DoD awards $18.7M R&D contract to Tatitlek Federal Services for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $18,682,501 ($18.7M)

Contractor: Tatitlek Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-11

End Date: 2024-08-10

Contract Duration: 365 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: YEAR ONE GENERAL SERVICES TO FOR RDSS II

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to TATITLEK FEDERAL SERVICES LLC for work described as: YEAR ONE GENERAL SERVICES TO FOR RDSS II Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. Tatitlek Federal Services LLC, the contractor, will provide services over a 365-day period. 4. The contract type is Cost Plus Fixed Fee, which allows for reimbursement of costs plus a fixed fee for profit. 5. The base award amount is $18,682,500.75 for the first year. 6. The contract is a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, likely RDSS II. 7. The North American Industry Classification System (NAICS) code 541715 signifies research and development services. 8. The contract is being performed in Alabama (AL).

Value Assessment

Rating: good

The contract's value of approximately $18.7 million for one year of R&D services appears reasonable given the scope of work in physical, engineering, and life sciences. Benchmarking against similar R&D contracts within the Department of Defense (DoD) would provide a more precise assessment of value for money. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are monitored, but the fixed fee component provides a predictable profit margin for the contractor. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the initial award amount is within expected ranges for specialized R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation suggests that while the competition was intended to be broad, certain sources may have been excluded based on predefined criteria, possibly related to security, capability, or prior performance. The exact reasons for exclusion are not detailed here. However, the 'full and open' aspect implies that multiple bidders were likely considered, contributing to price discovery and potentially competitive pricing. The number of bidders is not specified, which limits a full assessment of the competition's intensity.

Taxpayer Impact: The 'full and open' competition, even with source exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can drive down costs and improve the quality of services received. This approach aims to ensure the government obtains the best value through a structured bidding process.

Public Impact

The Department of Defense benefits from advanced research and development in critical physical, engineering, and life sciences areas. This contract supports the delivery of specialized research services essential for national security and technological advancement. The geographic impact is primarily in Alabama, where the contract is being performed. The contract supports a workforce of researchers, scientists, and technical personnel employed by Tatitlek Federal Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific criteria for 'exclusion of sources' are not detailed, potentially limiting transparency in the competitive process.
The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored, although the fixed fee mitigates excessive profit.
Performance metrics and specific deliverables are not detailed in the provided data, making it difficult to assess the contractor's expected performance.
The contract is a delivery order under a larger IDIQ, meaning the full scope and total value of the underlying contract are not fully represented here.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process that aims for best value.
The contract is for a defined period (365 days), providing a clear timeframe for service delivery.
The contractor, Tatitlek Federal Services LLC, is presumably qualified to perform the specialized R&D services required.
The contract supports critical research and development for the Department of Defense.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is crucial for technological innovation and national security. Spending in this area by the DoD is substantial, often involving complex projects requiring specialized expertise. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific solicitations for similar research services. The market for such services is competitive, with numerous firms offering specialized scientific and engineering capabilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside. The primary contractor, Tatitlek Federal Services LLC, will likely manage the entire scope of work. Any subcontracting would be at the discretion of the prime contractor and not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee (CPFF) structure, requiring the contractor to justify costs and deliver on the fixed fee scope. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Department of Defense Research and Development Programs
Army R&D Contracts
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Cost Plus Fixed Fee Contracts
Science and Technology Research

Risk Flags

Potential for cost overruns under CPFF contract type.
Lack of detailed performance metrics in award data.
Ambiguity in 'exclusion of sources' criteria.
Limited public information on contractor's specific past performance for this type of R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to TATITLEK FEDERAL SERVICES LLC. YEAR ONE GENERAL SERVICES TO FOR RDSS II

Who is the contractor on this award?

The obligated recipient is TATITLEK FEDERAL SERVICES 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 $18.7 million.

What is the period of performance?

Start: 2023-08-11. End: 2024-08-10.

