GSA Awards $12.5M for 2nd Gen Ethernet Switches to KIHOMAC Inc

Contract Overview

Contract Amount: $12,495,697 ($12.5M)

Contractor: Kihomac Inc

Awarding Agency: General Services Administration

Start Date: 2019-07-31

End Date: 2024-07-30

Contract Duration: 1,826 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 2ND GENERATION ETHERNET SWITCH

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $12.5 million to KIHOMAC INC for work described as: 2ND GENERATION ETHERNET SWITCH Key points: 1. Contract awarded to KIHOMAC Inc. for $12.5 million. 2. Full and open competition was used after exclusion of sources. 3. The contract spans 5 years, ending July 2024. 4. This purchase falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The award amount of $12.5 million for a 5-year contract appears reasonable given the scope of providing 2nd generation Ethernet switches. Benchmarking against similar large-scale network hardware procurements would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this procurement. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Ensures continued network infrastructure upgrades for federal agencies. Supports the operational needs of agencies relying on robust Ethernet capabilities. Potential for improved data transfer speeds and network reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best value.
Contract duration is long (5 years).

Positive Signals

Addresses a specific technological need (2nd Gen Ethernet Switches).
Awarded by GSA, a central procurement agency.

Sector Analysis

This procurement falls within the IT sector, specifically network hardware. Spending benchmarks for similar engineering services and IT infrastructure contracts vary widely based on complexity and scale.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard oversight procedures for delivery orders under larger contracts are expected to be in place.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competition.
Potential for higher costs due to restricted bidding.
Long contract duration.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.5 million to KIHOMAC INC. 2ND GENERATION ETHERNET SWITCH

Who is the contractor on this award?

The obligated recipient is KIHOMAC INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-07-30.

What specific technical advancements does '2nd Generation Ethernet Switch' entail, and how do these justify the $12.5 million expenditure?

The term '2nd Generation Ethernet Switch' likely refers to hardware incorporating newer standards, improved performance metrics (e.g., higher throughput, lower latency), enhanced security features, and potentially greater energy efficiency compared to previous generations. The $12.5 million expenditure would need to be justified by the specific technological leap, the number of units procured, and the anticipated lifespan and operational benefits these advanced features provide to federal agencies.

How did the 'exclusion of sources' in the competition process impact the final price and vendor selection?

Excluding sources limits the pool of potential bidders, which can reduce competitive pressure and potentially lead to a higher price than if all qualified vendors had been allowed to compete. The specific reasons for exclusion would need to be documented and justified to ensure fairness and adherence to procurement regulations. This limitation could have resulted in KIHOMAC Inc. not facing the most competitive pricing environment.

What are the long-term implications of relying on a single vendor (KIHOMAC Inc.) for this specific technology over a 5-year period?

A 5-year reliance on a single vendor for critical technology like Ethernet switches could lead to vendor lock-in, making it difficult to switch to potentially superior or more cost-effective solutions later. It also concentrates risk; if KIHOMAC Inc. faces financial or operational issues, it could disrupt the supply chain. However, it may also foster a strong working relationship and specialized support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08180045

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kihomac, Inc.

Address: 12030 SUNRISE VALLEY DR STE 320, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,844,993

Exercised Options: $12,495,697

Current Obligation: $12,495,697

Actual Outlays: $-7,807

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $4,177,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS321

IDV Type: IDC

Timeline