Koniag Data Solutions LLC awarded $5.3M contract for enterprise operations by the Department of State

Contract Overview

Contract Amount: $5,357,512 ($5.4M)

Contractor: Koniag Data Solutions LLC

Awarding Agency: Department of State

Start Date: 2026-03-01

End Date: 2026-08-31

Contract Duration: 183 days

Daily Burn Rate: $29.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE OPERATIONS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $5.4 million to KONIAG DATA SOLUTIONS LLC for work described as: ENTERPRISE OPERATIONS Key points: 1. Contract value appears reasonable for enterprise operations support, though specific benchmarks are needed. 2. Limited competition raises concerns about potential overpricing and reduced value for taxpayer funds. 3. Contract duration of 183 days suggests a focused, short-term requirement. 4. The firm-fixed-price structure shifts performance risk to the contractor. 5. This contract falls within the custom computer programming services sector, a common area for federal IT spending. 6. No indication of small business subcontracting requirements or set-asides.

Value Assessment

Rating: fair

The contract value of $5.36 million for enterprise operations over approximately six months is difficult to benchmark without more specific service details. Compared to similar IT support contracts, the per-diem rate would need to be analyzed. Given the lack of competition, it's challenging to definitively assess if this represents excellent value for money. The firm-fixed-price nature provides cost certainty but requires careful scope management to avoid scope creep that could inflate costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one vendor, Koniag Data Solutions LLC, was solicited. The lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve the best possible pricing and terms. It suggests a specific capability or existing relationship may have driven this decision.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.

Public Impact

The Department of State benefits from continued enterprise operations support, crucial for its internal functions. Services delivered likely include IT infrastructure management, software support, and data processing. The geographic impact is primarily within the Department of State's operational footprint, likely concentrated in Washington D.C. or other key federal locations. Workforce implications may involve specialized IT personnel employed by Koniag Data Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited contract duration could indicate a stop-gap measure or a narrowly defined need.
Absence of small business participation noted.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract supports essential enterprise operations for a major federal agency.
Contractor is likely performing services critical to agency function.

Sector Analysis

This contract falls under the IT services sector, specifically custom computer programming services (NAICS 541511). The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are typical for supporting the complex operational needs of large government organizations. Benchmarking would involve comparing the contract's value and scope to other similar enterprise IT support contracts awarded by federal agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. Furthermore, the data does not specify any subcontracting requirements for small businesses. This suggests that small businesses may not be directly benefiting from this particular award, and their participation in the broader ecosystem related to this contract is not explicitly mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Support Services
Custom Computer Programming Services Contracts
Enterprise Resource Planning (ERP) System Support

Risk Flags

Sole-source award lacks competitive justification.
Potential for uncompetitive pricing.
Limited duration may indicate a short-term or stop-gap solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.4 million to KONIAG DATA SOLUTIONS LLC. ENTERPRISE OPERATIONS

Who is the contractor on this award?

The obligated recipient is KONIAG DATA 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 $5.4 million.

What is the period of performance?

Start: 2026-03-01. End: 2026-08-31.

What is the track record of Koniag Data Solutions LLC with the federal government, particularly in providing enterprise operations support?

Koniag Data Solutions LLC has a history of federal contracting, though specific details on their performance for 'enterprise operations' require deeper analysis of past awards and performance reviews. Examining their contract history within the FPDS database would reveal the types of services they have provided, the agencies they have served, and the dollar values of those contracts. Performance metrics and past performance questionnaires, if available, would offer further insight into their reliability and effectiveness in delivering similar services. Understanding their experience with firm-fixed-price contracts and sole-source awards is also crucial for assessing their suitability for this specific requirement.

How does the awarded value of $5.36 million compare to similar enterprise operations contracts awarded by the Department of State or other agencies?

A direct comparison of the $5.36 million award requires identifying contracts with highly similar scopes of work, durations, and service levels. Given this is for 'enterprise operations,' it could encompass a wide range of IT support functions. Benchmarking against contracts for IT infrastructure management, system administration, or custom software development for agencies of similar size and complexity would be necessary. The limited competition (sole-source) nature of this award makes direct value comparison more challenging, as competitive bids often drive prices down. Without more granular data on the specific services rendered and the labor mix, a precise value-for-money assessment is difficult.

What are the specific risks associated with a sole-source award for enterprise operations, and how are they being mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competition, which can lead to reduced value for taxpayer funds. There's also a risk that the government may not be accessing the most innovative or efficient solutions available in the market. Mitigation strategies typically involve rigorous justification for the sole-source determination, thorough negotiation of terms and pricing, and robust contract oversight to ensure the contractor meets all performance requirements. The Department of State would need to demonstrate that this award was necessary and that they negotiated the best possible terms under the circumstances.

What is the expected effectiveness of Koniag Data Solutions LLC in delivering enterprise operations support based on their contract type and duration?

The effectiveness of Koniag Data Solutions LLC will be influenced by the firm-fixed-price (FFP) contract type and the 183-day duration. The FFP structure incentivizes the contractor to manage costs efficiently to maximize profit, which can be effective if the scope is well-defined. However, it also means the government bears the risk if unforeseen issues arise that increase costs. The short duration suggests a specific, perhaps short-term, need or a phase of a larger project. Effectiveness will depend heavily on the clarity of the statement of work, the contractor's technical capabilities, and the government's ability to monitor performance closely within this timeframe.

What has been the historical spending pattern for enterprise operations at the Department of State, and how does this contract fit within that trend?

Analyzing historical spending patterns for enterprise operations at the Department of State would involve reviewing past contract awards for similar services over several fiscal years. This would reveal whether spending in this area is increasing, decreasing, or remaining stable. It would also indicate the typical contract vehicles used (e.g., competitive vs. sole-source) and the average contract values. This $5.36 million award, being sole-source and relatively short-term, might represent a specific, urgent need or a continuation of a service previously provided under different arrangements. Understanding the historical context helps determine if this award is an anomaly or part of an ongoing strategy.

Are there any specific performance metrics or deliverables outlined in this contract that will be used to measure success?

The provided data does not specify the performance metrics or deliverables for this contract. However, for any federal contract, particularly one supporting 'enterprise operations,' a detailed Statement of Work (SOW) would typically outline specific tasks, expected outcomes, and measurable performance standards. These could include system uptime percentages, response times for issue resolution, successful completion of maintenance cycles, or adherence to security protocols. The firm-fixed-price nature suggests that the government expects specific, defined outputs, and the effectiveness of the contract will be judged against these criteria, likely monitored by the contracting officer's representative (COR).

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 19AQMM26R0095

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: $19,916,576

Exercised Options: $6,638,859

Current Obligation: $5,357,512

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline