DOT awards $972K for KITEWORKS Enterprise Renewal, highlighting IT modernization needs

Contract Overview

Contract Amount: $97,227 ($97.2K)

Contractor: CDW Government LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2027-05-31

Contract Duration: 424 days

Daily Burn Rate: $229/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: KITEWORKS ENTERPRISE RENEWAL

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $97,227 to CDW GOVERNMENT LLC for work described as: KITEWORKS ENTERPRISE RENEWAL Key points: 1. Contract value appears reasonable for enterprise software renewal, pending detailed benchmarking. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration aligns with typical enterprise software lifecycle management. 5. Focus on computer systems design services indicates a need for IT infrastructure upgrades. 6. Geographic location in New Jersey may point to specific regional operational needs.

Value Assessment

Rating: good

The contract value of $972,270 for KITEWORKS Enterprise Renewal is within a typical range for enterprise software licensing and support. Without specific details on the software's scope and user base, a direct comparison is challenging. However, the firm fixed-price structure suggests that the government has negotiated a defined cost for the services, which is a positive indicator for value. Further analysis would involve benchmarking against similar enterprise software renewals within the federal government or private sector to ascertain if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This approach generally fosters a competitive environment, leading to better pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process was followed, which is a positive sign for price discovery and market responsiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and quality for the services rendered, maximizing the value of federal dollars.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the renewal of critical IT systems. Services delivered include computer systems design and related support for the KITEWORKS enterprise. The contract has a geographic impact in New Jersey, where the vendor is located. Workforce implications are likely related to IT support and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the renewal.
The exact scope of 'KITEWORKS Enterprise Renewal' is not detailed, potentially leading to scope creep if not managed tightly.
Dependence on a single vendor for enterprise renewal could pose long-term strategic risks.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a competitive market, likely resulting in favorable pricing.
Contract duration is clearly defined, providing a predictable timeline for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT market is vast, with significant spending on software licenses, maintenance, and support. Enterprise renewals like this are common as agencies maintain critical systems. Benchmarking against similar IT service contracts within the federal government would provide further context on the pricing and scope of this award.

Small Business Impact

The data indicates 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 set-aside requirement. The primary contractor, CDW Government LLC, is a large business, and their engagement does not inherently create opportunities for small business subcontractors unless specified in their own business practices or through broader agency subcontracting goals not detailed here.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, its execution will be monitored by the Federal Aviation Administration. Transparency is facilitated by public contract databases. While specific oversight mechanisms for this particular renewal are not detailed, the firm fixed-price nature provides a degree of financial accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration IT Modernization Programs
Enterprise Software Licensing and Support
Computer Systems Design Services Contracts
Department of Transportation IT Procurement

Risk Flags

Potential vendor lock-in
Lack of detailed performance metrics
Dependence on a single vendor for critical system

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $97,227 to CDW GOVERNMENT LLC. KITEWORKS ENTERPRISE RENEWAL

Who is the contractor on this award?

The obligated recipient is CDW GOVERNMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $97,227.

What is the period of performance?

Start: 2026-04-02. End: 2027-05-31.

What is the specific functionality and user base of the KITEWORKS enterprise system being renewed?

The provided data does not specify the exact functionality or user base of the KITEWORKS enterprise system. This information is crucial for a comprehensive understanding of the contract's value and necessity. Knowing the system's purpose (e.g., air traffic management, administrative functions, data analysis) and the number of users it supports would allow for a more accurate assessment of the $972,270 renewal cost. Without these details, it's difficult to benchmark against similar systems or determine if the investment aligns with operational needs and expected benefits.

How does the $972,270 renewal cost compare to previous years or similar federal contracts?

A direct comparison of the $972,270 renewal cost to previous years or similar federal contracts is not possible with the provided data. However, the contract is a firm fixed-price award under full and open competition, which suggests a competitive pricing environment. To perform a robust benchmark, one would need to analyze historical spending on the KITEWORKS system, identify comparable enterprise software renewals within the FAA or DOT, and potentially research market rates for similar services from other large IT vendors. The absence of specific performance metrics or detailed scope also complicates a precise value-for-money assessment.

What are the key performance indicators (KPIs) associated with this KITEWORKS enterprise renewal?

The provided contract data does not include specific Key Performance Indicators (KPIs) for the KITEWORKS enterprise renewal. Typically, such renewals would be tied to service level agreements (SLAs) that define performance expectations for uptime, response times, security, and support. The lack of explicit KPIs makes it challenging to objectively measure the success of this renewal and ensure the government is receiving the expected value. Future analysis should seek to identify any associated SLAs or performance metrics to assess contractor performance and the overall effectiveness of the IT system.

What is the track record of CDW Government LLC in providing similar enterprise IT renewal services to the federal government?

CDW Government LLC is a well-established provider of IT solutions and services to the federal government. They frequently win contracts for hardware, software, and related services across various agencies. While this specific contract is for an enterprise renewal, CDW's general track record suggests they possess the capacity and experience to manage such agreements. A deeper dive into their past performance on similar, large-scale IT renewals, particularly within the Department of Transportation or FAA, would provide more specific insights into their reliability, customer satisfaction, and ability to deliver on complex IT projects.

What are the potential risks associated with relying on a single vendor for this enterprise renewal?

Relying on a single vendor, CDW Government LLC in this case, for the KITEWORKS enterprise renewal introduces several potential risks. Vendor lock-in is a primary concern, potentially limiting future flexibility and negotiation power. If CDW were to significantly increase prices in subsequent renewals or if their service quality declined, the FAA might face difficulties switching providers due to the specialized nature of the system and the costs associated with migration. Furthermore, any disruption to CDW's operations or financial stability could directly impact the continuity of the KITEWORKS system, posing a risk to critical FAA functions.

How does this contract align with the broader IT modernization goals of the Department of Transportation?

This contract for the KITEWORKS Enterprise Renewal likely aligns with the Department of Transportation's (DOT) broader IT modernization goals by ensuring the continued operation and support of a critical enterprise system. Modernization often involves updating or replacing legacy systems, but it also includes maintaining and enhancing existing infrastructure to support current operations and future upgrades. By renewing the KITEWORKS system, the FAA is likely ensuring its stability, security, and compatibility with other IT assets, which is a foundational step in any modernization strategy. The specific nature of KITEWORKS would determine its precise role in the overall modernization roadmap.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $97,227

Exercised Options: $97,227

Current Obligation: $97,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 697DCK22D00001

IDV Type: IDC

Timeline