TKC Global Solutions awarded $31.8M for IT services, raising questions about competition and value

Contract Overview

Contract Amount: $31,791,458 ($31.8M)

Contractor: TKC Global Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-29

End Date: 2014-09-29

Contract Duration: 1,096 days

Daily Burn Rate: $29.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to TKC GLOBAL SOLUTIONS, LLC for work described as: LABOR Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm-fixed-price contract type suggests a defined scope, but the lack of competition is a concern. 3. Performance period of three years with a significant dollar value warrants close scrutiny of outcomes. 4. The IT services sector is highly competitive; a sole-source award here is unusual and requires justification. 5. No small business set-aside was applied, indicating potential missed opportunities for smaller firms. 6. The contract's value is substantial, necessitating a thorough review of its alignment with agency needs.

Value Assessment

Rating: questionable

The contract's value of $31.8 million over three years for 'Other Computer Related Services' is substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of transparency in pricing due to the sole-source award makes a definitive value-for-money assessment challenging. Further analysis would be needed to determine if the awarded price reflects fair and reasonable costs for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, TKC GLOBAL SOLUTIONS, LLC, was solicited. This approach bypasses the typical competitive bidding process, which usually involves multiple vendors submitting proposals. The lack of competition means there was no direct comparison of offers, potentially leading to higher prices than might be achieved in an open market. The justification for a sole-source award would need to be exceptionally strong to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices for taxpayers. This can result in higher overall spending compared to competitively procured contracts.

Public Impact

The primary beneficiary is TKC GLOBAL SOLUTIONS, LLC, which receives a significant contract award. The services delivered are IT-related, likely supporting the operational needs of the Defense Information Systems Agency (DISA). The geographic impact is centered in Illinois, where the contract is managed or performed. Workforce implications may include job creation or allocation within TKC GLOBAL SOLUTIONS, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Sole-source awards can create a perception of favoritism or lack of due diligence in procurement.
The significant dollar value necessitates robust oversight to ensure performance meets expectations.
Absence of small business participation limits opportunities for smaller, specialized IT firms.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
The contract duration of three years allows for continuity of essential IT services.
Award to an established entity suggests a degree of confidence in contractor capability.

Sector Analysis

The IT services sector is vast and dynamic, encompassing a wide range of capabilities from software development to network management. Federal spending in this sector is consistently high, driven by the need for modernizing systems and maintaining cybersecurity. Contracts like this, for 'Other Computer Related Services,' often support critical infrastructure and operational functions. Benchmarking this contract's value would typically involve comparing it to other sole-source or competitively awarded IT service contracts of similar scope and duration within the Department of Defense or other federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The total award value of $31.8 million represents a significant opportunity that could have potentially been divided among multiple small businesses through set-aside provisions. The absence of subcontracting requirements specifically for small businesses means that TKC GLOBAL SOLUTIONS, LLC has discretion in how much, if any, of the work is passed down to smaller firms, potentially limiting the impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the justification for the sole-source award and ongoing performance monitoring are key accountability measures. The Inspector General's office within the DoD may conduct audits or investigations if specific concerns arise regarding contract performance, cost, or compliance.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Defense Information Technology Services

Risk Flags

Sole-source award raises competition concerns.
Lack of transparency in pricing due to sole-source nature.
Potential for higher costs without competitive bidding.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to TKC GLOBAL SOLUTIONS, LLC. LABOR

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 $31.8 million.

What is the period of performance?

Start: 2011-09-29. End: 2014-09-29.

What specific IT services are covered under this $31.8M contract awarded to TKC GLOBAL SOLUTIONS, LLC?

The contract falls under the North American Industry Classification System (NAICS) code 541519, which is defined as 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions, including but not limited to IT consulting, system integration, network management, data processing services, IT support, and potentially specialized software or hardware services not covered by more specific NAICS codes. Without further details on the contract's statement of work (SOW), it is difficult to pinpoint the exact services. However, given the awarding agency (Defense Information Systems Agency), these services likely support critical defense information technology infrastructure, operations, or cybersecurity initiatives.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For a contract valued at $31.8 million over three years in the IT sector, a sole-source justification would need to be robust. Common reasons include unique capabilities possessed by the contractor, proprietary technology, or a critical need that cannot be met through competitive means within the required timeframe. The Defense Information Systems Agency would have had to document and approve this justification, likely involving a review to ensure no other viable options existed.

How does the $31.8M contract value compare to similar IT services contracts awarded by the DoD or DISA?

Comparing the $31.8 million value requires context regarding the specific IT services rendered and the contract duration. DISA and the DoD award numerous IT contracts, ranging from small, specialized services to large, multi-year enterprise-wide solutions. A three-year contract of this magnitude for 'Other Computer Related Services' is substantial but not extraordinary within the defense IT landscape. However, the sole-source nature of this award makes direct value comparison difficult. Competitively awarded contracts for similar services might offer insights into prevailing market rates. Without knowing the precise scope and deliverables, it's challenging to definitively state if $31.8 million represents a premium or a fair price, especially given the lack of competitive pressure.

What are the potential risks associated with a sole-source IT contract of this size?

The primary risks associated with a sole-source IT contract of this size include potential overpricing due to the absence of competition, reduced incentive for the contractor to innovate or provide exceptional value beyond the contract minimums, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best possible value for their money. Furthermore, reliance on a single vendor can create vendor lock-in and increase risks if the vendor's performance falters or if their business circumstances change. Robust contract management and oversight are crucial to mitigate these risks.

What is the track record of TKC GLOBAL SOLUTIONS, LLC in performing federal IT contracts?

TKC GLOBAL SOLUTIONS, LLC has a history of performing federal contracts, primarily within the Department of Defense and other government agencies. Their contract portfolio often includes IT services, telecommunications, and logistics support. Analyzing their past performance on similar contracts, including customer satisfaction ratings, on-time delivery, and adherence to budget, would provide insight into their reliability and capability. While the sole-source nature of this specific award bypasses direct performance comparison with competitors for this particular contract, their overall federal contracting history can serve as an indicator of their potential performance.

What historical spending patterns exist for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense?

The Department of Defense is a significant spender on IT services, including those categorized under NAICS 541519. Historical spending patterns reveal a consistent demand for a broad range of computer-related services to support military operations, intelligence gathering, and administrative functions. Spending in this category can fluctuate based on modernization initiatives, cybersecurity threats, and specific operational requirements. Analyzing historical data would show trends in contract values, types of services procured, and the prevalence of competitive versus sole-source awards. This specific $31.8 million contract, while substantial, fits within the broader context of DoD's extensive IT procurement activities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC102811R2025

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, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,791,458

Exercised Options: $31,791,458

Current Obligation: $31,791,458

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline