State Department Awards $20.4M for DPM Operations and Security Staffing to Kapsuun Group, LLC
Contract Overview
Contract Amount: $20,363,269 ($20.4M)
Contractor: Kapsuun Group, LLC
Awarding Agency: Department of State
Start Date: 2019-06-20
End Date: 2024-12-19
Contract Duration: 2,009 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: LABOR HOURS
Sector: Other
Official Description: DPM OPERATIONS AND SECURITY STAFFING
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $20.4 million to KAPSUUN GROUP, LLC for work described as: DPM OPERATIONS AND SECURITY STAFFING Key points: 1. Significant contract value of $20.4M awarded for essential operational and security support. 2. Kapsuun Group, LLC, a single awardee, raises questions about competitive pricing. 3. The contract spans five years, indicating a long-term need for these services. 4. Services fall under Administrative Management and General Management Consulting, a broad category.
Value Assessment
Rating: questionable
The contract's pricing is based on labor hours, making direct comparison difficult without detailed task breakdowns. The total award value of $20.4M over five years suggests a substantial investment, but the lack of competitive bidding prevents a clear assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, indicating a limited source selection. This approach may bypass the price discovery benefits typically achieved through a competitive bidding process, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $20.4M contract raises concerns about whether taxpayers are receiving the best possible price for these critical operational and security services.
Public Impact
Ensures continuity of operations and security for the Department of State. Supports administrative management and general management consulting services. Long-term contract (5 years) indicates ongoing reliance on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Labor hour pricing
- Long duration
Positive Signals
- Essential services
- Consistent provider
Sector Analysis
This contract falls under professional services, specifically administrative and management consulting. Benchmarks for similar long-term, high-value contracts in this sector often emphasize the importance of competitive sourcing to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities for small business participation were explored.
Oversight & Accountability
The limited competition and labor-hour pricing structure warrant careful oversight to ensure that the Department of State is receiving fair value and that the contractor is meeting performance expectations throughout the contract duration.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to labor hour pricing
- Long contract duration without clear performance benchmarks
- Limited transparency on justification for sole source
Tags
administrative-management-and-general-ma, department-of-state, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $20.4 million to KAPSUUN GROUP, LLC. DPM OPERATIONS AND SECURITY STAFFING
Who is the contractor on this award?
The obligated recipient is KAPSUUN GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2019-06-20. End: 2024-12-19.
What specific factors justified the limited competition for this significant contract?
The justification for limited competition typically involves factors such as urgent need, unique capabilities of the sole provider, or specific government requirements that only one contractor can meet. Without access to the official justification document, it is difficult to ascertain the precise reasons. However, for a contract of this value and duration, a thorough review of the justification is crucial for accountability.
How does the labor hour pricing model compare to fixed-price contracts for similar services in terms of cost control and risk transfer?
Labor hour contracts offer flexibility but can lead to cost overruns if not managed tightly, as the government pays for actual hours worked. Fixed-price contracts provide greater cost certainty for the government and shift risk to the contractor. For administrative and security staffing, a fixed-price model might be more appropriate if the scope of work is well-defined, potentially leading to better cost control.
What performance metrics are in place to ensure the effectiveness of DPM Operations and Security Staffing?
Effective oversight of this contract would involve clearly defined performance standards and key performance indicators (KPIs) related to operational efficiency, security incident response times, staff availability, and overall client satisfaction. Regular performance reviews and audits are essential to ensure the contractor is meeting these metrics and delivering the expected value.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 10505 FURNACE RD STE 205, LORTON, VA, 22079
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, 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: $25,620,761
Exercised Options: $25,542,184
Current Obligation: $20,363,269
Actual Outlays: $7,431,087
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM19D0086
IDV Type: IDC
Timeline
Start Date: 2019-06-20
Current End Date: 2024-12-19
Potential End Date: 2024-12-19 00:00:00
Last Modified: 2025-03-27
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