DoD awards $24.3M for test support services, continuing a two-year contract for R&D

Contract Overview

Contract Amount: $24,293,000 ($24.3M)

Contractor: Tatitlek Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-11

End Date: 2025-08-13

Contract Duration: 367 days

Daily Burn Rate: $66.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: YEAR TWO (2) OF GENERAL DIRECTORATE TEST SUPPORT SERVICES AT RTC

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to TATITLEK FEDERAL SERVICES LLC for work described as: YEAR TWO (2) OF GENERAL DIRECTORATE TEST SUPPORT SERVICES AT RTC Key points: 1. Contract value represents a significant investment in specialized R&D support. 2. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 3. Competition was conducted after exclusion of sources, suggesting a specific justification for vendor selection. 4. The contract duration of 367 days indicates a focused, short-term operational need. 5. The primary NAICS code (541715) points to a focus on physical, engineering, and life sciences research. 6. Geographic location in Alabama may indicate specific testing facilities or regional expertise.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure necessitates close oversight to ensure value. Without specific benchmarks for 'General Directorate Test Support Services,' a direct value-for-money assessment is challenging. However, the fixed fee component provides some cost control. Comparison to similar R&D support contracts would be beneficial to gauge pricing reasonableness. The total award amount of $24.3 million for a one-year period suggests a substantial operational cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent might have been broader competition, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for this exclusion are not detailed but could relate to specialized capabilities, prior performance, or unique requirements. The limited competition may impact price discovery and potentially lead to higher costs compared to a fully open process.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the restricted competition. The justification for excluding sources needs to be robust to ensure funds are used efficiently.

Public Impact

The Department of the Army benefits from specialized test support services crucial for R&D initiatives. This contract supports research and development activities within the physical, engineering, and life sciences sectors. The services are delivered in Alabama, potentially impacting the local workforce and economy. The contract enables the advancement of scientific and technological capabilities for defense purposes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Limited competition may result in less favorable pricing for the government.
The specific nature of 'General Directorate Test Support Services' might limit the pool of qualified contractors.
The exclusion of sources requires careful scrutiny to ensure fairness and necessity.

Positive Signals

The contract is awarded to a specific entity, suggesting a potentially established relationship or specialized expertise.
The fixed fee component provides a degree of cost predictability.
The contract supports critical R&D functions for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized test support services is often niche, requiring contractors with specific technical expertise and security clearances. Comparable spending in this sub-sector can vary widely based on the complexity and duration of the research. The total federal spending on R&D services is substantial, with significant portions allocated to defense-related research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The prime contractor, Tatitlek Federal Services LLC, is likely a large business. The absence of a small business set-aside means opportunities for small business participation would depend on the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Test and Evaluation Services
Cost Plus Fixed Fee Contracts
Army R&D Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Limited competition ('after exclusion of sources') may impact price discovery.
Need for specific technical expertise could limit contractor pool.
Contract duration is relatively short (367 days), indicating a focused need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to TATITLEK FEDERAL SERVICES LLC. YEAR TWO (2) OF GENERAL DIRECTORATE TEST SUPPORT SERVICES AT RTC

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 $24.3 million.

What is the period of performance?

Start: 2024-08-11. End: 2025-08-13.

What is the historical spending pattern for General Directorate Test Support Services at the RTC?

The provided data indicates this is 'YEAR TWO (2) OF GENERAL DIRECTORATE TEST SUPPORT SERVICES AT RTC,' suggesting a continuation of services. To understand the historical spending pattern, one would need to examine the award data for Year One and potentially prior contracts for similar services. Without access to that specific historical data, it's difficult to provide a precise pattern. However, the current award of $24.3 million for a 367-day period suggests a consistent and significant investment in these support services. Analyzing year-over-year spending trends, changes in contract scope, and the number of bidders in previous years would offer a comprehensive view of the historical spending pattern.

How does the pricing of this contract compare to similar R&D test support services?

Benchmarking the pricing of this $24.3 million Cost Plus Fixed Fee contract against similar R&D test support services is challenging without access to a broader dataset of comparable contracts. Key factors influencing price include the specific technical expertise required, the duration of the contract, the geographic location, and the level of security clearance needed. The 'after exclusion of sources' competition method also suggests that direct price comparisons might be less straightforward than in a fully open market. To perform a robust comparison, one would need to identify contracts with similar NAICS codes (541715), contract types (CPFF), and service scopes, while also accounting for inflation and market conditions over time.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D support revolve around cost control and contractor incentives. For the government, the main risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within the 'cost' ceiling). This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. Contractors, on the other hand, bear the risk of underestimating costs, as they will not be reimbursed for expenses exceeding the estimated 'cost' portion, while their profit (the fixed fee) remains constant. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

What is the track record of Tatitlek Federal Services LLC in providing similar R&D test support?

Assessing the track record of Tatitlek Federal Services LLC requires a review of their past performance on similar contracts. As this is 'Year Two' of the General Directorate Test Support Services, their performance in the first year is a direct indicator. Beyond this specific contract, their history with the Department of Defense and other federal agencies in providing R&D, test, and evaluation support would be relevant. Key aspects to examine include their ability to meet performance requirements, manage costs effectively, adhere to schedules, and maintain positive client feedback. Information on past contract awards, terminations, or disputes involving Tatitlek Federal Services LLC would also contribute to a comprehensive understanding of their track record.

How does the geographic location in Alabama influence the contract's execution and cost?

The contract's execution and cost can be influenced by its geographic location in Alabama. Alabama has specific labor market conditions, including prevailing wage rates and the availability of skilled technical personnel, which can affect personnel costs. Furthermore, the presence of specific testing facilities or infrastructure in Alabama might be a key reason for the contract's award there, potentially reducing logistical costs or enabling specialized testing. Proximity to relevant military installations or research centers could also play a role. However, if specialized talent is scarce in the region, it could drive up labor costs or necessitate travel, adding to the overall expense.

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: $24,605,284

Exercised Options: $24,605,284

Current Obligation: $24,293,000

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