DoD Awards $710K for AN/ASK-7 Data Transfer System to KIHOMAC INC, Sole Source
Contract Overview
Contract Amount: $7,102,878 ($7.1M)
Contractor: Kihomac Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-22
End Date: 2026-09-21
Contract Duration: 1,825 days
Daily Burn Rate: $3.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/ASK-7 DATA TRANSFER SYSTEM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $7.1 million to KIHOMAC INC for work described as: AN/ASK-7 DATA TRANSFER SYSTEM Key points: 1. Contract awarded to KIHOMAC INC for a critical data transfer system. 2. Sole-source award raises questions about competition and potential price inflation. 3. Long contract duration (5 years) warrants close monitoring of performance and cost. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $710,287 is difficult to benchmark without specific unit cost data. However, the sole-source nature and lack of competitive bidding suggest potential for above-market pricing.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $710K contract could lead to inefficient use of taxpayer funds if pricing is not rigorously justified.
Public Impact
Ensures continued operational capability for a specific data transfer system. Potential for higher costs due to sole-source award impacts defense budget. Long-term contract may lock in technology, potentially hindering future upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Ensures availability of critical system
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area can vary significantly based on defense modernization and sustainment needs.
Small Business Impact
The awardee, KIHOMAC INC, is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Defense Logistics Agency to ensure fair pricing and contractor performance throughout the contract's five-year term.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration (5 years) increases risk of price escalation.
- Lack of transparency in pricing justification.
- Potential for technological obsolescence.
- No small business participation noted.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.1 million to KIHOMAC INC. AN/ASK-7 DATA TRANSFER SYSTEM
Who is the contractor on this award?
The obligated recipient is KIHOMAC INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $7.1 million.
What is the period of performance?
Start: 2021-09-22. End: 2026-09-21.
What is the justification for the sole-source award, and was a market survey conducted to confirm the lack of viable alternatives?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. A market survey is usually required to validate that no other sources can meet the requirement, ensuring the government acts in its best interest.
How will the Defense Logistics Agency ensure the pricing remains fair and reasonable over the five-year contract duration, given the lack of competition?
The agency can employ several strategies, including requesting detailed cost breakdowns from the contractor, performing should-cost analyses, and benchmarking against similar systems or components if available. Regular performance reviews and negotiation of equitable adjustments for any significant changes will also be crucial to maintaining fair pricing.
What is the potential impact on future technological advancements if this sole-source contract locks in a specific data transfer system for five years?
A long-term sole-source contract can stifle innovation by discouraging the development of alternative or superior technologies. It may also lead to the government being locked into outdated systems, requiring costly replacements or upgrades later. The agency should consider incorporating clauses for technology refresh or performance-based requirements to mitigate this risk.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kihomac, Inc.
Address: 12030 SUNRISE VALLEY DR STE 320, RESTON, VA, 20191
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $7,102,878
Exercised Options: $7,102,878
Current Obligation: $7,102,878
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,856,484
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRWA121D0015
IDV Type: IDC
Timeline
Start Date: 2021-09-22
Current End Date: 2026-09-21
Potential End Date: 2026-09-21 00:00:00
Last Modified: 2025-12-18
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