Knight Point Systems awarded $156M for USCG IT infrastructure modernization and C5I system integration

Contract Overview

Contract Amount: $156,102,514 ($156.1M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-01

End Date: 2025-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $142.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS FIRST TASK ORDER UNDER THE USCG IMS BPA WILL STABILIZE AND SECURE THE USCG IT INFRASTRUCTURE, MODERNIZE THE USCG IT INFRASTRUCTURE, AND IMPROVE THE INTEGRATION OF ALL USCG C5I SYSTEMS WITH THE INFRASTRUCTURE.

Place of Performance

Location: ALEXANDRIA, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $156.1 million to KNIGHT POINT SYSTEMS, LLC for work described as: THIS FIRST TASK ORDER UNDER THE USCG IMS BPA WILL STABILIZE AND SECURE THE USCG IT INFRASTRUCTURE, MODERNIZE THE USCG IT INFRASTRUCTURE, AND IMPROVE THE INTEGRATION OF ALL USCG C5I SYSTEMS WITH THE INFRASTRUCTURE. Key points: 1. Focus on IT infrastructure stabilization, modernization, and C5I system integration for the USCG. 2. Contract aims to improve the interoperability of critical Coast Guard command, control, communications, computers, and intelligence systems. 3. The award represents a significant investment in the USCG's technological backbone. 4. Task order under a broader Blanket Purchase Agreement (BPA) indicates potential for future work. 5. Firm Fixed Price contract type shifts performance risk to the contractor. 6. The duration of the task order is three years, aligning with modernization goals.

Value Assessment

Rating: good

The contract value of $156 million for a three-year period for IT infrastructure modernization and integration appears reasonable given the scope. Benchmarking against similar large-scale IT modernization efforts within federal agencies suggests this level of investment is typical for comprehensive system overhauls. The firm fixed-price nature of the contract provides cost certainty for the government, assuming the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach maximizes the pool of potential contractors and ensures a broad range of solutions are considered.

Taxpayer Impact: A full and open competition is the most advantageous for taxpayers as it drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The U.S. Coast Guard will benefit from modernized and more secure IT infrastructure. Improved integration of C5I systems will enhance operational effectiveness and situational awareness. Personnel across the Coast Guard will experience improved IT services and system performance. The contract supports the technological advancement of a critical national security agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined.
Dependence on contractor expertise for critical IT infrastructure management.
Risk of integration challenges with legacy C5I systems.

Positive Signals

Firm Fixed Price contract mitigates cost overruns.
Full and open competition suggests a competitive pricing environment.
Focus on modernization indicates a strategic investment in long-term capability.
Task order under a BPA allows for flexibility and potential future efficiencies.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure, maintenance, and system integration. The federal IT market is substantial, with agencies continually investing in modernization to maintain operational effectiveness and cybersecurity. This contract aligns with broader government initiatives to upgrade aging IT systems and enhance interoperability across different platforms and services, particularly within defense and homeland security agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, the direct impact on small businesses through this specific award is likely limited unless Knight Point Systems, LLC engages them as subcontractors. Further analysis would be needed to determine subcontracting plans and their potential benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. As a task order under a BPA, the underlying BPA likely has established oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations related to IT spending and contract performance.

Related Government Programs

USCG IT Modernization Programs
DHS C5I Systems Integration
Federal IT Infrastructure Support Contracts
BPA Call Contracts
Computer and Office Machine Repair and Maintenance Services

Risk Flags

Potential for integration complexity with legacy systems.
Cybersecurity risks during infrastructure transition.
Dependence on contractor's technical expertise.
Risk of schedule delays if unforeseen issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $156.1 million to KNIGHT POINT SYSTEMS, LLC. THIS FIRST TASK ORDER UNDER THE USCG IMS BPA WILL STABILIZE AND SECURE THE USCG IT INFRASTRUCTURE, MODERNIZE THE USCG IT INFRASTRUCTURE, AND IMPROVE THE INTEGRATION OF ALL USCG C5I SYSTEMS WITH THE INFRASTRUCTURE.

