State Dept. Awards $13.9M for TESSADA Warehouse Services, Lacking Competition
Contract Overview
Contract Amount: $13,937,310 ($13.9M)
Contractor: Tessada & Associates, Inc.
Awarding Agency: Department of State
Start Date: 2009-06-15
End Date: 2015-09-15
Contract Duration: 2,283 days
Daily Burn Rate: $6.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TESSADA WAREHOUSE SERVICES AND LOGISTICAL SUPPORT FOR ATA PROGRAMS
Place of Performance
Location: DUNN LORING, FAIRFAX County, VIRGINIA, 22027, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $13.9 million to TESSADA & ASSOCIATES, INC. for work described as: TESSADA WAREHOUSE SERVICES AND LOGISTICAL SUPPORT FOR ATA PROGRAMS Key points: 1. Significant contract value of $13.9M awarded for logistical support. 2. Sole-source award raises concerns about price discovery and competition. 3. Facilities Support Services sector, with potential for cost efficiencies. 4. Long contract duration of 2283 days suggests a need for ongoing services.
Value Assessment
Rating: questionable
The contract was not competed, making it difficult to assess pricing against market benchmarks. The firm fixed price contract type provides some cost certainty, but the lack of competition limits the ability to verify value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, indicating no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $13.9M contract likely resulted in higher costs than a competed award would have achieved.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of State's reliance on a single vendor for essential logistical support raises questions about contingency planning. Long-term contracts without competition can stifle innovation and service improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract
Sector Analysis
This contract falls within the Facilities Support Services sector, which includes a range of services necessary for the operation of government facilities. Benchmarks for this sector vary widely depending on the specific services provided.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further limits opportunities for small business participation.
Oversight & Accountability
The sole-source award for a significant contract value warrants scrutiny to ensure the Department of State adequately justified the lack of competition and obtained fair pricing.
Related Government Programs
- Facilities Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for inflated pricing
- Limited oversight due to no re-competition
Tags
facilities-support-services, department-of-state, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $13.9 million to TESSADA & ASSOCIATES, INC.. TESSADA WAREHOUSE SERVICES AND LOGISTICAL SUPPORT FOR ATA PROGRAMS
Who is the contractor on this award?
The obligated recipient is TESSADA & ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2009-06-15. End: 2015-09-15.
What was the justification for awarding this contract sole-source, and was a market research report conducted to confirm the absence of other capable vendors?
The justification for a sole-source award typically involves demonstrating that only one vendor possesses the unique capabilities or resources required for the service. A thorough market research report should have been conducted to validate this claim and explore potential alternatives before proceeding with a sole-source designation.
Given the $13.9M value and 6+ year duration, what steps were taken to ensure the firm fixed price was competitive and represented fair value?
Without a competitive bidding process, establishing a competitive firm fixed price is challenging. The agency should have relied on historical pricing data, independent cost estimates, or benchmark data from similar services, if available, to negotiate a fair price. The absence of competition makes it difficult to verify if the price was truly optimal.
What are the risks associated with relying on a single vendor for warehouse services and logistical support for over six years without re-competition?
The primary risks include vendor lock-in, potential price escalation over time, reduced service quality due to lack of competitive pressure, and a lack of incentive for the vendor to innovate or improve services. It also poses a risk if the vendor experiences financial difficulties or operational failures.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8001 FORBES PL STE 310, SPRINGFIELD, VA, 22151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $15,995,546
Exercised Options: $15,995,546
Current Obligation: $13,937,310
Timeline
Start Date: 2009-06-15
Current End Date: 2015-09-15
Potential End Date: 2015-09-15 00:00:00
Last Modified: 2015-10-28
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