DoD's $82.2M IT Services Contract Awarded to Knight Point Systems, LLC for 5 Years

Contract Overview

Contract Amount: $82,215,090 ($82.2M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-15

End Date: 2023-04-14

Contract Duration: 364 days

Daily Burn Rate: $225.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSCII - BASE PERIOD YEAR 5 OF 5

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $82.2 million to KNIGHT POINT SYSTEMS, LLC for work described as: CSCII - BASE PERIOD YEAR 5 OF 5 Key points: 1. Value for money assessed through firm-fixed-price contract type, aiming for predictable costs. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include a single delivery order under a larger contract, requiring scrutiny of task order execution. 4. Performance context relies on the successful completion of previous years within the 5-year base period. 5. Sector positioning within IT services, specifically computer-related services, highlights a common but critical government need. 6. The contract's duration of one year for the base period's final year suggests ongoing need and potential for follow-on work.

Value Assessment

Rating: good

The firm-fixed-price contract type is generally favorable for the government, locking in costs for the specified services. Benchmarking the $82.2 million total value against similar IT services contracts within the Department of Defense requires detailed analysis of scope and duration. However, the award value of $225,866 for the final year of the base period appears reasonable for specialized IT support, though a direct per-unit cost comparison is not feasible without more granular service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but a full and open competition generally suggests a healthy level of market interest. This process is designed to foster price discovery and ensure the government receives competitive pricing by allowing multiple vendors to vie for the contract.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the best possible price through market forces.

Public Impact

The Department of Defense benefits from continued IT support services, crucial for its operational readiness. Services delivered likely include a range of computer-related support, potentially encompassing network management, system maintenance, or cybersecurity. The geographic impact is primarily within the Defense Information Systems Agency's operational sphere, likely supporting military and civilian personnel. Workforce implications may involve the direct employment of IT professionals by Knight Point Systems, LLC, contributing to the tech labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not tightly managed.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
The specific nature of 'Other Computer Related Services' requires clear definition to avoid ambiguity in deliverables.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
The contract has successfully completed four years, indicating a degree of contractor reliability and performance.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market for the federal government is substantial, with significant spending allocated to maintaining and modernizing systems. This contract represents a portion of the Defense Information Systems Agency's (DISA) overall IT procurement strategy, aiming to secure specialized support critical for defense operations. Comparable spending benchmarks would involve analyzing other DISA contracts for similar IT support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, Knight Point Systems, LLC, may engage small businesses as subcontractors if it aligns with their strategy, though this is not a mandated element of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Defense Information Systems Agency. Performance monitoring, quality assurance, and adherence to contract terms are key oversight mechanisms. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Services for National Security Agencies

Risk Flags

Contract performance risk
Vendor lock-in potential
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.2 million to KNIGHT POINT SYSTEMS, LLC. CSCII - BASE PERIOD YEAR 5 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 $82.2 million.

What is the period of performance?

Start: 2022-04-15. End: 2023-04-14.

What is the track record of Knight Point Systems, LLC with the federal government, particularly in fulfilling IT services contracts?

Knight Point Systems, LLC has a history of federal contracting, primarily within the Department of Defense. Analyzing their past performance on similar IT services contracts is crucial. This includes examining past performance evaluations, any reported contract disputes or terminations, and their success in meeting delivery timelines and quality standards on previous awards. A review of their contract history would reveal their experience level and reliability in providing the types of services required under this award. Their ability to successfully navigate the complexities of government contracting, including compliance and reporting, is a key indicator of their suitability.

How does the awarded amount of $82.2 million compare to similar IT services contracts awarded by DISA or the DoD?

Comparing the $82.2 million total contract value requires a nuanced approach, considering the contract's duration (5-year base period) and the specific 'Other Computer Related Services' scope. To benchmark effectively, one would look at other DISA or DoD contracts for similar IT support, network management, or system integration services awarded over comparable periods. Factors like the number of end-users supported, the criticality of the systems, and the specific technical requirements heavily influence pricing. Without these granular details, a direct comparison is difficult, but the value suggests a significant, long-term IT support requirement.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues from the contractor, the possibility of cost overruns if not managed tightly (though mitigated by firm-fixed-price), and the risk of vendor lock-in if competition for follow-on work is limited. Mitigations typically involve robust contract oversight, clear performance metrics and Service Level Agreements (SLAs), regular performance reviews, and maintaining a competitive environment for future contract actions. The government's ability to define clear requirements and monitor progress is paramount in managing these risks effectively.

How effective has Knight Point Systems, LLC been in delivering services under this specific contract over its previous years?

Assessing the effectiveness of Knight Point Systems, LLC requires access to performance data from the first four years of this contract. This would involve reviewing contractor performance reports, any quality assurance surveillance plan (QASP) findings, and feedback from the government's technical points of contact. Key metrics might include on-time delivery, adherence to technical specifications, responsiveness to issues, and overall customer satisfaction. A positive performance history in prior years would indicate a lower risk for the remaining period.

What is the historical spending trend for 'Other Computer Related Services' within the Department of Defense?

Historical spending on 'Other Computer Related Services' within the DoD has generally trended upwards, reflecting the increasing reliance on technology for defense operations and modernization efforts. This category often encompasses a wide array of specialized IT support, from cybersecurity services to system integration and maintenance. Analyzing trends requires examining annual procurement data, identifying major contract vehicles, and understanding the drivers behind spending increases, such as new technological requirements or shifts in defense strategy. This specific contract contributes to that broader spending pattern.

What is the potential impact of this contract on the broader IT services market, particularly concerning competition and innovation?

This contract, awarded through full and open competition, contributes to a dynamic IT services market. It signals demand for specific computer-related services within the defense sector, potentially encouraging providers to develop relevant capabilities. The competitive nature of the award suggests that multiple firms were capable of meeting the requirements, fostering a healthy market. However, the long-term impact on innovation depends on whether the contract structure incentivizes the contractor to introduce new technologies or efficiencies, or if it primarily focuses on maintaining existing systems.

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 - APLLICATIONS

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: $82,215,090

Exercised Options: $82,215,090

Current Obligation: $82,215,090

Actual Outlays: $82,215,090

Subaward Activity

Number of Subawards: 266

Total Subaward Amount: $112,792,396

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