Koniag Management Solutions awarded $3.16M task order for SABER UAT, with a $10.3M total potential value

Contract Overview

Contract Amount: $10,308,263 ($10.3M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of Education

Start Date: 2022-09-23

End Date: 2026-03-22

Contract Duration: 1,276 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE SABER USER ACCEPTANCE TESTING (UAT). MODP00007 CORRECTS ACTION OBLIGATION, AND BASE AND EXERCISED OPTIONS VALUES FROM $3,161,664 TO $3,161,644.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Education obligated $10.3 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE SABER USER ACCEPTANCE TESTING (UAT). MODP00007 CORRECTS ACTION OBLIGATION, AND BASE AND EXERCISED OPTIONS VALUES FROM $3,161,664 TO $3,161,644. Key points: 1. The task order focuses on User Acceptance Testing (UAT) for the SABER system. 2. A modification adjusted the obligated amount, indicating potential for revised spending. 3. The contract type is Firm Fixed Price, suggesting defined cost expectations. 4. The contractor, Koniag Management Solutions LLC, has a presence in Alaska. 5. The NAICS code 518210 points to services related to computing infrastructure and data processing. 6. The duration of the contract extends over 1200 days, implying a significant project timeline.

Value Assessment

Rating: fair

The total potential value of $10.3M for a task order focused on UAT seems high, especially considering the initial obligated amount was around $3.16M. Without more context on the scope and complexity of the SABER system and its UAT requirements, it's difficult to benchmark the value effectively. The modification to the action obligation suggests some adjustments were made early in the contract's life, which warrants attention.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. This means that the agency likely identified a specific contractor deemed necessary for the work, potentially due to specialized knowledge, existing system familiarity, or other unique circumstances. The lack of open competition limits the potential for price discovery and may result in higher costs compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding, potentially leading to overpayment for the services rendered.

Public Impact

The Department of Education benefits from this contract by ensuring the quality and functionality of the SABER system through user acceptance testing. The primary service delivered is specialized testing to validate system performance and user experience. The geographic impact is primarily within the Department of Education's operational sphere, likely supporting federal education initiatives. Workforce implications may involve specialized IT testing personnel managed by Koniag Management Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
High total potential value for a UAT task order raises questions about cost-effectiveness.
Modification to obligated amount shortly after award suggests potential for scope or cost changes.

Positive Signals

Firm Fixed Price contract provides cost certainty for the base period.
Long contract duration may indicate a critical and ongoing need for SABER system support.
Contractor has a specific NAICS code alignment (518210) suggesting relevant expertise.

Sector Analysis

This contract falls within the IT and Data Processing sector, specifically related to computing infrastructure and hosting services. The NAICS code 518210 covers a range of activities including data processing, hosting, and related services. Spending in this sector is substantial across the federal government as agencies rely heavily on IT systems for operations. Comparable spending benchmarks would typically involve analyzing other task orders for similar IT support and testing services within federal agencies, particularly those managing large-scale educational or administrative systems.

Small Business Impact

The data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside provision. The primary contractor, Koniag Management Solutions LLC, is not explicitly identified as a small business in the provided data, suggesting this is likely a large business award. The impact on the small business ecosystem is neutral in this instance, as no specific opportunities were carved out for them.

Oversight & Accountability

Oversight for this task order would primarily reside with the Department of Education's contracting and program officials. As a task order under a larger contract vehicle (implied), the underlying contract likely has its own oversight mechanisms. Transparency is facilitated through contract award databases, but detailed performance metrics and specific oversight activities are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Services
Cloud Computing Services
Software Testing and Quality Assurance
Data Processing and Hosting
Department of Education IT Modernization

Risk Flags

Sole-source award
High total potential value for UAT
Minor modification to obligated amount

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $10.3 million to KONIAG MANAGEMENT SOLUTIONS LLC. THE PURPOSE OF THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE SABER USER ACCEPTANCE TESTING (UAT). MODP00007 CORRECTS ACTION OBLIGATION, AND BASE AND EXERCISED OPTIONS VALUES FROM $3,161,664 TO $3,161,644.

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-03-22.

What is the specific nature of the SABER system and why is it critical for the Department of Education?

The SABER system is not explicitly defined in the provided data, but its context within the Department of Education suggests it is a critical IT system. Given the NAICS code (518210 - Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services) and the task order's focus on User Acceptance Testing (UAT), SABER likely relates to the management, processing, or hosting of educational data, student information, or administrative functions. Critical systems for the Department of Education often involve student tracking, financial aid processing, grant management, or data analytics for policy development. The UAT phase is crucial for ensuring that any updates, modifications, or the system itself functions as intended before full deployment, thereby safeguarding the integrity and usability of essential educational services and data.

How does the modification to the obligated amount from $3,161,664 to $3,161,644 impact the overall value and risk assessment?

The modification changing the obligated amount from $3,161,664 to $3,161,644 is a very minor adjustment, representing a decrease of $20. This small change is unlikely to significantly alter the overall value or risk assessment of the contract. Such minor adjustments are common during contract execution and can occur due to administrative corrections, slight scope clarifications, or minor accounting adjustments. It does not signal a major change in the contract's trajectory or a substantial deviation from the original plan. The primary focus for risk assessment should remain on the total potential value ($10.3M) and the sole-source nature of the award.

What are the potential risks associated with a sole-source award for IT services like UAT?

A primary risk of a sole-source award for IT services is the lack of competitive pressure, which can lead to inflated pricing. Without competing bids, the government may not secure the most cost-effective solution. Additionally, sole-source awards can sometimes indicate a lack of market research or planning, potentially limiting the agency's access to innovative solutions or a broader pool of qualified vendors. There's also a risk that the chosen contractor may not be the best fit in the long run, but the agency is locked into that relationship without the option to easily switch to a more suitable provider. This can also reduce transparency and accountability compared to a fully competed process.

Can the total potential value of $10.3M be considered reasonable for User Acceptance Testing?

The reasonableness of a $10.3M total potential value for User Acceptance Testing (UAT) is difficult to ascertain without detailed information on the scope, complexity, and duration of the SABER system's UAT. UAT can be a resource-intensive process, especially for large, mission-critical government systems. However, $10.3M represents a significant investment. If this value encompasses multiple phases of testing, extensive test case development, multiple user groups, and potentially long-term support or iterative testing cycles over several years, it might be justifiable. Conversely, if it represents a single, relatively straightforward UAT phase, it could be considered high. Benchmarking against similar UAT contracts for comparable systems within the federal government would be necessary for a definitive assessment.

What does the contractor's location in Alaska (st: AK, sn: ALASKA) imply for this federal contract?

The contractor, Koniag Management Solutions LLC, being based in Alaska (st: AK, sn: ALASKA) for a federal contract awarded by the Department of Education does not inherently imply specific risks or benefits related to the service delivery itself, assuming the services are performed remotely or at the agency's location. However, it might suggest a connection to Alaska Native Corporation (ANC) or Native Hawaiian Organization (NHO) owned businesses, which often receive preferential consideration in federal contracting, particularly under specific authorities. If Koniag Management Solutions LLC is an ANC-owned entity, this could have influenced the procurement strategy or provided certain advantages. The geographic location itself is less critical than the contractor's capability to perform the required IT services effectively, regardless of their physical base of operations.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $13,348,018

Exercised Options: $10,308,263

Current Obligation: $10,308,263

Actual Outlays: $3,763,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 91003121D0002

IDV Type: IDC

Timeline