DoD's $61.3M IT contract for appliances awarded to Knight Point Systems, LLC

Contract Overview

Contract Amount: $61,354,714 ($61.4M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2018-09-28

Contract Duration: 362 days

Daily Burn Rate: $169.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $61.4 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. The contract's fixed-price nature aims to control costs and manage contractor risk. 4. Performance period of approximately one year indicates a need for timely delivery of IT services. 5. The award to a single contractor suggests a focus on specialized capabilities or established relationships. 6. The contract falls under IT services, a critical sector for defense operations.

Value Assessment

Rating: fair

The contract value of $61.3 million for a one-year period for IT appliances appears substantial. Benchmarking against similar contracts for IT hardware and support services is difficult without more specific details on the nature of the 'appliances' and the scope of services. However, the fixed-price contract type suggests an attempt to establish a clear cost ceiling. Further analysis would require comparing the per-unit cost of the appliances and associated services to market rates or other government procurements for comparable items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific requirements, prior performance, or other justifications. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower field than a truly unrestricted full and open competition. This could impact price discovery, potentially leading to higher prices than if a broader range of vendors had participated.

Taxpayer Impact: Taxpayers may have received a competitive price, but the exclusion of sources could mean that a more aggressive price was not achieved. The justification for excluding sources would be key to understanding the value proposition for taxpayers.

Public Impact

The Department of Defense benefits from the acquisition of necessary IT appliances and related services. This contract supports the operational readiness and technological infrastructure of defense agencies. The services are likely delivered within CONUS (Continental United States), impacting domestic defense IT capabilities. The contract supports the IT workforce involved in the deployment, maintenance, and management of these appliances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Lack of detailed performance metrics makes assessing value for money challenging.
The specific nature of 'appliances' is not detailed, raising questions about standardization and potential for overspending on specialized items.

Positive Signals

Fixed-price contract type helps control costs.
Awarded to a single contractor, potentially indicating specialized expertise.
Contract falls under IT services, a critical area for defense operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services and hardware. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading technological infrastructure. The Defense Information Systems Agency (DISA) is a major procurer of IT solutions to support military operations. Comparable spending benchmarks would depend on the specific type and quantity of 'appliances' procured, but government IT spending often runs into billions annually across various agencies.

Small Business Impact

The provided data indicates that small business set-aside was not utilized (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Knight Point Systems, LLC engages in significant subcontracting with small businesses. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Information Systems Agency (DISA). Accountability measures are inherent in the firm-fixed-price contract type, which places the financial risk on the contractor. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency IT Procurement
Department of Defense IT Services Contracts
Information Technology Hardware Procurement
Federal IT Appliance Contracts
Fixed-Price IT Contracts

Risk Flags

Limited competition due to exclusion of sources.
Lack of detailed performance metrics.
Ambiguity regarding the specific nature and necessity of 'appliances'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.4 million to KNIGHT POINT SYSTEMS, LLC. IGF::CL::IGF CATEGORY THREE APPLIANCES CONUS

Who is the contractor on this award?

The obligated recipient is KNIGHT POINT SYSTEMS, 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 $61.4 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-28.

What specific types of 'appliances' were procured under this contract, and what is their function within the DoD?

The term 'appliances' in this context likely refers to specialized IT hardware devices designed for specific functions, such as network security appliances (firewalls, intrusion detection systems), storage appliances, or computing appliances. Without further details from the contract's statement of work or technical specifications, it's difficult to pinpoint the exact nature. These appliances are crucial for maintaining the integrity, security, and operational efficiency of the Department of Defense's vast IT infrastructure, supporting everything from communication networks to data management and cybersecurity operations within the Continental United States (CONUS).

How does the $61.3 million contract value compare to similar IT appliance procurements by the DoD or other federal agencies?

Comparing the $61.3 million contract value requires detailed knowledge of the specific 'appliances' procured and their quantities. However, for context, federal agencies collectively spend billions annually on IT hardware and services. For instance, large-scale network infrastructure upgrades or cybersecurity solution deployments can easily reach tens or hundreds of millions of dollars. If these 'appliances' represent a significant portion of a critical system's functionality or security, the cost could be within a reasonable range for a one-year period. A direct comparison would necessitate identifying contracts with similar scope, technology, and duration.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was performance measured?

The provided data does not include specific KPIs or SLAs for this contract. Typically, for IT service and hardware delivery contracts, performance would be measured against criteria such as delivery timelines, equipment functionality, uptime guarantees, security compliance, and responsiveness to support requests. The contracting officer's representative (COR) would be responsible for monitoring performance and ensuring compliance with the contract's terms. The absence of this information in the summary data limits a thorough assessment of contractor performance and value realization.

What is the track record of Knight Point Systems, LLC in fulfilling similar government contracts, particularly within the DoD?

Knight Point Systems, LLC has a history of receiving federal contracts, primarily within the IT services and solutions domain. Publicly available data indicates they have been awarded numerous contracts, including those with the Department of Defense and other civilian agencies. Their performance history on these contracts would need to be reviewed through sources like the Contractor Performance Assessment Reporting System (CPARS) to gauge their reliability, quality of work, and adherence to schedules and budgets. Without access to CPARS data, a definitive assessment of their track record is not possible.

What is the justification for the 'exclusion of sources' in the competition for this contract, and what impact did it have on pricing?

The 'exclusion of sources' implies that the procurement was not a completely unrestricted full and open competition. Justifications for such exclusions can vary, including requirements for specific technical capabilities, compatibility with existing systems, or prior successful performance with a particular vendor. The impact on pricing is often a concern, as limiting the pool of potential bidders can reduce competitive pressure, potentially leading to higher prices than might be achieved in a broader competition. The specific rationale for excluding sources in this instance would be detailed in the contract's justification and approval (J&A) document, if applicable.

How does this contract fit into the broader IT modernization or cybersecurity strategies of the Department of Defense?

This contract likely supports the DoD's ongoing efforts to maintain and upgrade its IT infrastructure, which is fundamental to its operational capabilities and national security. Modernizing IT systems and enhancing cybersecurity are top priorities for the DoD, given the evolving threat landscape. The 'appliances' procured could be integral to bolstering network defenses, improving data processing capabilities, or ensuring the reliable operation of critical command and control systems. Understanding the specific function of these appliances would clarify their precise role within the DoD's larger strategic IT initiatives.

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: HC102810R2039

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Solutions Inc. (UEI: 081218565)

Address: 1775 WIEHLE AVE STE 101, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $61,354,714

Exercised Options: $61,354,714

Current Obligation: $61,354,714

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102811D0102

IDV Type: IDC

Timeline