Tuknik Government Services LLC awarded $106.7M IT/AI/ML support contract for DoD CIO JAIC

Contract Overview

Contract Amount: $106,725,461 ($106.7M)

Contractor: Tuknik Government Services LLC

Awarding Agency: Department of the Interior

Start Date: 2020-12-23

End Date: 2025-03-10

Contract Duration: 1,538 days

Daily Burn Rate: $69.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT), ARTIFICIAL INTELLIGENCE (AI), AND MACHINE LEARNING (ML) PROGRAMMATIC SUPPORT SERVICES FOR THE DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) JOINT ARTIFICIAL INTELLIGENCE CENTER (JAIC)

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $106.7 million to TUKNIK GOVERNMENT SERVICES LLC for work described as: INFORMATION TECHNOLOGY (IT), ARTIFICIAL INTELLIGENCE (AI), AND MACHINE LEARNING (ML) PROGRAMMATIC SUPPORT SERVICES FOR THE DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) JOINT ARTIFICIAL INTELLIGENCE CENTER (JAIC) Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost efficiencies. 2. The contract's Time and Materials (T&M) pricing structure may lead to cost overruns if not closely managed. 3. Performance period extends over three years, indicating a need for sustained support in critical IT/AI/ML areas. 4. The Department of the Interior is the contracting agency, overseeing support for the DoD CIO's Joint AI Center. 5. Focus on AI and ML suggests a strategic investment in advanced technologies by the Department of Defense. 6. The absence of a specific Product Service Code (PSC) might indicate a broad scope of services or a unique requirement.

Value Assessment

Rating: fair

The contract's value of over $106 million for IT, AI, and ML programmatic support is substantial. However, without comparable contracts or detailed breakdowns of services, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking this against similar AI/ML support contracts within the DoD or other federal agencies would be necessary for a more robust evaluation of its pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs for the government than if multiple offers had been solicited.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is limited in a sole-source scenario.

Public Impact

The primary beneficiaries are the Department of Defense Chief Information Officer (CIO) and the Joint Artificial Intelligence Center (JAIC), receiving critical programmatic support. Services delivered include support for Information Technology (IT), Artificial Intelligence (AI), and Machine Learning (ML) initiatives. The geographic impact is likely national, given the nature of defense IT and AI programs, though specific deployment locations are not detailed. Workforce implications may involve specialized IT, AI, and ML professionals contributing to advanced defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Lack of specific Product Service Code (PSC) makes it difficult to categorize and benchmark services.
Contract duration of over 1500 days requires sustained oversight to ensure performance and value.

Positive Signals

Supports critical DoD initiatives in AI and ML, aligning with national defense priorities.
Contract awarded to Tuknik Government Services LLC, a known entity in government contracting.
Long-term contract provides stability for essential programmatic support services.
Awarded by the Department of the Interior, suggesting a structured procurement process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on advanced areas like Artificial Intelligence (AI) and Machine Learning (ML). The market for AI/ML services within the federal government is rapidly growing, driven by the need for enhanced data analysis, automation, and decision-making capabilities across various agencies. Comparable spending benchmarks would involve looking at other large-scale IT and AI/ML support contracts awarded to prime contractors by defense and civilian agencies, often in the hundreds of millions to billions of dollars range over several years.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business) indicator is also false. This suggests that the prime contract was not specifically targeted towards small businesses, nor is there an explicit indication of a small business set-aside. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers, who are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Given that the services support the Department of Defense CIO's Joint AI Center, there may be additional layers of oversight from DoD personnel. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD CIO IT Support Services
Joint Artificial Intelligence Center (JAIC) Programs
Artificial Intelligence Research and Development Contracts
Machine Learning Services for Government
Department of Defense IT Modernization Programs

Risk Flags

Sole-source award
Time and Materials pricing
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $106.7 million to TUKNIK GOVERNMENT SERVICES LLC. INFORMATION TECHNOLOGY (IT), ARTIFICIAL INTELLIGENCE (AI), AND MACHINE LEARNING (ML) PROGRAMMATIC SUPPORT SERVICES FOR THE DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) JOINT ARTIFICIAL INTELLIGENCE CENTER (JAIC)

Who is the contractor on this award?

The obligated recipient is TUKNIK GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $106.7 million.

What is the period of performance?

Start: 2020-12-23. End: 2025-03-10.

What is the track record of Tuknik Government Services LLC in delivering IT, AI, and ML support services to the federal government?

Tuknik Government Services LLC has a history of performing federal contracts, primarily within the IT and professional services domains. While specific details on their AI/ML programmatic support experience are not provided in this data snippet, their award of this significant contract suggests they possess the necessary qualifications and past performance recognized by the Department of the Interior for the DoD CIO JAIC. A deeper dive into their contract history, client feedback, and past performance evaluations would be required to fully assess their track record in this specialized area. Their ability to successfully execute this large, sole-source contract will be a key indicator of their capabilities.

How does the $106.7 million contract value compare to similar AI/ML programmatic support contracts within the Department of Defense?

The $106.7 million value for this IT, AI, and ML programmatic support contract is substantial, reflecting the growing investment in these advanced technologies by the Department of Defense. Without access to a comprehensive database of comparable contracts, a precise benchmark is difficult. However, large-scale AI/ML support contracts within the DoD can range from tens of millions to several hundred million dollars over their performance periods. This contract's value appears to be in the mid-to-high range for programmatic support, indicating a significant scope of work. Factors such as contract duration, specific services required, and the level of expertise needed influence these values.

What are the primary risks associated with a sole-source, Time and Materials (T&M) contract of this magnitude?

The primary risks associated with this sole-source, Time and Materials (T&M) contract are twofold. Firstly, the sole-source nature bypasses competitive bidding, potentially leading to a higher price than could be achieved through a competitive process and limiting the government's leverage in negotiations. Secondly, the T&M pricing structure, while offering flexibility, carries a significant risk of cost escalation. Without stringent oversight, detailed work breakdown structures, and clear performance metrics, the contractor could incur higher labor hours and material costs than anticipated, leading to budget overruns. Effective contract management and vigilant monitoring of labor hours and expenses are crucial to mitigate these risks.

How effective is the Department of the Interior in overseeing IT/AI/ML support contracts for the Department of Defense?

The effectiveness of the Department of the Interior (DOI) in overseeing IT/AI/ML support contracts for the Department of Defense (DoD) is not directly measurable from the provided data. DOI's role as the contracting agency suggests they have established procurement and oversight processes. However, the specialized nature of AI/ML and the fact that the services are for the DoD CIO JAIC imply a need for close collaboration and potentially shared oversight responsibilities between DOI and DoD program officials. The success of this contract will depend on the expertise of the contracting officers and program managers involved, their understanding of AI/ML technologies, and the robustness of their monitoring and performance evaluation mechanisms.

What are the historical spending patterns for IT, AI, and ML programmatic support within the DoD CIO JAIC or similar entities?

Historical spending patterns for IT, AI, and ML programmatic support within the DoD CIO JAIC or similar entities have shown a consistent and accelerating upward trend. As the DoD prioritizes the integration of AI and ML into its operations for enhanced intelligence, decision-making, and operational efficiency, investments in programmatic support services have grown significantly. This includes funding for research, development, implementation, and sustainment of AI/ML capabilities. Contracts in this domain often span multiple years and can reach hundreds of millions of dollars, reflecting the complexity and strategic importance of these technologies to national defense.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, 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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $115,947,112

Exercised Options: $115,947,112

Current Obligation: $106,725,461

Actual Outlays: $106,725,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline