Department of State awards $43.8M IT support contract to TUVA LLC, with significant duration

Contract Overview

Contract Amount: $43,786,280 ($43.8M)

Contractor: Tuva LLC

Awarding Agency: Department of State

Start Date: 2018-09-29

End Date: 2024-06-26

Contract Duration: 2,097 days

Daily Burn Rate: $20.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS IS A CONTRACT AWARD FOR INFORMATION TECHNOLOGY TECHNICAL OVERSIGHT AND PROGRAM SUPPORT (TPOS).

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $43.8 million to TUVA LLC for work described as: THIS IS A CONTRACT AWARD FOR INFORMATION TECHNOLOGY TECHNICAL OVERSIGHT AND PROGRAM SUPPORT (TPOS). Key points: 1. Contract provides essential IT technical oversight and program support. 2. Long contract duration of nearly 7 years suggests a need for sustained services. 3. Awarded as a sole-source contract, raising questions about competition. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The North American Industry Classification System (NAICS) code 541519 indicates a broad range of computer-related services. 6. The contractor, TUVA LLC, is a relatively small entity in the federal contracting landscape. 7. The contract's value is substantial for the services provided.

Value Assessment

Rating: fair

The contract value of $43.8 million over nearly seven years averages to approximately $6.3 million annually. Without specific benchmarks for IT technical oversight and program support services, it is difficult to definitively assess value for money. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. The lack of competitive bidding also limits the ability to benchmark against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a less favorable price for the government.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government work and can result in higher costs for taxpayers due to the lack of competitive pressure.

Public Impact

The Department of State benefits from continuous IT technical oversight and program support, ensuring the smooth operation of its information systems. This contract supports the agency's mission by providing critical services for its IT infrastructure. The services delivered are essential for maintaining cybersecurity and operational efficiency within the State Department. The contract's impact is primarily internal to the Department of State's IT operations, with indirect benefits to national security and diplomatic efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration may indicate a lack of market research for more cost-effective solutions.
Limited public information on contractor performance for this specific contract.
The contractor, TUVA LLC, is a smaller business, which may present capacity challenges for very large-scale IT needs.

Positive Signals

Contract provides critical IT support to a key federal agency.
The contractor has secured a significant award, indicating some level of trust or capability.
The contract duration suggests a stable, long-term need for these services.
The services are essential for the operational continuity of the Department of State's IT infrastructure.

Sector Analysis

The IT services sector is a vast and competitive market. Contracts for IT technical oversight and program support are crucial for government agencies to manage complex technology environments. The value of this contract, while substantial, is within the range for specialized IT support services. Benchmarking against similar contracts for IT program management and technical support within large federal agencies would provide further context on pricing and value.

Small Business Impact

This contract was not awarded as a small business set-aside. TUVA LLC is identified as a small business, but the contract itself was sole-sourced. This means that while a small business is performing the work, the award process did not involve a competitive set-aside specifically for small businesses. There is no indication of subcontracting requirements for other small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The contract's Time and Materials nature necessitates close monitoring of hours and costs to ensure value. Transparency is limited due to the sole-source nature and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Program Management Support
Technical Consulting Services
Information Technology Services
Department of State IT Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Long contract duration
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.8 million to TUVA LLC. THIS IS A CONTRACT AWARD FOR INFORMATION TECHNOLOGY TECHNICAL OVERSIGHT AND PROGRAM SUPPORT (TPOS).

Who is the contractor on this award?

The obligated recipient is TUVA LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.8 million.

What is the period of performance?

Start: 2018-09-29. End: 2024-06-26.

What is the specific nature of the IT technical oversight and program support provided under this contract?

The contract, identified by NAICS code 541519 (Other Computer Related Services), is for Information Technology Technical Oversight and Program Support (TPOS). While the data does not detail the specific tasks, this typically involves services such as IT program management, strategic planning, system integration oversight, cybersecurity consulting, policy development, and ensuring compliance with federal IT regulations. The "technical oversight" aspect suggests a role in monitoring and guiding the technical aspects of IT projects and operations, while "program support" implies assistance in the administration and execution of IT programs.

How does the Time and Materials (T&M) contract type compare to other contract types for IT services in terms of cost-effectiveness?

Time and Materials (T&M) contracts are generally considered less cost-effective for the government compared to fixed-price contracts, especially for well-defined scopes of work. T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or profit. This structure offers flexibility but lacks the cost certainty of fixed-price contracts. If not managed rigorously with strict oversight on labor hours and rates, T&M contracts can lead to cost overruns. For IT services where requirements are stable, fixed-price or cost-plus-fixed-fee contracts are often preferred to incentivize efficiency and control costs.

What are the potential risks associated with a sole-source award for IT services?

Sole-source awards for IT services carry several risks. Primarily, the lack of competition means the government may not achieve the best possible price or value, as there is no market pressure to drive down costs or incentivize innovation. It can also limit the government's access to a wider pool of talent and cutting-edge solutions that might be offered by other qualified vendors. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other businesses in the market. In this case, the Department of State awarded the contract to TUVA LLC without competition, which necessitates strong justification for why other vendors could not meet the requirement.

What is TUVA LLC's track record with the Department of State or other federal agencies for similar IT support services?

The provided data indicates TUVA LLC is the contractor for this $43.8 million Department of State contract. However, it does not offer details on TUVA LLC's specific performance history, past contract values, or client satisfaction ratings with the Department of State or other federal agencies. A comprehensive assessment of TUVA LLC's track record would require reviewing contract performance reports (CPARS), other contract awards, and potentially agency-specific evaluations to understand their reliability, expertise, and ability to deliver complex IT support services effectively.

How does the contract duration of nearly 7 years (2097 days) impact the overall value and risk assessment?

A contract duration of nearly seven years for IT technical oversight and program support suggests a long-term, stable requirement for these services within the Department of State. While stability can be positive, such a long duration, especially with a Time and Materials pricing structure and a sole-source award, increases the risk of cost escalation and potential for the government to overpay if market conditions or technological needs change significantly over the contract period. It also reduces the agency's flexibility to adapt to new technologies or vendors that might offer better solutions or pricing in the future. Regular reviews and potential re-competition or modification clauses would be crucial for mitigating these risks.

What are the implications of the NAICS code 541519 for the scope and nature of services procured?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specified under other, more specific codes. This includes services like computer disaster recovery, computer failure analysis, computer virus protection, IT consulting, network management, and software installation services. For this contract, it suggests the Department of State is procuring a diverse set of IT support functions that may not fit neatly into categories like custom software development (541511) or computer systems design (541512). The breadth of this code means the specific deliverables and technical oversight functions could be varied.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13873 PARK CENTER RD STE 300N, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, 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: $45,515,567

Exercised Options: $44,714,286

Current Obligation: $43,786,280

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $243,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline