BAE Year 1 contract for Melrose Air Force Range support services awarded to Tunista Services, LLC for $29.3M

Contract Overview

Contract Amount: $29,317,124 ($29.3M)

Contractor: Tunista Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-12-01

End Date: 2021-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEFINITIVE CONTRACT FOR MELROSE AIR FORCE RANGE SUPPORT SERVICES 1 BAE YEAR + 3 OPTION YEARS

Place of Performance

Location: CLOVIS, CURRY County, NEW MEXICO, 88102

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to TUNISTA SERVICES, LLC for work described as: DEFINITIVE CONTRACT FOR MELROSE AIR FORCE RANGE SUPPORT SERVICES 1 BAE YEAR + 3 OPTION YEARS Key points: 1. The contract value of $29.3M over four years suggests a significant investment in range support. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring for scope creep. 3. The 'full and open competition after exclusion of sources' indicates a potentially complex procurement history. 4. The contract duration of 1460 days (4 years) provides stability for the contractor and continuity of services. 5. The primary service category is Facilities Support Services, crucial for operational readiness. 6. The award to Tunista Services, LLC, a small business, aligns with federal goals for small business participation.

Value Assessment

Rating: good

The contract's firm-fixed-price nature suggests an effort to establish predictable costs. Benchmarking against similar facilities support contracts for military ranges would provide a clearer picture of value for money. Given the $29.3M total value over four years, the annual cost is approximately $7.3M. This figure needs to be compared with industry standards for comparable services at similar installations to assess if it represents a competitive price point. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was intended to be open, certain sources were initially excluded, possibly due to specific requirements or prior arrangements. The number of bidders (5) indicates a moderate level of competition. This suggests that while multiple companies were interested and capable, the exclusion of some sources might have limited the overall competitive landscape, potentially impacting price discovery.

Taxpayer Impact: A moderate number of bidders suggests that taxpayers likely received a reasonably competitive price, but the exclusion of certain sources means the full benefit of maximum competition may not have been realized.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at the Melrose Air Force Range, ensuring the facility's readiness and functionality. Services delivered include essential facilities support, maintaining infrastructure and operational capabilities. The geographic impact is concentrated in New Mexico, supporting a key military installation in the state. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and related support roles within New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm-fixed-price contract.
The 'exclusion of sources' clause in the competition raises questions about the breadth of initial market engagement.
Reliance on a single contractor for critical range support services could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty for the government.
Award to Tunista Services, LLC, a small business, supports federal small business contracting goals.
The contract duration provides stability and continuity for essential range operations.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and maintenance of physical infrastructure. This contract falls within the broader defense sector spending, specifically supporting the operational readiness of a military training and testing range. Comparable spending benchmarks would involve analyzing other contracts for similar support services at Air Force or other DoD installations, considering factors like size, scope, and geographic location.

Small Business Impact

Tunista Services, LLC, the awardee, is identified as a small business. This contract's award to a small business aligns with federal procurement goals to support the small business ecosystem. It is important to assess whether this contract includes subcontracting requirements for other small businesses, which would further amplify its positive impact on the small business community. The success of Tunista Services on this contract could also position them for future, larger opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, with performance expectations likely detailed in the Performance Work Statement (PWS). Transparency is generally maintained through contract databases like FPDS, although detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Base Operations Support (BOS)
Logistics and Maintenance Services
Facilities Engineering and Management
Range Operations Support
Defense Infrastructure Support

Risk Flags

Potential for scope creep in FFP contract.
Limited competition due to source exclusion.
Contractor performance risk.
Dependence on a single small business for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to TUNISTA SERVICES, LLC. DEFINITIVE CONTRACT FOR MELROSE AIR FORCE RANGE SUPPORT SERVICES 1 BAE YEAR + 3 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is TUNISTA SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2017-12-01. End: 2021-11-30.

What is the track record of Tunista Services, LLC in performing similar facilities support contracts for the Department of Defense?

Assessing the track record of Tunista Services, LLC is crucial for understanding their capability to fulfill the requirements of this contract. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide insights into past performance, including timeliness, quality of work, and adherence to contract terms on previous DoD contracts. A review of their contract history would reveal the types and scale of services previously provided, the agencies they have served, and any documented performance issues or commendations. Without direct access to CPARS data for Tunista Services, a comprehensive assessment of their track record is limited, but their ability to win this significant contract suggests they have met certain pre-qualification criteria and demonstrated some level of capability.

How does the annual cost of this contract compare to similar facilities support contracts at other Air Force ranges?

The annual cost for this contract averages approximately $7.3 million ($29.3M / 4 years). To benchmark this value, one would need to identify comparable facilities support contracts awarded to other Air Force ranges or similar military installations. Key comparison factors include the size and scope of the range, the specific services required (e.g., maintenance, security, logistics, environmental services), the geographic location (which impacts labor costs), and the contract type. For instance, if other ranges of similar size and complexity have contracts in the $5-9 million annual range for comparable services, then this contract appears to be within a reasonable market band. Conversely, if comparable contracts are significantly lower or higher, it would warrant further investigation into the specific drivers of the cost difference.

What are the primary risks associated with this firm-fixed-price contract for facilities support?

The primary risk associated with a firm-fixed-price (FFP) contract, even for services, is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs exceed initial estimates. For facilities support, this could manifest as deferred maintenance, reduced service levels, or inadequate safety protocols. Another risk is scope creep, where the government implicitly or explicitly requests additional work not covered by the original PWS, potentially leading to disputes or costly change orders if not managed carefully. The 'exclusion of sources' in the competition also presents a risk if it inadvertently excluded a highly capable or cost-effective provider, potentially leading to a less optimal outcome for the government.

How effective are the current oversight mechanisms in ensuring the successful delivery of services under this contract?

The effectiveness of oversight mechanisms hinges on the diligence of the Contracting Officer's Representative (COR) and the contracting activity. Regular performance monitoring, site visits, and review of contractor-submitted reports are standard oversight practices. For this contract, the COR would be responsible for ensuring Tunista Services meets the performance standards outlined in the Performance Work Statement (PWS). The firm-fixed-price nature provides a baseline for accountability, but active oversight is needed to ensure quality and compliance. The existence of a robust quality assurance surveillance plan (QASP) would further enhance oversight effectiveness. Without specific details on the QASP or COR's activities, it's difficult to definitively assess effectiveness, but the structure allows for oversight.

What has been the historical spending trend for facilities support services at Melrose Air Force Range prior to this contract?

To understand the historical spending trend, one would need to examine contract awards for facilities support at Melrose Air Force Range over previous years. This would involve querying federal procurement databases (like FPDS) for contracts awarded to previous incumbent contractors or for similar services at this specific installation. Analyzing these historical data points would reveal whether spending has been consistent, increasing, or decreasing, and identify any significant shifts in contract values or awardees. Such an analysis would provide context for the current $29.3 million award, indicating if it represents an increase, decrease, or stable level of investment in range support services over time.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA485517R0008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tunista Services LLC

Address: 500 ALA MOANA BLVD BLDG 7 STE 425, HONOLULU, HI, 96813

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: $30,126,663

Exercised Options: $30,126,663

Current Obligation: $29,317,124

Actual Outlays: $4,728,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline