Place the kumquats and water in a large saucepan. Allow to sit for 1 hour.
Heat the kumquats and water over medium high heat. Bring to a boil then reduce to a simmer. Simmer for 20 minutes.
Add in the sugar and vanilla bean and mix well. Bring up to medium heat and boil for 20 minutes.
Add in the pectin and increase heat to high. Stir constantly while at a hard boil for 3 minutes.
Remove from heat and let cool for 20 minutes.
At this point either pour into two half pint jars and cool completely or place in a food processor and pulse until the kumquats are in big pieces then put into jars.