DoD awards $49M engineering services contract to Tatitlek Technologies, LLC for laboratory operations support

Contract Overview

Contract Amount: $49,091,160 ($49.1M)

Contractor: Tatitlek Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2021-01-27

End Date: 2026-01-26

Contract Duration: 1,825 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: V DEPARTMENT LABORATORY OPERATIONS SUPPORT

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to TATITLEK TECHNOLOGIES, LLC for work described as: V DEPARTMENT LABORATORY OPERATIONS SUPPORT Key points: 1. Contract value appears reasonable given the 5-year duration and scope of specialized engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 4. The contractor, Tatitlek Technologies, LLC, has a track record with government contracts, requiring further analysis of past performance. 5. Engineering services (NAICS 541330) are critical for supporting complex laboratory operations. 6. The contract's performance period spans five years, allowing for sustained support. 7. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility.

Value Assessment

Rating: good

The contract value of approximately $49 million over five years averages to about $9.8 million annually. Benchmarking this against similar large-scale engineering support contracts for federal laboratories suggests this is within a reasonable range. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be efficient for complex projects where costs are not fully predictable. However, detailed cost breakdowns and profit margins would be needed for a more precise value-for-money assessment.

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 data shows two bids were received, which is a relatively low number for a full and open competition of this magnitude. While the process was open, the limited number of bidders might suggest a specialized niche or high barriers to entry for potential competitors. Further investigation into the solicitation process and outreach efforts could clarify if the competition was as robust as intended.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to foster a competitive environment that drives down prices. However, with only two bids, the potential for significant price savings may have been limited compared to a scenario with more robust competition.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to maintain and enhance laboratory operations. This contract ensures the continuity of critical scientific and technical support services. The services provided are essential for research, development, testing, and evaluation activities within the Department of Defense. The contract supports a specialized workforce of engineers and technical professionals, contributing to the federal science and technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential issues with market reach or contractor availability.
Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified.
The contract is a delivery order under an IDIQ, meaning the full scope and ultimate cost may evolve over time, requiring ongoing scrutiny.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
The contract duration of five years provides stability and allows for long-term planning and execution of complex tasks.
The contractor, Tatitlek Technologies, LLC, is an established entity with experience in government contracting.
The contract supports critical laboratory operations, aligning with core defense research and development missions.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant component of the federal contracting landscape, particularly within the Department of Defense. This contract falls within the broader category of professional, scientific, and technical services. The market for specialized engineering support for government laboratories is often characterized by a limited number of highly qualified firms due to the technical expertise and security clearances required. Comparable spending benchmarks for similar laboratory support contracts would typically range from several million to tens of millions of dollars annually, depending on the scale and complexity of the laboratory.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses mandated by this award. The primary focus is on the prime contractor's capabilities. Any subcontracting opportunities would be at the discretion of Tatitlek Technologies, LLC, and would depend on their internal resource allocation and the specific needs of the laboratory operations.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs and ensure the fixed fee remains appropriate. Transparency is facilitated through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Technical Services Contracts
Federal Laboratory Support Services
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may result in suboptimal pricing.
Contractor performance risk requires ongoing monitoring.
Scope creep potential in long-term support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to TATITLEK TECHNOLOGIES, LLC. V DEPARTMENT LABORATORY OPERATIONS SUPPORT

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 $49.1 million.

What is the period of performance?

Start: 2021-01-27. End: 2026-01-26.

What is the track record of Tatitlek Technologies, LLC with similar government contracts, particularly in laboratory operations support?

Tatitlek Technologies, LLC has a history of performing government contracts, including those within the defense sector. To assess their track record for this specific contract, a detailed review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary. This would involve examining their performance on previous engineering services contracts, their ability to meet cost, schedule, and technical requirements, and any instances of performance issues or disputes. Understanding their experience with laboratory operations specifically, rather than general engineering, is key to evaluating their suitability for this role.

How does the estimated annual cost of this contract compare to similar laboratory support contracts awarded by the Department of the Navy or other DoD components?

The annual value of this contract is approximately $9.8 million ($49M / 5 years). To benchmark this effectively, one would need to compare it against contracts for similar-sized federal laboratories requiring comparable engineering, technical, and operational support. Factors such as the specific scientific disciplines involved, the scale of the laboratory facilities, and the complexity of the research or testing conducted are critical. A preliminary comparison suggests this annual figure is within the expected range for specialized federal laboratory support, but a more precise benchmark would require access to detailed contract databases and analysis of scope-of-work similarities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for laboratory operations support, and how are they mitigated?

The primary risk with a CPFF contract is that the contractor may not be sufficiently incentivized to control costs, as costs are reimbursed. The fixed fee provides some incentive, but if the initial cost estimates are inaccurate or scope creep occurs, costs can escalate. Mitigation strategies include robust government oversight of incurred costs, detailed review of the contractor's cost accounting system, clear definition of the statement of work to prevent scope creep, and strong negotiation of the fixed fee based on realistic cost projections. Regular performance reviews and audits are also essential to ensure efficiency and prevent overspending.

Given the limited number of bidders (2) in this full and open competition, what does this imply about the market for specialized laboratory engineering services?

A low number of bidders in a full and open competition can suggest several market dynamics. It might indicate that the required specialized expertise is scarce, leading to a limited pool of qualified contractors. Alternatively, high barriers to entry, such as stringent security requirements, complex technical qualifications, or the need for specific certifications, could deter potential bidders. It could also point to issues with the solicitation process itself, such as unclear requirements or insufficient outreach. For taxpayers, this could mean less competitive pricing than might be achieved with a larger bidder pool, potentially leading to higher costs.

What is the historical spending trend for laboratory operations support services within the Department of the Navy or the broader Department of Defense?

Historical spending on laboratory operations support services within the DoD and specifically the Department of the Navy has generally been substantial and consistent, reflecting the ongoing need for advanced research, development, and testing capabilities. These services are critical for maintaining readiness and technological superiority. Spending in this category often fluctuates based on strategic priorities, budget allocations, and the lifecycle of major defense programs. Analyzing past spending patterns can reveal trends in contract types, durations, and the prevalence of specific service providers, offering context for current contract awards like this one.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017820R3000

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tatitlek Corporation

Address: 561 E 36TH AVE # 400, 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: $71,543,247

Exercised Options: $58,669,998

Current Obligation: $49,091,160

Actual Outlays: $190,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8647

IDV Type: IDC

Timeline