DOE awards $750K task order for IT support, extending services for EMCBC and supported sites
Contract Overview
Contract Amount: $750,000 ($750.0K)
Contractor: Tuknik Government Services LLC
Awarding Agency: Department of Energy
Start Date: 2025-09-24
End Date: 2027-10-31
Contract Duration: 767 days
Daily Burn Rate: $978/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TASK ORDER 6 TECHNICAL SUPPORT SERVICES FOR INFORMATION SYSTEMS GENERAL SUPPORT SYSTEM EMCBC AND SUPPORTED SITES YEARS 6 AND 7
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45202
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $750,000 to TUKNIK GOVERNMENT SERVICES LLC for work described as: TASK ORDER 6 TECHNICAL SUPPORT SERVICES FOR INFORMATION SYSTEMS GENERAL SUPPORT SYSTEM EMCBC AND SUPPORTED SITES YEARS 6 AND 7 Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and potential for cost overruns with Time and Materials. 4. Performance context is the continuation of existing technical support services. 5. Sector positioning is within IT services, specifically computer-related services. 6. The contract duration extends over two years, suggesting a need for sustained support.
Value Assessment
Rating: fair
The total award amount of $750,000 for two years of technical support services appears reasonable for specialized IT functions. However, without specific benchmarks for 'Technical Support Services for Information Systems' within the Department of Energy (DOE) or comparable agencies, a definitive value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation if not closely managed and monitored against established labor rates and estimated hours. Benchmarking against similar T&M contracts for IT support in the federal space would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's deemed most efficient to continue with an incumbent provider. The lack of competition means that the government did not benefit from a range of proposals and potentially lower pricing that could have resulted from a competitive bidding process. The justification for this sole-source award would need to be thoroughly documented by the agency.
Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing. Without a competitive process, there is a risk that the awarded price may not be the lowest achievable, potentially leading to higher overall spending for the government.
Public Impact
The primary beneficiaries are the Department of Energy's Energy, Minerals, and Carbon Management Business Center (EMCBC) and other supported sites requiring IT infrastructure and technical assistance. Services delivered include technical support for information systems, ensuring the operational continuity of general support systems. The geographic impact is focused on the sites supported by EMCBC, with the contract being managed from Ohio. Workforce implications may involve the continued employment of personnel by TUKNIK GOVERNMENT SERVICES LLC to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing benefits for taxpayers.
- Time and Materials contract type poses a risk of cost overruns if not managed effectively.
- Lack of detailed performance metrics in the provided data makes it difficult to assess efficiency.
- The specific nature of 'technical support' is broad and could encompass a wide range of services, impacting cost predictability.
Positive Signals
- Continuation of services ensures stability for critical IT infrastructure.
- The award is to an existing entity, potentially leveraging established knowledge and processes.
- The contract duration provides a predictable period of support for the agency.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically under 'Other Computer Related Services' (NAICS code 541519). This is a broad category encompassing a wide range of IT support, consulting, and integration services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their systems. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies, looking at hourly rates, total contract values, and service scopes to gauge the reasonableness of this award.
Small Business Impact
The provided data indicates that small business set-aside (ss) and subcontracting (sb) flags are both false. This suggests that the contract was not specifically set aside for small businesses, nor is there an explicit requirement for subcontracting with small businesses based on this information. Consequently, the direct impact on the small business ecosystem from this particular task order appears minimal, although the prime contractor, TUKNIK GOVERNMENT SERVICES LLC, may itself be a small business, which would indirectly benefit the small business sector.
Oversight & Accountability
Oversight for this task order would primarily fall under the Department of Energy's contracting officers and program managers. The agency is responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing the Time and Materials aspect to prevent cost overruns. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- IT Technical Support Services
- Information Systems Maintenance
- Federal IT Contracts
- Department of Energy IT Spending
- Task Orders
- Time and Materials Contracts
Risk Flags
- Sole-source award may limit cost savings.
- Time and Materials contract type requires diligent oversight to control costs.
- Potential for scope creep in technical support services.
- Contract duration extends beyond a single fiscal year.
