DOJ's FBI Spends $16.5M on FFTS Support Services with TUKNIK, a Sole-Source Contract
Contract Overview
Contract Amount: $16,473,560 ($16.5M)
Contractor: Tuknik Government Services LLC
Awarding Agency: Department of Justice
Start Date: 2019-03-06
End Date: 2024-09-13
Contract Duration: 2,018 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FFTS SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Justice obligated $16.5 million to TUKNIK GOVERNMENT SERVICES LLC for work described as: FFTS SUPPORT SERVICES Key points: 1. Significant spending of $16.5M on administrative management consulting. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration extends over five years, indicating long-term reliance. 4. No small business participation noted, potentially missing opportunities for smaller firms.
Value Assessment
Rating: questionable
The contract is a Time and Materials type, which can lead to cost overruns if not managed tightly. Without a competitive bidding process, it's difficult to assess if the pricing is optimal compared to market rates for similar administrative management consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $16.5M contract suggests that taxpayers may be paying a premium for these services, as alternative, potentially lower-cost providers were not considered.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced service quality or innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials contract type
- No small business participation
Positive Signals
- Contract awarded to a specific vendor for a defined period.
- Services provided to a critical agency (FBI).
Sector Analysis
Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. Benchmarks for this sector vary widely based on the specific services provided. However, large sole-source contracts often warrant closer scrutiny for cost-effectiveness.
Small Business Impact
The contract indicates no small business participation (ss=false, sb=false). This suggests that opportunities for small businesses to contribute to these essential support services were not pursued or were not feasible under the contract's structure.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of Justice to ensure that TUKNIK GOVERNMENT SERVICES LLC is delivering services effectively and at a reasonable cost, despite the lack of competition.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Time and Materials contract type poses cost overrun risk.
- No small business participation noted.
- Long contract duration (over 5 years) may reduce flexibility.
- Lack of clear justification for sole-source award.
Tags
administrative-management-and-general-ma, department-of-justice, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $16.5 million to TUKNIK GOVERNMENT SERVICES LLC. FFTS SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is TUKNIK GOVERNMENT SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $16.5 million.
What is the period of performance?
Start: 2019-03-06. End: 2024-09-13.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically must demonstrate that only one source can meet the requirement, or that exceptional circumstances preclude competition. Without this justification, it's impossible to assess if the government received the best value or if taxpayer funds were used efficiently.
How is the 'Time and Materials' pricing structure being monitored to prevent cost overruns and ensure fair value for the $16.5M expenditure?
Time and Materials (T&M) contracts are inherently susceptible to cost escalation. Effective oversight requires rigorous tracking of labor hours, rates, and material costs, along with clear performance metrics. The FBI must actively manage this contract to ensure that the final cost aligns with the value of services rendered and does not exceed reasonable market benchmarks.
What performance metrics and deliverables are in place to measure the effectiveness of FFTS SUPPORT SERVICES provided by TUKNIK GOVERNMENT SERVICES LLC?
Measuring the effectiveness of consulting services hinges on clearly defined deliverables and performance metrics. The FBI needs to have established KPIs that TUKNIK GOVERNMENT SERVICES LLC is contractually obligated to meet. Regular performance reviews and objective assessments are crucial to ensure the services are achieving their intended outcomes and providing value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: $34,431,214
Exercised Options: $17,123,526
Current Obligation: $16,473,560
Actual Outlays: $17,240,447
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-06
Current End Date: 2024-09-13
Potential End Date: 2024-09-13 00:00:00
Last Modified: 2025-07-21
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