State Department awards $6.76M contract for professional staffing to KWAAN TECH, LLC

Contract Overview

Contract Amount: $6,757,651 ($6.8M)

Contractor: Kwaan Tech, LLC

Awarding Agency: Department of State

Start Date: 2022-12-01

End Date: 2026-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROFESSIONAL STAFFING FOR THE HTP PROGRAMS DIRECTORATE, WASHINGTON DC METRO AREA (AWARD)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $6.8 million to KWAAN TECH, LLC for work described as: PROFESSIONAL STAFFING FOR THE HTP PROGRAMS DIRECTORATE, WASHINGTON DC METRO AREA (AWARD) Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery and potential value. 2. The contract's duration of 1460 days suggests a long-term need for these professional staffing services. 3. Awarded as a Time and Materials contract, which can pose cost control challenges if not managed closely. 4. The specific NAICS code (561210) indicates a focus on facilities support services. 5. The contractor, KWAAN TECH, LLC, is relatively new, with this award representing a significant portion of its reported value. 6. The contract is managed by the Department of State, indicating a need for specialized support within the agency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and the specific nature of professional staffing services. The Time and Materials pricing structure requires careful monitoring to ensure costs remain reasonable and do not exceed expectations. Without comparable contract data or a competitive bidding process, it is difficult to definitively assess if the government is receiving optimal value for its investment. The reported value of $6.76 million over approximately four years suggests a significant expenditure for specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one vendor, KWAAN TECH, LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore alternative solutions or leverage market forces to achieve the best possible pricing and terms. It is unclear from the provided data why this contract was not competed.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government work.

Public Impact

The primary beneficiaries are the HTP Programs Directorate within the Department of State, which will receive essential professional staffing support. Services delivered will likely include administrative, technical, and programmatic support crucial for the directorate's operations. The contract is geographically focused on the Washington D.C. Metro Area, impacting the local workforce and economy. This contract supports the operational capacity of a key government agency, indirectly benefiting national interests through the effective functioning of the State Department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits transparency and potential cost savings.
Time and Materials contract type can lead to cost overruns if not managed stringently.
Limited public information on the specific services and performance metrics.
Contractor's track record and capacity for this scale of work are not readily available.
The 'Facilities Support Services' NAICS code may not fully capture the scope of 'professional staffing'.

Positive Signals

Contract awarded to a specific vendor, ensuring continuity of services for the HTP Programs Directorate.
The contract has a defined period of performance, allowing for future re-evaluation of requirements.
Managed by the Department of State, a major federal agency with established procurement oversight processes.
The contract is for professional staffing, indicating a need for specialized expertise.

Sector Analysis

The professional staffing and facilities support services sector is a significant component of government contracting. This contract falls within the broader professional, scientific, and technical services industry. Government spending in this area often supports agency operations, program management, and specialized technical functions. Comparable spending benchmarks are difficult to establish without more specific details on the roles and expertise required, but agencies frequently contract for such support to augment their internal capabilities.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false) and the contractor is not explicitly identified as a small business in this snippet (sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to a potentially larger or non-small business entity means that opportunities for small business participation through subcontracting would depend on the prime contractor's own subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for the HTP Programs Directorate. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is limited by the sole-source nature of the award and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State Professional Services Contracts
Federal Facilities Support Services
Government Staff Augmentation Contracts
HTP Programs Directorate Support

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials contract type poses cost control risks.
Limited public information on contractor's past performance.
Scope of 'professional staffing' within 'facilities support' is unclear.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $6.8 million to KWAAN TECH, LLC. PROFESSIONAL STAFFING FOR THE HTP PROGRAMS DIRECTORATE, WASHINGTON DC METRO AREA (AWARD)

Who is the contractor on this award?

The obligated recipient is KWAAN TECH, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-11-30.

What specific professional services are being procured under this contract, and what is the justification for the sole-source award?

The provided data indicates the contract is for 'PROFESSIONAL STAFFING FOR THE HTP PROGRAMS DIRECTORATE' and falls under NAICS code 561210 (Facilities Support Services). However, the specific professional services are not detailed. The justification for the sole-source award ('NOT AVAILABLE FOR COMPETITION') is also not provided in the data snippet. Typically, sole-source justifications cite reasons such as urgency, unique capabilities of a single source, or a prior contract that cannot be re-competed due to specific circumstances. Without this justification, it's impossible to fully assess the necessity of the non-competitive award.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar professional staffing needs, and what are the associated risks?

Time and Materials contracts are often used when the scope of work is not clearly defined or when the duration is uncertain. They allow the government to pay for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to fixed-price contracts, T&M contracts carry a higher risk of cost overruns for the government because the final price is not predetermined. This necessitates robust oversight to ensure labor hours and material costs are reasonable and necessary. For professional staffing, T&M can be suitable if the exact tasks evolve, but it requires diligent monitoring by the contracting officer's representative (COR) to control expenditures and ensure value.

What is the track record of KWAAN TECH, LLC in performing similar professional staffing or facilities support services for the federal government?

The provided data snippet does not contain detailed information about KWAAN TECH, LLC's track record. It lists the contractor's name and the award value but does not include historical performance data, past performance ratings on other contracts, or the company's size and experience level. To assess their track record, one would typically need to consult federal procurement databases like SAM.gov, review past performance evaluations, and examine their contract history. Without this information, it is difficult to gauge their capability and reliability in delivering the required professional staffing services.

What is the total federal spending on Facilities Support Services (NAICS 561210) by the Department of State over the last five fiscal years?

To determine the total federal spending on Facilities Support Services (NAICS 561210) by the Department of State over the last five fiscal years, one would need to query comprehensive federal procurement data systems (e.g., FPDS-NG, SAM.gov). This data is not directly available in the provided snippet. However, general trends indicate that agencies like the Department of State consistently spend significant amounts on facilities support, encompassing a wide range of services from maintenance and repair to specialized operational support. This specific contract represents a portion of that broader spending category.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

The provided data snippet does not include any information regarding performance metrics or Key Performance Indicators (KPIs) for this contract. For Time and Materials contracts, performance is often monitored through the COR's oversight of labor hours, task completion, and adherence to the Statement of Work (SOW). Specific KPIs are usually detailed within the contract's SOW or performance work statement (PWS). The absence of publicly available KPIs suggests that this level of detail might be considered internal contract management information or is not routinely published.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM23R0025

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

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: $11,774,677

Exercised Options: $10,480,729

Current Obligation: $6,757,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline