DOE awards $10.9M sole-source contract for technology transition advisory services to KADIAK LLC
Contract Overview
Contract Amount: $10,927,380 ($10.9M)
Contractor: Kadiak LLC
Awarding Agency: Department of Energy
Start Date: 2023-08-21
End Date: 2026-08-17
Contract Duration: 1,092 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROGRAMMATIC AND ADVISORY SUPPORT SERVICES IN SUPPORT OF THE OFFICE OF TECHNOLOGY TRANSITIONS (OTT).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $10.9 million to KADIAK LLC for work described as: PROGRAMMATIC AND ADVISORY SUPPORT SERVICES IN SUPPORT OF THE OFFICE OF TECHNOLOGY TRANSITIONS (OTT). Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings from competition. 2. The contract's duration of nearly three years suggests a need for sustained support in technology transitions. 3. Administrative Management and General Management Consulting Services are broad, requiring clear performance metrics to ensure value. 4. The award to KADIAK LLC, with no prior contract data provided, necessitates a review of their track record and pricing. 5. The Department of Energy's Office of Technology Transitions (OTT) is the primary beneficiary, indicating a focus on innovation dissemination. 6. The contract type is Time and Materials, which can pose cost control challenges if not closely monitored.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without comparable sole-source awards for similar services. The Time and Materials (T&M) pricing structure, while common for advisory services, carries inherent risks for cost overruns if not managed diligently. The absence of a competitive bidding process means there's no market-driven validation of KADIAK LLC's pricing. Further analysis would require understanding the specific labor categories, rates, and estimated hours to assess if the $10.9 million ceiling is reasonable for the expected scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without a competitive process, it is difficult to assess the level of price discovery and whether the government secured the best possible value. The absence of bidders means that the government did not benefit from the usual pressures that competition exerts on pricing and service quality.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not leverage competitive market forces to drive down prices. This also limits opportunities for other qualified businesses to secure federal contracts.
Public Impact
The Office of Technology Transitions (OTT) within the Department of Energy benefits from programmatic and advisory support. The contract aims to facilitate the transition of technologies, potentially impacting the pace of innovation and commercialization. The services provided could indirectly benefit the U.S. workforce by supporting the development and adoption of new technologies. The geographic impact is primarily centered in Washington D.C., where the Department of Energy is headquartered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential value for money.
- Time and Materials contract type can lead to cost escalation if not rigorously managed.
- Lack of historical data for KADIAK LLC makes performance and pricing assessment difficult.
- Broad scope of 'Administrative Management and General Management Consulting Services' requires clear performance metrics.
Positive Signals
- Contract supports the critical function of technology transition within the Department of Energy.
- The duration of the contract suggests a recognized need for ongoing support in this area.
- Awarding to a single entity may allow for deep institutional knowledge and specialized expertise development.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government spends billions annually on consulting services across various agencies to support program management, policy development, and technical expertise. The Department of Energy's focus on technology transitions is a key area for economic growth and national competitiveness, making advisory support crucial. Comparable spending benchmarks would typically involve analyzing other contracts for similar advisory services within the federal government, particularly those supporting innovation and technology transfer offices.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to KADIAK LLC, a single entity, does not inherently create opportunities for small business subcontractors unless KADIAK LLC voluntarily engages them. The lack of a small business set-aside means that larger, established firms were likely considered or that the specific nature of the services did not lend itself to a set-aside.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers responsible for the Office of Technology Transitions. As a sole-source award, the justification and terms will be subject to internal agency review and potentially audits by the Government Accountability Office (GAO) or the Department of Energy's Inspector General, especially if concerns arise regarding performance or cost. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract.
