DoD's $12.7M contract for program management support awarded to KADIAK LLC shows fair competition

Contract Overview

Contract Amount: $12,707,355 ($12.7M)

Contractor: Kadiak LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2026-06-19

Contract Duration: 1,099 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROGRAM MANAGEMENT, PROJECT MANAGEMENT AND ACQUISITION SUPPORT SERVICES

Place of Performance

Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to KADIAK LLC for work described as: PROGRAM MANAGEMENT, PROJECT MANAGEMENT AND ACQUISITION SUPPORT SERVICES Key points: 1. Contract awarded for program management, project management, and acquisition support services. 2. KADIAK LLC, a small business, secured this contract. 3. The contract was awarded under full and open competition. 4. The contract has a duration of approximately 3 years. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The award was made by the Defense Information Systems Agency (DISA).

Value Assessment

Rating: good

The contract's value of $12.7 million over three years for program management support appears reasonable given the scope of services. Benchmarking against similar contracts for acquisition support services suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The Department of Defense benefits from enhanced program and acquisition management capabilities. Services provided support the efficient execution of defense programs. The contract supports the Defense Information Systems Agency's mission. The contract is managed within Maryland, potentially impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if performance is exceptional and renewal is pursued without re-competition.
Reliance on a single contractor for critical program management functions could pose a risk if the contractor underperforms.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Contractor is a small business, potentially aligning with government small business goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT and acquisition support. The market for program management and acquisition support services is robust, with numerous firms offering specialized expertise. This contract represents a typical engagement for agencies like DISA that require specialized support to manage complex defense programs and IT initiatives.

Small Business Impact

While KADIAK LLC is identified as a small business, this contract was awarded under full and open competition, not as a small business set-aside. This means that while a small business won the contract, the competition was open to all sizes. There is no explicit indication of subcontracting requirements for small businesses within the provided data, but the prime contractor's small business status is a positive signal for the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under a larger contract vehicle, its execution will be monitored by the Defense Information Systems Agency. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense Program Management Support
Federal Acquisition Support Contracts

Risk Flags

Contractor Performance Risk
Scope Creep Potential
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to KADIAK LLC. PROGRAM MANAGEMENT, PROJECT MANAGEMENT AND ACQUISITION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KADIAK 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 $12.7 million.

What is the period of performance?

Start: 2023-06-16. End: 2026-06-19.

What is the track record of KADIAK LLC in performing similar government contracts?

Information regarding KADIAK LLC's specific track record on similar government contracts is not detailed in the provided data. However, as a recipient of this award, they have presumably met the qualifications and demonstrated capability required by the Defense Information Systems Agency. Further investigation into past performance evaluations and contract history would be necessary for a comprehensive assessment. Government contract databases and performance rating systems (like CPARS) would be the primary sources for this information. Understanding their history with firm-fixed-price contracts and program management services would be particularly relevant.

How does the awarded amount compare to similar program management support contracts?

The awarded amount of approximately $12.7 million over a 1099-day period (roughly 3 years) for program management, project management, and acquisition support services needs to be benchmarked against comparable contracts. Without specific details on the scope, complexity, and duration of services for comparison, a precise value-for-money assessment is difficult. However, for IT and defense-related program management, this value appears to be within a reasonable range, especially considering it was awarded under full and open competition. Agencies often procure such services in the multi-million dollar range for durations of 1-5 years.

What are the primary risks associated with this contract award?

Key risks include potential underperformance by the contractor, leading to delays or inefficiencies in program management. Given the firm-fixed-price nature, there's a risk of scope creep if requirements are not clearly defined and managed, potentially leading to cost overruns if change orders are extensive. Another risk is the potential for contractor dependency, where the agency becomes overly reliant on KADIAK LLC's expertise, making future transitions difficult. Finally, the concentration of critical program management functions with one entity carries inherent risk if that entity faces operational challenges.

How effective is the Defense Information Systems Agency (DISA) in managing contracts of this nature?

DISA is a major IT service provider for the Department of Defense and has extensive experience managing a wide array of complex IT and acquisition support contracts. Their established procurement processes and program management offices are designed to oversee contracts like this one. The agency's effectiveness is generally reflected in its ability to meet defense IT requirements. However, like any large organization, contract management effectiveness can vary. Oversight mechanisms, including performance monitoring and quality assurance, are crucial for ensuring DISA effectively manages this contract.

What are the historical spending patterns for program management support services at DISA?

Historical spending patterns for program management support services at DISA are likely substantial, given the agency's critical role in defense IT infrastructure. DISA frequently procures a variety of support services, including program management, cybersecurity, network operations, and systems engineering. Annual spending in this category can run into hundreds of millions or even billions of dollars, depending on the prevailing defense priorities and technological modernization efforts. This $12.7 million contract represents a specific, targeted investment within that broader spending landscape.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $33,190,386

Exercised Options: $14,084,921

Current Obligation: $12,707,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00A1

IDV Type: FSS

Timeline