Koniag Data Solutions LLC awarded $8.5M for IT cybersecurity and privacy support to HHS

Contract Overview

Contract Amount: $8,508,672 ($8.5M)

Contractor: Koniag Data Solutions LLC

Awarding Agency: Department of the Interior

Start Date: 2025-07-11

End Date: 2026-07-13

Contract Duration: 367 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE ACF, A DIVISION OF THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), IS COMMITTED TO IMPROVING AND STREAMLINING ITS INFORMATION TECHNOLOGY (IT) SYSTEMS AND SUPPORT. ACF REQUIRES CYBERSECURITY AND PRIVACY (CSP) SUPPORT SERVICES TO S

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $8.5 million to KONIAG DATA SOLUTIONS LLC for work described as: THE ACF, A DIVISION OF THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), IS COMMITTED TO IMPROVING AND STREAMLINING ITS INFORMATION TECHNOLOGY (IT) SYSTEMS AND SUPPORT. ACF REQUIRES CYBERSECURITY AND PRIVACY (CSP) SUPPORT SERVICES TO S Key points: 1. Contract focuses on essential cybersecurity and privacy support for HHS's IT systems. 2. The award utilizes a Time and Materials pricing structure. 3. This is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The contract duration is approximately one year, ending July 2026. 5. The awarding agency is the Department of the Interior, serving HHS. 6. The North American Industry Classification System (NAICS) code is 541519, indicating 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $8.5 million for one year of cybersecurity and privacy support appears reasonable given the critical nature of the services. Benchmarking against similar IT support contracts for federal agencies suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing model, while offering flexibility, requires diligent oversight to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the overall investment aligns with the stated need for enhanced IT security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended. This approach generally leads to a wider pool of potential contractors and encourages competitive pricing, which is beneficial for the government.

Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayers to benefit from the most competitive pricing and innovative solutions available in the market.

Public Impact

Beneficiaries include the Administration for Children and Families (ACF) within HHS, which will receive enhanced IT security. Services delivered will bolster cybersecurity defenses and ensure data privacy for critical government systems. The geographic impact is primarily within the District of Columbia, where the ACF operates. Workforce implications may include the need for specialized cybersecurity and IT support personnel, potentially sourced by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Reliance on a single delivery order under a potentially broader IDIQ may limit long-term strategic planning for cybersecurity.
The specific performance metrics and Service Level Agreements (SLAs) are not detailed, making it difficult to gauge performance expectations.
The awarding agency (DOI) is different from the benefiting agency (HHS), which could introduce coordination complexities.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Focus on critical cybersecurity and privacy services addresses a high-priority government need.
The contract duration of approximately one year allows for flexibility and reassessment of needs.
Koniag Data Solutions LLC's selection implies they met the technical and performance requirements.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on cybersecurity and privacy. The federal IT services market is substantial, with agencies consistently investing in modernizing systems and protecting sensitive data. Cybersecurity spending has been a significant area of growth due to increasing cyber threats. This contract represents a portion of the broader federal spending on IT support and security, aiming to ensure the integrity and confidentiality of ACF's digital infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Koniag Data Solutions LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. Future opportunities for small businesses would depend on the overall IDIQ contract's subcontracting goals and Koniag's approach to fulfilling them.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers within the Department of the Interior, who awarded the contract on behalf of HHS. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HHS Cybersecurity Modernization Program
Federal Information Security Management Act (FISMA) Compliance
IT Services for Health and Human Services Agencies
Department of the Interior IT Support Contracts
Cybersecurity Support Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Coordination challenges between awarding agency (DOI) and benefiting agency (HHS).
Lack of specific performance metrics in provided data.
Limited insight into the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $8.5 million to KONIAG DATA SOLUTIONS LLC. THE ACF, A DIVISION OF THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), IS COMMITTED TO IMPROVING AND STREAMLINING ITS INFORMATION TECHNOLOGY (IT) SYSTEMS AND SUPPORT. ACF REQUIRES CYBERSECURITY AND PRIVACY (CSP) SUPPORT SERVICES TO S

Who is the contractor on this award?

