DoD's DISA Awards $87.9M Contract to Knight Point Systems for Computer Services

Contract Overview

Contract Amount: $87,896,680 ($87.9M)

Contractor: Knight Point Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-15

End Date: 2025-04-14

Contract Duration: 364 days

Daily Burn Rate: $241.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CSCII - OPTION PERIOD 2

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $87.9 million to KNIGHT POINT SYSTEMS, LLC for work described as: CSCII - OPTION PERIOD 2 Key points: 1. Significant contract value of $87.9 million awarded. 2. Knight Point Systems, LLC is the sole awardee. 3. Contract falls under 'Other Computer Related Services' (NAICS 541519). 4. Full and open competition was utilized. 5. Contract duration is 364 days.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar 'Other Computer Related Services' contracts would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market pricing.

Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued IT support services for the Department of Defense. Supports a private sector company, Knight Point Systems, LLC. Impacts the 'Other Computer Related Services' market segment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in provided data.
  • Potential for vendor lock-in if follow-on contracts are not competitively bid.

Positive Signals

  • Utilized full and open competition.
  • Firm fixed price contract type.

Sector Analysis

This contract falls within the broad IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, with significant competition among providers.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.

Oversight & Accountability

The award was made via a Delivery Order under an existing contract structure, suggesting some level of pre-qualification. Oversight will be crucial to ensure performance and adherence to the firm fixed price.

Related Government Programs

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

Risk Flags

  • Contract awarded to a single entity.
  • Duration is just under one year.
  • No specific performance metrics provided.
  • Small business participation not indicated.

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 $87.9 million to KNIGHT POINT SYSTEMS, LLC. CSCII - OPTION PERIOD 2

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 $87.9 million.

What is the period of performance?

Start: 2024-04-15. End: 2025-04-14.

What specific computer-related services are included in this contract?

The provided data categorizes the contract under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of services, including IT consulting, system integration, and technical support. Specific details would typically be found in the contract's statement of work, which is not included here.

What is the benchmarked cost per unit for these services?

A specific per-unit cost benchmark is not available with the provided data. The contract is a firm fixed price for a duration of 364 days. To establish a benchmark, one would need to compare the total contract value against the scope of work and compare that to similar contracts for 'Other Computer Related Services' awarded by the government.

How does the competition method impact the overall effectiveness of this award?

The use of 'full and open competition' is generally considered the most effective method for ensuring fair pricing and selecting the best value vendor. It allows all eligible companies to compete, fostering innovation and potentially leading to better service delivery and cost savings for the taxpayer compared to sole-source or limited competition awards.

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 TELECOMMUNICATIONSIT 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: $87,896,680

Exercised Options: $87,896,680

Current Obligation: $87,896,680

Actual Outlays: $22,800,000

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $16,879,018

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: 2024-04-15

Current End Date: 2025-04-14

Potential End Date: 2025-04-14 00:00:00

Last Modified: 2025-08-26

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