DoD's Kessel Run Toolchain contract awarded at $36.9M to AT-IMPACT LLC for Computer Systems Design

Contract Overview

Contract Amount: $36,920,878 ($36.9M)

Contractor: At-Impact LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-31

End Date: 2026-04-30

Contract Duration: 1,550 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: KESSEL RUN ENTERPRISE TOOLCHAIN (ET)

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.9 million to AT-IMPACT LLC for work described as: KESSEL RUN ENTERPRISE TOOLCHAIN (ET) Key points: 1. Contract value is $36.9M over 3.8 years. 2. AT-IMPACT LLC is the sole awardee. 3. Risk is moderate due to sole-source nature. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: fair

The contract is Time and Materials, which can lead to cost overruns if not managed closely. Benchmarking against similar IT services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a limited competition. This method may not have yielded the best price discovery.

Taxpayer Impact: Taxpayer funds are being used for IT services. The limited competition raises concerns about whether the most cost-effective solution was secured.

Public Impact

Supports critical Air Force IT infrastructure. Impacts operational efficiency for the Department of the Air Force. Potential for cost growth due to Time and Materials pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across the federal government, with significant competition often present.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and potentially foster innovation.

Oversight & Accountability

Oversight is crucial given the Time and Materials pricing and limited competition to ensure funds are used efficiently and effectively.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.9 million to AT-IMPACT LLC. KESSEL RUN ENTERPRISE TOOLCHAIN (ET)

Who is the contractor on this award?

The obligated recipient is AT-IMPACT LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $36.9 million.

What is the period of performance?

Start: 2022-01-31. End: 2026-04-30.

What specific systems or capabilities does the Kessel Run Enterprise Toolchain support, and how critical are they to Air Force operations?

The Kessel Run Enterprise Toolchain (ET) is a foundational element for modernizing Air Force software development and deployment. It provides the infrastructure and tools necessary for rapid application development, testing, and deployment, enabling faster delivery of critical capabilities to warfighters. Its importance lies in accelerating the Air Force's digital transformation and ensuring it can maintain a technological advantage.

What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method for this contract?

This award method inherently limits the pool of potential bidders, potentially excluding innovative solutions or more cost-effective providers. It raises concerns about whether the government received the best value. The risk is that the chosen contractor may not be the most competitive option available, leading to higher costs or suboptimal performance compared to a truly open competition.

How does the Time and Materials (T&M) pricing structure impact the government's ability to control costs and ensure value for money?

T&M pricing can be a significant risk for cost control as it reimburses the contractor for direct labor hours and material costs incurred. Without robust oversight and well-defined ceilings, there's a risk of cost escalation. Ensuring value for money requires diligent monitoring of labor hours, rates, and material expenses to prevent inefficiencies and ensure the work performed aligns with the contract's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 639 RIVER BEND RD, GREAT FALLS, VA, 22066

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $57,696,090

Exercised Options: $38,459,537

Current Obligation: $36,920,878

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98119D00089

IDV Type: GWAC

Timeline

Start Date: 2022-01-31

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-01-20

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