Navy awards $27.8M facility overhaul contract to Tyonek Services Overhaul Facility-Stennis, LLC

Contract Overview

Contract Amount: $27,775,397 ($27.8M)

Contractor: Tyonek Services Overhaul Facility-Stennis, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-08

End Date: 2026-04-07

Contract Duration: 1,460 days

Daily Burn Rate: $19.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES - FMS

Place of Performance

Location: KILN, HANCOCK County, MISSISSIPPI, 39556

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for work described as: SERVICES - FMS Key points: 1. Contract awarded for facility overhaul services, indicating a need for infrastructure upgrades. 2. The contract duration of 1460 days suggests a significant, long-term project. 3. The fixed-price contract type aims to control costs for the government. 4. The specific services (FMS) are not detailed, limiting a full understanding of the scope. 5. The award to a single entity raises questions about competition and potential cost efficiencies. 6. The contract is managed by the Department of the Navy, a major defense spender.

Value Assessment

Rating: fair

The contract value of $27.8 million for facility overhaul services over four years appears to be within a reasonable range for large-scale infrastructure projects. However, without specific details on the scope of work, it is difficult to benchmark against similar contracts. The firm-fixed-price structure suggests an attempt to manage costs, but the absence of competitive bidding limits the ability to assess optimal pricing. Further analysis would require a breakdown of the services provided and comparison to industry standards for similar facility upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs. This raises concerns about whether the government secured the best possible value and if alternative solutions were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest feasible price. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are the entities and personnel at the Stennis facility requiring the overhaul. The contract delivers essential facility maintenance and upgrade services. The geographic impact is localized to the Stennis facility in Mississippi. The contract supports a specific operational need within the Department of the Navy. Workforce implications may include direct employment by the contractor and potential indirect economic activity in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited transparency into the specific services being procured.
Sole-source awards can reduce opportunities for small businesses.
Potential for cost overruns if scope is not tightly managed.

Positive Signals

Firm-fixed-price contract aims to provide cost certainty.
Long-term duration suggests a critical need for the services.
Awarded to a specific entity with presumed capability for the task.

Sector Analysis

The contract falls within the broader 'Other Support Activities for Air Transportation' sector, though the specific services (FMS) are not detailed. This sector encompasses a range of services supporting aviation operations. The $27.8 million value is significant for a single facility overhaul, suggesting a substantial project. Comparable spending benchmarks would depend heavily on the exact nature of the facility and the scope of the overhaul, but it represents a notable investment in infrastructure within this niche.

Small Business Impact

The contract data indicates that this was not a small business set-aside. There is no information provided regarding subcontracting plans. The sole-source nature of the award further limits opportunities for small businesses to participate, either as prime contractors or subcontractors, unless specifically included by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm-fixed-price contract, the focus of oversight would be on ensuring the contractor meets the defined scope of work and delivery schedule. Transparency is limited due to the sole-source nature and lack of detailed public information on the services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Facilities Engineering Command contracts
Department of Defense infrastructure maintenance
Stennis Space Center support services
Facility renovation and repair contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public detail on the scope of services.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC. SERVICES - FMS

Who is the contractor on this award?

The obligated recipient is TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2022-04-08. End: 2026-04-07.

What specific facility overhaul services are included under this contract?

The provided data abbreviates the services as 'FMS' and the North American Industry Classification System (NAICS) code as '488190' (Other Support Activities for Air Transportation). However, the specific details of the facility overhaul are not publicly available in this summary. This lack of detail makes it challenging to assess the scope, necessity, and value of the work. Further investigation into the contract's statement of work (SOW) or contract award justification would be required to understand the precise nature of the facility improvements, such as structural repairs, system upgrades (HVAC, electrical, plumbing), or modernization efforts.

What is the track record of Tyonek Services Overhaul Facility, LLC with similar contracts?

Information regarding the specific track record of 'TYONEK SERVICES OVERHAUL FACILITY, LLC' with similar facility overhaul contracts is not provided in the summary data. To assess their performance history, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims. Given this is a sole-source award, understanding their prior performance and capabilities is crucial for justifying the lack of competition and ensuring successful project execution. A review of their broader contract history with the Department of Defense or other federal agencies could provide insights into their experience with large-scale facility projects.

How does the $27.8 million contract value compare to market rates for similar facility overhauls?

Benchmarking the $27.8 million contract value against market rates for similar facility overhauls is difficult without a detailed understanding of the specific services required. The NAICS code 488190 suggests support activities for air transportation, implying the facility might be related to aviation infrastructure. The contract duration is four years. To perform a proper comparison, one would need to identify comparable projects (size, scope, location, type of facility) and analyze their costs. Factors such as the age and condition of the facility, the extent of modernization required, and specific technical specifications would heavily influence the price. The sole-source nature also complicates direct price comparison, as competitive bidding typically drives prices closer to market equilibrium.

What are the potential risks associated with a sole-source award for this facility overhaul?

The primary risk associated with a sole-source award is the potential for paying a higher price than would be achieved through competition. Without competing bids, there is less incentive for the contractor to offer the lowest possible price. Additionally, there's a risk that the government may not be aware of or have access to the most innovative or cost-effective solutions available in the market, as competition often spurs innovation. Another risk is the potential for scope creep or cost overruns if the contract terms and oversight are not sufficiently robust, especially given the long duration. Finally, sole-source awards can raise concerns about fairness and equal opportunity for other capable contractors.

What is the historical spending pattern for facility overhaul services by the Department of the Navy in Mississippi?

Analyzing historical spending patterns for facility overhaul services by the Department of the Navy (DoN) in Mississippi would require access to comprehensive federal procurement databases. This summary data does not provide historical context. However, the DoN, as a major component of the Department of Defense, consistently invests significant funds in maintaining and upgrading its facilities across numerous installations. Mississippi hosts several significant naval installations, including the Naval Air Station Meridian and the John C. Stennis Space Center (where this contract appears to be located). Therefore, it is plausible that the DoN has a substantial and ongoing history of awarding contracts for facility maintenance, repair, and overhaul in the state. Understanding these patterns would involve looking at contract values, types of services procured, and the specific installations involved over several fiscal years.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042121R0119

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7095 ROSCOE TURNER RD, KILN, MS, 39556

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: $33,162,344

Exercised Options: $27,775,397

Current Obligation: $27,775,397

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,104,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0003

IDV Type: IDC

Timeline