DOT's FAA awards $2.7M cloud migration support contract to Karsun Solutions LLC

Contract Overview

Contract Amount: $2,707,415 ($2.7M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2026-01-09

End Date: 2026-12-31

Contract Duration: 356 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SSD TO #16 FOR CLOUD MIGRATION SUPPORT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.7 million to KARSUN SOLUTIONS LLC for work described as: SSD TO #16 FOR CLOUD MIGRATION SUPPORT Key points: 1. Contract focuses on cloud migration support, a critical area for modernizing federal IT infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration is approximately one year, indicating a focused scope of work. 4. The fixed-price contract type helps manage cost certainty for the government. 5. Karsun Solutions LLC is the sole awardee for this specific delivery order. 6. The North American Industry Classification System (NAICS) code 541519 points to specialized computer services.

Value Assessment

Rating: good

The contract value of $2.7 million for approximately one year of cloud migration support appears reasonable given the specialized nature of IT services. Benchmarking against similar cloud migration contracts within the federal government would provide a more precise value-for-money assessment. However, the firm-fixed-price structure offers cost predictability. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the price seems aligned with market rates for such expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, there might have been specific reasons for excluding certain sources initially, or it could refer to a specific type of competitive procedure. The data indicates a competitive process was utilized, aiming to solicit offers from a wide range of qualified vendors. The number of bidders is not specified, but the 'full and open' designation suggests multiple entities had the opportunity to compete.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and encouraging vendors to offer competitive pricing to win the contract.

Public Impact

The Federal Aviation Administration (FAA) will benefit from enhanced cloud migration capabilities, potentially leading to improved IT system performance and reliability. The services delivered will support the modernization of critical FAA IT infrastructure. The geographic impact is primarily within the FAA's operational areas, likely supporting its headquarters and regional offices. The contract supports the IT services sector workforce, potentially creating or sustaining jobs for cloud migration specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Karsun Solutions becomes indispensable for ongoing cloud operations.
Scope creep could increase costs beyond the initial $2.7 million if not managed tightly.
Dependence on a single vendor for critical migration tasks introduces performance risks.
Ensuring adequate knowledge transfer to internal FAA staff is crucial for long-term sustainability.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding under full and open competition suggests a robust selection process.
The contract duration of approximately one year allows for focused execution and re-evaluation.
Karsun Solutions' expertise in cloud migration is likely a positive signal for successful project completion.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to cloud computing and IT modernization efforts. Cloud migration services are in high demand as agencies strive to improve efficiency, scalability, and security. This contract fits within the broader trend of federal agencies moving workloads to cloud environments to leverage advanced technologies and reduce infrastructure costs. Comparable spending benchmarks for cloud migration support can vary widely based on scope, complexity, and duration, but multi-million dollar awards for specialized IT services are common.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary award is to Karsun Solutions LLC, a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The absence of a small business set-aside means that opportunities for small businesses to participate in this particular contract are limited unless they are part of Karsun Solutions' supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Cloud Computing Services
IT Modernization
IT Professional Services
Software Development

Risk Flags

Potential for vendor lock-in
Scope creep risk
Performance dependency on single vendor
Security vulnerabilities during migration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.7 million to KARSUN SOLUTIONS LLC. SSD TO #16 FOR CLOUD MIGRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is KARSUN SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2026-01-09. End: 2026-12-31.

What is Karsun Solutions LLC's track record with the federal government, particularly in cloud migration projects?

Karsun Solutions LLC has a history of federal contracting, primarily within the IT services domain. While specific details on their cloud migration project portfolio within the federal government require deeper investigation into contract databases and performance reports, their award by the FAA for cloud migration support suggests they possess the necessary qualifications and experience. Analyzing past performance evaluations and contract completion records for Karsun Solutions on similar projects would provide a clearer picture of their capabilities and reliability in delivering cloud migration services to federal agencies. Their presence in the federal market indicates familiarity with government procurement processes and compliance requirements.

How does the $2.7 million contract value compare to similar cloud migration support contracts awarded by the FAA or other federal agencies?

The $2.7 million contract value for approximately one year of cloud migration support is within a common range for specialized IT services in the federal government. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and complexity. Factors such as the specific cloud platforms involved (e.g., AWS, Azure, GCP), the number of applications or systems to be migrated, and the level of security and compliance requirements significantly influence pricing. Without these granular details, it's difficult to definitively state if this represents exceptional value. Generally, the federal government aims for competitive pricing, and the 'full and open' competition suggests an effort to achieve this.

What are the key risks associated with this cloud migration support contract for the FAA?

Key risks include potential technical challenges during migration, such as data integrity issues or compatibility problems between legacy systems and the cloud environment. There's also a risk of vendor performance issues if Karsun Solutions fails to meet deadlines or quality standards. Security risks are paramount, as misconfigurations or vulnerabilities during migration could expose sensitive FAA data. Furthermore, a risk of cost overruns exists if the scope of work expands beyond the initial estimates, despite the firm-fixed-price structure. Finally, ensuring a smooth transition and effective knowledge transfer to FAA personnel post-migration is crucial to avoid long-term operational dependencies.

How effective is the 'Full and Open Competition After Exclusion of Sources' contracting method in ensuring fair pricing and vendor selection?

The 'Full and Open Competition After Exclusion of Sources' (F&O C AES) method is a specific type of competitive procedure. It implies that the solicitation was broadly advertised, allowing all responsible sources to submit an offer, but certain sources may have been excluded based on pre-defined criteria or specific circumstances outlined in the solicitation. This method aims to maximize competition while potentially addressing unique requirements or ensuring specific capabilities are met. When executed properly, it can lead to fair pricing and robust vendor selection by allowing a wide pool of qualified vendors to compete. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it doesn't unduly limit competition or favor specific vendors without clear justification.

What is the historical spending pattern for cloud migration support services at the FAA?

Analyzing historical spending patterns for cloud migration support at the FAA would reveal trends in their IT modernization efforts. This includes understanding the frequency of such awards, the average contract values, and the primary contractors involved. A review of past FAA contracts related to cloud services, data center consolidation, and IT infrastructure upgrades would provide context for this $2.7 million award. Significant increases or decreases in spending in this area could indicate shifts in strategic priorities, budget allocations, or the pace of cloud adoption within the agency. Understanding this history helps assess whether the current contract aligns with established patterns or represents a new initiative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13655 DULLES TECHNOLOGY DRIVE STE 110, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,707,415

Exercised Options: $2,707,415

Current Obligation: $2,707,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT17D00007

IDV Type: IDC

Timeline