DoD's $22.5M contract with Katmai Information Technologies for professional services awarded via non-competitive means

Contract Overview

Contract Amount: $22,532,197 ($22.5M)

Contractor: Katmai Information Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2011-11-10

End Date: 2017-09-13

Contract Duration: 2,134 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to KATMAI INFORMATION TECHNOLOGIES, LLC for work described as: LABOR Key points: 1. Contract awarded without competition, raising questions about potential cost savings and market-driven pricing. 2. The contract's duration of over 2000 days suggests a long-term need for the services provided. 3. Analysis of value for money is challenging due to the lack of competitive bidding. 4. The firm fixed-price structure aims to control costs, but the absence of competition limits benchmarking. 5. Performance context is limited without details on specific deliverables and outcomes. 6. Sector positioning within 'All Other Professional, Scientific, and Technical Services' is broad, requiring further detail for precise analysis.

Value Assessment

Rating: questionable

Benchmarking the value of this $22.5 million contract is difficult due to its non-competitive award. Without comparison to other bids or similar services procured through open competition, it's hard to definitively assess if the pricing represents fair market value. The firm fixed-price contract type suggests an attempt to cap costs, but the lack of competitive pressure means the government may not have secured the most economical option. Further analysis would require understanding the specific services rendered and their criticality to the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' justification, indicating that a full and open competition was not pursued. The specific reasons for this sole-source award are not detailed in the provided data. A lack of competition typically means fewer bidders, which can lead to higher prices and less innovation compared to contracts that undergo a robust bidding process. This limits the government's ability to leverage market forces for better value.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive bidding. The lack of transparency in the procurement process makes it difficult to ensure that funds were used in the most cost-effective manner.

Public Impact

The Department of Defense is the primary beneficiary, receiving professional, scientific, and technical services. The contract supports the Army's operational needs through specialized services. The geographic impact is likely concentrated within the areas served by the Department of the Army. Workforce implications include employment for individuals with specialized skills required by Katmai Information Technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential cost savings for taxpayers.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of services rendered.
Broad service category ('All Other Professional, Scientific, and Technical Services') hinders specific analysis of value and necessity.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Long contract duration suggests a sustained and potentially critical need for the services.

Sector Analysis

This contract falls under the broad category of professional, scientific, and technical services, a significant sector within federal procurement. This sector encompasses a wide range of specialized expertise. The Department of Defense is a major consumer of these services, often requiring highly specialized skills for research, development, analysis, and support functions. Benchmarking spending in this area is complex due to the diversity of services and contractors involved.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (sb: false) and the contractor, Katmai Information Technologies, LLC, is not explicitly identified as a small business in this context (ss: false). Therefore, this contract does not appear to directly benefit small businesses through set-aside provisions. There is no information on subcontracting plans, so the impact on the small business ecosystem is not discernible from this data alone.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and potentially Inspector General's office. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is limited by the non-competitive nature of the award and the lack of publicly available detailed performance data. The effectiveness of oversight depends on the rigor of the agency's contract management practices.

Related Government Programs

Professional Services Contracts
Technical Support Services
Department of Defense Contracts
Sole-Source Procurements
Information Technology Services (if applicable)

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed service description hinders performance and value assessment.
Absence of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to KATMAI INFORMATION TECHNOLOGIES, LLC. LABOR

Who is the contractor on this award?

The obligated recipient is KATMAI INFORMATION 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 $22.5 million.

What is the period of performance?

Start: 2011-11-10. End: 2017-09-13.

What specific services were provided under this $22.5 million contract?

The contract data classifies the service under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide array of activities, including research, consulting, testing, and specialized technical support. Without further details from the contract's statement of work or performance reports, it is impossible to specify the exact nature of the services rendered by Katmai Information Technologies, LLC. This lack of specificity makes it challenging to assess the contract's true value and impact.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION.' This designation typically means that the agency determined that full and open competition was not feasible or appropriate. Common reasons for sole-source awards include the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. However, the specific justification for this particular award is not detailed in the given data, leaving room for speculation about the necessity of bypassing the competitive bidding process.

How does the firm fixed-price contract type affect cost control and value?

A firm fixed-price (FFP) contract is designed to provide cost certainty for the buyer by establishing a price that is not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns to the contractor. For value, FFP can be beneficial if the price is set competitively. However, in this sole-source scenario, the absence of competition means the initial price might not reflect the best possible value. While the FFP structure caps the government's expenditure, it doesn't guarantee that the capped price is the lowest achievable price in the market.

What is the historical spending pattern for similar services by the Department of Defense?

Analyzing historical spending patterns for 'All Other Professional, Scientific, and Technical Services' by the Department of Defense requires access to comprehensive federal procurement databases. Generally, the DoD is a significant purchaser of such services, with spending fluctuating based on strategic priorities, operational tempo, and budget allocations. Without specific data points on comparable contracts (e.g., similar scope, duration, and competitive history), it's difficult to benchmark this $22.5 million contract against broader DoD spending trends. However, the substantial dollar amount and long duration suggest a significant and ongoing requirement.

What are the potential risks associated with a long-term, sole-source contract?

Long-term, sole-source contracts carry several inherent risks. Firstly, the lack of competition can lead to complacency from the contractor, potentially resulting in reduced service quality or innovation over time. Secondly, without regular re-competition, the government may miss opportunities to secure better pricing or more advanced solutions from emerging competitors. Thirdly, the agency may become overly reliant on a single contractor, creating a vendor lock-in situation that is difficult and costly to escape. Finally, the absence of a competitive process can obscure potential inefficiencies or inflated costs that might be revealed through market testing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 E TUDOR RD STE 215, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,873,199

Exercised Options: $22,532,197

Current Obligation: $22,532,197

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline