In order to form a structure that would streamline business decisions, protect core assets and allow TKC to leverage some of our stock and bond portfolio for bonding capacity to grow active companies that generate profit, TKC Development, Inc. (TKCD) was established. Founded on January 19, 2005, TKCD is a wholly owned company of The Kuskokwim Corporation that focuses on utilizing 8(a) status to obtain federal and state contracts as well as private sector projects in order to increase corporate revenues and subsequently provide dividends to shareholders.
TKCD currently oversees a wide variety of subsidiaries, with the majority of them being 8(a) certified with the others seeking 8(a) status.
What does it mean to be an 8(a) certified company?
It means you are recognized by the U.S. Small Business Administration as a certified small disadvantaged business, allowing you to have a competitive edge when applying for government contracts. Benefits of contracting an 8(a) company include:
- Sole Sourcing
- No Dollar Threshold
- A Faster Start on Work
- Simplified Contracting Process
Our current subsidiaries:
TUMEQ, LLC
Tumeq began operations on January 1, 2011. Based in Charleston, South Carolina, Tumeq was established by TKC Development, Inc. (TKCD) to provide business support and oversight while diversifying the TKCD portfolio of operating companies. At the end of 2018, Tumeq owns eleven operating companies with TKC Aerospace, Strategic Initial Outfitting Transition Solutions (SIOTS), Suulutaaq, Holitna Construction and Precision Air representing the five largest subsidiaries.
Tumeq has diversified TKCD’s portfolio by adding new lines of business to the family of companies in order to better distribute operating and market risks. In 2011, this included establishing two subsidiary companies: Green Lighting Group, LLC, which works with commercial, industrial and government clients to create customized energy-efficient lighting solutions, and SIOTS, which specializes in turnkey initial outfitting services for government and commercial medical facilities.
In 2011, Tumeq also acquired 100 percent interest in Precision Air, Inc., an FAA-approved aviation repair station based in Manning, South Carolina, which focuses on commercial aircraft composite repair. In October 2013, Tumeq formed Charleston Logistics, LLC to further expand the portfolio’s logistics capabilities.
In February 2014, Tumeq formed Swift River Environmental Services, Inc. (SRES) to add capabilities in the environmental services market. In April 2016, both Precision Heli-Support, LLC (PHS) and Holitna Construction, LLC were formed. PHS is an FAA approved aviation repair station based in Mesa, AZ. Holitna Construction is a civil construction contractor and has received its 8(a) certification.
In March 2018, Tumeq purchased 100% ownership in Air Transport of the Carolinas which is an FAA approved Part 135 air transportation company based in Florence, SC. Also, in April 2018, Tumeq formed MIPPS, LLC to further expand its medical facility initial outfitting capabilities. This brings Tumeq’s total operating companies to eleven, for which Tumeq provides all finance, accounting, information technology and human resources support.
Tumeq and its operating companies have continued its trend of profitability. Collectively, they recorded approximately $70 million in consolidated revenue and reported its fifth straight year of profits in 2018. Tumeq’s profits and positive cash flow continue to be critical to the ongoing growth of TKC. In general, Tumeq has a very young portfolio of companies as it relates to operating past performance. Overall, we are pleased with the progress the companies have made in achieving their business goals and we look forward to continued growth and profitability well into the future.
Find out more about our Lower 48 subsidiaries here: http://www.tumeq.com
Kuskokwim Properties, LLC
Kuskokwim Properties and American Multiplex have been partners in a multifamily real estate portfolio since 2007.
The partnership has real estate holdings that include 188 apartment units in six complexes. The buildings are located in Anchorage and Soldotna. Kuskokwim Properties is the majority owner and American Multiplex manages the properties. The partnership’s buildings weathered the November 30th earthquake well structurally. There was, however, substantial superficial damage that was repaired before the end of 2018.
The Spenard neighborhood, where all of the Anchorage based buildings are located, continues to improve, with new businesses moving in and the Spenard Road revitalization project complete.
The partnership has had positive cash flow every year since 2007. The portfolio has shown positive cash flow during the recession Alaska has been experiencing the last three years by reducing expenses wherever possible while still providing a quality product for our tenants. American Multiplex has returned over $3.9 million to TKC on its investments from 2007-2019.
