DoD's $29.3M Enterprise Email Support Contract with KNWEBS, LLC: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $29,341,356 ($29.3M)

Contractor: Knwebs, LLC

Awarding Agency: Department of Defense

Start Date: 2011-06-08

End Date: 2016-08-15

Contract Duration: 1,895 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE EMAIL SUPPORT

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to KNWEBS, LLC for work described as: ENTERPRISE EMAIL SUPPORT Key points: 1. The contract's value of $29.3 million over its 5-year period suggests a significant investment in essential IT infrastructure. 2. KNWEBS, LLC, a relatively small entity, secured this substantial contract, indicating potential for specialized expertise or competitive pricing. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause warrants scrutiny regarding the initial exclusion and subsequent competition. 4. A 5-year duration for IT support services allows for sustained performance but also necessitates ongoing evaluation of service relevance and cost-effectiveness. 5. The contract's focus on 'Other Computer Related Services' places it within a broad category, requiring specific performance metrics for accurate assessment. 6. Fixed pricing models can offer budget predictability but may limit flexibility if service requirements evolve significantly.

Value Assessment

Rating: fair

Benchmarking the $29.3 million total contract value against similar enterprise email support contracts is challenging without more specific service details. However, the average annual value of approximately $5.86 million falls within a reasonable range for large-scale government IT support. The firm fixed-price structure suggests an attempt to control costs, but the ultimate value for money depends heavily on the quality and efficiency of the services delivered by KNWEBS, LLC. Without detailed performance metrics or comparisons to commercial IT support rates for equivalent services, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources may have been excluded initially. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially narrower competitive field than a truly open solicitation. This procurement method could impact price discovery, potentially leading to higher prices if viable competitors were excluded without adequate justification. Further investigation into the reasons for source exclusion is warranted.

Taxpayer Impact: Taxpayers may have received less competitive pricing due to the initial exclusion of potential bidders. The justification for this exclusion needs to be robust to ensure fair market value was obtained.

Public Impact

Department of Defense personnel benefit from reliable and continuous enterprise email support, ensuring operational communication capabilities. The services delivered are critical for maintaining the daily functioning of military and civilian staff within the DoD. The geographic impact is likely widespread, covering various DoD installations and personnel globally that rely on enterprise email systems. This contract supports IT professionals and potentially other roles within KNWEBS, LLC, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause raises concerns about the breadth of competition and potential for suboptimal pricing.
Lack of detailed performance metrics makes it difficult to assess the true value for money and service quality.
The broad 'Other Computer Related Services' category could mask inefficiencies or scope creep if not tightly managed.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
A 5-year contract duration allows for stability and continuity of essential IT services.
The award to KNWEBS, LLC, may indicate successful competition among specialized providers.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services. The federal IT services market is vast, with significant spending allocated to maintaining and upgrading complex systems. Contracts for enterprise email support are crucial for operational continuity across government agencies. Benchmarks for similar contracts vary widely based on scope, user base, and service level agreements, but a $29.3 million, 5-year contract for a major agency like the DoD represents a substantial commitment within this sub-sector.

Small Business Impact

The contract data indicates that KNWEBS, LLC is the prime contractor, and there is no explicit mention of small business set-asides or subcontracting requirements. If KNWEBS, LLC is a small business itself, this contract represents a significant award. However, without further information on subcontracting plans, the impact on the broader small business ecosystem is unclear. It's possible that larger IT support functions could be subcontracted to other firms, potentially including small businesses, but this is not evident from the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS) and require adherence to service level agreements (SLAs). Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Enterprise IT Services
Defense Information Systems Agency (DISA) Contracts
Federal IT Support Services
Enterprise Email Systems Management
Computer Related Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of technological obsolescence over the 5-year contract term.
Uncertainty regarding the specific performance metrics and value for money without detailed PWS.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to KNWEBS, LLC. ENTERPRISE EMAIL SUPPORT

Who is the contractor on this award?

The obligated recipient is KNWEBS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2011-06-08. End: 2016-08-15.

What specific services are included under 'Other Computer Related Services' for enterprise email support?

The 'Other Computer Related Services' (NAICS code 541519) category is broad and can encompass a wide range of IT support functions beyond standard software development or network management. For enterprise email support, this could include services such as email server administration, user account management, help desk support for email-related issues, email security monitoring and patching, data backup and recovery for email systems, migration support for email platforms, and potentially end-user training on email functionalities. The specific details would be outlined in the contract's Performance Work Statement (PWS), which defines the exact scope, deliverables, and performance standards expected from KNWEBS, LLC.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost-effectiveness?

This procurement method suggests that the agency initially considered excluding certain sources before opening the competition. While it aims to ensure fair competition among the remaining eligible sources, the exclusion of potential bidders could limit the overall competitive landscape. If the excluded sources were capable and competitive, their absence might lead to less aggressive pricing from the participating bidders. The justification for excluding sources is critical; if based on legitimate technical or capability requirements, the competition might still yield good value. However, if exclusions were arbitrary, it could result in higher costs for taxpayers compared to a truly open competition where all qualified vendors could participate.

What is KNWEBS, LLC's track record with similar large-scale federal IT support contracts?

Information regarding KNWEBS, LLC's specific track record with large-scale federal IT support contracts of this magnitude is not detailed in the provided data. As a contractor awarded a $29.3 million, 5-year definitive contract by the Department of Defense, it implies a certain level of capability and past performance. However, a comprehensive assessment would require reviewing their contract history, past performance evaluations (if publicly available), and experience with similar services and contract types. Without this detailed history, it's difficult to definitively assess their reliability and expertise for this specific enterprise email support requirement.

Are there specific performance metrics or KPIs associated with this contract to measure success?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific metrics used to measure the success of this enterprise email support contract. However, for a contract of this nature and duration, it is highly probable that a detailed Performance Work Statement (PWS) was established, outlining specific deliverables and performance standards. These would likely include metrics related to system uptime, response times for support requests, resolution rates, security compliance, and user satisfaction. The firm fixed-price nature of the contract suggests that meeting these predefined performance standards is crucial for KNWEBS, LLC to receive full payment.

How does this contract's spending compare to historical federal spending on enterprise email support?

Comparing this $29.3 million, 5-year contract to historical federal spending on enterprise email support requires access to broader federal procurement data. The Defense Information Systems Agency (DISA) is a major consumer of IT services, and its spending on email infrastructure is substantial. The annual average of approximately $5.86 million for this contract suggests a significant but potentially standard investment for supporting a large segment of the DoD. To provide a comparative analysis, one would need to aggregate spending on similar services across different agencies and over various fiscal years to identify trends, outliers, and overall market growth or contraction.

What are the potential risks associated with a 5-year firm fixed-price contract for IT support?

A 5-year firm fixed-price contract for IT support presents several potential risks. Firstly, technology evolves rapidly; a 5-year commitment might lock the government into outdated solutions or prevent the adoption of more efficient new technologies if the contract doesn't allow for flexibility. Secondly, if the scope of work is not precisely defined or if unforeseen technical challenges arise, the contractor might incur higher costs than anticipated, potentially leading to reduced service quality or attempts to cut corners to maintain profitability. Conversely, if the contractor significantly overestimates costs, the government might overpay for the services rendered. Effective contract management and clear scope definition are crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: HC102811R2013

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 E CALIFORNIA AVE STE 410, OKLAHOMA CITY, OK, 73104

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, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,463,033

Exercised Options: $29,463,033

Current Obligation: $29,341,356

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $224,085

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline