DoD's $16.6M software contract with TKC Global Solutions awarded without competition, raising value questions

Contract Overview

Contract Amount: $16,576,254 ($16.6M)

Contractor: TKC Global Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-29

End Date: 2013-09-30

Contract Duration: 1,462 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NMLDS SOFTWARE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to TKC GLOBAL SOLUTIONS, LLC for work described as: NMLDS SOFTWARE Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of 1462 days suggests a long-term need for the NMLDS software. 3. The 'Other Computer Related Services' NAICS code indicates a broad scope for the services provided. 4. Fixed Price contract type offers some cost certainty but may not reflect true value if competition was absent. 5. Awarded by the Defense Information Systems Agency, highlighting its role in supporting critical defense IT infrastructure. 6. The contract's value, while substantial, needs benchmarking against similar software development and maintenance contracts.

Value Assessment

Rating: questionable

The contract's value of approximately $16.6 million over its duration is difficult to assess without competitive bids. As a sole-source award, there's no direct market comparison to benchmark pricing. The fixed-price nature provides some cost control, but the absence of competition means taxpayers may not have received the best possible price. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar software services, which are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (NAF) status, indicating a sole-source procurement. This means that only one vendor, TKC GLOBAL SOLUTIONS, LLC, was solicited. The lack of competition prevents a robust price discovery process and limits the government's ability to negotiate based on multiple offers. While sole-source awards can be justified in specific circumstances, they generally lead to higher prices and reduced innovation compared to open competition.

Taxpayer Impact: Sole-source awards mean taxpayers are not benefiting from competitive pricing, potentially leading to overpayment for the NMLDS software services. The government missed an opportunity to leverage market forces to secure a better deal.

Public Impact

The Department of Defense benefits from the NMLDS software, likely supporting critical command and control or logistical functions. The contract delivers essential computer-related services, ensuring the functionality and maintenance of a key software system. Services are likely concentrated within the operational areas of the Defense Information Systems Agency, with potential nationwide or global implications. The contract supports jobs within TKC GLOBAL SOLUTIONS, LLC, contributing to the IT services sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
The long contract duration (1462 days) could indicate a lack of market alternatives or a strategic decision that limits future flexibility.
The broad NAICS code 'Other Computer Related Services' makes it difficult to pinpoint the exact nature and cost-effectiveness of the services rendered.

Positive Signals

The contract is Firm Fixed Price, providing a degree of cost certainty for the government.
Awarded by the Defense Information Systems Agency, suggesting it supports critical defense IT infrastructure.
The contract has a defined start and end date, providing a clear timeframe for service delivery.

Sector Analysis

The IT services sector is vast, with government contracts often focusing on software development, maintenance, and IT support. This contract falls under 'Other Computer Related Services,' a broad category that can encompass a wide range of activities. The Department of Defense is a major consumer of IT services, with spending often driven by the need for secure, reliable, and advanced technological solutions to support military operations. Benchmarking this contract's value is challenging without specific details on the NMLDS software and its functionalities, but IT services represent a significant portion of federal IT spending.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'ss' and 'sb' fields are false. This suggests that the procurement was not specifically targeted towards small businesses. Consequently, the primary contractor, TKC GLOBAL SOLUTIONS, LLC, likely performed the majority of the work. There is no information provided regarding subcontracting plans or opportunities for small businesses to participate in this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). As a sole-source award, there may be heightened scrutiny from oversight bodies like the Government Accountability Office (GAO) or the DoD Inspector General if concerns arise regarding the justification for the sole-source award or the pricing. Transparency is limited due to the lack of competitive bidding, making it harder for the public to assess the contract's value and effectiveness.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Department of Defense Software Development Services
Federal IT Services Procurement
Sole-Source IT Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on contract justification.
Broad NAICS code obscures specific service costs.
Long contract duration may limit flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to TKC GLOBAL SOLUTIONS, LLC. NMLDS SOFTWARE

Who is the contractor on this award?

The obligated recipient is TKC GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2009-09-29. End: 2013-09-30.

What specific functionalities does the NMLDS software provide, and how critical are these to DoD operations?

The provided data does not specify the functionalities of the NMLDS (Network/Mission Logistics Data System) software. However, given its award by the Defense Information Systems Agency (DISA) and the 'Other Computer Related Services' NAICS code, it likely supports critical logistics, mission planning, or operational data management for the Department of Defense. Its criticality would be tied to its role in enabling essential military functions, supply chain management, or intelligence dissemination. Without further documentation, the exact impact and necessity remain speculative, but its sole-source award suggests a unique or highly specialized capability.

Can the $16.6 million contract value be benchmarked against similar software services contracts?

Benchmarking the $16.6 million contract value is challenging due to the lack of specific details about the NMLDS software and the 'Other Computer Related Services' NAICS code, which is very broad. As a sole-source award, there are no direct competitors to compare pricing against. To perform a meaningful benchmark, one would need to identify comparable contracts for similar software development, maintenance, or specialized IT services within the federal government or the private sector. Factors like contract duration, scope of work, service level agreements, and the specific technologies involved would be crucial for an accurate comparison. Without this granular data, assessing whether $16.6 million represents good value is difficult.

What was the justification for awarding this contract on a sole-source basis?

The data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (NAF), which is a category for sole-source procurements. Federal Acquisition Regulation (FAR) Part 6 outlines the circumstances under which agencies can limit competition. Common justifications for sole-source awards include unique capabilities, urgent needs where only one source can fulfill the requirement, or when a follow-on contract is awarded to the original source of an item or service. Without access to the specific justification document (e.g., a Justification and Approval - J&A), the precise reason for limiting competition for the NMLDS software remains unknown. This lack of transparency is a key concern for value assessment.

What is TKC GLOBAL SOLUTIONS, LLC's track record with the Department of Defense and similar contracts?

The provided data identifies TKC GLOBAL SOLUTIONS, LLC as the contractor but does not offer details on their past performance or track record with the Department of Defense (DoD) or on similar contracts. A comprehensive assessment would require reviewing their contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes on previous government engagements. Understanding their experience with complex software services and their ability to deliver within budget and schedule on prior DoD contracts would be essential for evaluating their suitability and reliability for this $16.6 million award.

How does this contract's duration and value compare to other DISA software contracts?

This contract spans 1462 days (approximately 4 years) with a total value of $16.6 million. Comparing it to other Defense Information Systems Agency (DISA) software contracts requires access to DISA's broader contract database. However, a 4-year duration for a software service contract is not uncommon, especially for systems requiring ongoing maintenance, updates, and support. The average annual value is roughly $4.15 million. Without specific benchmarks for similar DISA software projects (e.g., system modernization, cybersecurity solutions, network management tools), it's difficult to definitively state if this represents a typical or outlier spending pattern. The sole-source nature further complicates direct comparisons.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC102809R2031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3201 C ST, STE 400F, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Federally Funded Research and Development Corp, 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: $17,962,382

Exercised Options: $16,797,854

Current Obligation: $16,576,254

Contract Characteristics

Cost or Pricing Data: NO

Timeline