DoD awards $5.65M for consecutive interpreters to KADIAK LLC, raising concerns about competition and value
Contract Overview
Contract Amount: $5,650,742 ($5.7M)
Contractor: Kadiak LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-01
End Date: 2026-04-30
Contract Duration: 1,460 days
Daily Burn Rate: $3.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: CONSECUTIVE INTERPRETERS
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.7 million to KADIAK LLC for work described as: CONSECUTIVE INTERPRETERS Key points: 1. Contract awarded to KADIAK LLC for consecutive interpreters. 2. Significant value of $5.65 million over four years. 3. Lack of competition raises questions about price discovery. 4. Services are critical for Department of Defense operations.
Value Assessment
Rating: questionable
The contract value of $5.65 million for interpretation services over four years appears high without a competitive bidding process. Benchmarking against similar contracts for translation and interpretation services is difficult due to the lack of disclosed pricing details and competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential interpretation services.
Public Impact
Ensures critical communication needs for the Department of Defense are met. Potential for increased costs due to non-competitive award. Limited transparency on how KADIAK LLC was selected. Impact on small businesses in the translation and interpretation sector is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Essential service provision
- Long-term contract duration
Sector Analysis
The translation and interpretation services sector is diverse, with many small and large businesses. Government contracts in this area often involve sensitive information and require specialized skills, making competitive bidding crucial for ensuring value.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. The sole-source nature of the award limits opportunities for small businesses to compete for this significant contract.
Oversight & Accountability
Oversight is needed to ensure the Department of Defense is receiving fair value for the services provided by KADIAK LLC, especially given the non-competitive award. Accountability for the justification of the sole-source procurement should be reviewed.
Related Government Programs
- Translation and Interpretation Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in selection process
- No clear small business participation
Tags
translation-and-interpretation-services, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 million to KADIAK LLC. CONSECUTIVE INTERPRETERS
Who is the contractor on this award?
The obligated recipient is KADIAK LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $5.7 million.
What is the period of performance?
Start: 2022-05-01. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further information, it is difficult to assess the validity of this justification. A thorough review would be required to determine if competitive options were truly unavailable or if the procurement process could have been structured differently to encourage competition.
How does the pricing compare to industry benchmarks for similar services?
Benchmarking is challenging without access to detailed pricing structures and competitive bids. However, non-competitive contracts often carry a risk of inflated pricing. An independent analysis comparing KADIAK LLC's rates to market averages for comparable government and commercial contracts would be necessary to assess value for money.
What measures are in place to ensure the quality and effectiveness of the interpretation services provided?
Given the critical nature of interpretation services, especially within the Department of Defense, robust quality assurance measures should be in place. This includes performance monitoring, regular feedback mechanisms, and clear standards for interpreter qualifications and performance. The contract should outline these metrics and the process for addressing any service deficiencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ003422R0155
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Koniag, Inc.
Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,656,478
Exercised Options: $6,034,482
Current Obligation: $5,650,742
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-03-05
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