State Department awards $14.8M for facilities management, with limited competition and long-term duration

Contract Overview

Contract Amount: $14,849,327 ($14.8M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of State

Start Date: 2018-09-16

End Date: 2026-08-31

Contract Duration: 2,906 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSITION SERVICES AND PROGRAM MANAGEMENT OFFICE SERVICES TO SUPPORT MULTIPLE, FACILITIES MANAGEMENT SUPPORT ACROSS THE WASHINGTON DC METRO AREA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $14.8 million to TATITLEK TECHNOLOGIES, LLC for work described as: TRANSITION SERVICES AND PROGRAM MANAGEMENT OFFICE SERVICES TO SUPPORT MULTIPLE, FACILITIES MANAGEMENT SUPPORT ACROSS THE WASHINGTON DC METRO AREA. Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing and value. 2. Long contract duration (nearly 8 years) may not reflect evolving needs or market efficiencies. 3. Focus on facilities management suggests a stable, ongoing need for core operational support. 4. Geographic concentration in the DC metro area indicates a specific, localized service requirement. 5. Lack of small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract's value of $14.8 million over nearly eight years for facilities management services in the DC metro area appears to be within a reasonable range for such extensive support. However, without a competitive bidding process, it is difficult to definitively benchmark the pricing against market rates or other similar government contracts. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competition means potential savings from a more robust bidding environment may have been missed. Further analysis would require comparing the scope of services and pricing to publicly available data for similar facilities management contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Tatitlek Technologies, LLC, was considered. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The absence of multiple bidders means there was no direct incentive for vendors to offer their most competitive pricing. The rationale for this sole-source award is not provided, but it typically implies unique capabilities or a specific justification for bypassing competition.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for services due to the lack of competitive pressure to lower prices. This limits the government's ability to secure the best possible value for taxpayer dollars.

Public Impact

The Department of State benefits from consistent and comprehensive facilities management services across its Washington D.C. metro area operations. Employees and visitors to State Department facilities in the DC metro area will experience maintained and functional workspaces. The contract supports the operational continuity of critical government functions by ensuring the upkeep of physical infrastructure. The primary beneficiaries are the government agency itself and its personnel, ensuring a safe and efficient working environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Long contract duration may not be optimal for adapting to changing needs or market conditions.
Lack of transparency regarding the justification for sole-source award.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Contract provides essential facilities management, ensuring operational continuity for the Department of State.
Fixed-price contract offers cost certainty for the government.
Long-term award suggests a stable and predictable need for these services.

Sector Analysis

The facilities support services sector is a critical component of government operations, encompassing a wide range of activities from maintenance and repair to custodial services and groundskeeping. This contract falls under the broader facilities support services industry, which is characterized by a mix of large, established providers and smaller, specialized firms. Government spending in this area is substantial and consistent, reflecting the ongoing need to maintain federal buildings and infrastructure. Benchmarking this contract's value would typically involve comparing its per-square-foot cost or service-level agreements against similar contracts awarded by other federal agencies or large private sector organizations operating in the same geographic region.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) flag is also false. This suggests that small businesses were not specifically targeted for this award. Without subcontracting requirements explicitly stated or a competitive bidding process that encourages small business participation, the direct impact on the small business ecosystem for this particular contract is likely minimal. Future analysis could explore if Tatitlek Technologies, LLC has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officer and program managers. As a delivery order under a larger contract (though the parent contract details are not provided), oversight would focus on ensuring that the services delivered meet the specified requirements and quality standards. Transparency regarding the sole-source justification and performance metrics would be key areas for public accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Facilities Management Services
Government Operations Support
Department of State Contracts
Professional, Scientific, and Technical Services

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.8 million to TATITLEK TECHNOLOGIES, LLC. TRANSITION SERVICES AND PROGRAM MANAGEMENT OFFICE SERVICES TO SUPPORT MULTIPLE, FACILITIES MANAGEMENT SUPPORT ACROSS THE WASHINGTON DC METRO AREA.

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 $14.8 million.

What is the period of performance?

Start: 2018-09-16. End: 2026-08-31.

What is the specific justification for awarding this facilities management contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of this facilities management contract to Tatitlek Technologies, LLC. Sole-source awards are typically granted when a specific justification exists, such as the unique capability of a single contractor, an urgent need that cannot be met through competition, or when the contract is a follow-on to a previously competed effort where only one contractor can provide the necessary services. Without this information, it is impossible to assess whether the sole-source designation was appropriate or if it potentially led to a loss of potential savings for the government. Further investigation into the contract file or agency procurement records would be necessary to uncover the detailed rationale.

How does the per-square-foot cost of these facilities management services compare to industry benchmarks in the Washington D.C. metro area?

The provided data does not contain sufficient detail to calculate a per-square-foot cost for the facilities management services. Key information such as the total square footage of the facilities being managed, the specific services included (e.g., janitorial, HVAC maintenance, security, landscaping), and the breakdown of costs associated with each service are missing. To perform such a comparison, one would need to obtain a detailed breakdown of the contract's deliverables and costs, and then obtain comparable data from industry reports or other government contracts for facilities management in the Washington D.C. metro area. Given the sole-source nature of this award, a direct comparison is challenging without knowing the specific scope and pricing structure.

What is the track record of Tatitlek Technologies, LLC in performing similar facilities management contracts for the federal government?

The provided data indicates that Tatitlek Technologies, LLC is the contractor for this facilities management support across the Washington D.C. metro area. However, it does not offer details on their specific track record, past performance evaluations, or the size and scope of previous contracts they have managed. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to Tatitlek Technologies, LLC, review any available past performance information, and examine client feedback or performance ratings if publicly accessible. Understanding their history with similar services and agencies would provide insight into their capability and reliability.

What are the potential risks associated with a sole-source award for essential facilities management services?

The primary risk associated with a sole-source award for essential facilities management services is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most favorable pricing. Additionally, there's a risk of complacency from the sole provider, potentially leading to a decline in service quality over time if robust performance monitoring is not in place. Another risk is the lack of innovation, as a single provider may have less incentive to introduce new efficiencies or technologies compared to a competitive environment. Finally, the absence of a competitive process can raise concerns about fairness and transparency in government contracting.

How has federal spending on facilities management services in the Washington D.C. metro area trended over the past five years?

The provided data focuses on a single contract and does not offer historical spending trends for facilities management services in the Washington D.C. metro area. To analyze such trends, one would need to access and aggregate data from multiple federal contracts awarded for facilities management within that specific geographic region over the past five years. This would involve searching procurement databases for relevant NAICS codes (like 561210) and filtering by agency and location. Analyzing this aggregated data could reveal patterns in spending levels, average contract values, and the prevalence of different contract types (e.g., competitive vs. sole-source) within the sector.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM18Q0177

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tatitlek Corporation

Address: 561 E 36TH AVE, 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: $16,930,654

Exercised Options: $16,930,654

Current Obligation: $14,849,327

Actual Outlays: $3,747,371

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM18D0118

IDV Type: IDC

Timeline