State Department awards $58M for facilities maintenance at training center, with limited competition

Contract Overview

Contract Amount: $58,022,419 ($58.0M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of State

Start Date: 2019-03-01

End Date: 2026-08-31

Contract Duration: 2,740 days

Daily Burn Rate: $21.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLETE FACILITIES MAINTENANCE SERVICES NATIONAL FOREIGN AFFAIRS TRAINING CENTER- SA-42 INCREMENTAL FUNDING

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $58.0 million to TATITLEK TECHNOLOGIES, LLC for work described as: COMPLETE FACILITIES MAINTENANCE SERVICES NATIONAL FOREIGN AFFAIRS TRAINING CENTER- SA-42 INCREMENTAL FUNDING Key points: 1. Value for money appears fair given the long-term nature of the contract and the specialized services required. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and increasing risk. 3. Risk indicators include the sole-source nature and the extended duration, requiring close oversight. 4. Performance context shows a long-term commitment to maintaining critical infrastructure for diplomatic training. 5. Sector positioning places this contract within the facilities support services industry, essential for government operations.

Value Assessment

Rating: fair

The contract value of $58 million over approximately seven years suggests a moderate annual spend for comprehensive facilities maintenance. Benchmarking against similar large-scale government facilities maintenance contracts is challenging without more specific service details. However, the firm-fixed-price structure aims to control costs, but the lack of competition could lead to less favorable pricing than a fully competed contract. The extended duration implies a need for consistent service delivery, but also necessitates careful monitoring of performance and cost escalation.

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. The justification for this approach is not provided in the available data, but it typically arises when only one contractor possesses the necessary specialized skills, security clearances, or is the incumbent with unique knowledge of the facility. The lack of multiple bidders means that the government did not benefit from competitive pricing pressures, potentially leading to a higher cost than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the best possible value achievable in the market.

Public Impact

The primary beneficiaries are the Department of State and its personnel who rely on the National Foreign Affairs Training Center for essential diplomatic and foreign affairs training. Services delivered include comprehensive facilities maintenance, ensuring the operational readiness and safety of the training center. The geographic impact is localized to the site of the National Foreign Affairs Training Center. Workforce implications include the direct employment of personnel by the contractor to perform maintenance and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Extended contract duration increases exposure to potential cost overruns or performance degradation.
Lack of detailed performance metrics in summary data makes objective assessment difficult.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Long-term award suggests a stable and reliable service provider is needed and likely identified.
Focus on facilities maintenance ensures critical infrastructure remains operational for training.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is critical for government agencies, ensuring that facilities are safe, functional, and conducive to their intended missions. Spending in this area is often substantial and long-term, reflecting the ongoing need to maintain government buildings and installations. Comparable spending benchmarks would typically involve analyzing other large-scale maintenance contracts for federal facilities or training centers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available information. The contractor, Tatitlek Technologies, LLC, is likely a larger entity capable of handling the scope of services required. This means the direct economic impact on the small business ecosystem for this specific contract is likely minimal, unless Tatitlek Technologies actively engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential remedies for non-performance. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight information is often internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

General Services Administration (GSA) Facilities Management Contracts
Department of Defense Base Operations Support (BOS)
Federal Buildings and Grounds Maintenance
Government Training Facility Operations

Risk Flags

Sole-source award
Extended contract duration
Lack of competitive pricing pressure

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $58.0 million to TATITLEK TECHNOLOGIES, LLC. COMPLETE FACILITIES MAINTENANCE SERVICES NATIONAL FOREIGN AFFAIRS TRAINING CENTER- SA-42 INCREMENTAL FUNDING

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 $58.0 million.

What is the period of performance?

Start: 2019-03-01. End: 2026-08-31.

What is the specific nature of the facilities maintenance services required under this contract?

The available data categorizes this contract under NAICS code 561210, Facilities Support Services. This typically encompasses a broad range of services including general maintenance, repair, custodial services, groundskeeping, pest control, and potentially specialized systems maintenance (HVAC, electrical, plumbing) for the National Foreign Affairs Training Center. The specific scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. Given the context of a training center, these services are critical for ensuring a safe, functional, and conducive environment for diplomatic and foreign affairs personnel undergoing training.

How does the annual cost of this contract compare to similar facilities maintenance contracts for federal training centers?

The total award of $58,022,419.03 over an estimated period of 2740 days (approximately 7.5 years) translates to an average annual cost of roughly $7.7 million. Benchmarking this figure requires comparing it to facilities maintenance contracts for similarly sized and complex federal training facilities. Without specific details on the square footage, types of specialized equipment, and the exact range of services included in the SOW for this contract, a precise comparison is difficult. However, for large, mission-critical government facilities, annual maintenance costs can range significantly, and this figure appears within a plausible range, though the sole-source nature warrants scrutiny for potential overpricing.

What are the primary risks associated with a sole-source award for facilities maintenance?

The primary risks associated with a sole-source award for facilities maintenance include: 1. **Higher Costs:** The absence of competition can lead to inflated prices as the contractor faces less pressure to offer the most competitive rates. 2. **Reduced Innovation:** Without competitive pressure, there may be less incentive for the contractor to innovate or improve service delivery methods. 3. **Vendor Lock-in:** The government becomes dependent on a single provider, making it difficult and costly to switch even if performance is unsatisfactory. 4. **Potential for Complacency:** The contractor might become complacent due to the guaranteed business, potentially leading to a decline in service quality over time. 5. **Limited Oversight Effectiveness:** While oversight is still possible, the leverage the government has in negotiating terms and driving improvements is diminished compared to a competitive scenario.

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

Tatitlek Technologies, LLC, is a subsidiary of the Tatitlek Corporation, an Alaska Native Corporation. Information available through federal contract databases (like FPDS) indicates they have a history of performing various government contracts, often in areas related to facilities management, base operations support, and logistics. Their performance history on specific contracts would need to be reviewed through contract performance reports (CPARS) and other official records to fully assess their track record. However, their selection for a sole-source, long-term contract suggests they have demonstrated capability and potentially unique qualifications relevant to the Department of State's needs.

How does the duration of this contract (over 7 years) impact the overall value and risk?

The extended duration of this contract, spanning over seven years, offers potential benefits such as continuity of service and reduced administrative burden associated with frequent re-procurement. It also allows the contractor to make necessary investments in equipment and personnel, potentially leading to more stable and efficient operations. However, it also significantly increases the risk. A longer period means greater exposure to potential cost increases (inflation, material costs), the risk of contractor performance degradation over time, and the potential for the government to be locked into a contract that becomes less advantageous or even detrimental if market conditions or needs change. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What are the implications of this contract being awarded under 'Not Available for Competition' (NAC) status?

The 'Not Available for Competition' (NAC) status, as indicated by 'CT: NOT AVAILABLE FOR COMPETITION', is synonymous with a sole-source award. This means the contract was awarded to a specific contractor without a competitive bidding process. The implications are significant: the government did not solicit offers from multiple potential suppliers, thereby foregoing the benefits of competition such as potentially lower prices, better terms, and a wider range of innovative solutions. This status is typically justified by specific circumstances, such as the existence of only one responsible source, urgent and compelling needs, or specific statutory authority. For taxpayers, NAC awards generally carry a higher risk of paying more than necessary and require enhanced scrutiny of the justification and pricing.

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: $118,991,781

Exercised Options: $118,991,781

Current Obligation: $58,022,419

Actual Outlays: $15,887,792

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