DoD awards $17.5M engineering services contract to TATITLEK TECHNOLOGIES, LLC for Alaska-based operations

Contract Overview

Contract Amount: $17,558,511 ($17.6M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2026-03-01

Contract Duration: 2,344 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AWARD

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to TATITLEK TECHNOLOGIES, LLC for work described as: AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2300 days indicates a long-term need for these engineering services. 3. Services are concentrated in Alaska, highlighting a specific geographic focus for defense infrastructure. 4. The Cost Plus Fixed Fee (CPFF) contract type may require close monitoring to ensure cost control. 5. The award value of $17.5M falls within a moderate spending range for specialized engineering support. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business.

Value Assessment

Rating: good

The award value of $17.5 million for engineering services appears reasonable given the contract's duration of over six years and its focus on a specific geographic region (Alaska). Without direct benchmarks for similar long-term, geographically specific defense engineering contracts, a precise value-for-money assessment is challenging. However, the use of full and open competition suggests that pricing was likely vetted against multiple offers, which typically drives more competitive rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down costs through competitive bidding.

Public Impact

The Department of the Navy benefits from specialized engineering services crucial for its operations in Alaska. This contract supports the maintenance and development of defense infrastructure within the state of Alaska. The contract's duration implies sustained support for ongoing military or naval activities in the region. Local economies in Alaska may see indirect benefits through employment and related services supporting the contractor's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit if not managed diligently.
Long contract durations (over 6 years) can sometimes lead to scope creep or evolving requirements that may not be optimally priced from the outset.
Concentration of services in a single, remote geographic location like Alaska could present logistical challenges and potentially higher operational costs.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a robust selection process.
The fixed fee component in the CPFF structure provides some cost certainty for the government.
The contract addresses a specific, long-term need for engineering services, suggesting strategic planning by the agency.

Sector Analysis

Engineering services, particularly those supporting defense infrastructure, represent a significant segment of the federal contracting market. This contract falls within the broader professional, scientific, and technical services sector. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a wide range of activities, from civil and mechanical engineering to specialized defense-related design and analysis. Federal spending in this category often supports critical national security missions and infrastructure development.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false) and was awarded to TATITLEK TECHNOLOGIES, LLC. While the size of TATITLEK TECHNOLOGIES, LLC is not provided, the lack of a small business set-aside suggests it may not qualify as a small business for this specific contract, or that the competition was open to all sizes. There is no explicit information on subcontracting plans for small businesses within this award notice.

Oversight & Accountability

The Department of the Navy, as the awarding agency, is responsible for oversight of this contract. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and the fixed fee is earned appropriately. The Department of Defense also has an Inspector General's office that can investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS.

Related Government Programs

Department of Defense Engineering Services
Naval Facilities Engineering Command Contracts
Alaska Defense Infrastructure Projects
Cost Plus Fixed Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may increase risk of scope creep and cost escalation.
Geographic concentration in Alaska could present logistical and cost challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to TATITLEK TECHNOLOGIES, LLC. AWARD

Who is the contractor on this award?

The obligated recipient is TATITLEK TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2019-09-30. End: 2026-03-01.

What is the historical spending pattern for engineering services in Alaska by the Department of the Navy?

Analyzing historical spending by the Department of the Navy for engineering services in Alaska requires access to comprehensive federal procurement data. Based on available information, the Navy has consistently invested in engineering and technical services to support its installations and operations. Contracts in this region often focus on infrastructure maintenance, construction oversight, environmental services, and specialized technical support due to the unique environmental and logistical challenges. Spending can fluctuate based on specific project needs, modernization efforts, and geopolitical requirements. For instance, major infrastructure upgrades or new facility constructions would lead to spikes in spending. Without specific historical data points for this NAICS code in Alaska, it's difficult to provide exact figures, but the consistent presence of such contracts indicates a sustained requirement.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, making it difficult to establish a firm fixed price. In CPFF contracts, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving requirements but carries a higher risk of cost overruns if not managed carefully, as the government bears the cost risk. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives or award fees tied to specific metrics, potentially offering better value by encouraging efficiency. For well-defined engineering projects, FFP is often preferred for cost predictability. The choice of CPFF here suggests the Navy anticipated some level of uncertainty or complexity in the engineering services required.

What are the potential risks associated with a long-duration contract (over 6 years) for engineering services?

Long-duration contracts, such as this 6-year+ award, present several potential risks. Firstly, the 'cost' component of a CPFF contract can escalate over time due to inflation, unforeseen technical challenges, or changes in labor costs, potentially exceeding initial estimates if not managed stringently. Secondly, the fixed fee, while agreed upon, might become disproportionately high or low relative to the actual effort expended as the contract progresses and market conditions change. Thirdly, there's a risk of 'scope creep,' where the requirements may evolve significantly beyond the original intent, leading to inefficiencies or disputes. Finally, maintaining consistent oversight and contractor performance over such an extended period requires sustained agency resources and focus. The government must ensure robust contract management practices are in place throughout the entire performance period.

How does the competition level (6 bidders) impact the value received by the government for this contract?

A competition level of six bidders is generally considered healthy and suggests that the requirement was attractive enough to elicit significant interest from the market. This level of competition typically provides the government with a stronger negotiating position, leading to more competitive pricing and potentially better terms and conditions. It increases the likelihood that the offered prices reflect fair market value, as contractors are motivated to submit their best offers to win the contract. Furthermore, a higher number of bidders reduces the risk of collusion and ensures a wider range of technical approaches and innovations are considered. For taxpayers, this translates to a greater assurance that their funds are being used efficiently and effectively.

What is TATITLEK TECHNOLOGIES, LLC's track record with federal contracts, particularly with the Department of Defense?

To assess TATITLEK TECHNOLOGIES, LLC's track record, a review of their federal contract history is necessary. Information from sources like the Federal Procurement Data System (FPDS) would reveal past awards, performance ratings (if available), and the types of services they have provided. A strong history with the Department of Defense, especially in similar engineering or technical service domains and geographic locations, would indicate reliability and expertise. Conversely, a history marked by performance issues, contract disputes, or significant cost overruns could raise concerns. Without specific data on TATITLEK TECHNOLOGIES, LLC's past performance, it's prudent to assume a standard level of due diligence was performed by the Navy during the source selection process.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017819R3003

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tatitlek Corporation

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, 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: $21,300,498

Exercised Options: $21,300,498

Current Obligation: $17,558,511

Actual Outlays: $604,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017816D9063

IDV Type: IDC

Timeline