DoD Awards $8.8M Contract to Konjag for SETA Support, Sole-Sourced Under SBA 8(a) Program
Contract Overview
Contract Amount: $8,801,221 ($8.8M)
Contractor: Koniag Professional Services, LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-09-27
Contract Duration: 730 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SETA SUPPORT FOR CDAO SECTION 8(A) OF THE SMALL BUSINESS ACT 15 USC 637(A)(1) AND FAR 19.8. SBA REQUIREMENT NUMBER FOR THIS ANC, 8(A) CALL ORDER IS: UB1712176864S-1.
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to KONIAG PROFESSIONAL SERVICES, LLC for work described as: SETA SUPPORT FOR CDAO SECTION 8(A) OF THE SMALL BUSINESS ACT 15 USC 637(A)(1) AND FAR 19.8. SBA REQUIREMENT NUMBER FOR THIS ANC, 8(A) CALL ORDER IS: UB1712176864S-1. Key points: 1. The contract is for SETA support services, a critical function for program management. 2. Awarded to Konjag Professional Services, LLC, a small business. 3. The contract is sole-sourced under the SBA 8(a) program, limiting competition. 4. The administrative management and general management consulting services sector is competitive, but this award bypasses standard competition.
Value Assessment
Rating: fair
The contract value of $8.8M over two years appears reasonable for specialized SETA support. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source under the SBA 8(a) program. While this program aims to support small disadvantaged businesses, it bypasses full and open competition, potentially limiting price discovery and the opportunity for other qualified contractors to bid.
Taxpayer Impact: Taxpayer funds are being used for this contract. The sole-source nature means there's less assurance of achieving the lowest possible price compared to a competitive procurement.
Public Impact
Ensures continued support for critical Department of the Army programs. Provides opportunities for a small disadvantaged business (Konjag) to secure federal contracts. Potential for less cost-efficiency due to the lack of competitive bidding. Limited transparency on the specific services rendered and their effectiveness without competitive benchmarks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Lack of detailed service description makes assessing value difficult.
- Contract duration of two years without clear performance metrics raises concerns.
Positive Signals
- Supports a small disadvantaged business as intended by the SBA 8(a) program.
- Provides essential SETA support to the Department of the Army.
Sector Analysis
This contract falls under administrative management and general management consulting services. While the federal government frequently procures these services, the sole-source nature of this award is notable within a sector that typically sees competitive bidding.
Small Business Impact
The contract is awarded to Konjag Professional Services, LLC, which is identified as a small business. The sole-source award under the SBA 8(a) program is specifically designed to provide opportunities for small disadvantaged businesses to compete and grow within the federal contracting landscape.
Oversight & Accountability
The use of the SBA 8(a) sole-source authority requires justification and adherence to program guidelines. Oversight would typically involve the SBA and the contracting agency to ensure the program's objectives are met and that the services are necessary and appropriately priced.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to sole-source award.
- Lack of detailed service description hinders value assessment.
- Potential for higher costs compared to a competitive bid.
- Reliance on SBA 8(a) program without clear justification for bypassing full competition.
Tags
administrative-management-and-general-ma, department-of-defense, ak, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to KONIAG PROFESSIONAL SERVICES, LLC. SETA SUPPORT FOR CDAO SECTION 8(A) OF THE SMALL BUSINESS ACT 15 USC 637(A)(1) AND FAR 19.8. SBA REQUIREMENT NUMBER FOR THIS ANC, 8(A) CALL ORDER IS: UB1712176864S-1.
Who is the contractor on this award?
The obligated recipient is KONIAG PROFESSIONAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $8.8 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-09-27.
What specific SETA support functions are being provided under this contract, and how do they directly contribute to the Department of the Army's mission objectives?
The contract specifies 'Administrative Management and General Management Consulting Services' (NAICS 541611) for SETA support. While essential for program management, the exact functions are not detailed. These services likely encompass areas such as program planning, analysis, technical support, and administrative oversight to ensure the efficient execution of Army projects. Without further specifics, it's challenging to quantify their direct mission contribution beyond general program support.
Given the sole-source nature of this award, what mechanisms are in place to ensure the government is receiving fair and reasonable pricing for these consulting services?
As a sole-source award under the SBA 8(a) program, the pricing is typically negotiated directly with the contractor. The contracting officer is responsible for determining price reasonableness, often by reviewing cost proposals, historical pricing data, or market research. However, the absence of competitive bids means there is no direct market validation of the price, making robust cost analysis and negotiation by the agency critical.
How will the effectiveness and impact of Konjag Professional Services' support be measured and evaluated throughout the contract period to ensure accountability?
Effectiveness is typically measured through performance metrics and deliverables outlined in the contract's Statement of Work (SOW). The Department of the Army should establish clear Key Performance Indicators (KPIs) related to the SETA support functions. Regular performance reviews and acceptance of deliverables by the government contracting officer are standard procedures to ensure accountability and assess the contractor's performance against contract requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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: $31,045,982
Exercised Options: $8,801,221
Current Obligation: $8,801,221
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W519TC24G0011
IDV Type: BOA
Timeline
Start Date: 2024-09-27
Current End Date: 2026-09-27
Potential End Date: 2026-09-27 12:09:00
Last Modified: 2025-12-22
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