DoD Awards $5.5M Custom Computer Programming Contract to Kaihonua LLC for Data Analytics Support

Contract Overview

Contract Amount: $5,494,887 ($5.5M)

Contractor: Kaihonua LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-23

End Date: 2026-09-22

Contract Duration: 1,825 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA ANALYTICS SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to KAIHONUA LLC for work described as: DATA ANALYTICS SUPPORT SERVICES Key points: 1. Contract value of $5.5 million over 5 years. 2. Sole-source award to Kaihonua LLC. 3. Potential risk associated with limited competition. 4. Services fall under IT and custom computer programming.

Value Assessment

Rating: questionable

The contract value is $5.5 million over five years. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is optimal or if it represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to discover the lowest possible price through market forces.

Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers compared to a fully competitive procurement.

Public Impact

Military healthcare data analytics may be impacted. Potential for increased costs for the Defense Health Agency. Limited transparency in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited price discovery

Positive Signals

Supports critical defense health agency functions
Long-term contract provides stability

Sector Analysis

This contract falls under the Information Technology sector, specifically custom computer programming services. Benchmarks for similar IT support services can vary widely based on complexity and duration.

Small Business Impact

The awardee is Kaihonua LLC. Information regarding whether this is a small business is not explicitly provided, but the contract was not set aside for small businesses.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure the government receives fair value and that the services meet requirements. The Defense Health Agency should monitor performance and costs closely.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in vendor selection.
Risk of vendor lock-in.
Effectiveness dependent on contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to KAIHONUA LLC. DATA ANALYTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KAIHONUA LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2021-09-23. End: 2026-09-22.

What is the justification for the sole-source award?

The justification for a sole-source award is critical for understanding why competition was not pursued. Typically, this involves unique capabilities, urgent needs, or specific circumstances where only one vendor can meet the requirement. Without this justification, it's difficult to assess the necessity of bypassing competitive processes.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators are essential for measuring the effectiveness of the data analytics support services. These should align with the Defense Health Agency's objectives, such as improved data accuracy, faster insights, or enhanced decision-making capabilities. Regular review of KPIs will ensure the contractor is meeting expectations.

How will the government ensure cost-effectiveness over the contract's duration?

Given the sole-source nature, cost-effectiveness will rely heavily on robust contract management and negotiation. The Defense Health Agency should establish clear pricing benchmarks, conduct regular cost reviews, and potentially incorporate incentive clauses tied to performance or cost savings to ensure taxpayer funds are used efficiently.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81XWH21R0076

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 AARONA PL, KAILUA, HI, 96734

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,494,887

Exercised Options: $5,494,887

Current Obligation: $5,494,887

Actual Outlays: $274,489

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $63,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline