Interior Department awards $85M PMO Support Services contract to KADIAK LLC, with 4 bidders

Contract Overview

Contract Amount: $85,258,658 ($85.3M)

Contractor: Kadiak LLC

Awarding Agency: Department of the Interior

Start Date: 2023-05-01

End Date: 2027-03-30

Contract Duration: 1,429 days

Daily Burn Rate: $59.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $85.3 million to KADIAK LLC for work described as: PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. The duration of 1429 days suggests a long-term need for these program management services. 4. The base award amount is substantial, requiring careful monitoring of task orders and modifications. 5. The contractor, KADIAK LLC, is positioned to provide critical support to the Department of the Interior's programs. 6. The North American Industry Classification System (NAICS) code 541611 points to a focus on administrative and general management consulting.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without detailed task order breakdowns and performance metrics. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. The base award of $85.2 million over approximately four years suggests a significant investment in program management support. Further analysis would require comparing the labor rates and overhead applied to similar government contracts for administrative management consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources were initially excluded before the final solicitation. Four bidders participated in this competition. The level of competition, with four bidders, is generally considered moderate and should provide some price discovery, but it's important to understand the rationale behind the exclusion of sources to fully assess the competitive landscape.

Taxpayer Impact: A moderate level of competition suggests that taxpayers are likely receiving a reasonable price, but the exclusion of sources warrants scrutiny to ensure no potentially more cost-effective providers were unfairly barred.

Public Impact

The primary beneficiaries are the various programs within the Department of the Interior that require program management oversight. The services delivered include administrative management and general management consulting, crucial for efficient program execution. The geographic impact is likely nationwide, supporting federal programs across the United States. Workforce implications include the potential for KADIAK LLC to employ consultants and project managers, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' process needs clear justification to ensure fairness and optimal pricing.
The substantial award amount requires robust oversight to ensure funds are used effectively and efficiently.

Positive Signals

Awarded through a competitive process, indicating potential for value.
The contractor, KADIAK LLC, has secured a significant contract, suggesting a level of trust and capability.
The contract duration implies a stable, long-term need for these services, allowing for focused program support.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a broad category encompassing a wide range of advisory and support functions for organizations. The federal government is a significant consumer of these services to manage complex programs and operations. Comparable spending benchmarks would involve looking at other large-scale consulting contracts awarded by various federal agencies for similar management support functions, often falling within the multi-million dollar range annually.

Small Business Impact

The provided data indicates that 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 small business set-aside. However, the prime contractor, KADIAK LLC, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Interior's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining deliverables, timelines, and quality standards. Transparency is facilitated through contract databases like FPDS-NG, where award details are published. The Inspector General for the Department of the Interior would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Program Management Support Services
Administrative Management Consulting
General Management Consulting
Department of the Interior Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for clear justification for 'exclusion of sources' in the competitive process.
Ensuring adequate oversight for a long-duration, high-value contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $85.3 million to KADIAK LLC. PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KADIAK LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $85.3 million.

What is the period of performance?

Start: 2023-05-01. End: 2027-03-30.

What is the track record of KADIAK LLC in performing similar government contracts?

Assessing KADIAK LLC's track record requires a review of their past performance on federal contracts, particularly those involving program management and administrative consulting services. This would involve examining contract databases for previous awards, contract values, and any reported performance issues or successes. A detailed analysis would look at the types of agencies they have served, the complexity of the programs supported, and client feedback if available through sources like the Contractor Performance Assessment Reporting System (CPARS). Without specific past performance data readily available in this summary, it's difficult to definitively assess their capabilities, but securing an $85M contract suggests a demonstrated capacity to handle large-scale federal engagements.

How does the awarded amount compare to similar program management support contracts within the Department of the Interior?

The $85.2 million award for Program Management Office (PMO) Support Services to KADIAK LLC is a significant sum, indicative of a substantial, long-term requirement. To benchmark this against similar contracts within the Department of the Interior (DOI), one would need to analyze historical contract data for PMO support, administrative management, and general management consulting services awarded by DOI over the past several years. Key comparison points would include contract duration, scope of work, number of bidders, and the final awarded value, including modifications. Contracts of this magnitude often span multiple years and can involve complex task orders, making direct comparisons challenging without a detailed understanding of the specific services rendered and the prevailing market rates at the time of award.

What are the primary risks associated with a Time and Materials (T&M) contract of this size?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($85.2 million) is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If not managed diligently through robust oversight, ceiling management, and detailed tracking of hours and expenses, the total cost can exceed initial estimates. This necessitates strong government oversight to ensure that only necessary hours are worked and that material costs are reasonable and directly allocable to the contract. The long duration (1429 days) further amplifies this risk, requiring sustained vigilance throughout the contract's life.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements that might necessitate excluding certain types of vendors or technologies. While it allows for open competition among eligible sources, the exclusion aspect introduces a potential limitation. For taxpayers, the effectiveness hinges on the justification for the exclusion. If the exclusion is based on legitimate technical requirements, security needs, or specific capabilities that only a subset of the market possesses, it can still lead to good value by ensuring the best-suited contractor is selected. However, if the exclusion is arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices and reduced value for taxpayer dollars. The participation of four bidders suggests a reasonable level of competition was maintained.

What are the potential performance implications of having only four bidders in this competition?

Having four bidders in a federal contract competition, especially one valued at $85.2 million, generally indicates a moderate level of competition. While four bidders are better than one or two, it may not represent the full spectrum of potential providers in the market. The implications for performance are mixed. On one hand, it suggests that KADIAK LLC was among the most capable and responsive bidders. On the other hand, a more robust competition with a larger number of bidders might have driven even more competitive pricing and potentially uncovered innovative solutions. The key is to ensure that the four bidders represented a diverse and capable pool, and that the selection process rigorously evaluated technical merit and past performance alongside price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 140D0422R0093

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koniag, Inc.

Address: 3800 CENTERPOINT DR, ANCHORAGE, AK, 99503

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $103,767,774

Exercised Options: $86,663,142

Current Obligation: $85,258,658

Actual Outlays: $51,368,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline