Commerce awards $33.2M contract for enterprise infrastructure database services to TKC Global Solutions

Contract Overview

Contract Amount: $33,223,323 ($33.2M)

Contractor: TKC Global Solutions, LLC

Awarding Agency: Department of Commerce

Start Date: 2023-04-20

End Date: 2027-01-31

Contract Duration: 1,382 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE INFRASTRUCTURE PRODUCT LINE (EIPL) RAPID PHASE PRODUCTION (RPP) DATABASE SERVICE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $33.2 million to TKC GLOBAL SOLUTIONS, LLC for work described as: ENTERPRISE INFRASTRUCTURE PRODUCT LINE (EIPL) RAPID PHASE PRODUCTION (RPP) DATABASE SERVICE Key points: 1. Contract awarded for enterprise infrastructure product line database services. 2. TKC Global Solutions, LLC is the primary contractor. 3. The contract has a duration of 1382 days. 4. Services are categorized under Computer Systems Design Services. 5. The contract type is a Definitive Contract. 6. The award was made under Full and Open Competition after Exclusion of Sources. 7. The contract is valued at $33.2 million.

Value Assessment

Rating: fair

The contract value of $33.2 million for enterprise infrastructure database services appears to be within a reasonable range for a multi-year government contract of this nature. However, without specific benchmarks for comparable database service contracts from the U.S. Patent and Trademark Office or similar agencies, a precise value-for-money assessment is challenging. The pricing structure, based on labor hours, allows for flexibility but also necessitates careful monitoring to ensure efficiency and prevent cost overruns. Further analysis of the specific services rendered and their impact on operational efficiency would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources may have been excluded for particular reasons, which warrants further investigation. The number of bidders is not specified, but the designation suggests a competitive process was initiated. The level of competition, even with exclusions, should ideally drive price discovery and ensure fair market value is obtained for the government.

Taxpayer Impact: The 'Full and Open Competition after Exclusion of Sources' designation implies that while efforts were made to solicit broad participation, the exclusion of certain sources could potentially limit the full spectrum of competitive pricing and innovation available to taxpayers.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, receiving essential database services for its enterprise infrastructure. The contract supports the ongoing operation and maintenance of critical IT systems. The services delivered are expected to enhance the efficiency and reliability of USPTO's data management. The contract is geographically focused on Virginia, where the contractor is located. The contract may have implications for the IT workforce involved in database administration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type requires clarification to understand potential limitations on competition.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the services.
The labor hour pricing model can lead to cost uncertainties if not managed rigorously.

Positive Signals

Awarded under a full and open competition framework, suggesting an attempt at broad market engagement.
The contract duration indicates a stable, long-term need for these services.
The contractor, TKC Global Solutions, LLC, is established in providing IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and database management. The market for enterprise IT infrastructure and database services is substantial, with significant government spending allocated annually. Comparable contracts often involve large, multi-year agreements for system design, implementation, and maintenance. The USPTO's need for robust database services is critical for its operations, aligning with broader government efforts to modernize and secure IT infrastructure.

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 for small businesses arising from a small business set-aside. The primary contractor, TKC Global Solutions, LLC, is likely a mid-to-large-sized business. The absence of a small business set-aside means that opportunities for small business participation would depend on TKC Global Solutions' own subcontracting strategy, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for the Department of Commerce may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Enterprise Infrastructure Solutions
IT Database Management Services
Computer Systems Design Services
Government IT Support Contracts

Risk Flags

Potential for cost overruns due to labor hour pricing.
Risk of performance issues impacting critical database services.
Justification for 'Exclusion of Sources' needs review.
Limited transparency on specific services and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $33.2 million to TKC GLOBAL SOLUTIONS, LLC. ENTERPRISE INFRASTRUCTURE PRODUCT LINE (EIPL) RAPID PHASE PRODUCTION (RPP) DATABASE SERVICE

Who is the contractor on this award?

The obligated recipient is TKC GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2023-04-20. End: 2027-01-31.

