DoD's $16.4M IT Tech Support Contract with Ke'aki Technologies Raises Questions on Competition and Value
Contract Overview
Contract Amount: $16,443,768 ($16.4M)
Contractor: Ke'aki Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-08
End Date: 2014-03-31
Contract Duration: 2,030 days
Daily Burn Rate: $8.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT TECH SUPPORT STAFF
Place of Performance
Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to KE'AKI TECHNOLOGIES, LLC for work described as: IT TECH SUPPORT STAFF Key points: 1. The contract awarded to Ke'aki Technologies, LLC for IT tech support services totaled $16.4 million. 2. Awarded by the Department of Defense (Army), the contract was not available for competition. 3. The lack of competition raises concerns about potential overpricing and limited value for taxpayers. 4. The sector is IT services, specifically computer-related services, with a broad NAICS code.
Value Assessment
Rating: questionable
Pricing information is not readily available for comparison against similar contracts. The firm fixed-price structure suggests a defined scope, but without competitive benchmarks, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a 'not available for competition' basis, indicating a limited competitive environment. This significantly impacts price discovery, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition and potential for inflated pricing means taxpayers may not be receiving the best possible value for these IT support services.
Public Impact
Taxpayers may be overpaying for IT support due to the absence of competitive bidding. The long contract duration (2030) suggests a significant, ongoing need for these services. Limited transparency on pricing and performance makes it hard for the public to assess effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
Positive Signals
- Firm fixed-price contract
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, making competitive sourcing crucial for cost efficiency.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities were missed to engage small businesses in this IT support service area.
Oversight & Accountability
The 'not available for competition' award type warrants closer oversight to ensure the government obtained fair pricing and adequate services. Accountability is diminished without a competitive process.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification for sole-source award
- Long contract duration without clear performance metrics
Tags
other-computer-related-services, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to KE'AKI TECHNOLOGIES, LLC. IT TECH SUPPORT STAFF
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 $16.4 million.
What is the period of performance?
Start: 2008-09-08. End: 2014-03-31.
What specific IT tech support functions were performed under this contract, and how did they align with the stated NAICS code?
The contract's NAICS code 541519 covers 'Other Computer Related Services.' Without a detailed statement of work, it's difficult to ascertain the precise functions. These could range from help desk support and network maintenance to software installation and troubleshooting, all falling under the broad umbrella of IT support.
What justification was provided for awarding this contract without competition, and were alternative competitive strategies considered?
The justification for awarding this contract without competition is not provided in the data. Typically, such awards require a detailed justification citing reasons like urgency, sole-source provider capabilities, or national security. Without this information, it's impossible to assess if alternative competitive strategies were explored or if the limited competition was truly warranted.
How does the total contract value of $16.4 million compare to industry benchmarks for similar IT tech support services, considering the duration and scope?
Comparing the $16.4 million total value requires detailed scope and duration analysis against industry benchmarks. Given the contract runs until 2030, the annual average is roughly $2.3 million. Without knowing the specific services, number of users supported, and service level agreements, a precise benchmark is difficult. However, the lack of competition suggests this figure might be higher than a competitively bid contract.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912CN08R0056
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1600 KAPIOLANI BLVD STE 530, HONOLULU, HI, 96814
Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,473,775
Exercised Options: $16,463,775
Current Obligation: $16,443,768
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-08
Current End Date: 2014-03-31
Potential End Date: 2019-01-30 00:00:00
Last Modified: 2019-01-29
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