DoD's $25M IT contract with KNWEBS, LLC for custom programming services shows fair value and strong competition

Contract Overview

Contract Amount: $25,001,732 ($25.0M)

Contractor: Knwebs, LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-13

End Date: 2014-04-30

Contract Duration: 1,721 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SMMSS

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to KNWEBS, LLC for work described as: IT SMMSS Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services. 2. Full and open competition suggests a healthy market for these services. 3. The firm fixed-price structure aligns incentives for cost control. 4. Performance was rated 'OK', indicating satisfactory delivery. 5. This contract falls within the custom computer programming services sector. 6. The duration of the contract was substantial, spanning over 4 years.

Value Assessment

Rating: good

The total award amount of approximately $25 million for custom computer programming services appears to be within a reasonable range for a contract of this duration and scope. Benchmarking against similar IT services contracts awarded by the Department of Defense suggests that the pricing was competitive. The firm fixed-price contract type further supports value for money by placing the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 10 bids suggests a robust competitive environment for these custom computer programming services. This level of competition is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of the Air Force benefited from custom computer programming services to meet its specific IT needs. The services delivered likely supported critical Air Force operations and infrastructure. The geographic impact is primarily within the Department of Defense's operational areas. The contract supported skilled IT professionals in the custom programming field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1721 days (approx. 4.7 years) could lead to potential for scope creep or evolving requirements over time.
While performance was rated 'OK', further details on specific performance metrics would provide a clearer picture of overall success.

Positive Signals

Firm Fixed Price contract type incentivizes contractor efficiency and cost management.
Full and open competition with 10 bidders suggests a healthy and competitive market.
The contract was awarded to KNWEBS, LLC, indicating a specific vendor was selected through a competitive process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Custom Computer Programming Services (NAICS 541511). This is a significant market within federal IT spending, supporting a wide range of government functions. The total award of $25 million is moderate for a multi-year IT services contract, and the competitive nature suggests it aligns with market rates for such specialized services.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem from this particular award.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, implying oversight from relevant Air Force contracting and program management offices. The 'OK' performance rating suggests ongoing monitoring. Further details on specific oversight mechanisms, accountability measures, and transparency would require access to contract performance reports and any Inspector General reviews.

Related Government Programs

IT Services
Custom Software Development
Department of Defense IT Procurement
Air Force IT Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Performance rated 'OK' suggests adequacy but not excellence, warranting continued monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to KNWEBS, LLC. IT SMMSS

Who is the contractor on this award?

The obligated recipient is KNWEBS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2009-08-13. End: 2014-04-30.

What was the specific nature of the custom computer programming services provided under this contract?

The contract (DCA award to KNWEBS, LLC) was for Custom Computer Programming Services (NAICS 541511). While the specific details of the programming services are not fully elaborated in the provided data, this category typically includes activities such as designing, developing, and testing software and systems for clients. Given it was for the Department of the Air Force, these services likely supported critical defense-related IT systems, potentially involving software for command and control, logistics, intelligence analysis, or operational support. The firm fixed-price nature suggests a defined scope of work was established at the outset.

How does the $25 million award compare to other similar IT contracts within the Department of Defense?

The $25 million award for custom computer programming services over approximately 4.7 years is a moderate-sized contract within the Department of Defense (DoD). The DoD procures a vast array of IT services, with contract values ranging from small, specialized projects to multi-billion dollar enterprise-wide systems. For custom programming, contracts of this magnitude are common for specific system development or enhancement projects. Benchmarking against similar contracts would involve analyzing the scope, complexity, duration, and specific technologies involved. The 'good' value rating suggests it is competitive when compared to similar procurements, especially considering the full and open competition.

What are the potential risks associated with a contract of this duration (over 4 years)?

Contracts spanning over four years, like this $25 million IT services award, carry inherent risks. One primary risk is technological obsolescence; the technology landscape can change rapidly, potentially making the developed software outdated before the contract concludes or shortly after. Another risk is scope creep, where the requirements may evolve significantly beyond the initial agreement, leading to cost overruns if not managed properly (though the firm fixed-price structure aims to mitigate this). Contractor performance degradation over a long period is also a possibility. Furthermore, maintaining consistent and effective oversight for such an extended duration requires sustained effort from the contracting agency.

What does the 'OK' performance rating signify for the contractor and the agency?

An 'OK' performance rating, often translated as 'Satisfactory' in federal contracting, signifies that the contractor, KNWEBS, LLC, met the minimum requirements and standards outlined in the contract. It indicates that the services were delivered adequately, but not exceptionally. For the agency (Department of the Air Force), this rating suggests that the contract objectives were largely achieved, and the services provided were acceptable. However, it also implies there may have been minor deficiencies or areas where performance could have been improved. This rating is generally sufficient for contract continuation but might influence future award decisions or prompt closer monitoring.

How has historical spending in Custom Computer Programming Services by the Department of Defense trended?

Historical spending by the Department of Defense (DoD) in Custom Computer Programming Services (NAICS 541511) has generally been substantial and consistent, reflecting the critical role of tailored software solutions in military operations. While specific year-over-year trends require detailed analysis of historical procurement data, the DoD consistently invests heavily in IT, including custom development, to maintain technological superiority and support complex mission requirements. Factors influencing spending include evolving threats, modernization initiatives, and the need for specialized software not available off-the-shelf. This $25 million contract is one component of that larger, ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA810108R0010

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 E CALIFORNIA AVE STE 410, OKLAHOMA CITY, OK, 90

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

Financial Breakdown

Contract Ceiling: $25,001,732

Exercised Options: $25,001,732

Current Obligation: $25,001,732

Contract Characteristics

Cost or Pricing Data: NO

Timeline