KADIAK LLC Awarded $83.5M for IT Management and Consulting Services to Department of Energy

Contract Overview

Contract Amount: $83,455,956 ($83.5M)

Contractor: Kadiak LLC

Awarding Agency: Department of Energy

Start Date: 2020-12-22

End Date: 2026-06-21

Contract Duration: 2,007 days

Daily Burn Rate: $41.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE OCIO REQUIRES IT MANAGEMENT, BUSINESS CONSULTING, AND SUPPORT SERVICES TO ACCOMPLISH ITS MISSION, STRATEGY, AND STRATEGIC GOALS.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Energy obligated $83.5 million to KADIAK LLC for work described as: THE OCIO REQUIRES IT MANAGEMENT, BUSINESS CONSULTING, AND SUPPORT SERVICES TO ACCOMPLISH ITS MISSION, STRATEGY, AND STRATEGIC GOALS. Key points: 1. Contract provides essential IT management, business consulting, and support services. 2. Services aim to help the OCIO achieve its mission, strategy, and goals. 3. Contract duration extends over 2007 days, indicating a long-term need. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. Awarded to KADIAK LLC, a single contractor for these services. 6. Geographic focus appears to be Alaska, based on the state code. 7. The NAICS code 541618 suggests a broad range of management consulting services.

Value Assessment

Rating: fair

The total award amount is $83.5 million over a period of approximately 5.5 years. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not closely managed. Benchmarking against similar IT management and consulting contracts would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded as a sole-source procurement. This means that only one vendor, KADIAK LLC, was considered for this award. The lack of competition limits the government's ability to explore alternative solutions or secure potentially better pricing through a competitive bidding process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The government did not leverage market forces to drive down costs or encourage innovation from multiple potential providers.

Public Impact

The Office of the Chief Information Officer (OCIO) at the Department of Energy is the primary beneficiary, receiving critical IT and consulting support. Services delivered are expected to enhance the OCIO's ability to achieve its strategic objectives and operational mission. The contract's geographic impact is indicated as Alaska (AK), suggesting a focus on IT infrastructure or services within that region. Workforce implications may include the direct employment of personnel by KADIAK LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially innovative solutions.
Time and Materials contract type requires diligent oversight to control costs.
Lack of detailed performance metrics makes value assessment challenging.
Limited public information on the specific IT and consulting services required.

Positive Signals

Addresses a clear need for IT management and consulting services within the OCIO.
Long contract duration suggests a stable, ongoing requirement.
Award to a single entity may streamline management and communication.

Sector Analysis

This contract falls within the Management Consulting Services sector, specifically under NAICS code 541618. This sector is characterized by firms offering expertise in areas such as IT strategy, business process improvement, and organizational development. The Department of Energy's OCIO requires these services to support its complex technological infrastructure and strategic initiatives. Comparable spending in this sector often involves significant investments in IT modernization, cybersecurity, and digital transformation across various federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration or requirement for this specific contract award. There is no indication of small business set-aside provisions or subcontracting goals. This suggests that the primary contractor, KADIAK LLC, is likely not a small business, and the contract's structure does not appear to prioritize or facilitate opportunities for the small business ecosystem in this instance.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures would be tied to the performance against the contract's statement of work and delivery requirements. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Energy IT Modernization Programs
Federal IT Consulting Services
Management and Business Consulting Services
OCIO Support Contracts

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $83.5 million to KADIAK LLC. THE OCIO REQUIRES IT MANAGEMENT, BUSINESS CONSULTING, AND SUPPORT SERVICES TO ACCOMPLISH ITS MISSION, STRATEGY, AND STRATEGIC GOALS.

Who is the contractor on this award?

The obligated recipient is KADIAK LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $83.5 million.

What is the period of performance?

Start: 2020-12-22. End: 2026-06-21.

What is the specific nature of the IT management, business consulting, and support services KADIAK LLC is providing?

The provided data indicates the OCIO requires IT management, business consulting, and support services to accomplish its mission, strategy, and strategic goals. However, the specific details of these services are not elaborated upon. This could encompass a wide range of activities, including IT infrastructure management, cybersecurity consulting, software development support, data analytics, business process re-engineering, strategic planning, and general administrative support for IT operations. A deeper dive into the contract's statement of work (SOW) or task orders would be necessary to understand the precise deliverables and scope of work.

How does the $83.5 million award compare to typical spending for similar IT consulting services within the federal government?

Benchmarking this $83.5 million award requires comparing it to similar IT management and consulting contracts across federal agencies. Contracts for comprehensive IT support and strategic consulting can range widely in value, often from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity of the services. Given the duration of over 2000 days (approximately 5.5 years), the annual average spending is around $15 million. This figure is within the expected range for significant, long-term IT support and consulting engagements for a major federal agency's OCIO. However, without knowing the specific deliverables and the level of service required, a precise comparison is difficult.

What are the primary risks associated with a sole-source, Time and Materials contract of this magnitude?

The primary risks associated with this sole-source, Time and Materials (T&M) contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to higher costs and less innovation than might have been achieved through a competitive process. Secondly, the T&M pricing structure, while offering flexibility, carries inherent risks of cost escalation if not rigorously managed. Without strict oversight, detailed tracking of hours, and clear definitions of work, the total cost can exceed initial estimates. This combination necessitates robust contract administration and performance monitoring by the Department of Energy to mitigate these risks and ensure value for taxpayer money.

What is KADIAK LLC's track record with federal IT consulting contracts, particularly with the Department of Energy?

Information regarding KADIAK LLC's specific track record with federal IT consulting contracts, especially with the Department of Energy, is not detailed in the provided data. To assess their performance, one would need to examine past performance reviews, contract history databases (like SAM.gov or FPDS), and any publicly available reports on their project execution. Understanding their experience with similar-sized sole-source T&M contracts, their history of meeting deadlines, staying within budget, and client satisfaction would be crucial for evaluating their capability to deliver on this $83.5 million award effectively.

How has federal spending on IT management and consulting services evolved over the past five years, and where does this contract fit?

Federal spending on IT management and consulting services has generally seen a consistent increase over the past five years, driven by digital transformation initiatives, modernization efforts, and the need for advanced cybersecurity solutions across agencies. This $83.5 million contract with KADIAK LLC for the Department of Energy's OCIO aligns with this trend, representing a significant investment in maintaining and improving critical IT functions. While specific year-over-year spending data for this exact service category isn't provided, the overall federal IT budget continues to grow, making this contract a notable, albeit specific, component of that larger spending pattern.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koniag, Inc.

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $124,955,500

Exercised Options: $124,286,652

Current Obligation: $83,455,956

Actual Outlays: $70,304,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline