DOJ's FBI awards $42.6M IT services contract to KADIAK LLC under full and open competition

Contract Overview

Contract Amount: $42,593,244 ($42.6M)

Contractor: Kadiak LLC

Awarding Agency: Department of Justice

Start Date: 2023-03-30

End Date: 2027-03-29

Contract Duration: 1,460 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TSC CONSOLIDATED IT SERVICES CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $42.6 million to KADIAK LLC for work described as: TSC CONSOLIDATED IT SERVICES CONTRACT Key points: 1. Contract value of $42.6M over 4 years suggests a significant investment in IT support. 2. Full and open competition indicates a potentially competitive bidding process, aiming for best value. 3. The contract's Time and Materials (T&M) pricing structure may pose cost control risks if not managed diligently. 4. Awarded to KADIAK LLC, a review of their past performance and capacity is crucial. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services, requiring specific performance metrics. 6. The contract duration of 1460 days (4 years) allows for sustained support but necessitates ongoing performance monitoring. 7. The delivery order (DO) nature suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, requiring context on the parent contract.

Value Assessment

Rating: fair

The contract value of $42.6M over four years averages to approximately $10.65M annually. Benchmarking this against similar IT services contracts for federal law enforcement agencies is necessary to determine value for money. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not tightly managed and monitored. Without specific deliverables and labor rates, a definitive value assessment is challenging, but the scale of the award warrants scrutiny of efficiency and cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 5 bidders participating. This level of competition is generally positive, suggesting that multiple vendors had the opportunity to bid, which can drive down prices and improve service quality. The presence of five bidders indicates a reasonably active market for these types of IT services within the federal space.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price and encourages innovation among contractors.

Public Impact

Federal Bureau of Investigation (FBI) personnel will benefit from enhanced IT services, potentially improving operational efficiency. The contract supports a wide range of 'Other Computer Related Services' critical for modern law enforcement. Services are primarily delivered within the District of Columbia, impacting the local federal IT support ecosystem. The contract may indirectly support a workforce skilled in specialized IT services, though direct job creation figures are not provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost escalation if not rigorously managed and if labor hours are not closely monitored.
The broad NAICS code (541519) requires clear definition and tracking of specific services rendered to ensure accountability and prevent scope creep.
Reliance on a single delivery order under a potential IDIQ vehicle necessitates understanding the terms and performance of the parent contract.
The contract duration of four years requires sustained oversight to ensure continued alignment with evolving FBI IT needs and performance standards.

Positive Signals

Awarded under full and open competition with five bidders, indicating a healthy market and potential for competitive pricing.
The contract provides essential IT services to a critical federal law enforcement agency, supporting national security and public safety missions.
The specified contract award date (March 2023) suggests recent procurement, likely incorporating current market conditions and technology.

Sector Analysis

The IT services sector for government contracts is highly competitive and diverse. NAICS code 541519, 'Other Computer Related Services,' encompasses a broad spectrum of IT support, including system integration, IT consulting, and data processing services. Federal spending in this category is substantial, driven by the increasing reliance of agencies on advanced technology for operations. Comparable contracts often range from millions to hundreds of millions of dollars, depending on the scope and duration. This contract appears to be of moderate size within the broader federal IT services market.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless KADIAK LLC engages them as subcontractors. Analysis of KADIAK LLC's subcontracting plan, if applicable, would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of the Inspector General (OIG) and the Federal Bureau of Investigation's internal contracting and program management offices. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to service level agreements (SLAs) and regular performance reviews. The T&M nature necessitates vigilant monitoring of labor hours and costs by the Contracting Officer's Representative (COR).

Related Government Programs

Department of Justice IT Services Contracts
Federal Bureau of Investigation Technology Modernization
General Services Administration (GSA) IT Schedule Contracts
Other Computer Related Services Procurements
Time and Materials Contract Vehicles

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Broad scope defined by NAICS code requires meticulous performance monitoring.
Contract performance dependent on KADIAK LLC's demonstrated capabilities and past performance.
Effectiveness relies on robust oversight and management by the FBI COR.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $42.6 million to KADIAK LLC. TSC CONSOLIDATED IT SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is KADIAK LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $42.6 million.

What is the period of performance?

Start: 2023-03-30. End: 2027-03-29.

What is KADIAK LLC's past performance record with the federal government, particularly in delivering IT services of similar scope and complexity?

A thorough review of KADIAK LLC's past performance is essential. This includes examining their track record on previous federal contracts, specifically looking at performance ratings, any past disputes or contract terminations, and their ability to meet deadlines and quality standards. For IT services contracts, particularly those under a Time and Materials (T&M) structure, their history of managing costs, controlling labor hours, and adapting to evolving technical requirements is critical. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide valuable insights into their reliability and capability to successfully execute this significant FBI contract.

How does the average annual cost of this contract ($10.65M) compare to similar IT services contracts awarded by other federal law enforcement agencies?

To benchmark the value, the average annual cost of approximately $10.65M needs comparison with similar IT services contracts awarded by agencies like the DEA, Secret Service, or DHS components. Factors such as the specific services included (e.g., network management, cybersecurity, software development), the labor categories and rates, contract duration, and the overall complexity of the agency's IT environment must be considered. A higher or lower annual cost could indicate superior or inferior value, respectively, assuming comparable service levels and scope. Without detailed service breakdowns and labor rate comparisons, this figure serves as an initial indicator requiring deeper analysis.

What are the specific risks associated with the Time and Materials (T&M) pricing structure for this contract, and what mitigation strategies are in place?

The primary risk of a T&M contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can be exacerbated if work is inefficiently performed or if scope creep occurs without proper controls. Mitigation strategies typically include establishing firm-fixed-price CLINs for specific tasks where possible, setting clear labor hour ceilings, implementing robust monitoring and reporting requirements for hours worked and expenses incurred, and empowering the Contracting Officer's Representative (COR) to actively manage performance and costs. Regular audits and detailed progress reports are crucial to ensure the contractor remains within budget and delivers value.

Given the broad NAICS code (541519), how is the scope of 'Other Computer Related Services' defined, and how will performance be measured?

The broad nature of NAICS code 541519 necessitates a highly detailed Performance Work Statement (PWS) or Statement of Work (SOW) within the contract. This document must clearly delineate the specific services required, such as system administration, network support, help desk functions, IT consulting, or specific software/hardware maintenance. Performance measurement will rely on clearly defined metrics and Service Level Agreements (SLAs) tied to these specific services. Examples include system uptime percentages, response times for help desk tickets, project completion rates, and adherence to security protocols. Regular reporting and performance reviews against these metrics are vital for ensuring the FBI receives the intended IT support.

What is the historical spending pattern for similar IT services at the FBI or DOJ, and how does this contract fit within that trend?

Analyzing historical spending on IT services by the FBI and DOJ provides context for this $42.6M contract. Understanding whether this award represents an increase, decrease, or stable level of investment in IT support is key. Trends might reflect modernization efforts, shifts in technology adoption, or changes in agency operational needs. If historical data shows significant fluctuations, it warrants investigation into the drivers behind those changes. This contract's value should be assessed against the backdrop of the agency's overall IT budget and strategic technology goals to determine its significance and alignment with long-term objectives.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $113,198,747

Exercised Options: $47,619,668

Current Obligation: $42,593,244

Actual Outlays: $36,433,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00A1

IDV Type: FSS

Timeline