DoD's $32.7M Contract with Kapili Services for Threat Reduction Analysis Lacks Competition
Contract Overview
Contract Amount: $32,709,895 ($32.7M)
Contractor: Kapili Services, LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-16
End Date: 2026-12-15
Contract Duration: 1,825 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER OPERATIONS
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $32.7 million to KAPILI SERVICES, LLC for work described as: DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER OPERATIONS Key points: 1. Significant spending on specialized technical services. 2. Sole-source award raises concerns about price discovery. 3. Long contract duration (5 years) may lock in costs. 4. Limited transparency on performance metrics and value. 5. Sector: Defense services, highly specialized.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services, making value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to secure the best possible price and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely means taxpayers are paying a premium for these services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying due to lack of competitive bidding. Limited public information on the specific services provided and their impact. Long-term commitment to a single vendor without market validation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency
- Long contract duration
Positive Signals
- Essential defense support services
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting defense threat reduction. Spending in this niche area is often high due to specialized expertise required, but competition can be limited.
Small Business Impact
The awardee, Kapili Services, LLC, is not identified as a small business in this data. The lack of small business participation in sole-source contracts is a common concern.
Oversight & Accountability
Oversight is crucial for cost-plus contracts, especially sole-source awards. The Defense Threat Reduction Agency must ensure rigorous monitoring of costs and performance to protect taxpayer interests.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration may reduce flexibility.
- Lack of detailed performance metrics.
- Potential for cost overruns without strong oversight.
Tags
all-other-professional-scientific-and-te, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.7 million to KAPILI SERVICES, LLC. DEFENSE THREAT REDUCTION INFORMATION ANALYSIS CENTER OPERATIONS
Who is the contractor on this award?
The obligated recipient is KAPILI SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $32.7 million.
What is the period of performance?
Start: 2021-12-16. End: 2026-12-15.
What specific threat reduction analysis activities are covered by this contract, and how do they directly contribute to national security objectives?
The contract supports the Defense Threat Reduction Agency's mission, likely involving analysis of weapons of mass destruction threats, proliferation risks, and related security challenges. Detailed activities would include data collection, modeling, simulation, and reporting to inform policy and operational decisions for national security.
What justification was provided for the sole-source award, and were alternative competitive strategies considered and rejected?
Sole-source justifications typically cite unique capabilities, urgent needs, or lack of market availability. Without the specific justification, it's unknown if alternatives were explored. Agencies must document why competition was not feasible, often requiring extensive market research.
How is the effectiveness of Kapili Services' analysis measured, and what performance metrics are tied to the fixed fee component?
Effectiveness is likely measured through adherence to task orders, quality of deliverables, and timely completion. The fixed fee component suggests performance standards are established, but the specifics of these metrics and their link to the fee are not detailed in the provided data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HDTRA120R0054
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,217,540
Exercised Options: $41,332,127
Current Obligation: $32,709,895
Actual Outlays: $10,577,798
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-12-16
Current End Date: 2026-12-15
Potential End Date: 2026-12-15 00:00:00
Last Modified: 2025-12-29
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