HHS awards $2.9M for AV/IT support to KLC Network Services under full and open competition

Contract Overview

Contract Amount: $2,921,928 ($2.9M)

Contractor: KLC Network Services, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2019-03-18

End Date: 2023-07-31

Contract Duration: 1,596 days

Daily Burn Rate: $1.8K/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: ROOM MANAGEMENT AUDIO VISUAL/INFORMATION (AV/IT) TECHNOLOGY SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.9 million to KLC NETWORK SERVICES, INC. for work described as: ROOM MANAGEMENT AUDIO VISUAL/INFORMATION (AV/IT) TECHNOLOGY SUPPORT Key points: 1. The contract value is $2.92 million over approximately 4.3 years. 2. KLC Network Services, Inc. is the sole awardee. 3. The contract was awarded using full and open competition after exclusion of sources. 4. The NAICS code 541512 indicates Computer Systems Design Services. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $2.92 million for AV/IT support appears reasonable given the 4.3-year duration. Benchmarking against similar IT support contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive process was intended. This method generally promotes price discovery and potentially better pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary AV/IT support services.

Public Impact

Ensures continued operation of essential audio visual and information technology systems. Supports the Department of Health and Human Services' administrative functions. Provides a stable IT infrastructure for a critical government agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if performance is not closely monitored.
  • Reliance on a single vendor for critical IT infrastructure.

Positive Signals

  • Awarded through full and open competition.
  • Firm Fixed Price contract type can provide cost certainty.

Sector Analysis

This contract falls under IT services, specifically computer systems design. Spending in this sector is substantial across government, with a focus on modernizing infrastructure and ensuring cybersecurity.

Small Business Impact

The data does not indicate if small businesses were involved in the competition or subcontracting. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Office of the Assistant Secretary for Administration within HHS, suggesting internal oversight. Monitoring performance and adherence to contract terms is crucial for accountability.

Related Government Programs

  • Computer Systems Design Services
  • Department of Health and Human Services Contracting
  • Office of the Assistant Secretary for Administration Programs

Risk Flags

  • Potential for scope creep if not managed tightly.
  • Dependence on a single vendor for critical support.
  • Need for robust performance monitoring to ensure value for money.

Tags

computer-systems-design-services, department-of-health-and-human-services, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.9 million to KLC NETWORK SERVICES, INC.. ROOM MANAGEMENT AUDIO VISUAL/INFORMATION (AV/IT) TECHNOLOGY SUPPORT

Who is the contractor on this award?

The obligated recipient is KLC NETWORK SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2019-03-18. End: 2023-07-31.

What specific AV/IT services are included in this contract?

The contract description 'ROOM MANAGEMENT AUDIO VISUAL/INFORMATION (AV/IT) TECHNOLOGY SUPPORT' suggests services related to the operation, maintenance, and potentially upgrade of audio visual equipment and related IT systems within meeting rooms or other designated spaces. This could encompass installation, troubleshooting, technical support, and system management.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators would likely focus on system uptime, response times for technical support requests, successful resolution rates for AV/IT issues, and user satisfaction. Specific metrics would be detailed in the contract's performance work statement to ensure the contractor meets service level agreements.

How does the pricing compare to industry benchmarks for similar AV/IT support services?

Without specific details on the services provided and the labor categories involved, a precise benchmark is difficult. However, the total contract value of $2.92 million over 1596 days (approx. 4.3 years) suggests an average annual cost of roughly $680,000. This would need to be compared against government and commercial benchmarks for comparable IT support contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19233SOL00115

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 590 HERNDON PKWY STE 500, HERNDON, VA, 20170

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,099,247

Exercised Options: $3,805,837

Current Obligation: $2,921,928

Actual Outlays: $1,655,842

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F1042Z

IDV Type: GWAC

Timeline

Start Date: 2019-03-18

Current End Date: 2023-07-31

Potential End Date: 2023-07-31 00:00:00

Last Modified: 2026-03-12

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