DoD's Defense Information Systems Agency Spends $78.4M on Computer Services via Delivery Order

Contract Overview

Contract Amount: $78,406,460 ($78.4M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2021-04-14

Contract Duration: 378 days

Daily Burn Rate: $207.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSCII - BASE PERIOD YEAR 3 OF 5

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $78.4 million to KNIGHT POINT SYSTEMS, LLC for work described as: CSCII - BASE PERIOD YEAR 3 OF 5 Key points: 1. Significant spending on 'Other Computer Related Services' by DISA. 2. Knight Point Systems, LLC is the sole awardee for this delivery order. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. Base period year 3 of 5, suggesting ongoing need. 5. No small business participation noted.

Value Assessment

Rating: fair

The $78.4M award for Year 3 of 5 appears substantial for 'Other Computer Related Services'. Benchmarking against similar large-scale IT service contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the initial contract was full and open, this specific award is a delivery order to Knight Point Systems, LLC. The price discovery for this specific order relies on the initial competition's effectiveness.

Taxpayer Impact: Taxpayer funds are being utilized for IT services supporting defense information systems. Value for money is a key consideration.

Public Impact

Supports critical defense information systems infrastructure. Ensures continued operation of essential computer-related services. Potential impact on the broader IT services market depending on contract scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of small business participation.
  • Potential for vendor lock-in on follow-on work.
  • Need for ongoing performance monitoring.

Positive Signals

  • Firm Fixed Price contract provides cost predictability.
  • Awarded under a full and open competition framework.
  • Supports a critical defense agency.

Sector Analysis

This spending falls under IT services, specifically 'Other Computer Related Services'. Benchmarks for similar large-scale IT service contracts with defense agencies can vary widely based on scope and complexity.

Small Business Impact

The data indicates no small business participation in this specific delivery order. Efforts to include small businesses in future contracting opportunities should be explored.

Oversight & Accountability

Oversight is crucial to ensure Knight Point Systems, LLC meets performance requirements and that the pricing remains competitive throughout the contract duration.

Related Government Programs

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

Risk Flags

  • Lack of transparency on specific services provided.
  • Potential for cost overruns if not closely managed.
  • No small business involvement.
  • Dependence on a single vendor for this delivery order.

Tags

other-computer-related-services, department-of-defense, pa, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.4 million to KNIGHT POINT SYSTEMS, LLC. CSCII - BASE PERIOD YEAR 3 OF 5

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 $78.4 million.

What is the period of performance?

Start: 2020-04-01. End: 2021-04-14.

What specific computer-related services are being provided under this delivery order, and how do they align with DISA's mission objectives?

The specific services are categorized under NAICS code 541519, 'Other Computer Related Services.' These likely encompass a range of IT support, maintenance, or development activities crucial for DISA's operations. A detailed understanding of the Statement of Work is necessary to confirm alignment with DISA's strategic goals and ensure efficient use of funds.

What was the competitive landscape during the initial full and open competition, and how does that influence the current pricing?

The initial full and open competition aimed to solicit the best value from multiple vendors. The effectiveness of that competition in establishing a competitive baseline price is key. Without knowing the number of bidders or the price range achieved initially, it's difficult to assess if the current delivery order pricing reflects ongoing market competitiveness or potential price creep.

How is the performance of Knight Point Systems, LLC being monitored to ensure effective service delivery and value for taxpayer money?

Effective oversight involves regular performance reviews against the contract's Service Level Agreements (SLAs) and key performance indicators (KPIs). DISA should have a robust system for tracking deliverables, addressing any issues promptly, and ensuring that the services provided meet the required standards and contribute to mission success.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102816R0012

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

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

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

Financial Breakdown

Contract Ceiling: $78,406,460

Exercised Options: $78,406,460

Current Obligation: $78,406,460

Subaward Activity

Number of Subawards: 166

Total Subaward Amount: $32,650,306

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0041

IDV Type: IDC

Timeline

Start Date: 2020-04-01

Current End Date: 2021-04-14

Potential End Date: 2021-04-14 00:00:00

Last Modified: 2023-05-08

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