Ke'aki Technologies awarded $29.8M for scientific support, facing limited competition

Contract Overview

Contract Amount: $29,804,819 ($29.8M)

Contractor: Ke'aki Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2016-03-31

End Date: 2018-02-28

Contract Duration: 699 days

Daily Burn Rate: $42.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::CT::IGF SCIENTIFIC SUPPORT, ADMIN AND LOGISTICAL SUPPORT FOR USAMRIID

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to KE'AKI TECHNOLOGIES, LLC for work described as: IGF::CT::IGF SCIENTIFIC SUPPORT, ADMIN AND LOGISTICAL SUPPORT FOR USAMRIID Key points: 1. Value for money appears fair given the firm-fixed-price contract type, though detailed cost breakdowns are not publicly available. 2. Competition dynamics were limited, with the contract awarded on a sole-source basis. 3. Risk indicators are moderate, stemming from the sole-source nature and the duration of the contract. 4. Performance context is within scientific research and development, a critical area for the Department of Defense. 5. Sector positioning is within R&D, specifically supporting biological defense research.

Value Assessment

Rating: fair

The contract's value of $29.8 million over approximately two years suggests a significant investment in scientific support services. Benchmarking against similar R&D support contracts is challenging due to the sole-source nature and specific requirements of USAMRIID. The firm-fixed-price structure provides cost certainty for the government, but without detailed cost breakdowns, a precise value-for-money assessment is difficult. The award amount is substantial, indicating a need for specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that only one vendor, Ke'aki Technologies, LLC, was considered capable of meeting the specific requirements. This approach bypasses the typical competitive bidding process, which can limit price discovery and potentially lead to higher costs than if multiple vendors had competed. The justification for sole-source awards often relates to unique capabilities, urgent needs, or proprietary technologies.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding environment. The government relies on negotiation to ensure a fair price, but the absence of competing offers reduces leverage.

Public Impact

The primary beneficiaries are the researchers and personnel at the U.S. Army Medical Research Institute of Infectious Diseases (USAMRIID), who receive essential logistical and administrative support. Services delivered include scientific support, administrative assistance, and logistical management crucial for the operation of a leading biodefense research facility. The geographic impact is concentrated at USAMRIID's facilities, primarily in Maryland, supporting national biodefense research efforts. Workforce implications include the employment of personnel by Ke'aki Technologies to fulfill the contract requirements, contributing to the scientific support ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and reduced innovation.
Sole-source awards can create vendor lock-in and reduce future competitive opportunities.
The duration of the contract (699 days) suggests a long-term reliance on this specific vendor.

Positive Signals

Firm-fixed-price contract type provides cost predictability for the government.
The contract supports critical research and development for national security.
Ke'aki Technologies, LLC is a known entity providing services to the government.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically supporting biological and medical research. The market for scientific support services for government research institutions is specialized, often involving firms with specific clearances and expertise. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of defense-related biological research and the sole-source award. However, R&D services represent a significant portion of federal spending, with agencies like the Department of Defense investing heavily in scientific advancement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to Ke'aki Technologies, LLC, a single entity, does not directly indicate a positive or negative impact on the broader small business ecosystem without further details on their subcontracting practices.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and potentially the Inspector General's office, especially concerning performance and financial accountability. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature and the proprietary aspects of scientific research support, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Department of Defense Research and Development Contracts
USAMRIID Support Services
Scientific and Technical Services Contracts
Biological Defense Research Funding

Risk Flags

Limited competition
Sole-source award justification
Potential for cost overruns due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to KE'AKI TECHNOLOGIES, LLC. IGF::CT::IGF SCIENTIFIC SUPPORT, ADMIN AND LOGISTICAL SUPPORT FOR USAMRIID

Who is the contractor on this award?

The obligated recipient is KE'AKI TECHNOLOGIES, 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 $29.8 million.

What is the period of performance?

Start: 2016-03-31. End: 2018-02-28.

What is the track record of Ke'aki Technologies, LLC in performing similar government contracts?

Ke'aki Technologies, LLC has a history of performing various service contracts for the U.S. government, including those related to logistics, IT, and administrative support. While specific performance metrics for this particular contract (IGF SCIENTIFIC SUPPORT, ADMIN AND LOGISTICAL SUPPORT FOR USAMRIID) are not detailed in the provided data, their presence as a contractor suggests they have met baseline requirements for previous awards. A deeper dive into past performance evaluations, if publicly accessible, would offer more insight into their reliability and quality of service. Their portfolio indicates experience in supporting complex government operations, which is relevant to the scientific and logistical demands of USAMRIID.

How does the awarded amount compare to similar R&D support contracts awarded by the Department of Defense?

Comparing the $29.8 million awarded to Ke'aki Technologies, LLC for scientific support at USAMRIID to similar R&D support contracts is challenging due to the sole-source nature of this award and the specialized requirements of biological defense research. General R&D support contracts can vary widely in value depending on the scope, duration, and specific scientific disciplines involved. Contracts for basic research or broad scientific services might be lower, while those involving highly specialized, classified, or critical infrastructure support, like that at USAMRIID, can command higher values. Without a competitive bidding process, it's difficult to establish a precise market benchmark for this specific service category. However, the amount is substantial, reflecting the critical nature and complexity of supporting a leading infectious disease research institute.

What are the primary risks associated with a sole-source award for critical scientific support?

The primary risks associated with a sole-source award for critical scientific support include a lack of competitive pressure, which can lead to inflated prices and reduced incentives for innovation and efficiency. Taxpayers may not receive the best possible value for their money compared to a competitive scenario. Furthermore, sole-source awards can create vendor dependency, making it difficult to switch providers or leverage new technologies if the incumbent contractor underperforms or their services become obsolete. There's also a potential risk if the sole-source provider lacks the necessary expertise or resources, as the government has fewer alternatives to mitigate such issues. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

How effective is the firm-fixed-price contract type in managing costs for R&D support services?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for R&D support services when the scope of work is well-defined and unlikely to change significantly. It shifts the cost risk from the government to the contractor, providing budget certainty. For services like administrative and logistical support, where the tasks are relatively predictable, FFP can be advantageous. However, in R&D, where unforeseen challenges or discoveries can alter project needs, an FFP contract might become less flexible. If the contractor encounters unexpected difficulties, they bear the cost overruns, which could incentivize cutting corners. Conversely, if the work proves easier than anticipated, the contractor reaps higher profits. The effectiveness hinges on the contractor's ability to accurately estimate costs and manage performance within the fixed price.

What is the historical spending trend for scientific support at USAMRIID or similar DoD research facilities?

Analyzing historical spending trends for scientific support at USAMRIID or similar DoD research facilities requires access to detailed historical contract data. The provided data only covers one contract awarded to Ke'aki Technologies, LLC from March 2016 to February 2018. To understand trends, one would need to examine spending across multiple contracts, various contractors, and potentially over a longer period (e.g., 5-10 years). This would involve looking at total obligations for scientific support, administrative, and logistical services at USAMRIID and comparable institutions like Walter Reed Army Institute of Research (WRAIR) or Naval Medical Research Command (NMRC). Factors influencing trends could include shifts in research priorities, budget allocations, and changes in contracting strategies (e.g., moving from sole-source to competitive awards or vice-versa).

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81XWH16R0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,804,819

Exercised Options: $29,804,819

Current Obligation: $29,804,819

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline