State Dept. Awards $149M Facilities Maintenance Contract to Tatitlek Technologies for Truman Building

Contract Overview

Contract Amount: $148,843,266 ($148.8M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of State

Start Date: 2018-11-01

End Date: 2026-08-31

Contract Duration: 2,860 days

Daily Burn Rate: $52.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLETE FACILITIES MAINTENANCE SERVICES HARRY S. TRUMAN FEDERAL BUILDING

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 $148.8 million to TATITLEK TECHNOLOGIES, LLC for work described as: COMPLETE FACILITIES MAINTENANCE SERVICES HARRY S. TRUMAN FEDERAL BUILDING Key points: 1. Significant contract value of $149M over 8 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on facilities maintenance in a key federal building. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract value of $149M for facilities maintenance over nearly 8 years is substantial. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar large-scale federal building maintenance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to bid and drive down prices.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these services, as competitive pressures that typically lead to cost efficiencies were absent.

Public Impact

Ensures continued operation and maintenance of the Harry S. Truman Federal Building. Impacts federal employees and visitors using the building. Supports jobs through Tatitlek Technologies, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration

Positive Signals

Ensures critical facility services
Supports a specific federal agency's needs

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, repair, and operational support for government buildings. Benchmarks for such large-scale, long-term contracts are highly variable based on building size, location, and specific service requirements.

Small Business Impact

The awardee, Tatitlek Technologies, LLC, is listed as a small business. However, the contract's sole-source nature limits opportunities for other small businesses to compete for this significant portion of federal spending.

Oversight & Accountability

The sole-source justification for this contract warrants scrutiny to ensure it was appropriate and that all avenues for competition were explored. Oversight is needed to ensure service delivery meets contract requirements and taxpayer value.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated costs.
Long contract duration may reduce flexibility.
Lack of transparency in award justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $148.8 million to TATITLEK TECHNOLOGIES, LLC. COMPLETE FACILITIES MAINTENANCE SERVICES HARRY S. TRUMAN FEDERAL BUILDING

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 $148.8 million.

What is the period of performance?

Start: 2018-11-01. End: 2026-08-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a common indicator for sole-source awards. A thorough review would require accessing the contract's justification and approval (J&A) document. Agencies typically use sole-source awards when only one responsible source can satisfy agency requirements, often due to unique capabilities, urgent needs, or specific program requirements. Without the J&A, it's impossible to confirm the exact reasoning or if alternatives were explored.

How does the per-unit cost or overall value compare to similar facilities maintenance contracts for federal buildings of comparable size and complexity?

Direct comparison is challenging without detailed service breakdowns and specific contract terms. However, a $149M contract over nearly 8 years for a single federal building suggests a significant annual expenditure. The absence of competition makes it difficult to benchmark against potentially lower prices achievable through competitive bidding, raising concerns about cost-effectiveness for taxpayers.

What mechanisms are in place to ensure the quality and effectiveness of the facilities maintenance services provided by Tatitlek Technologies, LLC, given the sole-source award?

Despite the sole-source nature, robust oversight mechanisms are crucial. The Department of State should have performance metrics, regular inspections, and clear channels for reporting issues. Contract performance reviews and user feedback are essential to ensure the services meet the required standards and that the government receives value for its investment, even without competitive pressure.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $159,907,451

Exercised Options: $153,085,402

Current Obligation: $148,843,266

Actual Outlays: $37,042,803

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