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 (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $156.1 million.

What is the period of performance?

Start: 2023-01-01. End: 2025-12-31.

What is the track record of Knight Point Systems, LLC in delivering similar IT infrastructure modernization projects for federal agencies?

Knight Point Systems, LLC has a history of providing IT services to federal agencies. While specific details on past large-scale IT infrastructure modernization projects comparable to this USCG award are not immediately available in this data snippet, their contract history would need to be reviewed for performance on similar scope and complexity. Assessing past performance, including on-time delivery, budget adherence, and client satisfaction on previous IT modernization and integration contracts, is crucial for understanding their capability to execute this significant task order successfully. A deeper dive into their contract awards and performance reviews would provide a clearer picture of their relevant experience.

How does the per-unit cost or pricing structure of this contract compare to industry benchmarks for IT infrastructure modernization?

The provided data does not include detailed pricing breakdowns or per-unit costs, making a direct comparison to industry benchmarks challenging. The contract is a Firm Fixed Price (FFP) award valued at $156 million over three years. To assess value for money, one would need to analyze the specific services and deliverables outlined in the task order and compare their estimated costs against market rates for similar IT modernization and integration services. Factors such as the complexity of the USCG's existing infrastructure, the scope of modernization, and the specific technologies involved would influence these benchmarks. Without granular cost data, a definitive value assessment is difficult, but the FFP structure aims to provide cost certainty.

What are the primary risks associated with the modernization and integration of the USCG's C5I systems under this contract?

Key risks include technical challenges in integrating new infrastructure with existing legacy C5I systems, potential cybersecurity vulnerabilities during the transition, and the possibility of scope creep if requirements are not tightly managed. Contractor performance and the availability of skilled personnel are also critical factors. Furthermore, ensuring seamless data migration and maintaining operational continuity throughout the modernization process presents significant logistical and technical hurdles. The success of the integration hinges on effective project management, robust testing protocols, and close collaboration between the contractor and the USCG.

How effective are the oversight mechanisms in place to ensure the successful completion and value for money of this IT modernization contract?

Oversight for this contract is expected to be managed by the U.S. Coast Guard's contracting officers and program managers, who are responsible for monitoring performance, ensuring adherence to the contract terms, and approving deliverables. As this is a task order under a Blanket Purchase Agreement (BPA), the underlying BPA likely contains established oversight protocols. The Department of Homeland Security's Office of Inspector General (OIG) provides an additional layer of oversight through audits and investigations, focusing on efficiency and preventing fraud, waste, and abuse. Transparency is typically supported by federal contract databases, though detailed performance metrics may not always be publicly accessible.

What is the historical spending pattern for IT infrastructure modernization and C5I system integration within the U.S. Coast Guard or similar agencies?

Historical spending on IT infrastructure modernization and C5I system integration within the U.S. Coast Guard and similar agencies like other branches of the military or Department of Homeland Security components is typically substantial. Agencies continuously invest in upgrading their technological capabilities to meet evolving mission requirements and combat emerging threats. Spending patterns often reflect a multi-year commitment to modernization, with significant budgets allocated to hardware, software, integration services, and cybersecurity. This $156 million award for a three-year period aligns with the ongoing trend of significant federal investment in upgrading critical IT and command systems.

What are the potential long-term benefits and implications of this contract for the USCG's operational capabilities?

The long-term benefits of this contract are expected to be significant, primarily through enhanced operational capabilities stemming from a modernized and integrated IT infrastructure. Improved C5I system integration will lead to better command and control, faster decision-making, and increased situational awareness for Coast Guard personnel. A more stable and secure IT environment reduces the risk of disruptions and cyberattacks, ensuring mission readiness. Ultimately, this investment should translate into more efficient and effective execution of the USCG's diverse missions, from maritime security and law enforcement to search and rescue operations.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15052 CONFERENCE CTR DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $376,115,389

Exercised Options: $164,346,937

Current Obligation: $156,102,514

Subaward Activity

Number of Subawards: 122

Total Subaward Amount: $84,022,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70Z07923AISD20001

IDV Type: BPA

Timeline