DoD Awards $4.4M Engineering Services Contract to KIHOMAC INC for Naval Support

Contract Overview

Contract Amount: $4,442,336 ($4.4M)

Contractor: Kihomac Inc

Awarding Agency: Department of Defense

Start Date: 2025-01-20

End Date: 2026-01-22

Contract Duration: 367 days

Daily Burn Rate: $12.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CSS-LABOR- OPTION II

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $4.4 million to KIHOMAC INC for work described as: CSS-LABOR- OPTION II Key points: 1. Contract awarded to KIHOMAC INC for engineering services. 2. The Department of the Navy is the contracting agency. 3. This is a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. The contract duration is 367 days, ending January 22, 2026.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may result in a less optimal price for the services rendered.

Public Impact

Naval operations may be impacted by the engineering services provided. KIHOMAC INC receives a significant contract award. The Department of Defense continues to utilize sole-source contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee pricing
Potential for cost overruns

Positive Signals

Contract awarded to a single entity
Clear end date for services

Sector Analysis

Engineering services are crucial for maintaining and upgrading military assets. The Department of Defense is a major consumer of these services, with spending often influenced by geopolitical factors and technological advancements.

Small Business Impact

This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of Defense has established procurement regulations to guide contract management.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee pricing increases risk of overruns.
Lack of detailed scope information hinders value assessment.
No small business participation identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.4 million to KIHOMAC INC. CSS-LABOR- OPTION II

Who is the contractor on this award?

The obligated recipient is KIHOMAC INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2025-01-20. End: 2026-01-22.

What specific engineering services are being provided under this contract, and how do they align with current naval modernization priorities?

The provided data does not specify the exact engineering services. Understanding the scope is essential to assess its alignment with naval modernization and determine if the $4.4M award is justified. Further details on the Statement of Work would be needed for a comprehensive analysis.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is not provided. Typically, this occurs when only one source can meet the requirement. Without competition, the contracting officer must conduct thorough market research and price analysis to ensure the price is fair and reasonable, which is not detailed here.

How will the effectiveness of KIHOMAC INC's engineering services be measured, and what are the key performance indicators for this contract?

Key performance indicators (KPIs) and methods for measuring effectiveness are not detailed in the provided data. For a Cost Plus Fixed Fee contract, effectiveness is often tied to meeting project milestones, quality standards, and adherence to the fixed fee objectives. Specific metrics would be outlined in the contract's SOW.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kihomac, Inc.

Address: 12030 SUNRISE VALLEY DR, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,832,617

Exercised Options: $4,889,964

Current Obligation: $4,442,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline