DoD's $27.4M contract for PEO MLB support awarded to Kupono Government Services, LLC
Contract Overview
Contract Amount: $27,444,977 ($27.4M)
Contractor: Kupono Government Services, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-31
End Date: 2026-05-30
Contract Duration: 1,460 days
Daily Burn Rate: $18.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPERATIONS AND ADMINISTRATIVE SUPPORT SERVICES FOR PEO MLB.
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $27.4 million to KUPONO GOVERNMENT SERVICES, LLC for work described as: OPERATIONS AND ADMINISTRATIVE SUPPORT SERVICES FOR PEO MLB. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 1460 days (4 years) indicates a long-term need for these services. 4. The awardee, Kupono Government Services, LLC, is a relatively new entity in federal contracting. 5. The contract is for operations and administrative support, a common but critical function. 6. The contract value is substantial, requiring robust performance monitoring.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the total award value of approximately $27.4 million over four years averages to about $6.85 million annually. This figure needs to be compared against similar support services contracts within the Department of Defense, particularly those supporting Program Executive Offices (PEOs). The Cost Plus Fixed Fee structure means that while the fee is fixed, the government bears the cost of performance, necessitating vigilance in managing direct costs to ensure overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The presence of 13 bids suggests a healthy level of interest and competition for this requirement. A higher number of bidders generally provides the government with a broader range of technical solutions and pricing options, potentially leading to better value and a more competitive price.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive proposals, maximizing the use of public funds.
Public Impact
The primary beneficiaries are the Program Executive Office for Major Shared Alliances (PEO MLB) and its associated programs, which will receive essential operational and administrative support. Services delivered include crucial administrative functions that enable the efficient execution of PEO MLB's mission. The geographic impact is centered in Washington D.C., where the Department of the Navy and PEO MLB are located. Workforce implications include the creation of jobs for Kupono Government Services, LLC employees, likely including administrative, program management, and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by performance.
- The relatively new status of Kupono Government Services, LLC may warrant closer scrutiny of their performance and financial stability throughout the contract duration.
- The broad scope of 'operations and administrative support' could lead to scope creep if not clearly defined and managed.
Positive Signals
- Awarded through full and open competition with 13 bidders, indicating a competitive marketplace and potentially strong value.
- The contract has a defined period of performance, allowing for structured management and evaluation.
- The fixed fee component of the contract structure provides a degree of cost predictability for the government.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is vital for supporting government programs, particularly in defense. The market for such services is large and competitive, with numerous firms offering specialized support. Benchmarking requires comparing this contract's value and scope to other administrative and operational support contracts awarded to PEOs or similar defense organizations, considering the specific nature of the support required.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Kupono Government Services, LLC is identified as the prime contractor. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific prime award is likely minimal unless the contractor voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers responsible for PEO MLB. The Cost Plus Fixed Fee structure necessitates rigorous monitoring of incurred costs against the contract ceiling and the fixed fee. Accountability measures will be tied to performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases, but detailed cost and performance data may be less accessible to the public.
Related Government Programs
- Defense Contract Management Agency (DCMA) services
- Program Executive Office (PEO) support contracts
- Department of Defense Administrative Support Services
- Engineering Services contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Contractor's track record as a potentially newer entity requires monitoring.
- Scope definition for 'operations and administrative support' needs clear management to prevent creep.
Tags
defense, department-of-defense, department-of-the-navy, program-executive-office, operations-support, administrative-support, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, washington-dc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to KUPONO GOVERNMENT SERVICES, LLC. OPERATIONS AND ADMINISTRATIVE SUPPORT SERVICES FOR PEO MLB.
Who is the contractor on this award?
The obligated recipient is KUPONO GOVERNMENT SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.4 million.
What is the period of performance?
Start: 2022-05-31. End: 2026-05-30.
What is the track record of Kupono Government Services, LLC in performing similar federal contracts?
Kupono Government Services, LLC appears to be a relatively new entity in the federal contracting landscape. As of the award date (May 31, 2022), detailed historical performance data for this specific contractor on large-scale federal contracts may be limited. Further investigation into contract databases like SAM.gov or FPDS would be necessary to ascertain their past performance, including any prior awards, contract types, and performance ratings. For a contract of this value and duration, the government would typically conduct a thorough pre-award assessment of the contractor's capabilities, financial stability, and past performance, even if it's a newer company, potentially through key personnel experience or prior smaller contracts.
How does the average annual cost of this contract compare to similar PEO support contracts?
The average annual cost for this contract is approximately $6.85 million ($27.4M / 4 years). To benchmark this effectively, one would need to compare it against contracts providing similar operational and administrative support services to other Program Executive Offices (PEOs) within the Department of Defense or other federal agencies. Key comparison points would include the scope of services, the complexity of the programs supported, the labor mix, and the contract type. Without access to detailed cost breakdowns and specific service level agreements for comparable contracts, a precise value-for-money assessment is difficult. However, the competitive award process suggests an effort to achieve a fair price.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for administrative support?
The primary risk with a CPFF contract, especially for administrative support, is the potential for cost overruns on the 'cost' portion, even though the 'fee' is fixed. The government bears the risk of actual costs incurred by the contractor. If the contractor's cost accounting or management is inefficient, the total expenditure can exceed initial estimates. For administrative support, defining and measuring 'performance' can also be subjective, making it harder to ensure the fixed fee is truly earned. Robust oversight, clear performance metrics, and diligent auditing of costs are crucial to mitigate these risks and ensure the government receives good value.
How does the number of bidders (13) influence the potential value for taxpayers?
A high number of bidders, such as the 13 received for this contract, generally signals a competitive marketplace. This increased competition typically benefits taxpayers by driving down prices as contractors vie for the award. It also provides the government with a wider array of technical solutions and approaches, increasing the likelihood of selecting the most effective and efficient method. Furthermore, a competitive process can lead to more favorable terms and conditions, ultimately maximizing the value of the taxpayer dollars invested in the contract.
What is the significance of the contract being for 'Operations and Administrative Support Services'?
Contracts for 'Operations and Administrative Support Services' are fundamental to the functioning of government agencies and programs. They encompass a wide range of activities, from managing daily office operations, human resources, financial administration, logistics, and IT support, to facilitating program management functions. For a Program Executive Office (PEO) like PEO MLB, these services are critical for enabling the PEO to focus on its core mission of acquiring and supporting major defense systems. The efficiency and effectiveness of these support services directly impact the overall success and cost-effectiveness of the programs the PEO oversees.
What are the potential implications of the contract's duration (4 years) on cost and performance?
A four-year contract duration provides stability and allows the contractor, Kupono Government Services, LLC, to invest in resources and personnel dedicated to the PEO MLB mission. This long-term commitment can foster a deeper understanding of the client's needs and lead to improved performance over time. For taxpayers, a longer duration can sometimes lead to better value through economies of scale and reduced transaction costs associated with frequent re-competitions. However, it also means that the government is committed to a specific provider for an extended period, necessitating strong performance management to ensure continued value and to allow for adjustments if needs evolve or performance falters.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003921R3031
Offers Received: 13
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12565 RESEARCH PKWY STE 300, ORLANDO, FL, 32826
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Other Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,820,140
Exercised Options: $30,444,896
Current Obligation: $27,444,977
Actual Outlays: $70,974
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017821D9171
IDV Type: IDC
Timeline
Start Date: 2022-05-31
Current End Date: 2026-05-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-02-13
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