DHS awards $71.9M IT services contract to Knight Point Systems, LLC for managed compliance

Contract Overview

Contract Amount: $71,887,357 ($71.9M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-05

End Date: 2021-09-05

Contract Duration: 1,096 days

Daily Burn Rate: $65.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF THE PURPOSE OF THIS EAGLE II FC1 SDVOSB TRACK TASK ORDER IS TO AWARD MANAGED COMPLIANCE SERVICES 2.0 TO KNIGHT POINT SYSTEMS, LLC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $71.9 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::CT::IGF THE PURPOSE OF THIS EAGLE II FC1 SDVOSB TRACK TASK ORDER IS TO AWARD MANAGED COMPLIANCE SERVICES 2.0 TO KNIGHT POINT SYSTEMS, LLC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's fixed-price nature provides cost certainty for the government. 3. Knight Point Systems, LLC is the sole awardee, indicating specific capabilities were sought. 4. The contract duration of approximately three years offers a stable period for service delivery. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on computing infrastructure and data processing services. 6. The award was made by the Department of Homeland Security's Office of Procurement Operations. 7. The contract was issued as a Delivery Order under the EAGLE II FC1 SDVOSB Track.

Value Assessment

Rating: good

The contract value of $71.9 million over three years for managed compliance services appears reasonable within the IT services sector. Benchmarking against similar managed IT services contracts, especially those involving compliance and data processing, would provide a clearer picture of value for money. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred, the limited number of bidders might suggest potential barriers to entry or a specialized market.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives services from qualified contractors.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced managed compliance services, crucial for its operational security and regulatory adherence. Knight Point Systems, LLC delivers critical IT infrastructure and data processing services, supporting DHS's mission. The services are delivered within the District of Columbia, impacting federal operations in the nation's capital. The contract supports IT professionals and compliance specialists employed by Knight Point Systems, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical compliance services could pose a risk if the vendor faces operational challenges.
The specific details of the managed compliance services are not fully elaborated, making it difficult to assess the full scope of potential risks.

Positive Signals

Awarded under a full and open competition, indicating a structured and accessible procurement process.
Firm Fixed Price contract type provides cost predictability for the government.
The contract is a Delivery Order under the EAGLE II FC1 SDVOSB Track, suggesting it aligns with broader government IT procurement strategies.
Knight Point Systems, LLC is an awardee, implying they met the necessary qualifications and requirements.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and managed compliance. The market for such services is large and competitive, driven by government and commercial demand for secure and compliant IT operations. The NAICS code 518210 covers a range of services including cloud computing, data hosting, and IT management. Comparable spending benchmarks would typically be found within government-wide acquisition contracts (GWACs) or large IT service indefinite-delivery/indefinite-quantity (IDIQ) vehicles.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Knight Point Systems, LLC is the sole awardee. There is no explicit information regarding subcontracting plans for small businesses within this specific task order. Further analysis would be needed to determine if subcontracting opportunities exist or are mandated under the broader EAGLE II contract vehicle.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's contracting officers and program managers. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is facilitated through contract award databases, though detailed performance reports are typically internal.

Related Government Programs

EAGLE II FC1 SDVOSB Track
Managed IT Services
IT Infrastructure Services
Data Processing Services
Compliance Services
Department of Homeland Security IT Procurement

Risk Flags

Limited competition (2 bidders) despite full and open process.
Lack of detailed performance metrics in summary data.
Potential for vendor lock-in with specialized compliance services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $71.9 million to KNIGHT POINT SYSTEMS, LLC. IGF::CT::IGF THE PURPOSE OF THIS EAGLE II FC1 SDVOSB TRACK TASK ORDER IS TO AWARD MANAGED COMPLIANCE SERVICES 2.0 TO KNIGHT POINT SYSTEMS, LLC

Who is the contractor on this award?

The obligated recipient is KNIGHT POINT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $71.9 million.

What is the period of performance?

Start: 2018-09-05. End: 2021-09-05.

What is the specific nature of the 'Managed Compliance Services 2.0' being provided by Knight Point Systems, LLC?

The provided data indicates the purpose is to award 'Managed Compliance Services 2.0'. While the exact scope of '2.0' is not detailed, managed compliance services typically involve ensuring that IT systems and operations adhere to relevant laws, regulations, and industry standards. This can include areas like data privacy (e.g., GDPR, CCPA), cybersecurity compliance (e.g., NIST, CMMC), financial regulations, and other sector-specific mandates. For the Department of Homeland Security, this likely pertains to critical infrastructure protection, data security, and adherence to federal IT security policies. The '2.0' designation might imply an updated or enhanced version of previous compliance services, potentially incorporating newer technologies or addressing evolving regulatory landscapes.

How does the $71.9 million contract value compare to similar managed IT services contracts awarded by DHS or other federal agencies?

Without specific details on the scope and duration of comparable contracts, a precise comparison is difficult. However, $71.9 million over three years for managed IT services, particularly those involving compliance for a large agency like DHS, is within a reasonable range. Large federal IT contracts can range from tens of millions to billions of dollars. Factors influencing cost include the complexity of the IT environment, the number of systems managed, the criticality of the data, and the specific compliance frameworks required. Contracts for managed security services or cloud hosting often represent significant portions of IT budgets. A more granular comparison would require analyzing contracts with similar NAICS codes (518210) and service descriptions.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For managed compliance services, common KPIs might include metrics related to the timeliness of compliance audits, the number of identified compliance gaps, the success rate of remediation efforts, system uptime for compliance reporting tools, and adherence to data security protocols. SLAs would define acceptable performance thresholds and remedies for non-performance. The absence of this information in the summary data limits a full assessment of performance expectations and accountability.

What is Knight Point Systems, LLC's track record with federal IT service contracts, particularly with DHS?

Knight Point Systems, LLC has secured this contract with the Department of Homeland Security, indicating they have met the agency's requirements. To assess their track record further, one would need to examine their past performance on other federal contracts. This includes reviewing contract history for similar services (IT infrastructure, data processing, compliance), contract values, performance ratings (if publicly available), and any past performance issues or awards. Their status as an awardee under the EAGLE II FC1 SDVOSB Track also suggests they have been vetted and qualified under that specific procurement vehicle, which aims to provide IT services to DHS.

What is the historical spending pattern for managed compliance services within DHS or for similar IT functions?

The provided data focuses on a single contract award and does not offer historical spending patterns. To analyze historical spending, one would need to query federal procurement databases (like USASpending.gov or FPDS) for contracts awarded to DHS or other agencies under NAICS code 518210 or related codes for IT services and compliance management over several fiscal years. This would reveal trends in spending, identify major contractors in this space, and highlight fluctuations in demand or contract values. Understanding these patterns is crucial for budgeting, strategic planning, and identifying potential cost-saving opportunities.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC18Q00000004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C. (UEI: 078628925)

Address: 1775 WIEHLE AVE STE 101, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $158,886,478

Exercised Options: $71,887,357

Current Obligation: $71,887,357

Actual Outlays: $165,463

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2032

IDV Type: IDC

Timeline