State Department's $30.4M IT contract for Kabul Embassy and other sites awarded to Tatitlek Technologies

Contract Overview

Contract Amount: $30,403,012 ($30.4M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of State

Start Date: 2018-08-27

End Date: 2022-08-27

Contract Duration: 1,461 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IRM IT EMBASSY KABUL & OTHER U.S. GOVERNMENT SITES

Plain-Language Summary

Department of State obligated $30.4 million to TATITLEK TECHNOLOGIES, LLC for work described as: IRM IT EMBASSY KABUL & OTHER U.S. GOVERNMENT SITES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 1461 days suggests a long-term need for IT services. 3. The contract's value of over $30 million indicates a substantial investment in IT infrastructure. 4. Services provided under NAICS code 541519 (Other Computer Related Services) are broad. 5. The contract was awarded as a definitive contract, implying a firm commitment. 6. No small business set-aside was utilized, potentially impacting small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $30.4 million contract is challenging without more specific service details and comparable contract data. The duration of nearly four years suggests a significant, ongoing need. However, the lack of competition raises concerns about whether the pricing reflects optimal value for the taxpayer. Without a competitive bidding process, it's difficult to ascertain if Tatitlek Technologies provided the most cost-effective solution compared to potential alternatives.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities or urgent needs. The absence of competition means that price discovery through market forces was limited, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. This could result in a higher overall expenditure for the services rendered.

Public Impact

Provides essential IT infrastructure and support for U.S. government operations, particularly at the Kabul Embassy. Ensures the continuity of critical communication and data management services for diplomatic missions. Supports the operational readiness of personnel working in potentially challenging environments. The services delivered are crucial for maintaining U.S. presence and diplomatic functions abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration without clear performance metrics makes oversight difficult.
Geographic location (Kabul Embassy) presents unique logistical and security challenges.
Lack of small business participation may limit opportunities for smaller firms.

Positive Signals

Awarded to a single contractor suggests specialized capabilities may be required.
Definitive contract indicates a clear commitment to fulfilling a defined need.
Long duration implies a stable, ongoing requirement for these IT services.

Sector Analysis

The Information Technology (IT) sector is a critical component of government operations, encompassing a wide range of services from network management to cybersecurity. This contract falls under 'Other Computer Related Services,' a broad category that can include IT consulting, system integration, and support. Government spending in this area is substantial, with agencies relying heavily on IT to conduct daily operations, manage data, and communicate. Benchmarking this contract's value against similar IT support services for overseas diplomatic missions would provide further context on its cost-effectiveness.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses indicated in the provided data. This means that opportunities for small businesses to directly participate in this significant IT services contract were likely limited. The absence of set-asides or explicit subcontracting requirements could reduce the overall impact on the small business IT ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. As a definitive contract, there should be established performance standards and reporting requirements. Transparency regarding the justification for the sole-source award and ongoing performance monitoring would be key oversight mechanisms. The Inspector General's office for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State IT Modernization Programs
Worldwide Diplomatic Communications Infrastructure
Embassy Security and Operations Support
IT Services for Overseas Operations

Risk Flags

Sole-source award may limit cost-effectiveness.
Long contract duration increases risk of vendor lock-in.
Operational environment presents unique logistical and security challenges.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $30.4 million to TATITLEK TECHNOLOGIES, LLC. IRM IT EMBASSY KABUL & OTHER U.S. GOVERNMENT SITES

Who is the contractor on this award?

The obligated recipient is TATITLEK TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $30.4 million.

What is the period of performance?

Start: 2018-08-27. End: 2022-08-27.

What specific IT services were provided under this contract, and how do they align with the needs of the Kabul Embassy and other U.S. government sites?

The contract, awarded under NAICS code 541519 (Other Computer Related Services), likely encompassed a broad range of IT support. This could include network administration, hardware and software maintenance, cybersecurity measures, user support, and potentially the installation and management of IT infrastructure. Given the location at the Kabul Embassy and other U.S. government sites, these services would be critical for maintaining secure and reliable communication, data management, and operational systems essential for diplomatic and governmental functions in a challenging environment. The specific alignment would depend on the detailed statement of work, which is not provided, but the general nature of the services supports the core IT needs of overseas missions.

What was the justification for awarding this contract on a sole-source basis, and were there any attempts to explore competitive options?

The provided data indicates the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source is available to meet the government's needs. This could be due to unique technical capabilities, proprietary technology, urgent and compelling circumstances, or a lack of adequate competition. Without further documentation, it's impossible to confirm if alternative competitive strategies were considered or if the conditions strictly met the criteria for a sole-source procurement.

How does the per-unit cost or overall value of this contract compare to similar IT support contracts for overseas government facilities?

Directly comparing the value of this $30.4 million contract to similar IT support contracts for overseas government facilities is difficult without more granular data on the specific services rendered, the number of users supported, and the geographic locations involved. Contracts for IT services in high-risk or remote locations often incur higher costs due to logistical challenges, security requirements, and the need for specialized personnel. While the total value is substantial, its cost-effectiveness can only be truly assessed by benchmarking against contracts with comparable scopes of work, service levels, and operating environments. The lack of competition further complicates a direct value assessment.

What are the potential risks associated with a sole-source IT contract of this magnitude and duration, particularly in a complex operational environment?

A sole-source IT contract of this magnitude and duration carries several potential risks. Firstly, the lack of competition can lead to inflated pricing and reduced incentive for the contractor to innovate or optimize service delivery. Secondly, the long duration (nearly four years) increases the risk of vendor lock-in and makes it harder to adapt to evolving technological needs or market changes. In a complex operational environment like Kabul, risks also include potential disruptions to service delivery due to security issues, logistical challenges, and the difficulty of attracting and retaining qualified personnel. Without competitive pressure, there's also a heightened need for robust government oversight to ensure performance and accountability.

What performance metrics or oversight mechanisms were in place to ensure Tatitlek Technologies met the requirements of this contract?

The provided data does not specify the performance metrics or detailed oversight mechanisms for this contract. However, as a definitive contract awarded by the Department of State, it is expected that a Statement of Work (SOW) with defined deliverables and performance standards was established. Government contracting officers and program managers would typically be responsible for monitoring contractor performance, reviewing progress reports, and ensuring compliance with contract terms. For overseas contracts, especially in sensitive locations, oversight often involves regular reporting, site visits (where feasible), and quality assurance surveillance. The effectiveness of these mechanisms would depend on their rigor and the resources allocated to contract administration.

What has been the historical spending pattern for IT services at the Kabul Embassy and similar overseas sites, and how does this contract fit within that trend?

Historical spending data for IT services at the Kabul Embassy and similar overseas sites is not provided. However, it is generally understood that maintaining robust IT infrastructure and support in diplomatic missions abroad represents a significant and consistent expenditure for the Department of State. Factors such as evolving security threats, the need for advanced communication capabilities, and the sheer volume of data managed necessitate ongoing investment. This $30.4 million contract, spanning nearly four years, suggests a substantial, long-term commitment to IT services that aligns with the general trend of significant government spending on IT infrastructure to support global operations.

Industry Classification

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

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tatitlek Corporation

Address: 561 E 36TH AVE # 400, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,193,863

Exercised Options: $36,005,927

Current Obligation: $30,403,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline