HUD awards $3M+ for Native Advantage DME and O&M, with Koniag Management Solutions LLC as sole provider

Contract Overview

Contract Amount: $3,011,153 ($3.0M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-08-11

End Date: 2027-02-06

Contract Duration: 1,275 days

Daily Burn Rate: $2.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PIH NATIVE ADVANTAGE DME AND O&M

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $3.0 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: PIH NATIVE ADVANTAGE DME AND O&M Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 1275 days suggests a long-term need for these services. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. The contract is for Computer Systems Design Services, a critical IT function. 5. Geographic focus on Alaska (AK) indicates a specific regional requirement. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific service offering. Without competitive bids, it's difficult to ascertain if the $3.01 million price represents optimal value for money. The contract's duration and the nature of IT system maintenance and operations suggest a significant investment. Further analysis would require comparing the scope of services and the contractor's performance on similar, competitively bid contracts, which are not readily available in this data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to unique capabilities, proprietary technology, or urgent needs. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding process. The government did not leverage market forces to drive down costs.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD), which will receive essential IT system support. Services include maintenance and operations for the Native Advantage system, crucial for HUD's functions. The contract has a specific geographic impact, focusing on operations within Alaska (AK). Workforce implications are likely within Koniag Management Solutions LLC, potentially employing individuals with specialized IT skills for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to lack of competition.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Long-term contract (1275 days) indicates a stable, ongoing need.
Contractor Koniag Management Solutions LLC likely possesses specialized knowledge for this system.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the IT industry. This sector encompasses a wide range of services, including IT consulting, systems integration, and IT support. The market for these services is substantial, driven by the increasing reliance of government agencies on robust and efficient IT infrastructure. Benchmarking this specific contract's value is difficult without more granular data on comparable IT support contracts for specialized systems within government.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to Koniag Management Solutions LLC, a company that may or may not be classified as a small business itself, means that opportunities for small business participation through subcontracting are not explicitly mandated by this contract's structure. This could limit the direct economic benefit to the small business ecosystem from this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Housing and Urban Development's contracting and program management offices. Accountability measures would be defined by the contract terms and performance metrics. Transparency might be limited due to the sole-source nature of the award, with justifications for this approach being key to understanding the oversight process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HUD IT Modernization Programs
Federal IT Support Services
Alaska Native Corporation Contracting
Computer Systems Design Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Justification for sole-source award not provided.
Potential for cost overruns due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $3.0 million to KONIAG MANAGEMENT SOLUTIONS LLC. PIH NATIVE ADVANTAGE DME AND O&M

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2023-08-11. End: 2027-02-06.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services. This could be due to proprietary information, unique capabilities, compatibility requirements with existing systems, or urgent and compelling circumstances. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reasons remain unknown. This lack of competition raises concerns about potential price inflation and limits the government's ability to leverage market forces for cost savings.

How does the $3.01 million contract value compare to similar IT system maintenance contracts within HUD or other federal agencies?

Directly comparing the $3.01 million contract value for 'PIH NATIVE ADVANTAGE DME AND O&M' is challenging without more specific details on the scope of services, Service Level Agreements (SLAs), and the complexity of the 'Native Advantage' system. However, for IT system design and related services, federal contracts can range from tens of thousands to hundreds of millions of dollars, depending on duration, complexity, and number of users. Given this is a firm-fixed-price contract for over three years (1275 days), the annual cost is approximately $950,000. This figure needs to be evaluated against the specific deliverables and the criticality of the system. The sole-source nature, however, prevents a definitive value-for-money assessment against competitive benchmarks.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected performance standards and quality of service for the contractor, Koniag Management Solutions LLC. Typically, for IT maintenance and operations contracts, KPIs might include system uptime percentages, response times for issue resolution, patch management timeliness, and data security compliance. SLAs would outline the specific metrics, measurement methods, and potential remedies or penalties for non-performance. Without these details, it is difficult to objectively assess the contractor's performance and the overall effectiveness of the service delivery.

What is Koniag Management Solutions LLC's track record with HUD or similar federal agencies for IT system support?

The provided data identifies Koniag Management Solutions LLC as the contractor but does not offer details on their specific track record with HUD or other federal agencies for IT system support. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or issues. As this is a sole-source award, it might imply that Koniag possesses unique qualifications or has a prior, established relationship with HUD for this specific system. A comprehensive review would require accessing external databases or agency records detailing past performance.

What is the historical spending pattern for the Native Advantage DME and O&M services prior to this award?

The provided data pertains to a single, newly awarded contract (effective August 11, 2023) and does not include historical spending patterns for the 'Native Advantage DME and O&M' services. To understand historical spending, one would need to query federal procurement databases (like FPDS or SAM.gov) for previous contracts related to this specific system or service requirement, potentially under different contract vehicles or with different awardees. Analyzing past spending would reveal trends, identify potential cost increases or decreases over time, and provide context for the current $3.01 million award, especially if previous awards were competitively sourced.

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

Solicitation ID: 86615423R00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,925,804

Exercised Options: $4,803,614

Current Obligation: $3,011,153

Actual Outlays: $2,570,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline