Commerce awards $8.7M for 2026 Census R&A to Katmai Quantum LLC

Contract Overview

Contract Amount: $8,720,492 ($8.7M)

Contractor: Katmai Quantum LLC

Awarding Agency: Department of Commerce

Start Date: 2024-08-27

End Date: 2026-08-25

Contract Duration: 728 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACT AWARD FOR DECENNIAL 2026 R&A.

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $8.7 million to KATMAI QUANTUM LLC for work described as: CONTRACT AWARD FOR DECENNIAL 2026 R&A. Key points: 1. Contract awarded on a time and materials basis, which can pose cost control challenges. 2. The award was not competed under simplified acquisition procedures, suggesting potential for higher pricing. 3. Limited competition is indicated by the contract type, potentially impacting value for money. 4. The duration of 728 days allows for significant project execution but requires ongoing oversight. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services,' a broad category. 6. The contract's value is moderate, but its specific impact on the Census Bureau's R&A needs further analysis.

Value Assessment

Rating: fair

The contract's value is difficult to benchmark without more specific details on the 'Research & Analysis' tasks. Awarded on a time and materials basis, there is an inherent risk of cost overruns if not managed closely. The contract value of $8.7 million over approximately two years suggests a significant investment in IT services. Without comparable contract data for similar R&A projects at the Census Bureau or other agencies, assessing true value for money is challenging. The base contract value of $8.72M with a ceiling of $11.98M indicates potential for growth.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' which typically implies a sole-source or limited competition scenario, especially given the 'DEFINITIVE CONTRACT' award type. The absence of a competitive bidding process means that the government did not solicit offers from multiple vendors. This approach can be justified for specific reasons, such as unique capabilities or urgent needs, but it limits the government's ability to leverage market competition to secure the best possible pricing and terms.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings typically achieved through a bidding process. This could result in a higher overall expenditure for the services rendered.

Public Impact

The primary beneficiary is the U.S. Census Bureau, which will receive research and analysis services crucial for its operations. The services delivered are expected to support the planning and execution of the Decennial Census. The geographic impact is national, as Census data affects all states and communities. Workforce implications are likely to involve specialized IT and analytical roles within Katmai Quantum LLC and potentially within the Census Bureau for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type increases risk of cost escalation without strict oversight.
Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Broad 'Other Computer Related Services' NAICS code may obscure the specific nature of the work and its true cost drivers.
The contract duration of nearly two years requires sustained monitoring to ensure performance and value.

Positive Signals

Award to a single contractor can ensure continuity and focus on specific R&A objectives.
The contract is for 'Research & Analysis,' suggesting a focus on critical planning functions for the Census.
The award is a definitive contract, indicating a commitment to a specific project scope.

Sector Analysis

The IT services sector, particularly 'Other Computer Related Services' (NAICS 541519), is a vast and dynamic market. This contract falls within the broader category of professional, scientific, and technical services. Government spending in this area is substantial, supporting a wide range of functions from software development to data analysis and IT consulting. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the R&A, but IT services contracts for federal agencies often range from hundreds of thousands to tens of millions of dollars.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this award. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal unless Katmai Quantum LLC engages small businesses as subcontractors, which is not specified in the provided data. The focus appears to be on the prime contractor's capabilities rather than fostering small business growth through this specific award.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Census Bureau's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific R&A tasks and performance metrics would be crucial for effective accountability. The Inspector General for the Department of Commerce would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Decennial Census Operations
Census Bureau IT Modernization
Federal Data Analytics Services
Government Research and Development Contracts

Risk Flags

Cost Control Risk (Time and Materials)
Limited Competition Impact on Price
Scope Definition Uncertainty (Broad NAICS)

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $8.7 million to KATMAI QUANTUM LLC. CONTRACT AWARD FOR DECENNIAL 2026 R&A.

Who is the contractor on this award?

The obligated recipient is KATMAI QUANTUM LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-08-25.

What specific research and analysis tasks are encompassed by this $8.7 million contract?

The provided data indicates the contract is for 'DECENNIAL 2026 R&A' (Research & Analysis). However, the specific tasks are not detailed. Typically, R&A for the Decennial Census could include areas such as improving data collection methodologies, developing new analytical techniques for demographic projections, assessing the accuracy and reliability of survey instruments, evaluating the effectiveness of outreach programs, or exploring innovative technologies for data processing and dissemination. Without a detailed statement of work, it is difficult to ascertain the precise nature and scope of the research and analysis to be performed by Katmai Quantum LLC.

How does the 'NOT COMPETED UNDER SAP' designation impact the potential cost-effectiveness of this award?

The designation 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) suggests that this contract was likely awarded outside the standard competitive processes typically used for smaller procurements (under $250,000). This could mean the contract was awarded sole-source or through a limited competition, potentially bypassing the broader market engagement that SAP encourages. While SAP is designed for efficiency, bypassing it for larger contracts can sometimes lead to less competitive pricing. The government may have justified this approach due to specific requirements, urgency, or the unique capabilities of Katmai Quantum LLC, but it generally implies a reduced opportunity for price discovery compared to a full and open competition.

What are the risks associated with a 'TIME AND MATERIALS' contract type for this R&A project?

Time and Materials (T&M) contracts, like the one awarded to Katmai Quantum LLC, are inherently riskier in terms of cost control compared to fixed-price contracts. In a T&M arrangement, the government pays the contractor for the actual labor hours expended and the cost of materials used. While this can be flexible for projects with evolving scopes, it places a significant burden on the government to closely monitor labor hours, rates, and material costs to prevent overruns. Without robust oversight, the total cost can exceed initial estimates, potentially leading to a less favorable value for taxpayers. The Census Bureau will need strong project management to ensure efficient use of resources.

What is the track record of Katmai Quantum LLC in performing similar federal research and analysis contracts?

Information regarding Katmai Quantum LLC's specific track record in performing federal research and analysis contracts, particularly those related to census operations or similar large-scale data projects, is not provided in the data. A thorough assessment would require reviewing past performance evaluations, contract history, and client references. Without this information, it is difficult to gauge their experience, reliability, and past success in delivering comparable services to government agencies. Further due diligence would be necessary to understand their capabilities and past performance.

How does this contract's value compare to historical spending on similar R&A activities by the U.S. Census Bureau?

The provided data does not include historical spending figures for similar Research & Analysis (R&A) activities by the U.S. Census Bureau. To make a meaningful comparison, one would need access to historical contract databases or budget documents that detail past expenditures on R&A projects. Factors such as inflation, changes in project scope, and evolving technological needs would also need to be considered. Without this historical context, it is challenging to determine if the $8.7 million award represents an increase, decrease, or stable level of investment compared to previous R&A efforts.

What are the potential performance risks for the Decennial 2026 R&A project given the contractor and contract type?

Potential performance risks for the Decennial 2026 R&A project include those inherent to the Time and Materials (T&M) contract type, such as scope creep and cost overruns if not managed diligently. Additionally, the broad NAICS code 'Other Computer Related Services' might indicate a wide range of potential tasks, increasing the risk of misaligned expectations or execution challenges if the specific deliverables are not clearly defined and managed. The contractor's specific experience with census-related R&A is also a factor; if Katmai Quantum LLC lacks deep domain expertise in demographic research or census operations, performance could be impacted. Effective project management, clear communication, and rigorous oversight by the Census Bureau are critical to mitigating these risks.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11001 OMALLEY CENTRE DR, ANCHORAGE, AK, 99515

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $8,720,492

Exercised Options: $8,720,492

Current Obligation: $8,720,492

Actual Outlays: $2,458,403

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,198,478

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline