HUD awards $3.9M contract for ADPS to TANAQ TECHNICAL SERVICES LLC, with no competition

Contract Overview

Contract Amount: $3,905,584 ($3.9M)

Contractor: Tanaq Technical Services LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: APPLICATIONS DEVELOPMENT AND PROGRAMMING SERVICES (ADPS)

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $3.9 million to TANAQ TECHNICAL SERVICES LLC for work described as: APPLICATIONS DEVELOPMENT AND PROGRAMMING SERVICES (ADPS) Key points: 1. Contract awarded for Applications Development and Programming Services (ADPS). 2. The contract has a duration of 364 days. 3. The award is a Firm Fixed Price type. 4. The contractor is TANAQ TECHNICAL SERVICES LLC. 5. The awarding agency is the Department of Housing and Urban Development. 6. The contract is not a small business set-aside. 7. The contract is for services in Alaska.

Value Assessment

Rating: questionable

The contract value of $3.9 million for a 364-day period for ADPS services appears to be on the higher end, especially given the lack of competition. Without benchmark data for similar ADPS contracts within HUD or across government, it is difficult to definitively assess value for money. The firm fixed-price structure provides some cost certainty, but the absence of competitive bidding raises concerns about whether the government secured the most advantageous pricing.

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. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The lack of a competitive process means that other qualified vendors were not given the chance to bid, which could indicate a lack of market research or a specific justification for a sole-source award that is not detailed here.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiary of this contract is the Department of Housing and Urban Development, which will receive applications development and programming services. These services are crucial for maintaining and potentially enhancing the agency's IT infrastructure and operational capabilities. The contract has a geographic impact limited to Alaska (ST: AK, SN: ALASKA). The contract will likely involve skilled IT professionals, impacting the workforce in the programming and development sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises questions about market research and potential alternatives.
Contract value for a single year of ADPS services seems high without comparative data.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract is for essential IT services supporting HUD operations.

Sector Analysis

The Applications Development and Programming Services (ADPS) sector is a critical component of the IT services market. This contract falls under NAICS code 541519 (Other Computer Related Services). The overall IT services market is vast, with significant government spending annually. This specific contract represents a small portion of that overall spending but is vital for the specific functions it supports within HUD. Benchmarking this contract's value is challenging without more specific details on the scope of work and comparable service rates in the Alaska region.

Small Business Impact

This contract is not a small business set-aside, as indicated by 'ss': false and 'sb': false. Therefore, there is no direct allocation for small businesses. Subcontracting opportunities for small businesses are not explicitly mentioned in the provided data, and their availability would depend on TANAQ TECHNICAL SERVICES LLC's internal policies and the specific requirements of the contract, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is limited by the sole-source nature of the award; however, contract details are typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Software Development
Computer Programming Services
Government IT Contracts
Department of Housing and Urban Development IT Spending

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing due to lack of competition.
Limited transparency on justification for sole-source award.
Contract value appears high without benchmark data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $3.9 million to TANAQ TECHNICAL SERVICES LLC. APPLICATIONS DEVELOPMENT AND PROGRAMMING SERVICES (ADPS)

Who is the contractor on this award?

The obligated recipient is TANAQ TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the specific scope of work for these Applications Development and Programming Services?

The provided data indicates the contract is for 'APPLICATIONS DEVELOPMENT AND PROGRAMMING SERVICES (ADPS)' under NAICS code 541519. However, the specific scope of work is not detailed. This could encompass a wide range of activities, including the design, development, testing, implementation, and maintenance of software applications. It might also include system integration, database management, and IT consulting related to application functionality. Without a detailed Statement of Work (SOW), it is impossible to ascertain the precise nature of the services being procured, which is crucial for evaluating the contract's value and necessity.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION' and is a 'SOLE-SOURCE' award. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Reasons could include unique capabilities of the contractor, proprietary technology, or a specific need that only one vendor can fulfill. However, without further documentation or justification from the Department of Housing and Urban Development, the rationale for this sole-source award remains unclear, raising concerns about potential missed opportunities for cost savings through competition.

How does the contract value of $3.9 million compare to similar ADPS contracts?

Benchmarking the $3.9 million contract value is challenging without more specific data. The contract is for a 364-day period, making the approximate monthly cost around $335,000. To assess value, one would need to compare this to similar ADPS contracts awarded by HUD or other federal agencies for comparable services, considering factors like the complexity of the applications, the required skill sets, and the geographic location. Given the sole-source nature, it is difficult to determine if this represents a fair market price. A competitive process would typically yield better price discovery.

What is the track record of TANAQ TECHNICAL SERVICES LLC with federal contracts?

Information regarding the track record of TANAQ TECHNICAL SERVICES LLC is not provided in the given data snippet. To assess their performance and reliability, one would need to examine their past federal contract history, including contract values, performance reviews (e.g., CPARS reports), and any history of contract modifications or disputes. A contractor with a strong performance history and a proven ability to deliver on time and within budget is generally a positive indicator. Conversely, a limited or poor track record might increase perceived risk for this contract.

What are the potential risks associated with a sole-source contract of this value?

The primary risk associated with a sole-source contract of this $3.9 million value is the potential for overpayment due to the lack of competitive bidding. Without competing offers, the government may not be securing the most cost-effective solution. Other risks include potential complacency from the contractor, as there is no competitive pressure to innovate or improve service quality. Furthermore, if the justification for the sole-source award was weak, it could indicate a failure in the procurement process, potentially leading to inefficiencies or suboptimal outcomes for the agency.

How does this contract fit into HUD's overall IT spending and strategy?

The provided data does not offer insight into HUD's overall IT spending or strategic priorities. This $3.9 million contract for ADPS represents a specific procurement for IT services. To understand its strategic fit, one would need to analyze HUD's IT budget, its technology roadmap, and the specific programs or systems these applications development services are intended to support. Understanding whether this contract aligns with modernization efforts, addresses critical system vulnerabilities, or supports new policy initiatives would provide context for its importance within HUD's broader IT landscape.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615425R00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,958,439

Exercised Options: $4,238,917

Current Obligation: $3,905,584

Actual Outlays: $64,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline