State Dept. Awards $13.2M for Digital Platform Operations to Koniag IT Systems
Contract Overview
Contract Amount: $13,249,813 ($13.2M)
Contractor: Koniag IT Systems, LLC
Awarding Agency: Department of State
Start Date: 2024-09-06
End Date: 2026-12-17
Contract Duration: 832 days
Daily Burn Rate: $15.9K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DIGITAL PLATFORM OPERATIONS
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $13.2 million to KONIAG IT SYSTEMS, LLC for work described as: DIGITAL PLATFORM OPERATIONS Key points: 1. Contract awarded to Koniag IT Systems, LLC for digital platform operations. 2. The contract has a total value of $13.2 million. 3. The contract is for a period of over two years, ending in December 2026. 4. The NAICS code 518210 indicates services related to computing infrastructure and data processing.
Value Assessment
Rating: fair
The contract's firm fixed price structure provides cost certainty. However, without a competitive benchmark, assessing optimal pricing is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under Simplified Acquisition Procedures, suggesting a limited competition approach. The lack of broad competition may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are committed to a sole-source provider, necessitating careful oversight to ensure value for money.
Public Impact
Ensures continued operation of critical digital platforms for the Department of State. Supports government IT infrastructure and data processing capabilities. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of transparency in the procurement process.
Positive Signals
- Firm fixed price contract provides budget predictability.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure and data processing services. Spending in this area is substantial across government, with benchmarks varying based on service scope and provider.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract's limited competition status warrants close oversight to ensure the government receives fair value. Accountability for performance and cost management will be crucial throughout the contract term.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Lack of transparency in procurement
- No small business participation noted
Tags
computing-infrastructure-providers-data-, department-of-state, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $13.2 million to KONIAG IT SYSTEMS, LLC. DIGITAL PLATFORM OPERATIONS
Who is the contractor on this award?
The obligated recipient is KONIAG IT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $13.2 million.
What is the period of performance?
Start: 2024-09-06. End: 2026-12-17.
What specific digital platforms are covered under this contract, and what is their criticality to the Department of State's mission?
The provided data does not specify the exact digital platforms. Understanding their criticality is essential for assessing the necessity of this contract and the potential impact of service disruptions. Further investigation into the scope of 'Digital Platform Operations' is recommended to gauge the true value and risk associated with this award.
What justification was provided for limiting the competition for this significant IT services contract?
The data indicates the contract was 'NOT COMPETED UNDER SAP,' implying a limited competition strategy. The specific justification for this approach, such as a lack of available vendors, unique technical requirements, or urgent need, is not detailed. Understanding this rationale is key to evaluating whether the limited competition was appropriate and if it resulted in a fair price.
How will the Department of State ensure cost-effectiveness and performance quality given the limited competition?
With limited competition, the Department of State must implement robust performance monitoring and contract management. This includes establishing clear performance metrics, conducting regular reviews, and potentially negotiating pricing adjustments if market conditions or performance deviate significantly. Proactive oversight is crucial to mitigate risks associated with non-competitive awards.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3800 CENTERPOINT DR STE 700, 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: $24,060,746
Exercised Options: $18,347,499
Current Obligation: $13,249,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-06
Current End Date: 2026-12-17
Potential End Date: 2027-05-29 00:00:00
Last Modified: 2026-04-13
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