DoD's $8.2M Cybersecurity Contract with Koniag IT Systems Faces Limited Competition

Contract Overview

Contract Amount: $8,222,874 ($8.2M)

Contractor: Koniag IT Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-06

End Date: 2026-03-05

Contract Duration: 180 days

Daily Burn Rate: $45.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPECIALIZED SERVICES TO SUPPORT CYBERSECURITY AND THE ZERO TRUST PORTFOLIO MANAGEMENT OFFICE FOR THE DEPUTY CHIEF INFORMATION OFFICER.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to KONIAG IT SYSTEMS, LLC for work described as: SPECIALIZED SERVICES TO SUPPORT CYBERSECURITY AND THE ZERO TRUST PORTFOLIO MANAGEMENT OFFICE FOR THE DEPUTY CHIEF INFORMATION OFFICER. Key points: 1. Contract awarded to Koniag IT Systems, LLC for cybersecurity and Zero Trust support. 2. Significant spending on specialized IT services for the Deputy CIO. 3. Limited competition raises questions about optimal pricing and value. 4. The contract falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: fair

The contract's value of $8.2M for 180 days suggests a high daily rate. Without specific deliverables or benchmarks for cybersecurity and Zero Trust portfolio management, assessing value against similar contracts is difficult. The lack of competition further complicates a fair pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited or sole-source award. This significantly restricts price discovery and potentially leads to higher costs for taxpayers. The specific justification for limited competition needs further review.

Taxpayer Impact: Limited competition may result in the government paying more than necessary for these specialized cybersecurity services, impacting taxpayer value.

Public Impact

Supports critical cybersecurity and Zero Trust initiatives within the Department of Defense. Ensures continued operational effectiveness of the Deputy CIO's information systems. Potential for increased costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
High daily rate potential
Lack of clear performance metrics for value assessment

Positive Signals

Supports critical cybersecurity functions
Definitive contract provides stability

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cybersecurity and advanced IT portfolio management. Spending benchmarks for similar specialized cybersecurity support contracts can vary widely based on scope and duration, but $8.2M for six months is substantial.

Small Business Impact

The contract was awarded to Koniag IT Systems, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The award was made by Washington Headquarters Services, suggesting internal oversight. However, the limited competition aspect warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for limited competition was sound.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Limited competition may lead to inflated costs.
Lack of transparency regarding justification for limited competition.
High daily rate requires further validation against benchmarks.
Potential for suboptimal value due to restricted price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to KONIAG IT SYSTEMS, LLC. SPECIALIZED SERVICES TO SUPPORT CYBERSECURITY AND THE ZERO TRUST PORTFOLIO MANAGEMENT OFFICE FOR THE DEPUTY CHIEF INFORMATION OFFICER.

Who is the contractor on this award?

The obligated recipient is KONIAG IT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2025-09-06. End: 2026-03-05.

What is the specific justification for awarding this contract on a limited competition basis, and were alternative competitive strategies explored?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' This implies a specific justification, such as a critical need, unique capabilities, or a prior relationship, was cited. However, without access to the contract's justification document, it's impossible to detail the exact reasons or confirm if other competitive avenues were thoroughly explored. This lack of transparency limits the ability to assess the necessity of limited competition.

How does the per-unit cost or daily rate for these specialized cybersecurity services compare to industry benchmarks, given the limited competition?

Benchmarking the per-unit or daily rate is challenging without detailed service breakdowns and specific deliverables. The contract value of $8.2M over 180 days ($45,683 per day) appears high. Limited competition often inflates costs as it reduces the incentive for contractors to offer their most competitive pricing. A thorough review against similar, competitively awarded contracts for comparable cybersecurity and Zero Trust portfolio management services is necessary for a true assessment.

What are the key performance indicators (KPIs) and expected outcomes for this contract, and how will their achievement be measured to ensure effectiveness?

The data does not specify the key performance indicators or expected outcomes for this contract. Effective oversight requires clearly defined, measurable KPIs related to cybersecurity posture improvement, Zero Trust implementation progress, and portfolio management efficiency. Without these, it is difficult to objectively assess the contractor's performance and the overall effectiveness of the $8.2M investment in achieving the Deputy CIO's objectives.

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 - COMPUTE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $68,872,491

Exercised Options: $13,959,957

Current Obligation: $8,222,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline