State Department's Cloud Program Management Support Contract Awarded to Koniag Management Solutions for $104.75M

Contract Overview

Contract Amount: $104,750,341 ($104.8M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of State

Start Date: 2021-07-28

End Date: 2025-02-28

Contract Duration: 1,311 days

Daily Burn Rate: $79.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CLOUD PROGRAM MANAGEMENT OFFICE STAFFING AND SUPPORT

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of State obligated $104.8 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: CLOUD PROGRAM MANAGEMENT OFFICE STAFFING AND SUPPORT Key points: 1. Contract awarded for cloud program management staffing and support services. 2. Duration of the contract is over three years, ending February 2025. 3. The contract was awarded using a 'not available for competition' method. 4. Services are categorized under Computer Systems Design Services. 5. The contract type is a definitive contract with labor hours pricing. 6. The base award amount is approximately $79.9M, with a total potential of $104.75M. 7. The contractor, Koniag Management Solutions LLC, is performing work in Alaska. 8. This contract supports the Department of State's cloud initiatives.

Value Assessment

Rating: fair

The contract's value of $104.75M over approximately three years for cloud program management support appears within a reasonable range for large-scale government IT services. However, without specific details on the scope of work, deliverables, and the number of personnel supported, a precise value-for-money assessment is challenging. Benchmarking against similar cloud management support contracts across federal agencies would provide a clearer picture of whether the pricing is competitive. The use of labor hours pricing can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'not available for competition' justification, indicating a sole-source procurement. This means that only one contractor, Koniag Management Solutions LLC, was considered for this award. While sole-source contracts can be efficient when a specific capability is required, they limit price discovery and potentially reduce competitive pressure that could drive down costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process, potentially leading to higher overall expenditures for these services.

Public Impact

The primary beneficiaries are the Department of State's IT divisions responsible for cloud infrastructure and services. The contract delivers essential staffing and support for managing and executing cloud programs. Geographic impact is primarily focused on the contractor's performance location in Alaska, though the services support federal cloud operations. Workforce implications include the employment of personnel by Koniag Management Solutions to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential taxpayer savings.
Labor hours pricing structure requires diligent oversight to prevent cost escalation.
Lack of detailed performance metrics in the provided data makes assessing efficiency difficult.

Positive Signals

Contract awarded to a known entity, Koniag Management Solutions LLC, suggesting potential past performance.
Long-term contract duration provides stability for cloud program management continuity.
Focus on cloud program management aligns with modernizing government IT infrastructure.

Sector Analysis

The federal IT services market, particularly cloud computing and management, is a significant and growing sector. Agencies are increasingly migrating to cloud environments, driving demand for specialized support services. This contract fits within the broader category of IT professional services, specifically focusing on program management and systems design. Comparable spending benchmarks for cloud management support can vary widely based on scope, but multi-million dollar awards are common for large agencies like the Department of State.

Small Business Impact

The provided data indicates that small business participation is not a primary focus for this specific contract, as the 'ss' (small business set-aside) flag is false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Koniag Management Solutions LLC, is likely a large business, and the contract's structure does not appear to prioritize direct engagement with the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG, though detailed operational oversight specifics are internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cloud Computing Services
IT Program Management
Computer Systems Design Services
Department of State IT Modernization Efforts
Federal IT Professional Services

Risk Flags

Sole-source award may limit competitive pricing.
Labor hours pricing requires diligent oversight to manage costs.
Scope of work details are not publicly available for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $104.8 million to KONIAG MANAGEMENT SOLUTIONS LLC. CLOUD PROGRAM MANAGEMENT OFFICE STAFFING AND SUPPORT

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $104.8 million.

What is the period of performance?

Start: 2021-07-28. End: 2025-02-28.

What is the specific scope of 'Cloud Program Management Staffing and Support' under this contract?

The provided data does not detail the specific scope of 'Cloud Program Management Staffing and Support.' Typically, such services involve providing personnel with expertise in cloud architecture, migration, security, operations, and project management to assist the agency in its cloud initiatives. This could include strategic planning, vendor management, technical guidance, and ensuring compliance with federal regulations. Without the full contract document or a detailed statement of work, the precise tasks and deliverables remain undefined, making a comprehensive assessment of the contract's utility challenging.

How does the $104.75M total potential value compare to similar cloud management contracts at the Department of State?

Benchmarking the $104.75M total potential value requires comparing it to similar cloud program management support contracts awarded by the Department of State or other large federal agencies over comparable timeframes. Given the duration of over three years and the nature of cloud program management, this value is substantial but not necessarily outside the norm for a large agency's IT modernization efforts. However, without access to specific contract details and a broader market analysis of comparable services, it's difficult to definitively state whether this represents excellent, fair, or questionable value. A detailed comparison would involve analyzing the number of personnel, specific services rendered, and the complexity of the cloud environments managed.

What are the potential risks associated with a sole-source award for cloud program management services?

The primary risk associated with a sole-source award for cloud program management services is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation. When only one vendor is considered, the government may not achieve the best possible price or access the widest range of solutions available in the market. Furthermore, sole-source awards can sometimes indicate a lack of planning or an inability to define requirements in a way that allows for broader competition. This can also create vendor lock-in, making it difficult to switch providers or negotiate favorable terms in the future.

What is Koniag Management Solutions LLC's track record with federal IT contracts, particularly cloud services?

Koniag Management Solutions LLC has a history of performing federal contracts, including IT services. While the provided data confirms they were awarded this specific cloud program management contract, a comprehensive assessment of their track record would require examining their past performance on similar contracts, including client satisfaction, adherence to schedules and budgets, and technical execution. Information on their experience specifically with cloud program management, migration, and related IT support services across various federal agencies would be crucial for evaluating their capability and reliability in this domain.

How does the 'Computer Systems Design Services' NAICS code align with cloud program management?

The NAICS code 541512, 'Computer Systems Design Services,' is broadly applicable to services involving the design, development, integration, and management of computer systems. Cloud program management often involves the design and integration of cloud infrastructure, services, and related systems. Therefore, this NAICS code is a reasonable fit, encompassing the technical and strategic aspects of managing and evolving an agency's cloud environment. It covers activities such as analyzing user needs, designing system configurations, and overseeing the implementation and maintenance of IT solutions, which are core to cloud program management.

What are the implications of the contract's duration (1311 days) on program continuity and cost-effectiveness?

A contract duration of 1311 days (approximately 3.6 years) provides significant continuity for critical functions like cloud program management. This extended period allows the contractor to develop deep institutional knowledge, build stable teams, and implement long-term strategies without the disruption of frequent re-competition. For cost-effectiveness, a longer duration can be beneficial if it leads to economies of scale, reduced transition costs between contractors, and the ability to achieve more ambitious program goals. However, it also means the government is committed to a specific vendor and pricing structure for an extended period, necessitating robust oversight to ensure continued value.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $104,750,341

Exercised Options: $104,750,341

Current Obligation: $104,750,341

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline