Interior Dept. awards $10M+ contract to Kratos Technology for accounting services, spanning over 3 years

Contract Overview

Contract Amount: $10,071,360 ($10.1M)

Contractor: Kratos Technology & Training Solutions, Inc.

Awarding Agency: Department of the Interior

Start Date: 2003-01-15

End Date: 2006-06-30

Contract Duration: 1,262 days

Daily Burn Rate: $8.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 51

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $10.1 million to KRATOS TECHNOLOGY & TRAINING SOLUTIONS, INC. for work described as: Key points: 1. Contract value exceeds $10 million, indicating a significant investment. 2. Kratos Technology & Training Solutions, Inc. is the sole awardee. 3. The contract duration is over 3 years, suggesting a long-term need. 4. The service falls under accounting, a critical administrative function.

Value Assessment

Rating: fair

The contract value of $10,071,360.25 for accounting services over 3 years appears reasonable, but without specific deliverables or benchmarks, a precise value assessment is difficult. The fixed-price with economic price adjustment structure allows for some cost fluctuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMPETITIVE DELIVERY ORDER', but the data does not specify the number of bidders or the competitive process details. This lack of transparency makes it difficult to assess if true price discovery was achieved.

Taxpayer Impact: Taxpayer funds are being utilized for essential accounting services. The effectiveness of the competition method directly impacts the value for money received by taxpayers.

Public Impact

Ensures continued financial management and accounting operations within the Department of the Interior. Supports administrative functions critical to the agency's mission. Potential for improved efficiency and accuracy in financial reporting.

Waste & Efficiency Indicators

Waste Risk Score: 79 / 10

Warning Flags

Lack of detailed competition information
Economic price adjustment could increase final cost
Long contract duration may not reflect evolving needs

Positive Signals

Addresses a core government function
Fixed-price element provides cost control
Awarded to a specific technology and training solutions company

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting. Government spending in this area is consistent with the need for robust financial management across agencies. Benchmarks for similar accounting service contracts would provide further context.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses did not have a direct opportunity to compete for this specific award.

Oversight & Accountability

Oversight would typically involve regular performance reviews and financial audits by the Department of the Interior to ensure the contractor meets performance standards and manages funds appropriately. Accountability rests with the contracting officer and the agency.

Related Government Programs

Offices of Certified Public Accountants
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of detailed competition metrics
Potential for cost escalation due to economic price adjustment
Long contract duration may not be optimal for evolving needs
No explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.1 million to KRATOS TECHNOLOGY & TRAINING SOLUTIONS, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is KRATOS TECHNOLOGY & TRAINING SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2003-01-15. End: 2006-06-30.

What specific accounting services are being provided under this contract, and how do they align with the Department of the Interior's core mission objectives?

The contract specifies 'Offices of Certified Public Accountants' (NAICS 541211), suggesting services like auditing, tax preparation, bookkeeping, and financial consulting. These services are crucial for the Department of the Interior's financial integrity, regulatory compliance, and effective resource management, directly supporting its mission by ensuring accountability and efficient use of taxpayer funds.

Given the 'COMPETITIVE DELIVERY ORDER' designation, what was the level of competition, and how did it influence the final price negotiated?

While designated as competitive, the provided data lacks details on the number of bids received or the specific competitive process. Without this information, it's challenging to ascertain the true extent of competition and its impact on price discovery. A robust competitive environment typically drives down costs and ensures better value for the government.

How does the fixed-price with economic price adjustment (FP-EPA) structure impact the overall cost-effectiveness and predictability of this contract over its 3-year duration?

The FP-EPA structure aims to balance cost certainty with flexibility. The fixed-price component provides a baseline cost, while the economic price adjustment allows for increases tied to specific economic factors (e.g., inflation). This can protect the contractor from unforeseen cost increases, but it also introduces potential for higher final costs for the government compared to a purely fixed-price contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 51

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Parent Company: Kratos Defense & Security Solutions, Inc. (UEI: 884457813)

Address: 5050 MURPHY CANYON RD, SAN DIEGO, CA, 92123

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $174,814

Exercised Options: $214,429

Current Obligation: $10,071,360

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9829H

IDV Type: FSS

Timeline