DoD's $52.8M IT contract for appliances awarded to Knight Point Systems, LLC

Contract Overview

Contract Amount: $52,793,743 ($52.8M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2015-09-30

Contract Duration: 364 days

Daily Burn Rate: $145.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.8 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS Key points: 1. Contract value represents a significant investment in IT infrastructure for the Defense Department. 2. Knight Point Systems, LLC, a relatively small player, secured a substantial award. 3. The contract's fixed-price nature aims to control costs, but requires careful monitoring of scope. 4. Performance period of one year suggests a focused, short-term need for these appliances. 5. The 'Other Computer Related Services' NAICS code indicates a broad range of potential IT support. 6. Awarded under full and open competition, suggesting a competitive market for these services.

Value Assessment

Rating: fair

The contract value of $52.8 million for a one-year period for IT appliances appears substantial. Benchmarking against similar contracts for IT hardware and services is difficult without more specific details on the appliances and services provided. The fixed-price contract type suggests an attempt to cap costs, but the overall value needs to be assessed against the actual deliverables and market rates for comparable equipment and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, there were specific reasons for excluding certain sources. With 3 bidders, the competition level was moderate, which can lead to reasonable price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand its impact on the breadth of competition and potential price outcomes.

Taxpayer Impact: A moderate level of competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing. However, the specifics of the exclusion could potentially limit the most competitive offers.

Public Impact

The Department of Defense benefits from the acquisition of necessary IT appliances. Military personnel and support staff likely benefit from updated or enhanced IT capabilities. The geographic impact is likely CONUS (Continental United States) based on the data provided. The contract supports the IT infrastructure crucial for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad NAICS code and fixed-price contract.
Dependence on a single awardee for a significant IT infrastructure component.
Need to verify if the 'exclusion of sources' limited overall competitive pricing.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Fixed-price contract type helps in budget predictability.
The contract addresses a clear need for IT appliances within the DoD.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services.' The IT sector is a massive and constantly evolving market, with government spending forming a significant portion. This contract for appliances likely supports broader IT infrastructure needs, such as networking, computing, or data storage, within the Defense Information Systems Agency (DISA). Comparable spending benchmarks would depend heavily on the specific types of appliances procured and the scale of deployment.

Small Business Impact

The data indicates that small business participation (ss and sb flags) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. However, the prime contractor, Knight Point Systems, LLC, may itself be a small business, which would have implications for its own growth and capacity.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and potentially the Department of Defense's Inspector General. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods/services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Defense Information Systems Agency (DISA) IT Procurement
Department of Defense IT Infrastructure Modernization
Federal IT Hardware Acquisition
Computer Related Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Scope definition clarity for FFP contract.
Performance monitoring for IT appliance delivery and support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.8 million to KNIGHT POINT SYSTEMS, LLC. IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS

Who is the contractor on this award?

The obligated recipient is KNIGHT POINT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $52.8 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-09-30.

What specific types of IT appliances were procured under this contract?

The provided data does not specify the exact types of IT appliances procured. The NAICS code '541519 - Other Computer Related Services' is broad and could encompass a wide range of hardware, from servers and networking equipment to specialized computing devices. To understand the precise nature of the procurement, further details regarding the contract's statement of work or product descriptions would be necessary. This information is crucial for assessing the contract's true value and its alignment with specific defense technology needs.

How does the $52.8 million contract value compare to similar IT appliance procurements by the DoD?

Benchmarking the $52.8 million contract value requires detailed comparison with similar IT appliance procurements by the DoD. Without knowing the specific types, quantities, and configurations of the appliances, a direct comparison is challenging. However, for a one-year contract, this represents a substantial investment. Factors such as whether this includes maintenance, support, or software licenses, and the competitive landscape for those specific items, would influence whether this value is considered high or reasonable. A deeper analysis would involve examining contracts with similar NAICS codes and award values within the defense sector over comparable timeframes.

What are the potential risks associated with a firm-fixed-price contract for IT appliances?

A firm-fixed-price (FFP) contract for IT appliances aims to provide cost certainty. However, risks can arise if the scope of work is not precisely defined, leading to potential change orders or contractor claims for additional costs. If the contractor underestimates costs or encounters unforeseen issues, they may cut corners on quality or support to maintain profitability, impacting performance. Conversely, if the government's requirements change significantly, an FFP contract can be inflexible and costly to modify. Effective management requires rigorous oversight to ensure the delivered appliances meet all specifications and performance standards.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for this contract?

This contract type signifies that the procurement was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' indicates that certain potential offerors were subsequently excluded from the competition. The reasons for exclusion must be justified and documented, often due to factors like security clearances, specific technical capabilities, or prior performance issues. While competition was sought, the exclusion might have narrowed the field, potentially impacting the number of bids received and the ultimate price competitiveness compared to a truly unrestricted full and open competition.

What is the track record of Knight Point Systems, LLC in securing large federal IT contracts?

The provided data indicates Knight Point Systems, LLC was awarded this $52.8 million contract. To assess their track record, one would need to examine their history of federal contract awards, including the types of services/products provided, contract values, agencies served, and performance history. Information from sources like the Federal Procurement Data System (FPDS) or other contract databases would be essential to determine if this is a typical award size for the company, if they have a history of successful performance on similar contracts, and their overall presence in the federal IT market.

How does the $145,038 'br' value relate to the overall contract value and potential cost savings?

The 'br' value of $145,038 is presented as a single data point without explicit definition in the provided schema. Assuming 'br' might represent a 'bid reasonableness' metric or a specific benchmark comparison, its direct relationship to the overall $52.8 million contract value and potential cost savings is unclear. If it represents a difference between the winning bid and another significant bid, or a government estimate, it could indicate a degree of cost savings achieved through competition. However, without a clear definition of 'br', its significance cannot be definitively assessed.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102810R2039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1775 WIEHLE AVE STE 101, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,793,743

Exercised Options: $52,793,743

Current Obligation: $52,793,743

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102811D0102

IDV Type: IDC

Timeline