Tinker AFB shed construction contract awarded at $6.46M, raising questions about competition and value

Contract Overview

Contract Amount: $6,464,373 ($6.5M)

Contractor: Tatitlek Universal Services Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-02

End Date: 2026-05-29

Contract Duration: 970 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT 3-SIDED SHED AT TINKER AFB, OK

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to TATITLEK UNIVERSAL SERVICES INC for work described as: CONSTRUCT 3-SIDED SHED AT TINKER AFB, OK Key points: 1. The contract's value of $6.46 million for a 3-sided shed appears high relative to typical construction costs for similar structures. 2. Awarded as 'Not Available for Competition,' this raises concerns about the lack of competitive bidding and potential for inflated pricing. 3. The firm-fixed-price contract type shifts risk to the contractor, but the absence of competition limits price discovery. 4. The project duration of 970 days (over 2.5 years) for a shed seems exceptionally long, potentially indicating scope creep or inefficiencies. 5. The North American Industry Classification System (NAICS) code 236220 points to general commercial and institutional building construction. 6. The awarding agency is the Department of the Air Force, part of the Department of Defense, indicating a military-related infrastructure need.

Value Assessment

Rating: questionable

The contract value of $6.46 million for a 3-sided shed is notably high. Without detailed specifications, it's difficult to provide a precise benchmark, but typical costs for similar structures are significantly lower. The lack of competition further exacerbates concerns about whether this price represents fair market value. The long duration also suggests potential inefficiencies or scope issues that could inflate the overall cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'Not Available for Competition,' indicating that a sole-source justification was likely used. This means only one contractor was solicited, bypassing the standard competitive bidding process. The absence of multiple bidders prevents a robust price discovery mechanism, potentially leading to a higher price than if the contract had been openly competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive pressure to drive down costs. The justification for sole-source procurement should be thoroughly reviewed to ensure it was warranted.

Public Impact

The primary beneficiary is the contractor, Tatitlek Universal Services Inc., which secured a significant contract. The service delivered is the construction of a 3-sided shed at Tinker Air Force Base. The geographic impact is localized to Tinker AFB in Oklahoma. Workforce implications would include construction labor, potentially benefiting local or specialized trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about price reasonableness.
Unusually long contract duration for a shed construction project.
High contract value for the described scope of work.
Sole-source award limits transparency and potential cost savings.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarded to a specific entity, providing a clear point of accountability.
Contract is for a tangible asset (shed) with a defined purpose.

Sector Analysis

The construction sector, particularly for government contracts, involves a wide range of projects from small repairs to large infrastructure developments. This contract falls under commercial and institutional building construction (NAICS 236220). Government spending in this area is substantial, but contracts are typically subject to stringent competition requirements to ensure value for money. Benchmarking this specific project is challenging without detailed scope, but the value and duration appear anomalous for a simple shed.

Small Business Impact

This contract was not awarded as a small business set-aside (ss: false) and the contractor, Tatitlek Universal Services Inc., is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans, but the lack of competition might limit opportunities for small businesses to participate in this project.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) at Tinker Air Force Base and potentially the Department of Defense's Inspector General if performance issues or fraud are suspected. Transparency is limited due to the sole-source nature of the award. Accountability rests with the contractor to deliver the shed as specified and within the terms of the firm-fixed-price contract.

Related Government Programs

Tinker AFB Infrastructure Projects
Department of Defense Construction Contracts
Air Force Base Facility Upgrades
Sole-Source Construction Awards

Risk Flags

Sole-source award lacks competitive justification.
High contract value for a seemingly simple structure.
Unusually long duration for shed construction.
Potential for poor value for taxpayer money due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to TATITLEK UNIVERSAL SERVICES INC. CONSTRUCT 3-SIDED SHED AT TINKER AFB, OK

Who is the contractor on this award?

The obligated recipient is TATITLEK UNIVERSAL SERVICES INC.

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 $6.5 million.

What is the period of performance?

Start: 2023-10-02. End: 2026-05-29.

What is the specific purpose and detailed scope of work for this 3-sided shed?

The provided data indicates the project is 'CONSTRUCT 3-SIDED SHED AT TINKER AFB, OK' under NAICS code 236220 (Commercial and Institutional Building Construction). However, specific details regarding the shed's dimensions, materials, intended use (e.g., storage, equipment shelter, covered workspace), and any associated site preparation or utilities are not available in the abbreviated data. Understanding these specifics is crucial for evaluating the contract's value and duration. A 3-sided structure could range from a simple open-air shelter to a more complex building requiring significant foundation work, specialized materials, or environmental controls, which would justify a higher cost and longer timeline.

How does the contract value of $6.46 million compare to similar construction projects for sheds or basic structures?

The contract value of $6.46 million for a '3-sided shed' appears exceptionally high when compared to typical construction costs for similar structures. Standard sheds, even large ones, usually cost tens to hundreds of thousands of dollars, not millions, unless they involve highly specialized industrial applications, extensive site work, or integration with complex existing systems. The duration of 970 days (over 2.5 years) further suggests that this is not a simple shed but potentially a larger, more complex facility or that significant inefficiencies are present. Benchmarking requires detailed scope, but preliminary assessment indicates a potential value concern.

What was the justification for awarding this contract on a sole-source basis ('Not Available for Competition')?

The justification for a sole-source award, designated as 'Not Available for Competition,' is critical for understanding why competitive bidding was bypassed. Common justifications include urgent and compelling needs where only one source can meet the requirement, specific capabilities possessed by only one contractor, or situations where a follow-on contract is being awarded to the original source due to unique circumstances. Without the specific justification document (e.g., Justification and Approval - J&A), it's impossible to assess the validity of the sole-source determination. This lack of competition is a primary risk factor for potentially overpaying.

What are the potential risks associated with the long contract duration (970 days)?

A contract duration of 970 days (approximately 2.6 years) for constructing a shed is unusually long and presents several risks. These include potential cost escalation if the contract isn't truly firm-fixed-price or if change orders are numerous, increased administrative oversight burden, potential for material obsolescence or changes in technology during the project lifecycle, and the risk that the facility may not meet evolving operational needs by the time it is completed. It could also indicate a very large or complex scope disguised as a simple shed, or significant delays in planning, permitting, or execution.

What is the track record of the contractor, Tatitlek Universal Services Inc., with the Department of Defense or similar projects?

Information on Tatitlek Universal Services Inc.'s track record is not provided in the abbreviated data. A thorough analysis would require examining their past performance ratings on federal contracts (e.g., through the Contractor Performance Assessment Reporting System - CPARS), their history with the Department of Defense and Air Force, and their experience with projects of similar size, scope, and complexity. A strong track record with successful project completion and positive past performance could mitigate some concerns, while a history of issues might amplify them, especially given the current contract's characteristics.

How does this contract fit within the broader context of Tinker Air Force Base's construction and infrastructure spending?

This contract represents a specific expenditure within Tinker Air Force Base's overall infrastructure budget. To contextualize it, one would need to examine historical spending patterns at Tinker AFB for construction and facility maintenance. Comparing the $6.46 million award to the average cost and duration of similar projects at the base, or to the total annual construction budget, would provide perspective. Understanding if this shed is part of a larger modernization effort or a standalone requirement is also important. Without this broader context, it's difficult to determine if this is an outlier or representative of spending trends.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $6,464,373

Exercised Options: $6,464,373

Current Obligation: $6,464,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline