DoD Awards $1.01M Task Order for IPERMS Services to CKA, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $17,528,940 ($17.5M)

Contractor: CKA, LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-27

End Date: 2026-07-09

Contract Duration: 742 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS ACTION AWARDS A NEW TASK ORDER FOR IPERMS SERVICES TO CKA, LLC AND INCREMENTALLY FUNDS THE BASE PERIOD OF PERFORMANCE (10JUL2024-09JUL2025) IN THE AMOUNT OF $1,013,268.90.

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40122

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $17.5 million to CKA, LLC for work described as: THIS ACTION AWARDS A NEW TASK ORDER FOR IPERMS SERVICES TO CKA, LLC AND INCREMENTALLY FUNDS THE BASE PERIOD OF PERFORMANCE (10JUL2024-09JUL2025) IN THE AMOUNT OF $1,013,268.90. Key points: 1. The award represents a new task order for essential IPERMS services. 2. CKA, LLC is the awardee, with the Department of the Army as the contracting agency. 3. The contract is structured as Firm Fixed Price, indicating clear cost expectations. 4. The total value of this specific task order is $1,013,268.90, with a longer-term contract value of $17.5M.

Value Assessment

Rating: good

The task order's value of $1.01M for IPERMS services appears reasonable given the 742-day performance period. Benchmarking against similar IT service contracts would provide a more definitive assessment.

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 leads to competitive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best value and pricing.

Public Impact

Ensures continued operation of the Integrated Personnel and Pay System (IPERMS). Supports the Department of the Army's personnel and pay management functions. Provides critical IT services for military personnel data. Potential impact on CKA, LLC's revenue and service delivery capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT service contracts.
Dependence on a single vendor for critical IPERMS functions.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Incremental funding allows for phased financial commitment.

Sector Analysis

This contract falls under 'Other Computer Related Services' (NAICS 541519), a broad category within the IT sector. Spending in this area is substantial across government agencies for maintaining and developing various IT systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may be subcontractors.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting existing oversight mechanisms are in place. Further review of the parent contract's oversight would be beneficial.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for vendor lock-in if CKA, LLC becomes indispensable.
Reliance on a single vendor for critical IT infrastructure.
Risk of cost overruns if scope is not tightly managed.
Need for ongoing performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.5 million to CKA, LLC. THIS ACTION AWARDS A NEW TASK ORDER FOR IPERMS SERVICES TO CKA, LLC AND INCREMENTALLY FUNDS THE BASE PERIOD OF PERFORMANCE (10JUL2024-09JUL2025) IN THE AMOUNT OF $1,013,268.90.

Who is the contractor on this award?

The obligated recipient is CKA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2024-06-27. End: 2026-07-09.

What is the historical performance of CKA, LLC on similar government contracts, particularly regarding IPERMS or related IT services?

Assessing CKA, LLC's past performance is crucial for understanding their capability to deliver on this task order. Reviewing their track record on similar contracts, including client satisfaction, adherence to schedule, and budget management, will provide insights into their reliability and the potential risks associated with this award. This information helps validate the contracting officer's decision and ensures taxpayer funds are used effectively.

How does the per-unit cost or labor rate for these IPERMS services compare to industry benchmarks for similar IT support contracts?

Benchmarking the pricing against industry standards for comparable IT services is essential for determining value for money. If the rates are significantly higher than market averages, it could indicate potential overpricing or inefficiencies. Conversely, rates below market might suggest quality concerns or an unsustainable business model for the contractor. This analysis helps ensure fair and reasonable pricing.

What are the key performance indicators (KPIs) for this task order, and how will CKA, LLC's performance against these KPIs be monitored and evaluated?

Understanding the specific KPIs and the monitoring mechanisms is vital for ensuring the effective delivery of IPERMS services. Clear performance metrics allow for objective evaluation of CKA, LLC's output and adherence to contract requirements. Robust oversight and regular performance reviews are necessary to identify and address any issues promptly, thereby safeguarding taxpayer investment and ensuring the system's operational integrity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 RUSSELL AVE STE 305, GAITHERSBURG, MD, 20877

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $41,424,500

Exercised Options: $17,910,319

Current Obligation: $17,528,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA136

IDV Type: IDC

Timeline