DoD's $41.8M Appliance Contract Awarded to Knight Point Systems Under Full and Open Competition

Contract Overview

Contract Amount: $41,837,174 ($41.8M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2018-11-08

End Date: 2019-09-28

Contract Duration: 324 days

Daily Burn Rate: $129.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CATEGORY THREE APPLIANCES CONUS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to KNIGHT POINT SYSTEMS, LLC for work described as: CATEGORY THREE APPLIANCES CONUS Key points: 1. The contract value of $41.8M for appliance services represents a significant investment by the Defense Information Systems Agency. 2. Knight Point Systems, LLC secured this contract through full and open competition, indicating a competitive bidding process. 3. The contract duration of 324 days suggests a focused, project-based need for these services. 4. The 'Other Computer Related Services' NAICS code points to a specialized IT infrastructure requirement within the Defense sector.

Value Assessment

Rating: good

The award amount of $41.8M for 324 days of service appears reasonable given the specialized nature of IT services for the Department of Defense. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, specific parameters or prior exclusions may have influenced the pool of bidders. This method aims for competitive pricing but requires careful monitoring to ensure true market fairness.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to bid, potentially driving down costs and ensuring value for money.

Public Impact

Ensures critical IT infrastructure support for Department of Defense operations. Supports the technological capabilities of the Defense Information Systems Agency. Provides a platform for advanced computing and data management within a federal agency. Potential for follow-on contracts based on performance and evolving needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific appliance technology is proprietary.
Reliance on a single vendor for critical IT hardware/software could pose supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear contract duration and defined scope of work.
Supports a vital government function within the Defense sector.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services for the Department of Defense. Spending in this area is substantial across government, driven by the need for secure and advanced technological infrastructure to support national security and operational missions.

Small Business Impact

The contract was awarded to Knight Point Systems, LLC. Further analysis is needed to determine the extent of small business participation, either as a prime contractor or subcontractor, in fulfilling this large IT services requirement.

Oversight & Accountability

The award process under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured procurement. Oversight would focus on contract performance, adherence to specifications, and ensuring fair pricing throughout the delivery order period.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance data makes value assessment difficult.
Reliance on specific technology could lead to future compatibility issues.
Cybersecurity risks associated with critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to KNIGHT POINT SYSTEMS, LLC. 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 $41.8 million.

What is the period of performance?

Start: 2018-11-08. End: 2019-09-28.

What specific types of 'appliances' were procured, and how do they align with current DoD IT modernization goals?

The data indicates 'CATEGORY THREE APPLIANCES CONUS' and a NAICS code of '541519 - Other Computer Related Services.' This suggests specialized hardware or integrated systems, likely related to networking, security, or data processing. Understanding the exact nature of these appliances is crucial to assess their alignment with DoD's IT modernization objectives, ensuring they contribute to enhanced capabilities and efficiency rather than representing legacy technology.

What were the key factors considered in excluding other sources, and did this exclusion limit competitive pricing?

The phrase 'AFTER EXCLUSION OF SOURCES' implies that certain potential bidders were not considered. The justification for this exclusion is critical. If based on highly specialized capabilities or unique requirements, it might be valid. However, if the exclusion was overly broad or arbitrary, it could have stifled competition, potentially leading to a higher price than achievable in a truly open market. A review of the source selection justification is necessary.

How does the performance of Knight Point Systems on this contract compare to industry benchmarks for similar IT services, and what is the long-term strategic value?

Assessing Knight Point Systems' performance against industry benchmarks requires access to performance metrics and user feedback, which are not provided in the data. Evaluating the long-term strategic value involves understanding how these 'appliances' contribute to the DISA's mission, their scalability, and their integration with future IT architectures. A positive assessment would indicate a reliable, cost-effective solution that enhances operational effectiveness and supports evolving technological needs.

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.

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: $41,837,174

Exercised Options: $41,837,174

Current Obligation: $41,837,174

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102811D0102

IDV Type: IDC

Timeline