DoD's $19.3M IT Services Contract Awarded to Knowledge Consulting Group Inc. for 5 Years

Contract Overview

Contract Amount: $19,287,393 ($19.3M)

Contractor: Knowledge Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2003-12-24

End Date: 2008-12-23

Contract Duration: 1,826 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Place of Performance

Location: DULLES, LOUDOUN County, VIRGINIA, 20101

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to KNOWLEDGE CONSULTING GROUP INC for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these IT services. 3. The NAICS code 541519 points to a broad range of 'Other Computer Related Services'. 4. The contract was awarded to a single vendor, Knowledge Consulting Group Inc. 5. The contract was awarded under the 'Defense' sector, specifically to the Department of Defense. 6. The contract was awarded in Virginia, indicating a potential geographic concentration of services.

Value Assessment

Rating: fair

Benchmarking the value of this $19.3 million contract over five years requires more detailed service descriptions and performance metrics. Without specific deliverables or comparable contract data, it's difficult to definitively assess value for money. However, the average annual value of approximately $3.86 million falls within a typical range for IT services contracts of this nature. Further analysis would involve comparing the specific services rendered against industry standards and the contractor's performance history.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, which is crucial for a complete assessment of competition dynamics. A robust competition typically leads to better pricing and service offerings for the government. The absence of specific bidder numbers leaves room for potential concerns about the extent of price discovery achieved.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and encouraging innovation. However, without knowing the number of bids received, it's hard to quantify the exact savings or benefits realized.

Public Impact

The Department of Defense benefits from the provision of essential IT services. The contract supports the operational capabilities of the Defense Information Systems Agency (DISA). The services delivered likely contribute to national security and defense readiness. The contract may have implications for the IT workforce within the defense sector, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics makes it difficult to assess contractor effectiveness.
  • Limited information on the number of bidders hinders a full understanding of competitive pressure on pricing.
  • The broad NAICS code (541519) could encompass a wide range of services, making precise value assessment challenging.

Positive Signals

  • Awarded through full and open competition, suggesting a fair and accessible bidding process.
  • Contract duration of five years indicates a stable, long-term requirement, potentially leading to efficiencies.
  • The contractor, Knowledge Consulting Group Inc., has secured a significant contract, implying a level of established capability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market for the federal government is substantial, with agencies like the Department of Defense being major consumers. Contracts of this size and duration are common for supporting complex defense systems and infrastructure. Benchmarking would involve comparing the annual value against similar IT support contracts awarded by DoD or other federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The focus would be on whether the prime contractor engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense and the Defense Information Systems Agency (DISA). Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Defense Information Systems Agency (DISA) IT Support Contracts
  • Department of Defense IT Services
  • Federal IT Services Procurement
  • Other Computer Related Services Contracts

Risk Flags

  • Potential for technology obsolescence over the 5-year term.
  • Risk of vendor lock-in and difficulty in switching providers.
  • Need for strong contract oversight to ensure consistent performance and value.
  • Broad service category may obscure specific performance metrics.

Tags

it, defense, department-of-defense, knowledge-consulting-group-inc, full-and-open-competition, other-computer-related-services, contract-award, virginia, disa, it-services, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to KNOWLEDGE CONSULTING GROUP INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is KNOWLEDGE CONSULTING GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2003-12-24. End: 2008-12-23.

What specific IT services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions, including but not limited to IT consulting, systems integration, custom software development, IT support, and data processing services. Without a detailed statement of work or contract line item details, the precise nature of the services rendered by Knowledge Consulting Group Inc. remains unspecified. Further investigation into the contract's documentation would be necessary to ascertain the exact scope of work, such as network management, cybersecurity support, or application maintenance, which are critical for understanding the contract's true impact and value.

How does the $19.3 million contract value compare to similar IT services contracts awarded by the DoD?

The total contract value of $19.3 million over five years equates to an average annual value of approximately $3.86 million. This figure is within the typical range for IT services contracts supporting federal agencies, particularly within the Department of Defense, which has extensive and complex IT requirements. However, a precise comparison requires analyzing contracts with similar scope, duration, and service categories (e.g., IT support, systems integration, cybersecurity). The Defense Information Systems Agency (DISA), the specific awarding office, manages numerous IT contracts, and benchmarking against its portfolio of similar awards would provide a more accurate assessment of whether this contract represents a competitive price point or exceptional value.

What is the track record of Knowledge Consulting Group Inc. in performing federal IT contracts?

Knowledge Consulting Group Inc. was awarded this significant five-year contract, suggesting they possess the capabilities and experience required by the Department of Defense. To fully assess their track record, one would need to examine their past performance on previous federal contracts, including their success in meeting deadlines, quality standards, and budget constraints. Information on past performance evaluations, any contract disputes, or awards for exceptional performance would provide a clearer picture. A review of their contract history, particularly with DoD or DISA, would indicate their reliability and expertise in delivering IT services within the federal landscape.

What are the potential risks associated with a 5-year IT services contract of this magnitude?

A five-year IT services contract of this magnitude carries several potential risks. Firstly, technology evolves rapidly; a five-year commitment might lead to the government being locked into outdated solutions if the contract doesn't allow for flexibility and adaptation. Secondly, vendor lock-in is a risk, making it difficult and costly to switch providers if performance degrades or needs change. Thirdly, the large contract value could create a significant dependency on this single vendor, potentially reducing leverage in negotiations. Finally, ensuring consistent performance and value over such a long period requires robust oversight and performance management to mitigate risks of cost overruns or service degradation.

How does the 'Other Computer Related Services' classification impact the understanding of this contract's purpose?

The classification 'Other Computer Related Services' (NAICS 541519) is intentionally broad, encompassing a wide spectrum of IT-related activities that do not fit into more specific categories like software publishing or computer systems design. This broadness means the contract could cover anything from IT consulting and project management to data analysis, IT infrastructure support, or even specialized technical services. While it allows for flexibility in meeting evolving needs, it also makes it challenging to pinpoint the exact nature of the services without further details. Understanding the specific tasks performed under this classification is crucial for assessing the contract's true value, performance, and alignment with agency objectives.

What is the significance of this contract being awarded in Virginia?

The contract being awarded to a vendor located in Virginia (ST: VA) is significant primarily due to the high concentration of federal agencies and defense installations in the Washington D.C. metropolitan area and the state itself. Many IT service providers choose to establish a presence in this region to be close to potential government clients, facilitating easier communication, site visits, and service delivery. For the Department of Defense, awarding contracts to vendors in close proximity can sometimes streamline operations and reduce travel-related costs, although the primary driver for award is typically technical capability and price. The geographic location can also influence workforce availability and local economic impact.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 22630 DAVIS DR, STERLING, VA, 10

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: GS35F0448N

IDV Type: FSS

Timeline

Start Date: 2003-12-24

Current End Date: 2008-12-23

Potential End Date: 2008-12-23 00:00:00

Last Modified: 2011-10-13

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