Tags
it-services, technical-support, department-of-energy, doe, task-order, time-and-materials, sole-source, computer-related-services, ohio, ict, information-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $750,000 to TUKNIK GOVERNMENT SERVICES LLC. TASK ORDER 6 TECHNICAL SUPPORT SERVICES FOR INFORMATION SYSTEMS GENERAL SUPPORT SYSTEM EMCBC AND SUPPORTED SITES YEARS 6 AND 7
Who is the contractor on this award?
The obligated recipient is TUKNIK GOVERNMENT SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $750,000.
What is the period of performance?
Start: 2025-09-24. End: 2027-10-31.
What is the track record of TUKNIK GOVERNMENT SERVICES LLC in delivering similar technical support services to the federal government?
Assessing the track record of TUKNIK GOVERNMENT SERVICES LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, task orders, and any associated performance evaluations or past performance questionnaires. Key areas to investigate would include their history with Time and Materials contracts, their success in meeting technical requirements, adherence to schedules, and overall client satisfaction. A lack of extensive federal contract history or a pattern of performance issues could indicate a higher risk for this current task order. Conversely, a strong history of successful IT support delivery would provide greater confidence in their ability to meet the DOE's needs.
How does the $750,000 value compare to similar IT support task orders awarded by the Department of Energy or other agencies?
To benchmark the $750,000 value, one would compare it against similar IT technical support task orders awarded by the Department of Energy (DOE) and other federal agencies over the past 1-3 years. This comparison should consider the duration of the contract (767 days, approximately 2 years), the labor categories involved, the estimated hours, and the pricing structure (Time and Materials). For instance, if similar 2-year task orders for comparable IT support services typically range from $500,000 to $1,000,000, then this award falls within a reasonable range. However, if comparable contracts are significantly lower, it might suggest this award is on the higher side, warranting further scrutiny of the scope of work and labor rates.
What are the primary risks associated with the Time and Materials (T&M) contract type for this task order?
The primary risk associated with the Time and Materials (T&M) contract type for this task order is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a fixed fee or profit. If the contractor's labor hours are underestimated, or if unforeseen complexities arise requiring more extensive work, the total cost can exceed initial estimates. Effective management by the Department of Energy is crucial to mitigate this risk. This includes rigorous monitoring of labor hours, validation of material costs, and ensuring that the contractor is working efficiently. Without strong oversight, T&M contracts can lead to higher overall spending than anticipated.
What is the effectiveness of the sole-source justification for this contract?
The effectiveness of the sole-source justification hinges on the specific circumstances and documentation provided by the Department of Energy (DOE). Federal Acquisition Regulation (FAR) Part 6 outlines the conditions under which sole-source procurements are permissible, such as when only one responsible source can satisfy agency requirements. For this task order, the justification would need to clearly articulate why TUKNIK GOVERNMENT SERVICES LLC is the only viable option. This could be due to unique proprietary knowledge, specialized skills, or the need for seamless continuation of services from an incumbent provider where switching would be detrimental. A robust justification demonstrates that competition was not feasible or would not be in the government's best interest, thereby ensuring the award serves the agency's mission effectively despite the lack of competition.
How does historical spending on IT support services by the Department of Energy compare to this award?
Analyzing historical spending patterns for IT support services within the Department of Energy (DOE) provides context for this $750,000 task order. The DOE, like many large federal agencies, invests significantly in IT infrastructure and maintenance. Historical data would reveal the typical scale and frequency of such awards, average contract values, and the prevalence of different contract types (e.g., T&M vs. fixed-price). If DOE's historical spending shows a consistent pattern of awarding similar-sized task orders for technical support, this award aligns with established patterns. Conversely, if this award represents a significant deviation in value or scope compared to past expenditures, it might warrant further investigation into the specific needs driving this particular contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $3,273,744
Exercised Options: $3,273,744
Current Obligation: $750,000
Actual Outlays: $329,292
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303321DEM000053
IDV Type: IDC
Timeline
Start Date: 2025-09-24
Current End Date: 2027-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-04-06
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