DoD's $21.3M facility overhaul contract with Tyonek Services Overhaul Facility-Stennis, LLC raises value and competition questions

Contract Overview

Contract Amount: $21,279,025 ($21.3M)

Contractor: Tyonek Services Overhaul Facility-Stennis, LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-02

End Date: 2025-04-18

Contract Duration: 1,233 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SERVICES - FMS LABOR EO14042 (252.223-7999 (DEV))

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC for work described as: SERVICES - FMS LABOR EO14042 (252.223-7999 (DEV)) Key points: 1. Contract awarded for facility overhaul services, indicating a need for infrastructure improvements. 2. The contract's duration spans over three years, suggesting a significant scope of work. 3. Awarded as a Delivery Order, it implies a pre-existing contract vehicle was utilized. 4. The fixed-price contract type aims to control costs, but value for money requires further scrutiny. 5. Limited competition or sole-source awards can lead to higher prices and reduced innovation. 6. The specific services provided under 'Other Support Activities for Air Transportation' need clarification for precise benchmarking. 7. Geographic location in Alabama may offer insights into regional economic impact and workforce development.

Value Assessment

Rating: questionable

Benchmarking the value for money on this $21.3 million contract is challenging without more detailed service descriptions and comparable contract data. The firm fixed-price structure is a positive indicator for cost control, but the lack of competitive bidding raises concerns about whether the government secured the best possible price. Further analysis would require comparing the per-unit costs or overall pricing against similar facility overhaul projects within the Department of Defense or other federal agencies, considering the specific scope and complexity of the work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or 'not available for competition' basis. This significantly limits the opportunity for multiple vendors to bid, which can hinder price discovery and potentially lead to higher costs for the government. While sole-source awards are sometimes necessary due to unique capabilities or urgent requirements, the rationale for this specific award needs to be thoroughly documented and justified to ensure it served the government's best interest.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. This can result in a less efficient use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which receives facility overhaul services. The contract supports infrastructure maintenance and improvement at a facility in Stennis, Alabama. The project likely impacts the local workforce in Alabama through direct employment and subcontracting opportunities. Improved facility operations can indirectly benefit military readiness and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Limited transparency into the justification for a sole-source award.
Potential for reduced innovation due to absence of competitive pressure.

Positive Signals

Firm fixed-price contract type helps manage cost certainty.
Award to Tyonek Services Overhaul Facility-Stennis, LLC, potentially supporting a specific business entity.
Contract duration suggests a sustained effort towards facility improvement.

Sector Analysis

The defense sector relies heavily on support services, including facility maintenance and overhaul, to ensure operational readiness. This contract falls under 'Other Support Activities for Air Transportation,' suggesting a specialized niche within the broader defense logistics and infrastructure support market. Comparable spending benchmarks would involve analyzing other contracts for similar facility services awarded by the Navy or other branches, considering factors like facility size, scope of work, and geographic location.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As the contract was awarded not available for competition, it is less likely to have been specifically set aside for small businesses. Further investigation into the award justification and any associated subcontracting requirements would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver services within the agreed-upon price. Transparency regarding the sole-source justification and performance metrics would be crucial for assessing effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Navy Infrastructure Improvement Programs
Air Transportation Support Services
Sole-Source Defense Contracts
Firm Fixed-Price Service Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for above-market pricing due to limited competition.
Lack of detailed service scope hinders value assessment.
Insufficient data on contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to TYONEK SERVICES OVERHAUL FACILITY-STENNIS, LLC. SERVICES - FMS LABOR EO14042 (252.223-7999 (DEV))

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 $21.3 million.

What is the period of performance?

Start: 2021-12-02. End: 2025-04-18.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the extract. Typically, sole-source awards are made when only one responsible source is available, or in cases of urgent and compelling need, or when specific capabilities are required that only one contractor possesses. Without further documentation from the Department of the Navy, the precise rationale remains unknown. This lack of transparency can be a concern for ensuring fair and competitive procurement practices.

How does the pricing of this contract compare to similar facility overhaul projects within the Department of Defense?

Direct comparison of pricing is difficult without detailed service breakdowns and market data for similar projects. The contract is for $21,279,015.15 and covers facility overhaul services under 'Other Support Activities for Air Transportation.' To benchmark effectively, one would need to identify comparable contracts awarded by the Navy or other DoD entities for similar scope, scale, and complexity. Factors such as the age and condition of the facility, specific renovation requirements, and labor rates in the Stennis, Alabama region would influence pricing. The sole-source nature of this award also raises a flag that the price may not reflect the most competitive market rate.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this facility overhaul contract. Typically, such contracts would outline specific milestones, quality standards, completion timelines for different phases of the overhaul, and reporting requirements. The firm fixed-price nature suggests that the contractor is responsible for delivering the agreed-upon scope of work within the budget. Performance would likely be monitored by the contracting officer's representative (COR) to ensure compliance with the contract terms and specifications.

What is the track record of Tyonek Services Overhaul Facility, LLC with the Department of Defense?

The provided data does not include information on Tyonek Services Overhaul Facility, LLC's past performance or track record with the Department of Defense. To assess their reliability and experience, one would need to review their contract history, including past performance evaluations, any disputes or claims, and the successful completion of previous projects. This information is typically available through federal procurement databases and past performance information repositories.

What is the potential impact of this contract on small businesses in Alabama?

The data indicates this contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' suggesting it was not specifically set aside for small businesses. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor, Tyonek Services Overhaul Facility, LLC, may engage small businesses as subcontractors to fulfill parts of the contract. The extent of subcontracting to small businesses would depend on the contractor's own policies and any specific subcontracting goals or requirements stipulated in the contract, which are not detailed here.

How does the duration and value of this contract compare to typical facility overhaul contracts in the defense sector?

This contract has a duration of 1233 days (approximately 3.4 years) and a value of $21.3 million. Facility overhaul contracts within the defense sector can vary significantly in duration and value depending on the size and complexity of the facility, the scope of work (e.g., structural, electrical, HVAC upgrades), and the specific military branch or agency. A 3.4-year duration for a multi-million dollar overhaul is not uncommon for significant infrastructure projects. However, without more specific benchmarks for 'Other Support Activities for Air Transportation' facilities, a precise comparison is difficult. The value appears substantial, warranting scrutiny of the pricing and competition.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $21,343,225

Exercised Options: $21,343,225

Current Obligation: $21,279,025

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $5,147,297

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