DHS awards $69M IT services contract to Knight Point Systems for OSDSS
Contract Overview
Contract Amount: $69,185,277 ($69.2M)
Contractor: Knight Point Systems, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2016-09-29
End Date: 2021-08-29
Contract Duration: 1,795 days
Daily Burn Rate: $38.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::CT::IGF IT SERVICES FOR OPERATIONS AND SOLUTIONS DELIVERY SUPPORT SERVICES (OSDSS)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536
Plain-Language Summary
Department of Homeland Security obligated $69.2 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::CT::IGF IT SERVICES FOR OPERATIONS AND SOLUTIONS DELIVERY SUPPORT SERVICES (OSDSS) Key points: 1. Contract awarded to Knight Point Systems, LLC for IT services. 2. The contract is for Operations and Solutions Delivery Support Services (OSDSS). 3. Awarded under full and open competition. 4. The contract duration is 1795 days. 5. The total value is $69,185,277.06.
Value Assessment
Rating: fair
The contract uses a Time and Materials pricing structure, which can lead to cost overruns if not closely managed. Benchmarking against similar IT services contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing model may not be the most effective for price discovery and cost control.
Taxpayer Impact: Taxpayer funds are being used for IT support services. The effectiveness of the competition and pricing structure will determine the overall value for taxpayers.
Public Impact
Supports critical IT operations for U.S. Immigration and Customs Enforcement. Ensures continuity of essential government services. Potential for cost increases due to Time and Materials pricing. Contract duration spans over four years.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Supports essential government functions.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across federal agencies, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically be managed by the U.S. Immigration and Customs Enforcement contracting office. The Time and Materials structure necessitates robust oversight to ensure costs remain within budget and services are delivered effectively.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Time and Materials pricing
- Lack of detailed service scope
- Potential for cost overruns
- Limited insight into small business participation
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $69.2 million to KNIGHT POINT SYSTEMS, LLC. IGF::CT::IGF IT SERVICES FOR OPERATIONS AND SOLUTIONS DELIVERY SUPPORT SERVICES (OSDSS)
Who is the contractor on this award?
The obligated recipient is KNIGHT POINT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $69.2 million.
What is the period of performance?
Start: 2016-09-29. End: 2021-08-29.
What specific IT services are included under OSDSS, and how do they align with ICE's mission objectives?
The OSDSS contract likely encompasses a range of IT support functions crucial for ICE operations, such as maintaining computing infrastructure, data processing, and potentially web hosting services. These services are fundamental to enabling ICE to carry out its immigration enforcement and security mandates effectively, ensuring the smooth functioning of its technological backbone.
What are the potential risks associated with the Time and Materials pricing model for this contract?
The primary risk of a Time and Materials (T&M) contract is the potential for cost escalation if labor hours and material costs are not strictly controlled and monitored. Without a fixed ceiling or well-defined deliverables, the contractor may have less incentive to optimize efficiency, leading to higher overall expenditures for the government than anticipated.
How effectively does the full and open competition ensure competitive pricing for these IT services?
While full and open competition is a strong indicator of a competitive process, the Time and Materials pricing structure can somewhat dilute its effectiveness in ensuring the lowest possible price. The competition may have focused on the contractor's ability to provide services rather than the most cost-efficient solution, potentially leading to a higher-than-optimal price if not managed diligently.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HSCETC-16-R-00005
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
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, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $74,132,348
Exercised Options: $71,875,542
Current Obligation: $69,185,277
Actual Outlays: $46,561
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSHQDC13DE2032
IDV Type: IDC
Timeline
Start Date: 2016-09-29
Current End Date: 2021-08-29
Potential End Date: 2021-08-29 00:00:00
Last Modified: 2023-08-23
More Contracts from Knight Point Systems, LLC
- This First Task Order Under the Uscg IMS BPA Will Stabilize and Secure the Uscg IT Infrastructure, Modernize the Uscg IT Infrastructure, and Improve the Integration of ALL Uscg C5I Systems With the Infrastructure — $156.1M (Department of Homeland Security)
- Cscii - Option Period 2 — $87.9M (Department of Defense)
- Federal Contract — $85.4M (Department of Homeland Security)
- Cscii - Base Period Year 5 of 5 — $82.2M (Department of Defense)
- Cscii - Option Period 3 — $81.1M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)