Interior's $9.16M TIART Contract Awarded to KADIAK LLC for Custom Programming

Contract Overview

Contract Amount: $9,157,383 ($9.2M)

Contractor: Kadiak LLC

Awarding Agency: Department of the Interior

Start Date: 2023-06-19

End Date: 2026-05-29

Contract Duration: 1,075 days

Daily Burn Rate: $8.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TIART - TRUST INFORMATION ANALYSIS AND REPORTING TOOL

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $9.2 million to KADIAK LLC for work described as: TIART - TRUST INFORMATION ANALYSIS AND REPORTING TOOL Key points: 1. Contract awarded for custom computer programming services. 2. KADIAK LLC is the sole awardee. 3. The contract duration is over 3 years. 4. The award is for labor hours. 5. The base contract value is $9.16M.

Value Assessment

Rating: questionable

The contract's base value is $9.16M with a potential ceiling not specified. Benchmarking against similar custom programming contracts is difficult without more detailed scope and labor rate information. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source approach. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract, as there is no market pressure to drive down prices.

Public Impact

Citizens may be paying more than necessary due to the lack of competition. The TIART system's effectiveness and efficiency could be impacted by the chosen vendor. Transparency in government IT spending is reduced when contracts are not competed. The Department of the Interior's reliance on a single vendor for critical IT services poses a potential risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price discovery
Potential for overpayment

Positive Signals

Specific vendor selected for a defined period
Contract has a clear start and end date

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The IT services sector is highly competitive, making the limited competition for this contract notable. Benchmarks for custom programming vary widely based on complexity and labor rates.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The awardee, KADIAK LLC, is not identified as a small business in the provided data.

Oversight & Accountability

The limited competition and lack of transparency in the award process warrant further oversight. Accountability for the contract's performance and cost-effectiveness should be closely monitored by the Department of the Interior.

Related Government Programs

Custom Computer Programming Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Limited competition raises concerns about price fairness.
Lack of transparency in the award process.
Potential for higher costs due to absence of market pressure.
Risk of vendor lock-in with a sole awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $9.2 million to KADIAK LLC. TIART - TRUST INFORMATION ANALYSIS AND REPORTING TOOL

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 $9.2 million.

What is the period of performance?

Start: 2023-06-19. End: 2026-05-29.

What is the justification for awarding this contract on a limited or sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for limited competition is crucial for understanding the rationale behind not pursuing a broader solicitation. Agencies typically cite factors like unique capabilities, urgent needs, or lack of available sources. Without this justification, it's difficult to assess if fair and reasonable pricing was achieved through negotiation or if the absence of competition led to inflated costs for the taxpayer.

How does the performance and cost of the TIART system under KADIAK LLC compare to similar custom programming projects within the Department of the Interior or other federal agencies?

Comparing the performance and cost of the TIART system is essential for evaluating its value. Benchmarking against similar projects, considering factors like scope, complexity, and labor rates, can reveal if the government is receiving competitive pricing and effective service. A lack of competitive bidding makes such comparisons more challenging but highlights the need for robust internal performance metrics and cost analysis.

What are the potential risks associated with awarding a significant IT contract like TIART to a single vendor for an extended period, particularly regarding innovation and vendor lock-in?

Awarding a large IT contract to a single vendor for over three years carries inherent risks. These include potential vendor lock-in, where switching providers becomes difficult and costly, and a possible stifling of innovation if the vendor becomes complacent. Continuous monitoring of performance, regular contract reviews, and contingency planning are vital to mitigate these risks and ensure the government retains flexibility and access to the best available technology.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D0423R0038

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $12,192,067

Exercised Options: $9,157,383

Current Obligation: $9,157,383

Actual Outlays: $7,991,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline