DoD Awards $2.18M for SEPASS Support Services to Koniag IT Systems, LLC

Contract Overview

Contract Amount: $2,184,289 ($2.2M)

Contractor: Koniag IT Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-17

End Date: 2026-06-16

Contract Duration: 364 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SEPASS SUPPORT SERVICES

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to KONIAG IT SYSTEMS, LLC for work described as: SEPASS SUPPORT SERVICES Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The award is a delivery order under an existing contract, suggesting a continuation of services. 3. Limited competition is noted, raising questions about potential price discovery and value. 4. The IT sector is a significant area of government spending, with ongoing needs for support services.

Value Assessment

Rating: questionable

The contract value of $2.18M for a 1-year duration is difficult to assess without a per-unit cost benchmark. The firm fixed price structure aims to control costs, but the lack of competitive bidding limits the ability to verify optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source award. This limits the opportunity for price discovery and potentially leads to higher costs compared to a fully competitive environment.

Taxpayer Impact: The lack of full and open competition may result in taxpayers paying more than necessary for these engineering services.

Public Impact

Ensures continued support for SEPASS, crucial for Department of the Navy operations. Potential for increased costs due to limited competition impacts taxpayer funds. Highlights the reliance on specific contractors for specialized engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed cost breakdown
Potential for cost overruns

Positive Signals

Firm fixed price contract
Specific engineering expertise secured

Sector Analysis

This contract falls under engineering services, a critical component of the IT sector for government operations. Spending in this area is substantial, driven by the need for specialized technical support and system maintenance.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.

Oversight & Accountability

The award is a delivery order, suggesting it falls under a larger contract vehicle. Oversight would typically involve monitoring performance and adherence to contract terms by the Department of the Navy.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition raises concerns about price fairness.
Lack of transparency in the procurement process.
Potential for cost overruns without competitive pressure.
Dependence on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to KONIAG IT SYSTEMS, LLC. SEPASS SUPPORT SERVICES

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2025-06-17. End: 2026-06-16.

What specific SEPASS support services are being provided, and how do they align with the Department of the Navy's strategic objectives?

The provided data identifies the contract as 'SEPASS SUPPORT SERVICES' and the NAICS code as '541330' for Engineering Services, awarded by the Department of the Navy. While the specific nature of SEPASS is not detailed, engineering services typically encompass design, development, analysis, and testing of systems. These services are likely critical for maintaining or enhancing naval operational capabilities, aligning with the department's strategic goals for readiness and technological advancement.

Given the limited competition, what measures are in place to ensure the government is receiving fair and reasonable pricing for these engineering services?

With the contract being 'NOT AVAILABLE FOR COMPETITION,' the primary mechanism for ensuring fair and reasonable pricing relies on the contracting officer's determination. This often involves reviewing historical pricing, market research, and potentially certified cost or pricing data from the contractor. However, the absence of competitive bids inherently reduces the government's leverage in price negotiation, making robust internal cost analysis and justification crucial.

How will the effectiveness of Koniag IT Systems, LLC's performance be measured to ensure the $2.18M investment yields the intended operational benefits for the Department of the Navy?

Effectiveness will likely be measured through performance metrics defined in the contract's statement of work. The Department of the Navy will monitor key performance indicators (KPIs) related to service delivery, technical accuracy, timeliness, and adherence to project milestones. Regular performance reviews and feedback mechanisms will be employed to assess Koniag IT Systems, LLC's contribution to SEPASS operations and overall mission accomplishment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018925R0026

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: $3,176,532

Exercised Options: $3,176,532

Current Obligation: $2,184,289

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018925D0016

IDV Type: IDC

Timeline