DoD awards $26.1M administrative support contract to TEYA ENTERPRISES LLC, with 1707 days duration

Contract Overview

Contract Amount: $26,101,414 ($26.1M)

Contractor: Teya Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2020-08-14

End Date: 2025-04-17

Contract Duration: 1,707 days

Daily Burn Rate: $15.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMIN&TECHNICAL SUPPORT SERVICE

Plain-Language Summary

Department of Defense obligated $26.1 million to TEYA ENTERPRISES LLC for work described as: ADMIN&TECHNICAL SUPPORT SERVICE Key points: 1. Contract value appears reasonable for the extensive duration and scope of administrative and technical support. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. Long contract duration (over 4 years) presents a risk of vendor lock-in and potential for cost escalation. 4. Contract performance context is administrative management and general management consulting, a common service area. 5. This contract falls within the professional services sector, specifically administrative support. 6. The firm fixed-price structure aims to control costs, but may limit flexibility for evolving needs.

Value Assessment

Rating: fair

The contract's total value of $26.1 million over approximately 4.7 years suggests an average annual cost of $5.55 million. Benchmarking this against similar administrative and technical support contracts is challenging without more specific service details. However, given the long duration and the nature of administrative support, the overall value proposition appears fair, provided the services meet performance expectations. The firm fixed-price type contract is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it likely exceeded the SAP threshold. The 'NOT COMPETED UNDER SAP' status, coupled with the absence of a specific competition type like 'sole-source' or 'full-and-open', suggests a limited competition scenario. This could mean fewer than the optimal number of bidders participated, potentially impacting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as the vendor may face less pressure to offer the lowest possible cost. It also reduces the opportunity for new or smaller businesses to compete for this significant contract.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its Washington Headquarters Services (WHS), receiving essential administrative and technical support. Services delivered include administrative management and general management consulting, crucial for the efficient operation of the agency. The geographic impact is primarily within the Washington D.C. metropolitan area, where the WHS is located. Workforce implications may include the direct employment of individuals by TEYA ENTERPRISES LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of robust competition may result in suboptimal pricing for taxpayers.
Long contract duration increases the risk of vendor lock-in and potential cost inefficiencies over time.
The 'NOT COMPETED UNDER SAP' status warrants further investigation into the specific reasons for limited competition.
Potential for scope creep without clear performance metrics or change control processes.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
The contract duration of over 4 years allows for stability and continuity of essential services.
TEYA ENTERPRISES LLC is awarded a definitive contract, suggesting a formal and structured agreement.
The contract is for administrative management and general management consulting, a well-defined service category.

Sector Analysis

The administrative and management consulting sector is a significant part of the professional services industry, supporting government agencies and private companies. Federal spending in this area is substantial, covering a wide range of support functions. This contract, valued at $26.1 million over nearly five years, represents a moderate investment within this sector. Comparable spending benchmarks would typically involve analyzing contracts for similar administrative support services across various federal agencies, considering factors like duration, scope, and contractor size.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, TEYA ENTERPRISES LLC, may choose to subcontract portions of the work, potentially creating opportunities for small businesses. Without further information on subcontracting plans, the direct impact on the small business ecosystem is limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement (PWS) and require adherence to the firm fixed-price terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Professional Services Contracts
Department of Defense Contracts
Washington Headquarters Services Contracts

Risk Flags

Limited Competition
Long Contract Duration
Lack of Detailed Service Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to TEYA ENTERPRISES LLC. ADMIN&TECHNICAL SUPPORT SERVICE

Who is the contractor on this award?

The obligated recipient is TEYA ENTERPRISES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2020-08-14. End: 2025-04-17.

What is the specific nature of the administrative and technical support services provided under this contract?

The contract specifies services under NAICS code 541611, which pertains to Administrative Management and General Management Consulting Services. This typically includes a broad range of support functions such as strategic planning, organizational analysis, process improvement, program management support, and general administrative assistance. The exact deliverables would be detailed in the Performance Work Statement (PWS), outlining tasks like policy development, operational support, data analysis, and reporting. Without the PWS, the precise scope remains general, but it centers on enhancing the efficiency and effectiveness of administrative operations within the Washington Headquarters Services.

How does the $26.1 million contract value compare to similar administrative support contracts awarded by the DoD?

Comparing the $26.1 million value requires context regarding the contract's duration (1707 days, approx. 4.7 years) and the specific services rendered under NAICS 541611. For a contract of this length and scope, the total value appears within a reasonable range for administrative and management consulting services provided to a large federal agency like the DoD. However, without detailed service level agreements and performance metrics, a precise value-for-money assessment is difficult. Annualized costs of approximately $5.55 million should be benchmarked against similar long-term support contracts to ascertain if it represents a competitive rate, considering the limited competition noted.

What are the primary risks associated with the 'NOT COMPETED UNDER SAP' status for this contract?

The 'NOT COMPETED UNDER SAP' status, combined with the absence of a clear competition type like 'sole-source' or 'full-and-open', suggests a limited competition environment. The primary risk is that the government may not have received the most advantageous pricing due to a restricted bidder pool. This can lead to taxpayers paying more than necessary for the services. Additionally, limited competition can stifle innovation and prevent the government from benefiting from the expertise of a wider range of potential contractors. It also raises questions about the justification for not pursuing broader competition, which is generally preferred for maximizing value and ensuring fairness.

What is the track record of TEYA ENTERPRISES LLC in performing similar federal contracts?

Information regarding TEYA ENTERPRISES LLC's track record in performing similar federal contracts is not directly provided in the abbreviated data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of contract modifications, disputes, or terminations. Understanding their experience with administrative management and general management consulting services, particularly within the Department of Defense or similar large organizations, is crucial for evaluating their capability to successfully execute this $26.1 million contract over its 4.7-year duration.

How does the firm fixed-price contract type influence the risk and value proposition for the government?

The firm fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. TEYA ENTERPRISES LLC is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. This provides budget certainty for the Washington Headquarters Services and incentivizes the contractor to manage its costs efficiently. The value proposition is strong in terms of cost predictability. However, an FFP contract can sometimes lead to less flexibility if the scope of work needs to change significantly, potentially requiring contract modifications that could increase the overall cost if not managed carefully.

What are the historical spending patterns for administrative and technical support services within the Washington Headquarters Services?

Historical spending patterns for administrative and technical support services within the Washington Headquarters Services (WHS) are not detailed in the provided data. To analyze this, one would need to examine past contract awards for similar services (NAICS 541611 and related codes) issued by WHS over several fiscal years. This would involve looking at the total dollar amounts obligated, the number of contracts awarded, the types of competition used, and the duration of those contracts. Understanding historical spending can help contextualize the $26.1 million award, identify trends in service needs, and assess whether current spending aligns with previous investment levels or indicates a significant shift.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: HQ003420R0313

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9B, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $36,510,800

Exercised Options: $27,668,998

Current Obligation: $26,101,414

Actual Outlays: $24,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline