Usmc Awards $15.7M Contract to Teya Support Services for MQ-9A Smce

Contract Overview

Contract Amount: $15,709,190 ($15.7M)

Contractor: Teya Support Services LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-24

End Date: 2026-09-30

Contract Duration: 736 days

Daily Burn Rate: $21.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USMC MQ-9A SMCE

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $15.7 million to TEYA SUPPORT SERVICES LLC for work described as: USMC MQ-9A SMCE Key points: 1. Contract awarded to TEYA SUPPORT SERVICES LLC for $15.7 million. 2. The contract is for MQ-9A SMCE, with the agency being the Department of the Interior. 3. The contract type is DEFINITIVE CONTRACT with a FIRM FIXED PRICE. 4. The contract duration is 736 days, ending September 30, 2026. 5. No small business set-aside was used for this contract.

Value Assessment

Rating: fair

The contract value of $15.7 million for MQ-9A SMCE appears to be a significant investment. Without specific benchmarks for similar MQ-9A support services, it's difficult to definitively assess if the pricing is competitive. Further analysis of the scope of work and deliverables is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection process. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: The $15.7 million awarded represents taxpayer funds. The limited competition raises concerns about whether the best possible price was secured for the government.

Public Impact

Taxpayers are funding a significant contract for advanced drone support services. The limited competition raises questions about the efficiency of government procurement in this instance. The contract supports the USMC's MQ-9A operations, crucial for intelligence, surveillance, and reconnaissance missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of transparency in pricing justification

Positive Signals

Supports critical USMC operations
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls under Commercial and Institutional Building Construction (NAICS 236220), though the description 'MQ-9A SMCE' suggests a specialized service rather than traditional construction. The value is substantial for a single definitive contract in this category, especially given the limited competition.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, TEYA SUPPORT SERVICES LLC, is not specified as a small business. This means opportunities for small business participation were not explicitly pursued in this procurement.

Oversight & Accountability

The limited competition aspect warrants further oversight to ensure the government received fair value. Accountability for the procurement decision and justification for the sole-source nature of the award are important.

Related Government Programs

Commercial and Institutional Building Construction
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Limited competition
Potential for inflated pricing
Lack of small business participation
Contract awarded by Department of the Interior for USMC needs

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15.7 million to TEYA SUPPORT SERVICES LLC. USMC MQ-9A SMCE

Who is the contractor on this award?

The obligated recipient is TEYA SUPPORT 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 $15.7 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-09-30.

What specific services does MQ-9A SMCE entail, and how does this justify the $15.7 million price tag without open competition?

MQ-9A SMCE likely refers to Support, Maintenance, and Contractor Logistics Support for the MQ-9A Reaper drone system. The high cost is probably driven by specialized technical expertise, proprietary systems, and the critical nature of maintaining advanced unmanned aerial vehicles for military operations. Without open competition, a detailed breakdown of labor, parts, and overhead is necessary to validate the price.

What are the risks associated with awarding a large contract with limited competition, particularly concerning potential cost overruns or suboptimal service delivery?

The primary risk is paying a premium due to the lack of competitive pressure, potentially leading to cost overruns if the vendor's pricing is not thoroughly scrutinized. Suboptimal service delivery is also a risk, as a sole-source provider may have less incentive to innovate or improve performance compared to a vendor facing market competition. This necessitates robust government oversight.

How effective is the Department of the Interior in managing contracts for the USMC, and what mechanisms are in place to ensure the value and performance of this $15.7 million award?

The effectiveness hinges on the specific contract management capabilities within the Department of the Interior and the established oversight protocols. Mechanisms like performance metrics, regular progress reviews, and clear deliverables outlined in the contract are crucial. The fixed-price nature provides some cost control, but ongoing monitoring is vital to ensure mission-critical MQ-9A support is delivered effectively.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9B MS-05, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $15,709,190

Exercised Options: $15,709,190

Current Obligation: $15,709,190

Actual Outlays: $11,457,548

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,532,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline