FAA Awards $6.8M for A&E Services and Furniture to TALU LLC, No Competition
Contract Overview
Contract Amount: $6,798,208 ($6.8M)
Contractor: Talu LLC
Awarding Agency: Department of Transportation
Start Date: 2015-09-23
End Date: 2025-03-31
Contract Duration: 3,477 days
Daily Burn Rate: $2.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARCHITECTURAL AND ENGINEERING (A&E) SERVICES, AND FURNITURE.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $6.8 million to TALU LLC for work described as: ARCHITECTURAL AND ENGINEERING (A&E) SERVICES, AND FURNITURE. Key points: 1. Significant contract value of $6.8 million for architectural and engineering services and furniture. 2. TALU LLC is the sole awardee, raising questions about competition. 3. The contract spans nearly 10 years, indicating a long-term need. 4. The Federal Aviation Administration (FAA) is the contracting agency.
Value Assessment
Rating: questionable
The contract value of $6.8 million for A&E services and furniture over a decade requires careful benchmarking against similar procurements. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, 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 may result in taxpayers paying more than necessary for these A&E services and furniture.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Long-term commitment of nearly 10 years raises questions about the sustained need and potential for future cost increases. Transparency in the justification for a sole-source award is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Clear contract award to a specific vendor
Sector Analysis
The architectural and engineering services sector, particularly when combined with furniture procurement, can involve significant costs. Benchmarking against similar long-term, sole-source contracts is essential to assess value.
Small Business Impact
The data does not indicate whether TALU LLC is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The lack of competition warrants scrutiny from oversight bodies to ensure the government received fair value and that the sole-source justification was appropriate.
Related Government Programs
- Showcase, Partition, Shelving, and Locker Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Long contract duration (nearly 10 years) increases risk of cost escalation.
- Potential for taxpayer overpayment due to lack of competition.
- Need for strong oversight to manage long-term contract effectively.
Tags
showcase-partition-shelving-and-locker-m, department-of-transportation, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $6.8 million to TALU LLC. ARCHITECTURAL AND ENGINEERING (A&E) SERVICES, AND FURNITURE.
Who is the contractor on this award?
The obligated recipient is TALU LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $6.8 million.
What is the period of performance?
Start: 2015-09-23. End: 2025-03-31.
What was the justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review of the contract file would be necessary to determine the specific justification (e.g., unique capabilities, urgent need) and assess its adequacy. Without this documentation, it's impossible to confirm if the government followed proper procedures for non-competitive procurement.
How does the pricing for these A&E services and furniture compare to industry benchmarks for similar contracts, especially given the long duration?
Benchmarking is critical. The $6.8 million price tag over nearly 10 years needs to be compared against market rates for comparable architectural and engineering services and furniture procurement. Factors like inflation, scope creep, and the specific nature of the services will influence this comparison. A lack of competition makes this benchmarking even more vital to ensure fair pricing.
What is the potential risk of cost overruns or scope creep in a long-term, sole-source contract of this nature?
Long-term, sole-source contracts inherently carry a higher risk of cost overruns and scope creep. Without competitive pressure, there's less incentive for the contractor to control costs. The FAA must implement robust contract management and oversight to monitor performance, control scope, and ensure adherence to the original terms to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Office Furniture (including Fixtures) Manufacturing › Showcase, Partition, Shelving, and Locker Manufacturing
Product/Service Code: FURNITURE
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 909 W 9TH AVE, ANCHORAGE, AK, 99501
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $6,862,486
Exercised Options: $6,798,208
Current Obligation: $6,798,208
Actual Outlays: $3,765,660
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFAWA15D00049
IDV Type: IDC
Timeline
Start Date: 2015-09-23
Current End Date: 2025-03-31
Potential End Date: 2026-04-03 00:00:00
Last Modified: 2026-03-09
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