DoD's $62.9M Administrative Support Contract with Teya Enterprises LLC Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $62,877,921 ($62.9M)

Contractor: Teya Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-02

End Date: 2026-10-31

Contract Duration: 2,008 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99501

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $62.9 million to TEYA ENTERPRISES LLC for work described as: ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract awarded to Teya Enterprises LLC for administrative support services. 2. Significant contract value of $62.9 million over its period of performance. 3. Competition method raises questions about potential price discovery limitations. 4. Sector context involves general management consulting services, a common area for federal spending.

Value Assessment

Rating: questionable

The contract's value of $62.9 million for administrative support services needs further benchmarking against similar contracts. Without detailed performance metrics and comparison data, assessing the true value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition approach. This method may restrict the pool of potential bidders and could impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these administrative support services.

Public Impact

Taxpayers may not have received the most competitive pricing due to limited competition. The Department of Defense is spending nearly $63 million on administrative support. The contract duration extends to October 2026, indicating a long-term commitment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Administrative Management and General Management Consulting Services are crucial for operational efficiency within federal agencies. Benchmarks for this sector vary widely based on scope and complexity, but significant contracts like this warrant close examination for cost-effectiveness.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award (sb: false). This suggests that the prime contractor is not a small business, and there is no explicit indication of subcontracting to small businesses.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause requires careful oversight to ensure that the exclusion was justified and that the competition, though limited, was conducted fairly and effectively to achieve best value.

Related Government Programs

Risk Flags

Tags

administrative-management-and-general-ma, department-of-defense, ak, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.9 million to TEYA ENTERPRISES LLC. ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TEYA ENTERPRISES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $62.9 million.

What is the period of performance?

Start: 2021-05-02. End: 2026-10-31.

What specific administrative management and general management consulting services are being provided under this contract, and how do they align with the Department of the Army's core mission requirem

The contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' These services typically encompass areas like organizational planning, business process improvement, and management analysis. A detailed breakdown of the specific tasks and deliverables would be necessary to assess their direct alignment with the Army's strategic objectives and operational needs, ensuring the significant expenditure directly supports mission-critical functions.

Given the limited competition, what measures were in place to ensure robust price discovery and achieve a fair and reasonable price for the government?

The contract's limited competition raises concerns about price discovery. While a Firm Fixed Price contract offers cost certainty, the method of competition ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') needs scrutiny. Agencies must demonstrate that sufficient market research was conducted to justify the limited competition and that the resulting price was rigorously negotiated and validated against benchmarks or other available data to ensure it represents fair value.

How will the effectiveness and impact of Teya Enterprises LLC's administrative support services be measured throughout the contract's duration to ensure accountability and optimal use of taxpayer fund

Measuring the effectiveness of administrative support services is critical for accountability. The contract type (Firm Fixed Price) implies defined deliverables, but the specific performance metrics, Key Performance Indicators (KPIs), and quality assurance surveillance plans are essential. Without these, it's challenging to objectively assess whether the services are meeting expectations, contributing to efficiency, and justifying the $62.9 million investment over the contract's lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124D19R0031

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 E 9TH AVE STE 9B MS-04, 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: $63,292,619

Exercised Options: $63,292,619

Current Obligation: $62,877,921

Actual Outlays: $5,708,085

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $16,673,923

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2021-05-02

Current End Date: 2026-10-31

Potential End Date: 2026-10-31 00:00:00

Last Modified: 2026-01-15

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