DoD's $15.7M logistics support contract awarded to Tyonek Engineering & Agile Manufacturing LLC

Contract Overview

Contract Amount: $15,755,057 ($15.8M)

Contractor: Tyonek Engineering & Agile Manufacturing LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-17

End Date: 2011-03-15

Contract Duration: 728 days

Daily Burn Rate: $21.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOGISTICS SUPPORT AND INTEGRATION

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31093

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $15.8 million to TYONEK ENGINEERING & AGILE MANUFACTURING LLC for work described as: LOGISTICS SUPPORT AND INTEGRATION Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 728 days suggests a need for sustained logistics support. 3. The contract falls under Engineering Services (NAICS 541330). 4. Awarded by U.S. Special Operations Command, indicating a focus on specialized military needs. 5. Firm Fixed Price contract type aims to control costs for the government. 6. No small business set-aside, potentially impacting small business participation.

Value Assessment

Rating: fair

The contract value of $15.7 million over approximately two years for logistics support and integration services is difficult to benchmark without more detailed service descriptions and comparable contracts. The firm fixed-price structure is a positive indicator for cost control. However, the lack of competition raises concerns about whether the government achieved the best possible value. Without competitive bids, it's harder to ascertain if the pricing is aligned with market rates for similar specialized logistics and engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed openly. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent a competitive process. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces, which can lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from competitive bidding processes. The government may have paid a premium due to the lack of alternative offers.

Public Impact

Provides critical logistics support and integration services to U.S. Special Operations Command. Enhances the operational readiness and effectiveness of special operations forces. Supports the complex logistical needs of specialized military missions. Likely involves a specialized workforce with expertise in military logistics and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not adequately vetted due to lack of competition.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Awarded to a specific contractor likely due to specialized capabilities required by SOCOM.
Contract duration suggests a stable, ongoing need for these services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to logistics support and integration. The defense logistics market is substantial, encompassing a wide range of services from supply chain management to technical support for complex military equipment. Contracts like this are crucial for maintaining the operational capabilities of specialized military units. Benchmarking would require comparison to other sole-source or competitively awarded logistics support contracts for similar specialized units within the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are not explicitly mandated. The prime contractor, Tyonek Engineering & Agile Manufacturing LLC, is itself a Native American-owned small business, which could imply a commitment to subcontracting with other small businesses, but this is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General. Transparency regarding the justification for the sole-source award and performance metrics would be key to assessing accountability.

Related Government Programs

Defense Logistics Agency (DLA) contracts
Special Operations Forces Support Contracts
Military Engineering Services Contracts
Logistics and Supply Chain Management Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on justification for sole-source.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.8 million to TYONEK ENGINEERING & AGILE MANUFACTURING LLC. LOGISTICS SUPPORT AND INTEGRATION

Who is the contractor on this award?

The obligated recipient is TYONEK ENGINEERING & AGILE MANUFACTURING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2009-03-17. End: 2011-03-15.

What specific logistics support and integration services were provided under this contract?

The provided data indicates the contract was for 'LOGISTICS SUPPORT AND INTEGRATION' under NAICS code 541330 (Engineering Services). While the specific services are not detailed, this typically encompasses a range of activities critical for military operations. These could include supply chain management, inventory control, maintenance planning, transportation coordination, technical support for equipment, and integration of various logistical systems to ensure seamless operational flow. Given the awardee and the awarding agency (U.S. Special Operations Command), the services likely supported highly specialized and sensitive missions, requiring a high degree of technical expertise and reliability in the logistical framework.

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

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. While the specific justification is not provided, common reasons for sole-source awards in defense contracting include unique capabilities possessed by the contractor that are not available elsewhere, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previous sole-source award where switching contractors would be prohibitively expensive or disruptive. For U.S. Special Operations Command, it's plausible that Tyonek Engineering & Agile Manufacturing LLC possessed specialized knowledge, technology, or existing infrastructure critical to SOCOM's unique operational requirements that could not be replicated by other firms within the necessary timeframe.

How does the $15.7 million contract value compare to similar logistics support contracts for special operations forces?

Directly comparing the $15.7 million value requires access to a database of similar contracts, specifically those awarded to or for U.S. Special Operations Command (SOCOM) for logistics support and integration. However, for a contract spanning approximately two years (728 days), this value suggests a significant scope of work. Logistics for special operations are often more complex and demanding than for conventional forces, involving specialized equipment, global reach, and high readiness requirements. Therefore, $15.7 million could represent a fair market value for such specialized, non-competed services, though without competitive benchmarks, definitive value assessment is challenging. It's crucial to compare it against other SOCOM-specific contracts or similar sole-source awards for specialized engineering and logistics.

What is the track record of Tyonek Engineering & Agile Manufacturing LLC with federal contracts, particularly with the Department of Defense?

Tyonek Engineering & Agile Manufacturing LLC has a history of receiving federal contracts, primarily with the Department of Defense. As a Native American-owned small business, it often participates in set-aside programs, though this specific contract was not a set-aside. Their contract history likely includes various engineering, manufacturing, and logistics support services. A deeper analysis would involve reviewing their past performance ratings, the types and values of previous contracts, and any reported issues or successes. Their ability to secure a sole-source award from U.S. Special Operations Command suggests they have demonstrated capabilities deemed essential by the agency, implying a generally positive, albeit specialized, track record.

What are the potential risks associated with a sole-source award for logistics support?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize performance. Taxpayers may not receive the best possible value for their money. Additionally, sole-source awards can limit opportunities for other capable businesses, including small businesses, to enter the market or gain experience. There's also a risk that the government may become overly reliant on a single provider, potentially creating vulnerabilities if that provider faces financial difficulties or operational issues. Transparency in the justification and rigorous oversight are crucial to mitigate these risks.

How does the Firm Fixed Price (FFP) contract type influence the risk and cost for this logistics support contract?

A Firm Fixed Price (FFP) contract type is generally favorable to the government in terms of cost certainty. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For this $15.7 million logistics support contract, the FFP structure means the Department of Defense has a clear ceiling on its expenditure. However, the initial price negotiation is critical; if the FFP was established without adequate market research or competitive input (as is the case with a sole-source award), the 'fixed' price might still be higher than what could have been achieved through competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Tyonek Native Corporation (UEI: 153808613)

Address: 800 DUKE AVENUE, WARNER ROBINS, GA, 90

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

Financial Breakdown

Contract Ceiling: $15,755,057

Exercised Options: $15,755,057

Current Obligation: $15,755,057

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222207D0015

IDV Type: IDC

Timeline