What is the track record of Tatitlek Federal Services LLC in performing similar R&D contracts for the Department of Defense?

Assessing the track record of Tatitlek Federal Services LLC requires a deeper dive into their contract history. While this specific award indicates they were selected for R&D services, their past performance on similar projects is crucial for evaluating reliability and capability. Information on previous DoD contracts, including their value, duration, and performance ratings (if publicly available), would shed light on their experience. Key areas to investigate would include their success in meeting technical requirements, adhering to schedules, and managing costs on prior R&D endeavors. A review of past performance evaluations or any documented issues would provide a more comprehensive understanding of their suitability for this current contract.

How does the $18.7 million first-year cost compare to similar R&D contracts for physical, engineering, and life sciences research within the DoD?

The $18.7 million award for one year of R&D services in physical, engineering, and life sciences is a significant sum, but its value is best understood through comparison. To benchmark this cost, one would analyze recent DoD contracts with similar NAICS codes (like 541715) and scope. Factors such as the specific research areas (e.g., advanced materials, AI in engineering, biomedical research), contract type (CPFF, FFP, etc.), duration, and contractor size influence pricing. If similar contracts for comparable research complexity and duration were awarded in the range of $15-20 million annually, then this award appears competitive. Conversely, if comparable contracts are significantly lower, it might suggest potential overpricing or a more complex scope of work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with a CPFF contract for R&D is the potential for cost overruns, as the government reimburses the contractor's allowable costs. While the fixed fee provides a predictable profit, it doesn't cap the total cost. This can incentivize contractors to incur higher costs if oversight is lax. Mitigation strategies include rigorous cost monitoring by the government, clear definition of allowable costs, regular audits, and strong contract management. The fixed fee itself acts as a partial mitigation, as the contractor's profit is fixed regardless of cost fluctuations. Additionally, performance incentives or penalties can be incorporated to align contractor behavior with government objectives, ensuring value is achieved within the spirit of the agreement.

What specific R&D objectives does this contract aim to achieve for the Department of the Army?

The provided data specifies the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. However, the precise R&D objectives are not detailed. These objectives likely align with the Department of the Army's strategic priorities, which could include areas like advanced materials for equipment, novel engineering solutions for operational challenges, or life sciences research relevant to soldier health and performance. Without access to the Statement of Work (SOW) or Performance Work Statement (PWS), the specific scientific questions, technological advancements, or prototypes the contractor is expected to develop remain unknown.

How does the 'Full and Open Competition After Exclusion of Sources' process differ from standard full and open competition, and what are its implications?

Standard 'Full and Open Competition' means all responsible sources are permitted to submit offers. 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be broad, specific sources were intentionally excluded based on criteria outlined in the solicitation or regulations. This exclusion might be due to security concerns, lack of specific capabilities, or other factors deemed necessary by the agency. The implication is that the pool of potential bidders is smaller than in a completely unrestricted competition. While it aims to ensure only qualified and appropriate sources participate, it could potentially limit the breadth of competition and, consequently, the degree of price pressure compared to a truly unrestricted process.

What is the typical duration and value range for similar R&D delivery orders under IDIQ contracts within the DoD?

Delivery orders under Indefinite Delivery Indefinite Quantity (IDIQ) contracts for R&D within the DoD can vary significantly in duration and value. Durations often range from a few months to several years, depending on the project's complexity. Values can range from tens of thousands to tens of millions of dollars per order. A one-year duration with an $18.7 million value, as seen here, is substantial but not uncommon for specialized R&D tasks requiring significant resources and expertise. The total value of the underlying IDIQ contract (RDSS II, presumably) would provide context for how this single delivery order fits into the larger procurement vehicle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB23R0017

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 561 E 36TH AVE, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,596,474

Exercised Options: $22,596,474

Current Obligation: $18,682,501

Actual Outlays: $6,543,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB23D0022

IDV Type: IDC

Timeline