What is the track record of TKC Global Solutions, LLC in delivering similar enterprise infrastructure and database services to federal agencies?

TKC Global Solutions, LLC has a history of providing IT services to the federal government. While specific details on their track record for 'ENTERPRISE INFRASTRUCTURE PRODUCT LINE (EIPL) RAPID PHASE PRODUCTION (RPP) DATABASE SERVICE' are not provided in this data snippet, their general profile suggests experience in IT solutions. A deeper dive into their past performance evaluations, contract history with agencies like the USPTO or other components of the Department of Commerce, and any reported issues or successes would be necessary for a comprehensive assessment. This would include examining past contract values, durations, and the scope of services rendered to gauge their capability and reliability in handling complex database and infrastructure projects.

How does the awarded value of $33.2 million compare to similar enterprise database service contracts awarded by the USPTO or other agencies?

Benchmarking the $33.2 million award requires comparing it against similar contracts for enterprise infrastructure and database services within the federal government, particularly those awarded by the U.S. Patent and Trademark Office (USPTO) or agencies with comparable IT needs. Without access to a detailed database of comparable contract values, a precise comparison is difficult. However, for a definitive contract spanning approximately 3.7 years (1382 days) for comprehensive database services, this value appears to be within a plausible range for a significant IT undertaking. Factors such as the specific technologies used, the scope of services (e.g., maintenance, development, support), and the level of customization would heavily influence the final price. A thorough analysis would involve identifying contracts with similar service descriptions (NAICS code 541512) and durations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential cost overruns due to the labor hours pricing model, performance deficiencies in delivering critical database services, and vendor lock-in if the chosen solutions are proprietary. The 'Full and Open Competition after Exclusion of Sources' also presents a risk if the exclusions were not justified, potentially limiting competition and innovation. Mitigation strategies would typically involve robust contract management by the USPTO, including detailed performance monitoring, regular progress reviews, and clear deliverables. The labor hour structure necessitates vigilant oversight to ensure efficiency. The specific reasons for source exclusion should be documented and reviewed to ensure fairness and maximize competitive benefits. Furthermore, ensuring clear service level agreements (SLAs) and performance metrics within the contract is crucial for managing performance risks.

How effective is the 'Full and Open Competition after Exclusion of Sources' approach in ensuring optimal value for taxpayers?

The effectiveness of 'Full and Open Competition after Exclusion of Sources' in ensuring optimal value for taxpayers is variable and depends heavily on the justification for the exclusions. Ideally, full and open competition maximizes the number of potential bidders, driving down prices through robust market competition. When sources are excluded, it narrows the competitive pool. If the exclusions are based on legitimate technical requirements, specialized capabilities, or national security concerns, the resulting competition among the remaining qualified vendors might still yield good value. However, if exclusions are arbitrary or poorly justified, it could stifle competition, potentially leading to higher prices and reduced innovation, thus diminishing taxpayer value. The USPTO would need to demonstrate that the exclusions were necessary and that the remaining competition was sufficient to achieve fair market pricing.

What are the historical spending patterns for enterprise infrastructure and database services at the U.S. Patent and Trademark Office?

Analyzing historical spending patterns for enterprise infrastructure and database services at the U.S. Patent and Trademark Office (USPTO) is crucial for contextualizing the current $33.2 million award. Without specific historical data, it's difficult to provide precise figures. However, government agencies like the USPTO typically have ongoing needs for IT infrastructure and database management due to the critical nature of their operations. Spending in this area often fluctuates based on modernization initiatives, system upgrades, and the lifecycle of existing technologies. A review of past contracts awarded by the USPTO for similar services (NAICS 541512) over the last 5-10 years would reveal trends in contract values, types of services procured, and the primary contractors involved. This historical perspective helps in assessing whether the current award represents an increase, decrease, or stable level of investment in these essential IT functions.

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 › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: 1333BJ23R00280008

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $47,162,296

Exercised Options: $33,223,323

Current Obligation: $33,223,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline