underestimates costs or if market prices for labor and materials rise unexpectedly, they might seek change orders or face financial strain. For the government, the risk lies in the contractor potentially delivering subpar services to protect their profit margin, or in the FFP structure not adequately accommodating necessary technological upgrades or changes in operational requirements over the contract's lifespan. Effective performance monitoring and clear contract terms are crucial to mitigate these risks.

How does the competition level (4 bidders) for this contract potentially impact the final price and service quality compared to a sole-source or limited competition scenario?

Having four bidders for this contract, awarded under full and open competition, generally suggests a healthy level of market interest and potential for competitive pricing. More bidders typically increase the likelihood that the government will receive offers closer to the true market value, as companies vie for the award. This competitive pressure can incentivize contractors to offer competitive prices and high-quality services to win the contract. In contrast, a sole-source or limited competition scenario, where fewer or only one bidder is involved, often leads to higher prices and potentially less incentive for the contractor to excel in service quality, as the government has fewer alternatives. Therefore, the four-bidder scenario is a positive indicator for taxpayers, suggesting that the government likely secured a more favorable price and service level than might have been achieved with less competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9133L16R0019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tanadgusix Corporation

Address: 615 E 82ND AVE STE 200, ANCHORAGE, AK, 99518

Business Categories: Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, 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: $26,245,202

Exercised Options: $26,245,202

Current Obligation: $26,245,202

Actual Outlays: $4,876,255

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $4,074,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline