Interior Department awards $109M contract to TKC Communications for IT services over 6 years
Contract Overview
Contract Amount: $109,234,320 ($109.2M)
Contractor: TKC Communications, LLC
Awarding Agency: Department of the Interior
Start Date: 2003-11-05
End Date: 2009-01-31
Contract Duration: 1,914 days
Daily Burn Rate: $57.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 32099 TKC
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $109.2 million to TKC COMMUNICATIONS, LLC for work described as: 32099 TKC Key points: 1. Contract value of $109.2M over 1914 days. 2. TKC Communications, LLC is the sole awardee. 3. Contract type is Time and Materials. 4. Awarded by the Department of the Interior, Departmental Offices. 5. Significant duration of the contract.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT service contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing structure may not always yield the most cost-effective outcome for the government.
Taxpayer Impact: The government paid $109.2 million for IT services. The effectiveness of this spending depends on the value and necessity of the services provided and the efficiency of the contractor.
Public Impact
Taxpayers funded $109.2 million for IT services over nearly 6 years. The contract supported IT infrastructure and services within the Department of the Interior. The duration of the contract suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can be less predictable than fixed-price contracts.
- Long contract duration may indicate potential for scope creep or evolving needs.
- Limited information on specific services provided.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a specific company, TKC Communications, LLC.
- Contract duration aligns with potential long-term IT needs.
Sector Analysis
This contract falls within the Information Technology sector, specifically for IT services supporting departmental offices. IT service contracts can range widely in price depending on the scope, complexity, and duration.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract award.
Oversight & Accountability
Oversight would focus on monitoring the Time and Materials expenditures to ensure they remain within budget and align with the services rendered. Regular performance reviews are crucial for accountability.
Related Government Programs
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration (1914 days) increases risk exposure.
- Lack of specific service details makes value assessment difficult.
- Unknown subcontractor participation, potentially missing small business opportunities.
Tags
department-of-the-interior, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $109.2 million to TKC COMMUNICATIONS, LLC. 32099 TKC
Who is the contractor on this award?
The obligated recipient is TKC COMMUNICATIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $109.2 million.
What is the period of performance?
Start: 2003-11-05. End: 2009-01-31.
What specific IT services were provided under this contract, and how did their scope align with the $109.2 million expenditure?
The provided data lacks specifics on the IT services rendered. A detailed breakdown of services, such as network management, software development, or hardware maintenance, is necessary to assess if the $109.2 million expenditure was justified and represented good value for the Department of the Interior.
Given the Time and Materials contract type, what measures were in place to mitigate cost overruns and ensure efficient service delivery?
The contract's Time and Materials (T&M) nature necessitates robust government oversight to control costs. Effective measures would include detailed timesheet verification, labor rate ceilings, and clear task orders with estimated hours. Without this information, the risk of uncontrolled spending remains a concern.
How effectively did the full and open competition process ensure the best possible pricing and service quality for these IT needs?
While 'full and open competition' suggests a broad solicitation, the T&M pricing structure can obscure true cost-effectiveness. The government likely aimed for competitive bids on labor rates and overhead, but the final cost is heavily influenced by actual hours worked, making a definitive assessment of 'best pricing' challenging without post-award performance data.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Nana Regional Corporation Inc (UEI: 079253761)
Address: 711 H ST STE 510, ANCHORAGE, AK, 00
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $109,234,320
Exercised Options: $109,234,320
Current Obligation: $109,234,320
Parent Contract
Parent Award PIID: 14350402RC86354
IDV Type: BPA
Timeline
Start Date: 2003-11-05
Current End Date: 2009-01-31
Potential End Date: 2009-01-31 00:00:00
Last Modified: 2012-06-27
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