DoD CIO data analytics contract awarded to Koniag Management Solutions for over $46M, with a 5-year duration

Contract Overview

Contract Amount: $46,210,085 ($46.2M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of the Interior

Start Date: 2020-09-06

End Date: 2025-09-05

Contract Duration: 1,825 days

Daily Burn Rate: $25.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) DEVELOPMENT AND CONCEPT DEMONSTRATION OF ENDURING DATA ANALYTICS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $46.2 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) DEVELOPMENT AND CONCEPT DEMONSTRATION OF ENDURING DATA ANALYTICS Key points: 1. The contract focuses on developing and demonstrating enduring data analytics capabilities for the DoD CIO. 2. Awarded on a sole-source basis, limiting opportunities for competitive pricing. 3. The contract duration of five years suggests a long-term need for these services. 4. The use of Time and Materials pricing introduces potential cost escalation risks. 5. This contract supports the Department of Defense's strategic goals in data utilization and analysis. 6. The geographic focus is Virginia, indicating a concentration of relevant personnel or facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable sole-source awards. The total value of over $46 million over five years suggests a significant investment in data analytics capabilities. However, the lack of competition and the Time and Materials pricing structure raise concerns about potential cost overruns and whether the government is achieving optimal value for its investment. Further analysis of deliverables and outcomes would be needed to provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the government's ability to leverage market competition to drive down prices and ensure the best value. The justification for a sole-source award would need to be thoroughly reviewed to understand why other qualified contractors were not considered. Without competition, there is a reduced incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The lack of transparency in the pricing negotiation process for sole-source contracts can lead to less efficient use of public funds.

Public Impact

The primary beneficiary is the Department of Defense Chief Information Officer (DoD CIO), who will receive enhanced data analytics capabilities. The services delivered will support the development and demonstration of enduring data analytics solutions. The geographic impact is concentrated in Virginia, where the contractor will likely perform the majority of the work. The contract may have implications for the workforce involved in data analytics within the DoD and potentially for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials pricing can lead to cost uncertainty and potential overruns.
Lack of detailed performance metrics in the provided data makes value assessment difficult.
The broad scope of 'development and concept demonstration' could lead to scope creep.

Positive Signals

Addresses a critical need for advanced data analytics within the DoD.
Long-term contract (5 years) indicates a sustained commitment to improving data capabilities.
Focus on 'enduring' solutions suggests a goal of creating lasting value.
Award to Koniag Management Solutions, a known entity in government contracting.

Sector Analysis

The Information Technology sector, specifically focusing on data analytics and computer systems design services, is a rapidly growing area within federal spending. This contract fits within the broader trend of government agencies investing in advanced analytics to improve decision-making, operational efficiency, and national security. Comparable spending benchmarks for similar data analytics development contracts can vary widely based on scope, complexity, and duration, but a five-year contract of this magnitude indicates a significant program.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Koniag Management Solutions LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, but this is not mandated by the contract terms presented.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. The contracting officer and program managers within the DoD CIO's office are responsible for monitoring performance, approving payments, and ensuring compliance with contract terms. Transparency is enhanced through contract databases like FPDS, but the specifics of internal oversight mechanisms and accountability measures are not detailed in the provided data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Data Strategy
Chief Information Officer Initiatives
Data Analytics Modernization Programs
Defense Digital Modernization Strategy

Risk Flags

Sole-source award may limit competitive pricing.
Time and Materials contract type carries cost overrun risk.
Lack of specific performance metrics hinders value assessment.
Scope definition for 'development and concept demonstration' could be subject to change.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $46.2 million to KONIAG MANAGEMENT SOLUTIONS LLC. DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER (DOD CIO) DEVELOPMENT AND CONCEPT DEMONSTRATION OF ENDURING DATA ANALYTICS

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2020-09-06. End: 2025-09-05.

What is the specific nature of the 'enduring data analytics' being developed and demonstrated under this contract?

The provided data does not specify the exact nature of the 'enduring data analytics.' However, based on the contract title, it likely involves developing frameworks, tools, and methodologies for collecting, processing, analyzing, and visualizing data that can be sustained and scaled over the long term within the Department of Defense. This could encompass areas such as predictive analytics, artificial intelligence integration, data warehousing, and advanced reporting capabilities to support various defense missions and strategic objectives. The 'concept demonstration' aspect suggests a phase of proving the viability and effectiveness of these analytics solutions before full-scale implementation.

How does the $46.2 million contract value compare to similar data analytics development contracts within the DoD or other federal agencies?

Comparing the $46.2 million contract value requires context on the scope and duration. For a five-year contract focused on developing and demonstrating data analytics capabilities, this figure is substantial but not necessarily outside the norm for large federal IT investments. Similar contracts for enterprise-wide data modernization or AI/ML development can range from tens to hundreds of millions of dollars. However, the sole-source nature and Time and Materials (T&M) pricing structure mean that a direct value-for-money comparison with competitively bid, fixed-price contracts is difficult. The absence of competition could mean the price is higher than what might be achieved through a competitive process.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with Time and Materials (T&M) pricing is the potential for cost escalation and a lack of cost certainty for the government. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a profit margin. This can lead to cost overruns if the project takes longer than anticipated, requires more resources, or if the scope is not well-defined and managed. For the government, it shifts much of the cost risk to the buyer. Effective oversight, detailed tracking of hours and materials, and strong program management are crucial to mitigate these risks.

What is Koniag Management Solutions LLC's track record with federal data analytics or IT development contracts?

Koniag Management Solutions LLC has a history of performing various IT and management support services for the federal government. While specific details on their track record in 'enduring data analytics' development and concept demonstration for the DoD CIO are not provided in the summary data, their past performance in similar IT service areas would be a key factor in the sole-source justification. Agencies typically rely on past performance evaluations when awarding sole-source contracts to ensure the contractor has the necessary expertise and capability to successfully execute the requirement. A deeper dive into their contract history would reveal the extent and success of their previous work in related fields.

Given the sole-source nature, what mechanisms are in place to ensure accountability and performance for this contract?

Accountability for sole-source contracts relies heavily on robust contract administration and oversight by the procuring agency. For this DoD CIO contract, the Department of the Interior (as the awarding agency, though the work is for DoD CIO) would assign a Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC). This individual is responsible for monitoring contractor performance against the contract's Statement of Work (SOW), ensuring deliverables meet quality standards, and approving invoices. Regular progress meetings, performance reviews, and adherence to reporting requirements are standard mechanisms. The contract's duration and value also imply a significant level of scrutiny from DoD financial and program management offices.

How does this contract align with the broader digital transformation or data strategy initiatives within the Department of Defense?

This contract directly aligns with the Department of Defense's broader strategic objectives related to digital transformation and data utilization. The DoD has emphasized the critical need to leverage data as a strategic asset to maintain its technological advantage. Contracts focused on developing 'enduring data analytics' are essential for enabling data-driven decision-making across all levels of the organization, from tactical operations to strategic planning. This initiative likely supports efforts to modernize IT infrastructure, improve intelligence gathering and analysis, and enhance the efficiency of defense operations through better insights derived from vast amounts of data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 140D0420R0054

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $63,188,895

Exercised Options: $63,188,895

Current Obligation: $46,210,085

Actual Outlays: $47,057,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline