DoD's $79M CSCII Contract with Knight Point Systems Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $79,096,536 ($79.1M)
Contractor: Knight Point Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-15
End Date: 2022-04-14
Contract Duration: 364 days
Daily Burn Rate: $217.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CSCII - BASE PERIOD YEAR 4 OF 5
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $79.1 million to KNIGHT POINT SYSTEMS, LLC for work described as: CSCII - BASE PERIOD YEAR 4 OF 5 Key points: 1. The contract's value of $79 million over its base period raises questions about cost-effectiveness for 'Other Computer Related Services'. 2. While listed as 'Full and Open Competition', the specific award mechanism ('Delivery Order') warrants further examination for true market engagement. 3. The lack of small business participation is a notable concern, potentially limiting broader economic impact. 4. The 'Other Computer Related Services' NAICS code is broad, making direct sector benchmarks challenging without more detail.
Value Assessment
Rating: questionable
The contract value of $79 million for a one-year period is substantial for 'Other Computer Related Services'. Benchmarking against similar contracts is difficult without more specific service details, but the price appears high relative to the duration and broad NAICS code.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition' via a 'Delivery Order'. While this indicates a competitive process, the specifics of the competition and how price discovery was achieved are not detailed, leaving room for potential inefficiencies.
Taxpayer Impact: The significant expenditure of $79 million necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for necessary defense information systems.
Public Impact
Taxpayers are funding a significant contract for IT services within the Department of Defense. The lack of small business involvement may mean missed opportunities for smaller, innovative companies to contribute to defense initiatives. The broad category of 'Other Computer Related Services' could encompass a wide range of functions, impacting the clarity of public understanding of the spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Broad NAICS code limits benchmarking
- Potential for price inefficiencies due to delivery order mechanism
Positive Signals
- Awarded under full and open competition
- Contract duration is clearly defined
Sector Analysis
This contract falls under the broad 'Other Computer Related Services' sector, which is a significant area of government spending. Benchmarking is difficult due to the NAICS code's generality, but IT services are crucial for defense operations.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This is a concern as it limits opportunities for small businesses to engage with the Department of Defense and potentially reduces the diversity of solutions available.
Oversight & Accountability
The award being a 'Delivery Order' under a larger contract suggests existing oversight mechanisms. However, the specific details of performance monitoring and accountability for this $79 million award require further investigation to ensure effective use of funds.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- High contract value for a broad service category
- Lack of small business participation
- Potential for limited price discovery in delivery order awards
- Broad NAICS code hinders specific benchmarking
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 $79.1 million to KNIGHT POINT SYSTEMS, LLC. CSCII - BASE PERIOD YEAR 4 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 $79.1 million.
What is the period of performance?
Start: 2021-04-15. End: 2022-04-14.
What specific services are included under the 'Other Computer Related Services' NAICS code for this contract, and how do they align with the reported value?
The NAICS code 541519, 'Other Computer Related Services,' is very broad. Without specific details on the services rendered, such as IT support, network management, or specialized software development, it's challenging to assess if the $79 million price tag is justified. Further clarification on the scope of work is needed for a precise value assessment.
How effectively did the 'Full and Open Competition' process ensure competitive pricing for this $79 million delivery order?
While the contract states 'Full and Open Competition,' the award mechanism as a 'Delivery Order' raises questions about the extent of true price discovery. It's possible this order was placed against an existing contract vehicle, which may not always yield the most competitive pricing compared to a standalone, newly competed contract. Further details on the bidding process are required.
What is the long-term strategic value and effectiveness of the 'Other Computer Related Services' provided by Knight Point Systems to the Defense Information Systems Agency?
The provided data focuses on the financial and contractual aspects, not the operational effectiveness or strategic value of the services. Assessing the long-term impact requires understanding how these services contribute to DISA's mission, the quality of the services delivered, and their role in supporting national defense objectives. This information is not available in the current dataset.
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 › IT AND TELECOM - NETWORK
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: $79,096,536
Exercised Options: $79,096,536
Current Obligation: $79,096,536
Subaward Activity
Number of Subawards: 150
Total Subaward Amount: $24,210,577
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102818D0041
IDV Type: IDC
Timeline
Start Date: 2021-04-15
Current End Date: 2022-04-14
Potential End Date: 2022-04-14 00:00:00
Last Modified: 2023-09-29
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