The obligated recipient is KONIAG DATA 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 $8.5 million.

What is the period of performance?

Start: 2025-07-11. End: 2026-07-13.

What is the track record of Koniag Data Solutions LLC in performing similar cybersecurity and IT support services for federal agencies?

Koniag Data Solutions LLC has a history of performing IT services for federal agencies. While specific details on past cybersecurity and privacy support contracts are not provided in this data snippet, their selection for this HHS contract suggests they possess the requisite experience and capabilities. A deeper dive into their contract history, performance evaluations (e.g., CPARS), and past performance questionnaires would provide a more comprehensive understanding of their track record. Examining previous awards and their successful completion would indicate their reliability and expertise in delivering similar services, particularly within the complex federal IT landscape.

How does the $8.5 million contract value compare to similar cybersecurity support contracts awarded by HHS or other agencies?

The $8.5 million contract value for approximately one year of cybersecurity and privacy support is within a typical range for federal IT services, especially those involving specialized security functions. Benchmarking against contracts with similar scope (e.g., IT security operations, privacy compliance, vulnerability management) awarded to agencies like HHS, or even other cabinet-level departments, would provide a clearer picture. Factors such as the number of personnel required, the complexity of the systems supported, and the specific security certifications mandated influence pricing. Without detailed scope of work and labor hour estimates, direct comparison is limited, but the amount suggests a significant engagement for critical support.

What are the primary risks associated with this Time and Materials (T&M) contract structure for cybersecurity services?

The primary risk with a Time and Materials (T&M) contract for cybersecurity services is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs incurred, plus a fixed fee or percentage. This structure can incentivize longer task durations or less efficient work if oversight is weak. For cybersecurity, this could mean extended incident response times or prolonged system monitoring. Effective risk mitigation requires robust government oversight, clear task definitions, strict monitoring of labor hours, and regular reviews of expenditures against performance objectives to ensure value for taxpayer money.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for these cybersecurity services?

The 'full and open competition' approach is generally the most effective method for ensuring competitive pricing in federal contracting. By allowing all responsible sources to bid, it maximizes the number of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This broad competition drives down prices as contractors vie for the award. For cybersecurity services, where specialized expertise is required, full and open competition ensures that a wide range of providers, from large corporations to specialized firms, can participate, leading to better price discovery and potentially more innovative and cost-effective solutions for the government.

What are the potential implications of the Department of the Interior awarding this contract for HHS's cybersecurity posture?

The Department of the Interior (DOI) awarding this contract for HHS's cybersecurity needs introduces an intermediary layer in the procurement process. While DOI's acquisition professionals likely have expertise, the direct beneficiary is HHS's Administration for Children and Families (ACF). Potential implications include a need for strong inter-agency communication and coordination to ensure the contracted services align perfectly with ACF's specific IT environment and security requirements. Delays or misunderstandings could arise if communication channels are not robust. However, if managed effectively, leveraging DOI's contracting prowess could streamline the acquisition process for HHS, potentially leading to faster service delivery.

What is the historical spending trend for cybersecurity and IT support services within HHS or similar agencies?

Historical spending trends for cybersecurity and IT support services within HHS and similar large federal agencies have shown a consistent and often increasing trajectory. Driven by evolving threat landscapes, regulatory mandates (like FISMA), and the digitization of sensitive data, agencies allocate significant portions of their budgets to IT security. HHS, managing vast amounts of personal health information, faces particularly high security demands. Spending typically covers areas such as network security, endpoint protection, data encryption, incident response, security awareness training, and compliance monitoring. Year-over-year increases are common as agencies upgrade systems and adopt new security technologies to counter sophisticated cyber threats.

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 › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0425Q0456

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $27,101,079

Exercised Options: $8,508,672

Current Obligation: $8,508,672

Actual Outlays: $2,751,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA23D005D

IDV Type: FSS

Timeline