Related Government Programs
- Department of Energy Technology Transfer Programs
- Federal Management and Consulting Services
- Government Advisory Contracts
- Innovation and Commercialization Support
Risk Flags
- Sole-source award
- Time and Materials contract type
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on contractor performance history
Tags
department-of-energy, advisory-services, management-consulting, sole-source, time-and-materials, technology-transfer, office-of-technology-transitions, kadia-llc, district-of-columbia, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.9 million to KADIAK LLC. PROGRAMMATIC AND ADVISORY SUPPORT SERVICES IN SUPPORT OF THE OFFICE OF TECHNOLOGY TRANSITIONS (OTT).
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 $10.9 million.
What is the period of performance?
Start: 2023-08-21. End: 2026-08-17.
What is KADIAK LLC's track record with the federal government, particularly in providing similar advisory services?
Information regarding KADIAK LLC's specific track record with the federal government, especially concerning programmatic and advisory support for technology transitions, is not detailed in the provided data. As this is a sole-source award, a thorough review of the contractor's past performance, relevant experience, and client satisfaction would be crucial for the Department of Energy to justify the selection. Without access to past performance evaluations or a broader contract history, it is difficult to assess their capability and reliability for this $10.9 million contract. Future analysis should seek to uncover any prior federal awards, performance metrics, and any documented successes or challenges KADIAK LLC has encountered in similar engagements.
How does the $10.9 million contract value compare to similar advisory services contracts awarded by the Department of Energy or other agencies?
Benchmarking the $10.9 million contract value for programmatic and advisory support services is challenging without specific details on the scope of work and deliverables. However, federal spending on management and general management consulting services (NAICS code 541611) is substantial across agencies. Sole-source awards, by their nature, lack direct competitive benchmarks. To assess value, one would need to compare the proposed labor rates, estimated hours, and the complexity of the technology transition support against similar, potentially competed, contracts. The Time and Materials (T&M) structure also means the final cost could deviate from the ceiling, making a direct comparison difficult without understanding the utilization rates and specific services rendered.
What are the primary risks associated with a sole-source Time and Materials contract for advisory services?
The primary risks associated with a sole-source Time and Materials (T&M) contract for advisory services are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved through competition. There's a reduced incentive for the contractor to offer the most competitive rates. Secondly, the T&M structure carries inherent risks of cost escalation. Without fixed-price deliverables or strict controls on labor hours and rates, the total cost can exceed initial estimates if the project scope expands or if work is not performed efficiently. Robust oversight, clear performance metrics, and diligent monitoring of labor hours are essential to mitigate these risks and ensure value for taxpayer money.
What specific performance metrics will be used to evaluate KADIAK LLC's success in supporting the Office of Technology Transitions?
The provided data does not specify the performance metrics for this contract. However, for a contract supporting the Office of Technology Transitions (OTT), effective metrics would likely focus on the successful transition of technologies from research to commercialization. This could include quantifiable measures such as the number of technologies licensed, the number of patents filed or granted, the value of commercial agreements facilitated, the creation of new businesses or jobs resulting from technology transfers, and the timeliness of transition processes. The Department of Energy's contracting officers and program managers are responsible for establishing and monitoring these metrics to ensure KADIAK LLC delivers tangible value and meets the objectives of the OTT.
How does this contract align with the Department of Energy's broader goals related to innovation and economic development?
This contract directly aligns with the Department of Energy's (DOE) broader goals of fostering innovation and driving economic development. The Office of Technology Transitions (OTT) plays a critical role in ensuring that the groundbreaking research and development funded by the DOE translates into tangible benefits for the nation. By providing programmatic and advisory support, KADIAK LLC is expected to help accelerate the commercialization of these technologies, leading to new products, services, and industries. This, in turn, can create high-value jobs, enhance U.S. competitiveness, and contribute to national economic growth. The contract essentially serves as an investment in bridging the gap between scientific discovery and market application.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
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, 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: $25,000,000
Exercised Options: $14,211,912
Current Obligation: $10,927,380
Actual Outlays: $8,487,252
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-08-21
Current End Date: 2026-08-17
Potential End Date: 2028-08-17 00:00:00
Last Modified: 2026-03-31
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