DoD awards $79.7M for IT services to Knight Point Systems, LLC under firm-fixed-price contract

Contract Overview

Contract Amount: $79,706,660 ($79.7M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-15

End Date: 2024-04-14

Contract Duration: 365 days

Daily Burn Rate: $218.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSCII - OPTION PERIOD 1

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $79.7 million to KNIGHT POINT SYSTEMS, LLC for work described as: CSCII - OPTION PERIOD 1 Key points: 1. Contract value represents a significant investment in IT services for the Defense Information Systems Agency. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government. 3. Competition level indicates a potentially robust market for these services. 4. The contract duration of one year suggests a need for ongoing, but potentially project-specific, support. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The award was made as a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) nature is generally favorable for the government, as it caps the contractor's potential profit and shifts cost overrun risks. Benchmarking the per-unit cost against similar IT services contracts is crucial for a definitive value assessment. Given the broad NAICS code, direct comparisons may be challenging without more specific service details. However, the award amount of $79.7 million for a one-year period suggests a substantial service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended and likely occurred. This approach is generally expected to yield fair market pricing and encourage innovation.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential offerors and drives down prices through market forces.

Public Impact

The Department of Defense benefits from essential IT services to support its operations. The Defense Information Systems Agency (DISA) is the primary recipient of these services. Services are likely to support critical defense infrastructure and operations. The contract may indirectly support a workforce skilled in advanced computer and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the services delivered.
The broad NAICS code (541519) could encompass a wide range of services, making it hard to pinpoint potential risks without further detail.
The contract is a delivery order, implying it's part of a larger, potentially multi-year, contracting effort whose overall value and risks are not fully detailed here.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contractor, Knight Point Systems, LLC, is performing services for a major federal agency (DoD/DISA).

Sector Analysis

The IT services sector for the federal government is vast and highly competitive. This contract falls under the broad category of computer-related services, which includes areas like IT consulting, systems integration, and custom software development. Federal spending in this sector is consistently high, driven by the need for modernization, cybersecurity, and operational support across all agencies. Knight Point Systems, LLC operates within this dynamic market, competing for contracts that require specialized IT expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Knight Point Systems, LLC actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Defense Information Systems Agency. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Professional Services Contracts

Risk Flags

Potential for broad service scope under NAICS 541519 requires clear definition of deliverables.
Contract duration of one year may necessitate follow-on procurements, impacting long-term planning.
Lack of specific bidder count limits assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.7 million to KNIGHT POINT SYSTEMS, LLC. CSCII - OPTION PERIOD 1

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 $79.7 million.

What is the period of performance?

Start: 2023-04-15. End: 2024-04-14.

What is the track record of Knight Point Systems, LLC in performing similar IT services for the Department of Defense?

Assessing Knight Point Systems, LLC's track record requires a review of their past performance on similar contracts, particularly with the Department of Defense and the Defense Information Systems Agency. This would involve examining past performance evaluations, any documented issues or successes, and their history of delivering services within scope, on time, and within budget. A contractor's ability to successfully execute previous, comparable tasks is a strong indicator of future performance. Without specific past performance data for this contractor on similar IT services, it is difficult to definitively assess their reliability for this particular award. Further research into contract databases and agency performance records would be needed.

How does the awarded amount of $79.7 million compare to similar IT services contracts awarded by DISA or the DoD?

To benchmark the $79.7 million award, one would compare it against other firm-fixed-price contracts for IT services awarded by DISA or the DoD within the last 1-3 years, ideally under similar NAICS codes (e.g., 541519) and for comparable contract durations (one year). Factors like the specific services rendered (e.g., network management, cybersecurity, software development), the level of security clearance required, and the geographic location of service delivery would also be important for a fair comparison. If this contract represents a significantly higher or lower cost per year compared to similar procurements, it could indicate either exceptional value or potential overpricing. Without access to a detailed comparative analysis of specific service elements and market rates, a precise value-for-money assessment is challenging.

What are the primary risks associated with this contract, given its scope and the contractor?

Key risks associated with this contract include potential performance issues if Knight Point Systems, LLC lacks the specific expertise required for the full breadth of services under NAICS 541519, or if there are challenges in managing the contractor's performance over the one-year period. Cost risks are mitigated by the firm-fixed-price structure, but scope creep or unforeseen technical challenges could still impact the government's overall investment if not managed tightly. Another risk could be the contractor's financial stability or their ability to retain key personnel throughout the contract duration. Dependence on a single contractor for critical IT services also presents a risk if the contractor fails to deliver or faces significant disruptions.

What is the expected effectiveness of the IT services provided under this contract for DISA's mission?

The effectiveness of the IT services hinges on how well they align with DISA's specific mission requirements and operational needs. Given the broad nature of NAICS 541519, the services could range from essential infrastructure support to advanced technological solutions. If the contract is well-defined with clear performance standards and deliverables, and if Knight Point Systems, LLC possesses the requisite skills and resources, the services are likely to contribute positively to DISA's operational efficiency and security. However, without detailed statements of work and performance metrics, assessing the precise impact on mission effectiveness is speculative. The success will depend on diligent oversight and the contractor's ability to meet defined objectives.

How has federal spending in the 'Other Computer Related Services' category (NAICS 541519) trended over the past five years?

Federal spending within the 'Other Computer Related Services' category (NAICS 541519) has generally shown a consistent upward trend over the past five years, reflecting the government's ongoing reliance on technology for its operations. This category encompasses a wide array of services, including IT consulting, systems integration, and data processing, all of which are critical for modernizing government functions, enhancing cybersecurity, and improving service delivery. Agencies across the board, including the Department of Defense, consistently allocate significant portions of their budgets to these services. Factors driving this trend include digital transformation initiatives, the need to upgrade legacy systems, and the increasing complexity of cybersecurity threats. While specific year-over-year fluctuations may occur, the overall trajectory indicates sustained and growing federal investment in this sector.

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

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: $79,706,660

Exercised Options: $79,706,660

Current Obligation: $79,706,660

Actual Outlays: $25,337,117

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