DHS Awards $85.4M for Computing Infrastructure to Knight Point Systems, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $85,391,021 ($85.4M)
Contractor: Knight Point Systems, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2016-02-26
End Date: 2021-09-09
Contract Duration: 2,022 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $85.4 million to KNIGHT POINT SYSTEMS, LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $85.4 million for computing infrastructure services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a Time and Materials contract type, which can lead to cost overruns if not managed carefully. 4. The sector is IT, specifically Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.
Value Assessment
Rating: good
The contract value of $85.4 million for computing infrastructure services appears reasonable given the duration and scope. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive nature of the award is likely to have resulted in fair pricing, maximizing taxpayer value for the services rendered.
Public Impact
Ensures critical IT infrastructure and data processing capabilities for U.S. Citizenship and Immigration Services. Supports the operational needs of a major federal agency, impacting immigration processes. The use of a Time and Materials contract type warrants close monitoring to control costs and ensure efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost uncertainty.
- Long contract duration (2016-2021) may require re-evaluation of technology and pricing.
Positive Signals
- Awarded under full and open competition.
- Significant investment in essential IT infrastructure.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is critical for government operations, and benchmarks vary widely based on service complexity and scale.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Knight Point Systems, LLC. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, U.S. Citizenship and Immigration Services. Oversight would typically involve contract management teams ensuring performance and adherence to terms, especially given the Time and Materials structure.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- U.S. Citizenship and Immigration Services Programs
Risk Flags
- Time and Materials contract type
- Potential for cost overruns
- Lack of specific performance metrics in provided data
- Long contract duration
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $85.4 million to KNIGHT POINT SYSTEMS, LLC. IGF::OT::IGF
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. Citizenship and Immigration Services).
What is the total obligated amount?
The obligated amount is $85.4 million.
What is the period of performance?
Start: 2016-02-26. End: 2021-09-09.
What was the specific scope of services provided under this contract?
The contract falls under NAICS code 518210, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' This suggests services related to maintaining and operating computing systems, data storage, and online hosting platforms essential for USCIS operations.
What are the primary risks associated with the Time and Materials contract type in this context?
The main risk of a Time and Materials contract is the potential for cost escalation if labor hours and material costs are not tightly controlled and monitored. This can lead to the final cost exceeding initial estimates, impacting budget predictability.
How effectively did the full and open competition process ensure value for money?
Full and open competition generally promotes value for money by encouraging multiple vendors to offer competitive bids. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the subsequent contract management to ensure the awarded price reflects true market value.
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
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Peraton Solutions Inc.
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: $85,391,021
Exercised Options: $85,391,021
Current Obligation: $85,391,021
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,216,040
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSHQDC13DE2032
IDV Type: IDC
Timeline
Start Date: 2016-02-26
Current End Date: 2021-09-09
Potential End Date: 2021-09-09 00:00:00
Last Modified: 2022-04-02
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