DoD's $10.4M contract for computer systems design services awarded to Tyonek Manufacturing, LLC

Contract Overview

Contract Amount: $10,438,770 ($10.4M)

Contractor: Tyonek Manufacturing, LLC

Awarding Agency: Department of Defense

Start Date: 2007-08-27

End Date: 2009-10-27

Contract Duration: 792 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: U434ISC IBAS TAS FOR REDSTONE ARSENAL, AL

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to TYONEK MANUFACTURING, LLC for work described as: U434ISC IBAS TAS FOR REDSTONE ARSENAL, AL Key points: 1. The contract's value of $10.4 million over two years suggests a moderate investment in IT support. 2. Awarded as 'Not Available for Competition', this indicates potential limitations in market availability or specific contractor capabilities. 3. The duration of 792 days (approximately 2 years) is standard for IT support contracts of this scale. 4. The contract was awarded to a single bidder, raising questions about the extent of market research conducted. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation. 6. The contract's focus on computer systems design services aligns with the broader IT needs of the Department of the Army.

Value Assessment

Rating: fair

The contract value of $10.4 million for approximately two years of computer systems design services appears within a reasonable range for specialized IT support. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for IT systems design within the Department of Defense could provide further context on pricing efficiency. The lack of competition, however, limits the ability to definitively assess if the pricing reflects optimal market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' (NAF) justification, indicating that the agency determined that only one source was capable of satisfying the requirement. This typically occurs when there are unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. The limited competition means that price discovery through a bidding process was not utilized, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the agency did not leverage a bidding process to secure the best possible value. The justification for sole-source awards needs to be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiaries are likely the personnel and operations at Redstone Arsenal, Alabama, who will receive enhanced computer systems design services. The services delivered are expected to improve the functionality, efficiency, and security of the computer systems supporting the Army's mission at the installation. The geographic impact is localized to Redstone Arsenal, AL, supporting the specific IT infrastructure needs of that facility. The contract supports the IT workforce by potentially requiring specialized skills in computer systems design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
The 'Not Available for Competition' justification requires scrutiny to ensure it was appropriate and well-documented.
Limited transparency into the specific services and performance metrics makes it difficult to assess overall effectiveness.
The contractor's track record for similar sole-source awards could be reviewed for patterns of performance or pricing.

Positive Signals

The award to Tyonek Manufacturing, LLC, suggests they possess specialized capabilities deemed necessary by the agency.
The contract duration indicates a commitment to sustained IT support for Redstone Arsenal.
The contract aligns with the Department of the Army's ongoing need for robust IT infrastructure.

Sector Analysis

The IT services sector is a critical component of modern defense operations, encompassing a wide range of activities from system design and integration to cybersecurity and data management. The Department of Defense is a significant consumer of IT services, with annual spending in the billions. Contracts like this one, focused on computer systems design, are essential for maintaining and upgrading the complex technological infrastructure required to support military readiness and operations. The market for these services is competitive, but specific niche requirements or proprietary solutions can sometimes lead to sole-source awards.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. The award to Tyonek Manufacturing, LLC, a company that may or may not be classified as a small business depending on its size standards, does not automatically imply subcontracting opportunities for small businesses. Without specific subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor's overall business practices would determine broader subcontracting engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is often limited for sole-source awards, but contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Department of Defense IT Services
Army Command and Control Systems
Computer Systems Design and Integration
Redstone Arsenal Support Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to TYONEK MANUFACTURING, LLC. U434ISC IBAS TAS FOR REDSTONE ARSENAL, AL

Who is the contractor on this award?

The obligated recipient is TYONEK MANUFACTURING, 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 $10.4 million.

What is the period of performance?

Start: 2007-08-27. End: 2009-10-27.

What specific computer systems design services were rendered under this contract?

The contract details indicate 'Computer Systems Design Services' (NAICS code 541512) were procured. However, the specific nature of these services is not detailed in the provided data. Typically, this could encompass a broad range of activities, including requirements analysis, system architecture design, software integration, hardware configuration, network design, and the development of custom IT solutions. For a definitive understanding, one would need to consult the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would outline the precise tasks, deliverables, and performance standards expected from Tyonek Manufacturing, LLC. Without the SOW/PWS, the exact technical contributions remain unspecified.

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

The contract was awarded under the category 'NOT AVAILABLE FOR COMPETITION' (CT: NOT AVAILABLE FOR COMPETITION). This designation typically implies that the agency determined that only one responsible source was capable of providing the required supplies or services. Common justifications for sole-source awards include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when a specific contractor is the only source capable of meeting the requirement due to specialized knowledge or existing infrastructure. The specific justification document (e.g., a Justification and Approval - J&A) would provide the detailed rationale, which is often publicly available through contract databases or agency portals, though not included in this summary data.

How does the contract value compare to similar IT services contracts awarded by the Department of the Army?

The contract value of approximately $10.4 million over roughly two years for computer systems design services is a moderate-sized award within the Department of the Army's IT spending portfolio. The Army procures a vast array of IT services, ranging from small, specialized support contracts to multi-billion dollar enterprise-wide solutions. Without specific details on the scope and complexity of the services provided by Tyonek Manufacturing, LLC, a direct comparison is difficult. However, for IT systems design and integration services, this value suggests a focused effort on a particular system or set of systems at Redstone Arsenal, rather than a broad, enterprise-level IT overhaul. Benchmarking against contracts with similar NAICS codes and contract durations would be necessary for a more precise comparison.

What is Tyonek Manufacturing, LLC's track record with federal contracts, particularly sole-source awards?

Tyonek Manufacturing, LLC has a history of receiving federal contracts, including those awarded on a sole-source or limited-competition basis. As a company often associated with Alaska Native Corporation (ANC) status, it may benefit from specific contracting preferences or authorities that can sometimes lead to sole-source awards under certain justifications. Analyzing their contract history would reveal the types of services they provide, their performance ratings (if available), and the frequency and justifications for sole-source awards. A review of their past performance on similar IT services contracts, especially those awarded non-competitively, would be crucial to assess their reliability and value proposition in such scenarios.

What are the potential risks associated with a sole-source award for computer systems design services?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible value for its money. Other risks include a potential decrease in service quality if the contractor faces no competitive threat, and a lack of innovation that might otherwise be spurred by a competitive environment. Furthermore, the justification for sole-source awards needs to be carefully scrutinized to ensure it is valid and not masking an agency's failure to adequately plan for competition. Dependence on a single provider can also create risks if that provider experiences financial difficulties or operational issues.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912HZ05R0008

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

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

Address: 1689 C ST STE 219, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $10,438,770

Exercised Options: $10,438,770

Current Obligation: $10,438,770

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HZ05D0013

IDV Type: IDC

Timeline