DoD's $50M Appliance Contract Awarded to Knight Point Systems Amidst Full and Open Competition

Contract Overview

Contract Amount: $50,053,825 ($50.1M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2016-09-30

Contract Duration: 365 days

Daily Burn Rate: $137.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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 $50.1 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS Key points: 1. The contract, valued at $50,053,825.24, was awarded for appliance services. 2. Competition was conducted under 'Full and Open Competition After Exclusion of Sources'. 3. The contract duration was 365 days, ending September 30, 2016. 4. The awarding agency was the Defense Information Systems Agency (DISA). 5. The NAICS code 541519 suggests 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract's value of $50M for a one-year period for appliance services appears high. Benchmarking against similar IT service contracts is difficult without more specific service details, but the per-unit cost of $137,134 seems substantial for a single year.

Cost Per Unit: $137,134

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific source exclusions. This method aims for fair pricing but the exclusions might limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: Taxpayer funds were used for this contract, and while competition was sought, the specific exclusions warrant scrutiny to ensure optimal value for money.

Public Impact

This spending supports the Department of Defense's operational needs through IT services. The contract's focus on appliances suggests a role in IT infrastructure or equipment. The competitive nature, despite exclusions, aims to ensure a reasonable price for taxpayers. DISA's procurement indicates a need for specific IT support within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusions.
High per-unit cost warrants further investigation.
Lack of detailed service description makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Clear contract duration and award date.
Specific NAICS code provided.

Sector Analysis

The IT sector, particularly within defense, often involves significant spending on hardware, software, and related services. Benchmarks for appliance services can vary widely based on type and scale, but $50M for a year suggests a substantial requirement.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Defense, specifically DISA, implying established oversight mechanisms. However, the 'exclusion of sources' clause requires careful review to ensure accountability and prevent undue restrictions on competition.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

High contract value for a one-year term.
Ambiguity in 'appliances' definition.
Potential for limited competition due to source exclusions.
Lack of transparency on specific reasons for source exclusion.
High per-unit cost benchmark.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.1 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 $50.1 million.

What is the period of performance?

Start: 2015-10-01. End: 2016-09-30.

What specific 'appliances' were procured under this contract, and how do their costs compare to market rates for similar equipment or services?

The provided data lacks specifics on the 'appliances' procured. To assess value, a detailed breakdown of the equipment or services is necessary. Comparing costs would involve researching market prices for comparable IT hardware, software licenses, or managed appliance services, considering factors like quantity, features, support, and warranty.

What were the specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The rationale for excluding specific sources is not detailed in the provided data. Typically, such exclusions are based on factors like national security concerns, proprietary technology, existing security clearances, or unique capabilities essential for the requirement. A thorough review of the solicitation documents and justification for exclusion would be needed to understand the specific reasons.

How effectively did the competitive process, despite source exclusions, ensure optimal pricing and value for the taxpayer?

Assessing the effectiveness of the competitive process requires more information. While 'Full and Open Competition After Exclusion of Sources' implies a competitive bid, the exclusions could have limited the number of bidders. Evaluating optimal pricing would involve comparing the awarded price against independent cost estimates or bids from other qualified, non-excluded vendors, if available.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $50,053,825

Exercised Options: $50,053,825

Current Obligation: $50,053,825

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102811D0102

IDV Type: IDC

Timeline