DoD awards $8.3M task order for computer systems design to TEYA SUPPORT SERVICES LLC

Contract Overview

Contract Amount: $8,278,519 ($8.3M)

Contractor: Teya Support Services LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-12

End Date: 2027-02-11

Contract Duration: 729 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: EQ & EG INITIAL TASK ORDER

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.3 million to TEYA SUPPORT SERVICES LLC for work described as: EQ & EG INITIAL TASK ORDER Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract is a delivery order under an existing contract, suggesting a pre-existing relationship or framework. 3. The duration of 729 days indicates a medium-term need for these services. 4. The specific North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 5. The contract was not competed, raising questions about potential cost savings and broader market engagement. 6. Awarded to TEYA SUPPORT SERVICES LLC, a company whose track record and performance on similar contracts warrant further investigation.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The cost-plus-fixed-fee structure requires diligent oversight to ensure costs remain reasonable and do not exceed initial estimates. Comparison to similar computer systems design contracts awarded by the Department of the Navy or other defense agencies would be necessary to assess pricing fairness. The lack of competition limits the ability to determine if the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under an existing contract and is noted as 'NOT AVAILABLE FOR COMPETITION'. This indicates that the contract was not openly competed. The specific reasons for this designation (e.g., sole-source justification, existing contract vehicle) are not detailed in the provided data. A lack of competition can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: When contracts are not competed, taxpayers may not benefit from the cost savings that can arise from a competitive marketplace. This can mean that government funds are not utilized as efficiently as they could be.

Public Impact

The Department of Defense, specifically the Department of the Navy, will benefit from the computer systems design services. The services delivered are related to computer systems design, crucial for modern military operations and infrastructure. The contract is associated with California (SN: CALIFORNIA), suggesting potential geographic impact or performance location. The contract supports the defense sector's technological capabilities, indirectly impacting the defense workforce and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost-plus-fixed-fee contracts require robust oversight to control costs.
Limited transparency on the justification for non-competition.

Positive Signals

Awarded under an existing contract, potentially streamlining delivery.
Specific NAICS code indicates a focused service offering.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services (NAICS 541512). This is a critical area for defense agencies, requiring specialized expertise to maintain and upgrade complex systems. The market for these services is competitive, but specific government contracts, especially those awarded under existing frameworks or with unique requirements, may see less open competition. Benchmarking would involve looking at similar IT service contracts within the defense industry.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration or set-aside for this specific task order. This means that opportunities for small businesses to participate, either as prime contractors or subcontractors, may be limited unless they are part of TEYA SUPPORT SERVICES LLC's subcontracting plan, which is not detailed here. The lack of a small business set-aside suggests the focus was on the specific capabilities required rather than promoting small business engagement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure compliance with the fixed fee. Transparency is limited by the non-competitive nature of the award; further details on oversight mechanisms would require access to the contract's specific terms and conditions and any associated Inspector General reports.

Related Government Programs

Department of Defense IT Services
Navy Information Technology Support
Computer Systems Design Contracts
Cost-Plus-Fixed-Fee IT Services

Risk Flags

Non-competitive award
Cost-plus-fixed-fee contract type
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.3 million to TEYA SUPPORT SERVICES LLC. EQ & EG INITIAL TASK ORDER

Who is the contractor on this award?

The obligated recipient is TEYA SUPPORT SERVICES 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 $8.3 million.

What is the period of performance?

Start: 2025-02-12. End: 2027-02-11.

What is the track record of TEYA SUPPORT SERVICES LLC on similar government contracts, particularly within the Department of Defense?

A comprehensive review of TEYA SUPPORT SERVICES LLC's past performance is essential to assess their reliability and capability in delivering computer systems design services. This would involve examining their history with the Department of Defense and other federal agencies, looking at contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of contract disputes or terminations. Understanding their experience with cost-plus-fixed-fee contracts specifically would also be valuable. Without this detailed performance history, it is difficult to fully gauge the risk associated with this award and the likelihood of successful project completion within budget and schedule.

How does the estimated value of this task order compare to similar computer systems design contracts awarded by the Department of the Navy?

To assess the value for money, this $8.3 million task order should be benchmarked against comparable computer systems design contracts awarded by the Department of the Navy or other defense entities. Key comparison points include the scope of work, contract type (e.g., cost-plus-fixed-fee), duration, and the specific technical requirements. If similar contracts for comparable services were awarded competitively at a lower total cost or with better performance metrics, it would suggest that this award may not represent optimal value. Conversely, if the scope is unique or the market conditions warrant higher pricing, the current value might be justified. A detailed analysis requires access to a broader dataset of defense IT contracts.

What are the specific risks associated with a cost-plus-fixed-fee contract for computer systems design services in a defense context?

Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility for evolving requirements, carry inherent risks, especially in complex IT projects for defense. The primary risk is cost escalation, as the contractor is reimbursed for allowable costs plus a predetermined fixed fee. If project scope creeps or unforeseen technical challenges arise, costs can increase significantly, potentially exceeding initial budgets. Effective oversight is critical to scrutinize all costs claimed by the contractor and ensure they are reasonable, allocable, and allowable. For computer systems design, the risk also lies in the contractor's ability to deliver functional and secure systems that meet stringent defense requirements, potentially leading to performance issues if not managed proactively.

What is the justification for awarding this contract on a non-competitive basis, and what does this mean for price discovery?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This typically implies a sole-source justification, such as the unique capability of the contractor, urgent need, or continuation of a previous effort where only one source is capable. Without the specific justification, it's impossible to fully evaluate its validity. From a price discovery standpoint, non-competitive awards inherently limit the government's ability to leverage market forces to achieve the lowest possible price. The absence of multiple bids means there is no direct comparison to gauge whether the negotiated price is competitive, potentially leading to higher costs for taxpayers.

How does the $8.3 million award compare to historical spending on computer systems design services by the Department of the Navy?

Analyzing historical spending patterns for computer systems design services by the Department of the Navy provides context for the significance of this $8.3 million task order. If the Navy consistently spends tens or hundreds of millions annually on such services, this award represents a moderate portion of their IT budget. However, if this amount is unusually high compared to previous years or similar task orders, it could signal a trend towards increased spending or potentially less cost-effective procurement. Understanding the historical allocation of funds towards IT modernization and support services is crucial for evaluating the long-term financial implications of such awards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6893624R0015

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9B MS-05, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $8,278,519

Exercised Options: $8,278,519

Current Obligation: $8,278,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893625D0011

IDV Type: IDC

Timeline