Dod's $55M Cloud Computing Contract With Koniag Technology Solutions Inc Faces Scrutiny
Contract Overview
Contract Amount: $54,911,538 ($54.9M)
Contractor: Koniag Technology Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-13
End Date: 2024-12-12
Contract Duration: 1,917 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CLOUD COMPUTING PROGRAM OFFICE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $54.9 million to KONIAG TECHNOLOGY SOLUTIONS INC for work described as: CLOUD COMPUTING PROGRAM OFFICE Key points: 1. Significant contract value of $54.9M for cloud computing services. 2. Competition method was 'Full and Open', suggesting broad market access. 3. Potential risk due to the long duration (5+ years) and fixed-price nature. 4. Services fall under Custom Computer Programming, a key IT sector.
Value Assessment
Rating: fair
The contract's fixed-price nature for a long duration may lead to overpayment if costs decrease or requirements change. Benchmarking against similar custom programming contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and fixed-price structure could limit price discovery over time.
Taxpayer Impact: Taxpayers may be exposed to risk if the fixed price becomes uncompetitive over the contract's extended term.
Public Impact
Ensures critical cloud computing infrastructure for the Department of Defense. Supports national security initiatives through advanced technological services. Potential for job creation within the IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5+ years)
- Fixed-price contract type
- No small business participation noted
Positive Signals
- Full and open competition utilized
- Services support critical DoD functions
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, a vital component of the IT industry supporting government operations. Spending in this area is substantial, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that larger firms were better positioned to compete or that specific set-aside goals were not applied or met.
Oversight & Accountability
The contract's long duration and fixed-price nature warrant close oversight to ensure continued value and prevent cost overruns. Regular performance reviews and market comparisons are essential.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Long-term fixed-price contract
- No small business participation
- Potential for price escalation over contract life
- Lack of detailed service breakdown for value assessment
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.9 million to KONIAG TECHNOLOGY SOLUTIONS INC. CLOUD COMPUTING PROGRAM OFFICE
Who is the contractor on this award?
The obligated recipient is KONIAG TECHNOLOGY SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $54.9 million.
What is the period of performance?
Start: 2019-09-13. End: 2024-12-12.
What is the specific breakdown of services provided under this cloud computing contract, and how does the fixed price align with current market rates for these services?
The contract is for Custom Computer Programming Services, likely encompassing development, integration, and maintenance of cloud-based systems. A detailed service breakdown is crucial for assessing the fixed price against current market rates. Without this, it's difficult to determine if the $54.9M represents fair value, especially given the 5-year duration, which could see significant market shifts.
Given the 5+ year duration and fixed-price structure, what mechanisms are in place to mitigate the risk of the government overpaying if technology costs decrease or requirements evolve?
The primary risk mitigation would stem from the initial 'full and open competition' driving a competitive baseline price. However, the fixed-price nature for a long term is inherently risky. Mechanisms like contract clauses allowing for equitable adjustments based on significant market shifts or defined review periods for price re-evaluation could mitigate this, but are not explicitly detailed in the provided data.
How effectively does this contract support the Department of Defense's overall cloud strategy and digital transformation goals, and what are the key performance indicators being tracked?
The effectiveness hinges on how well KONIAG's services align with DoD's specific cloud adoption roadmap and security requirements. Key performance indicators (KPIs) would likely focus on system uptime, data security compliance, integration capabilities, and user satisfaction. Without insight into these KPIs and the strategic alignment, assessing effectiveness remains speculative.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ003419R0146
Offers Received: 3
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, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,911,538
Exercised Options: $54,911,538
Current Obligation: $54,911,538
Actual Outlays: $1,364,544
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0461Y
IDV Type: FSS
Timeline
Start Date: 2019-09-13
Current End Date: 2024-12-12
Potential End Date: 2024-12-12 00:00:00
Last Modified: 2025-08-20
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