Sba's $24.5M Covid Eidl Loan Processing Support Services Contract Awarded to Tuknik Government Services LLC

Contract Overview

Contract Amount: $24,519,856 ($24.5M)

Contractor: Tuknik Government Services LLC

Awarding Agency: Small Business Administration

Start Date: 2022-01-06

End Date: 2022-05-05

Contract Duration: 119 days

Daily Burn Rate: $206.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COVID EIDL LOAN PROCESSING SUPPORT SERVICES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Small Business Administration obligated $24.5 million to TUKNIK GOVERNMENT SERVICES LLC for work described as: COVID EIDL LOAN PROCESSING SUPPORT SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings and market-driven pricing. 2. The contract duration of 119 days suggests a focused, short-term need for administrative support. 3. Firm Fixed Price contract type indicates a defined scope and budget, offering cost certainty. 4. The award to TUKNIK GOVERNMENT SERVICES LLC, a single entity, limits the potential for broader market engagement. 5. The contract's value of over $24 million for a less than four-month period warrants scrutiny of efficiency and necessity. 6. Administrative Management and General Management Consulting Services are the core function, indicating a need for operational expertise.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and specific, short-term focus on COVID EIDL support. The per-day cost averages approximately $206,000, which appears high for administrative support services without further context on the scope and complexity of the EIDL processing. Without comparable contracts or a competitive bidding process, it is difficult to definitively assess if this represents good value for money. The firm fixed-price nature provides cost certainty but does not inherently guarantee efficiency or optimal resource utilization.

Cost Per Unit: Approximately $206,049 per day (based on total award and duration)

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed on the open market. This approach is typically used when only one responsible source is available or when there is a compelling urgency. The lack of competition means that the Small Business Administration (SBA) did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract. This can potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The SBA did not have the opportunity to secure the most cost-effective solution available in the market.

Public Impact

Small businesses and individuals seeking COVID-19 Economic Injury Disaster Loans (EIDL) benefit from the processing support provided. The contract facilitates the timely review and disbursement of EIDL funds, crucial for economic recovery. Services are delivered to support the SBA's mission of assisting small businesses affected by the pandemic. The geographic impact is national, as EIDL is a federal program available to eligible entities across the United States. Workforce implications include the employment of personnel by TUKNIK GOVERNMENT SERVICES LLC to perform these administrative and consulting tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits transparency and potential for cost savings.
High daily cost raises concerns about efficiency and value for money.
Short contract duration may indicate a reactive rather than strategic approach to support needs.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Supports critical COVID-19 EIDL program, aiding economic recovery.
Awarded to a single entity, potentially allowing for focused expertise.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing a wide range of professional services. The market for these services is highly competitive, with numerous firms offering expertise in operational efficiency, process improvement, and program support. The specific context here is the urgent need for support services related to the COVID-19 EIDL program, a unique and high-demand situation. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of pandemic relief program support and the non-competitive award.

Small Business Impact

The contract data indicates that the Small Business Administration (SBA) is the awarding agency. However, there is no explicit information provided regarding small business set-asides or subcontracting plans for this specific contract. Given the sole-source nature of the award, it is less likely that small business subcontracting goals were a primary consideration during the procurement process. Further investigation would be needed to determine if TUKNIK GOVERNMENT SERVICES LLC has any existing small business subcontracting relationships or if any portion of the work was intended for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Small Business Administration's contracting officers and program managers responsible for the EIDL program. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined within the contract's terms and conditions, focusing on performance deliverables and adherence to the firm fixed price. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

COVID-19 Economic Injury Disaster Loans (EIDL)
Small Business Administration (SBA) Administrative Support
Federal Loan Processing Services
Management and Consulting Services

Risk Flags

Sole-source award
High daily cost
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $24.5 million to TUKNIK GOVERNMENT SERVICES LLC. COVID EIDL LOAN PROCESSING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TUKNIK GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2022-01-06. End: 2022-05-05.

What is the track record of TUKNIK GOVERNMENT SERVICES LLC in supporting federal loan programs, particularly during crisis periods?

Information regarding TUKNIK GOVERNMENT SERVICES LLC's specific track record in supporting federal loan programs, especially during crisis periods like the COVID-19 pandemic, is not readily available in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, client testimonials, and any documented successes or challenges. Without this information, it is difficult to gauge their experience and capability in handling the complexities and scale of the EIDL program. Further due diligence would involve searching federal procurement databases (like SAM.gov) for past awards and performance evaluations related to this contractor and similar service requirements.

How does the per-day cost of this contract compare to similar administrative support services for federal agencies?

The approximate daily cost of $206,049 for this contract is substantial. Benchmarking this against similar administrative support services for federal agencies is challenging without more specific details on the scope of work, required expertise, and the volume of EIDL applications processed. Generally, administrative support contracts can vary widely in cost depending on the level of specialization, security clearances required, and geographic location. However, a daily rate of this magnitude for administrative management and general management consulting services, even for a critical program, warrants careful examination to ensure it aligns with market rates and represents efficient use of taxpayer funds. A competitive bidding process would typically yield more robust comparative data.

What specific risks were identified that necessitated a sole-source award for these EIDL processing support services?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source justification was used. Common reasons for sole-source awards include urgency of need where competition is not feasible, unique capabilities possessed by only one contractor, or when only one responsible source exists. For the COVID EIDL program, the unprecedented volume and urgency of applications likely created a situation where the SBA felt immediate support was required, potentially leading them to identify a contractor they believed could mobilize quickly. However, the specific documented risks or justifications that precluded competition are not detailed in the provided summary.

What is the expected impact of these services on the efficiency and speed of EIDL loan processing?

The primary objective of engaging TUKNIK GOVERNMENT SERVICES LLC for EIDL loan processing support is to enhance the efficiency and speed of the application review and disbursement process. By providing administrative management and general management consulting services, the contractor is expected to help streamline workflows, manage application backlogs, and ensure that eligible businesses and individuals receive financial assistance in a timely manner. The success of these services in achieving this impact will depend on the contractor's ability to effectively implement their proposed solutions and the SBA's integration of these support functions into their existing operational framework. Performance metrics within the contract would ideally track improvements in processing times and application throughput.

What has been the SBA's historical spending on administrative support services for loan programs, and how does this contract fit within that pattern?

Historical spending data for the SBA's administrative support services for loan programs is not provided in the summary. However, the COVID-19 pandemic significantly increased the demand for EIDL and other relief programs, likely leading to a surge in spending on related support services. This $24.5 million contract, awarded in early 2022, appears to be a response to the ongoing need for processing assistance during a period of high demand. Without historical context, it's difficult to definitively state how this contract fits a 'pattern,' but it likely represents a substantial investment driven by the extraordinary circumstances of the pandemic, potentially exceeding typical pre-pandemic spending levels for such support.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to measure success?

The provided data does not explicitly list the performance metrics or Key Performance Indicators (KPIs) associated with this contract. However, for a contract of this nature, particularly one focused on loan processing support, it is highly probable that such metrics exist within the contract's statement of work or performance work statement. Typical KPIs might include the number of applications processed per day/week, average processing time per application, accuracy rates, and adherence to service level agreements. The effectiveness of the contractor's services would be measured against these defined benchmarks to ensure the SBA is receiving the intended value and efficiency gains.

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

Solicitation ID: 73351022R0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $24,519,856

Exercised Options: $24,519,856

Current Obligation: $24,519,856

Actual Outlays: $24,519,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline