Ke'aki Technologies awarded $12.6M for development services, with a significant portion allocated to labor

Contract Overview

Contract Amount: $12,582,884 ($12.6M)

Contractor: Ke'aki Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-03

End Date: 2011-10-08

Contract Duration: 1,039 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEVELOPMENT BASE PERIOD LABOR

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96814

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to KE'AKI TECHNOLOGIES, LLC for work described as: DEVELOPMENT BASE PERIOD LABOR Key points: 1. Labor costs represent a substantial portion of the contract's value, indicating a focus on personnel-intensive development. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs by setting a predetermined price for services. 4. The contract duration of over 1000 days suggests a long-term need for these development services. 5. The award was made by the Department of Defense, highlighting its role in national security or defense-related initiatives. 6. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of $12.6 million for development services appears reasonable given the duration and the nature of defense-related work. Benchmarking against similar development contracts within the Department of Defense would provide a more precise value-for-money assessment. The fixed-price structure suggests an effort to manage cost overruns, but the significant labor component warrants scrutiny to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a healthy market for these types of development services.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives the best value for its investment in development services.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical development services. The services delivered are likely related to the development or enhancement of defense systems or technologies. The geographic impact is centered in Hawaii, where Ke'aki Technologies is based. The contract supports a workforce involved in specialized development and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours exceed estimates within the fixed-price structure.
Dependence on a single contractor for a significant development effort could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps to establish cost certainty.
Long contract duration suggests a stable, ongoing requirement.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on development and technical support for defense applications. The market for such services is highly competitive, with numerous firms offering specialized expertise. The Department of Defense is a major consumer of these services, often utilizing IDIQ vehicles to procure a wide range of support.

Small Business Impact

Information on small business set-asides or subcontracting is not provided in the data. However, given the contract's value and the nature of the services, it's possible that larger prime contractors may engage small businesses for specialized tasks if this delivery order is part of a larger IDIQ. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Department of Defense IT Services
Defense Development Contracts
Professional Services Contracts

Risk Flags

Labor Cost Intensity
Fixed-Price Contract Risk
Single Delivery Order Awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to KE'AKI TECHNOLOGIES, LLC. DEVELOPMENT BASE PERIOD LABOR

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2008-12-03. End: 2011-10-08.

What is the specific nature of the 'development base period labor' being procured under this contract?

The provided data specifies 'DEVELOPMENT BASE PERIOD LABOR' with a cost of $12,582,883.85, representing the vast majority of the contract's total value. While the exact nature of the development is not detailed, this strongly suggests the contract is primarily for personnel services related to the design, creation, or enhancement of a system, software, or technology. This could encompass activities like software engineering, systems integration, research and development, or technical support during the initial phase of a project. The significant allocation to labor indicates a hands-on, expertise-driven effort rather than the procurement of goods.

How does the awarded amount compare to similar development contracts within the Department of Defense?

Without specific details on the scope and duration of comparable contracts, a direct comparison is challenging. However, $12.6 million for a development effort, especially one with a substantial labor component and a duration of over 1000 days, is within the typical range for specialized IT and engineering services procured by the Department of Defense. Larger, more complex system developments can run into hundreds of millions or billions. This contract appears to be for a specific, defined development phase or project, likely awarded under a broader IDIQ vehicle, making it a mid-tier value for such services.

What are the potential risks associated with a fixed-price contract for development labor?

A primary risk with fixed-price contracts, particularly those heavily reliant on labor, is the potential for the contractor to incur costs exceeding the agreed-upon price if the scope of work expands or if labor productivity is lower than anticipated. For the government, the risk is paying a premium if the contractor is highly efficient and has built in significant contingency. Conversely, the contractor bears the risk of cost overruns. Effective oversight is crucial to ensure the labor is utilized efficiently and that the scope remains controlled to prevent unexpected cost increases or a reduction in quality to meet the fixed price.

What does the 'DELIVERY ORDER' designation imply about this contract?

The 'DELIVERY ORDER' (AW) designation indicates that this contract is a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services or supplies over a period, but the specific quantities and delivery schedules are defined in individual delivery or task orders. This approach allows agencies to procure services flexibly as needs arise. Therefore, this $12.6 million award represents a specific call for services against a broader contract vehicle, suggesting that Ke'aki Technologies likely holds a prime IDIQ contract with the DoD.

What is the significance of Ke'aki Technologies, LLC being the sole awardee?

The data indicates that Ke'aki Technologies, LLC is the sole awardee for this specific delivery order. This is common when a delivery order is placed against an IDIQ contract, as the IDIQ itself was likely competed. Within the framework of the IDIQ, specific task orders might be competed or awarded based on pre-negotiated terms, sometimes to a single vendor if that vendor is best positioned or if the task order falls within specific parameters of the IDIQ. However, the initial award of the overarching IDIQ contract would have been subject to competition, as indicated by the 'FULL AND OPEN COMPETITION' status for this delivery order.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: 8(a) Program Participant, 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: $12,582,884

Exercised Options: $12,582,884

Current Obligation: $12,582,884

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0022V

IDV Type: FSS

Timeline