DOJ's $199M IT support contract awarded to Eagle Harbor, LLC, with 5 years of performance

Contract Overview

Contract Amount: $198,877,944 ($198.9M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Justice

Start Date: 2021-03-30

End Date: 2026-09-29

Contract Duration: 2,009 days

Daily Burn Rate: $99.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHNICAL AND OPERATION SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $198.9 million to EAGLE HARBOR, LLC for work described as: TECHNICAL AND OPERATION SUPPORT SERVICES Key points: 1. Contract provides essential IT infrastructure and data processing services, crucial for agency operations. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract's duration and value indicate a significant, long-term IT support requirement. 4. Performance is concentrated in Washington D.C., impacting local IT infrastructure and workforce. 5. The fixed-price contract type aims to control costs and provide budget certainty. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of approximately $199 million over five years suggests a substantial investment in IT services. Benchmarking against similar large-scale IT support contracts within federal agencies is necessary for a precise value-for-money assessment. However, the firm fixed-price structure provides a degree of cost certainty for the government. The contract's duration implies a stable, ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. This method is designed to maximize competition and ensure the government receives the best value. The specific number of bidders is not provided, but the designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Federal agencies, specifically the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), benefit from reliable IT infrastructure and data processing. Services include computing infrastructure provision, data processing, and web hosting, supporting critical law enforcement and regulatory functions. The geographic impact is concentrated in Washington D.C., where the services are likely performed. The contract supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation noted, which could limit opportunities for smaller, specialized IT firms.
Concentration of services in a single geographic location (DC) may not leverage broader market competition.
The specific performance metrics and quality assurance details are not publicly detailed, making performance assessment challenging.

Positive Signals

Awarded through full and open competition, indicating a competitive process likely yielding fair pricing.
Firm Fixed Price contract type provides cost predictability for the government.
Long-term contract (5 years) suggests a stable and reliable IT support solution for the agency.
The contractor, Eagle Harbor, LLC, is established, implying a degree of experience in delivering such services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a critical and growing area for federal agencies, supporting everything from daily operations to complex data analysis. The market for these services is highly competitive, with numerous large and small providers. Federal spending in this category is substantial, reflecting the increasing reliance on robust IT systems.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no specific subcontracting goals for small businesses were mandated. This suggests that opportunities for small businesses to directly participate in this large contract may be limited unless they are prime contractors or chosen as subcontractors by Eagle Harbor, LLC. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency regarding performance metrics and any potential issues would depend on the agency's reporting practices and the contract's specific clauses regarding reporting and accountability.

Related Government Programs

Department of Justice IT Modernization Initiatives
Federal Cloud Computing Strategy
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Technology Services
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for vendor lock-in due to long contract duration.
Cybersecurity risks inherent in IT infrastructure and data processing.
Dependence on a single contractor for critical IT services.
Risk of technological obsolescence if services are not continuously updated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $198.9 million to EAGLE HARBOR, LLC. TECHNICAL AND OPERATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $198.9 million.

What is the period of performance?

Start: 2021-03-30. End: 2026-09-29.

What is the track record of Eagle Harbor, LLC in delivering similar IT support services to federal agencies?

Eagle Harbor, LLC has a history of providing IT and technical support services to various government entities. While specific details on past performance for contracts of this exact scale and scope are not immediately available in this summary, their presence as a prime contractor on a significant Department of Justice award suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues or successes on prior federal contracts, would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT infrastructure and data processing solutions.

How does the pricing of this contract compare to similar IT support services procured by other federal agencies?

The provided data does not include detailed pricing breakdowns or unit costs, making a direct price comparison challenging. However, the contract is a Firm Fixed Price (FFP) award, which generally aims to provide cost certainty for the government. To benchmark the value, one would need to compare the overall contract value and duration against similar large-scale IT support services (e.g., computing infrastructure, data processing, web hosting) procured by agencies of comparable size and mission. Factors like the specific services included, service level agreements, and geographic scope would need to be aligned for a meaningful comparison. The fact that it was awarded under full and open competition suggests that the pricing was likely competitive at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues if the contractor fails to meet service level agreements, cybersecurity vulnerabilities within the IT infrastructure, and potential cost overruns if the scope expands beyond initial projections (though FFP mitigates this). Mitigation strategies likely involve robust contract oversight by the ATF, defined performance metrics and penalties, regular security audits, and clear communication channels. The long-term nature of the contract also presents a risk of technological obsolescence if not managed proactively. The agency's ability to adapt to evolving IT needs and ensure the contractor remains current with technology is crucial.

How effective is the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in managing and overseeing this significant IT support contract?

The effectiveness of the ATF's oversight is not directly measurable from the provided data. However, the agency's selection of a full and open competition and a firm fixed-price contract type indicates a structured approach to procurement aimed at achieving value and cost control. The Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division is responsible for oversight. Effective management would involve diligent monitoring of contractor performance against contract requirements, timely resolution of issues, and ensuring compliance with all federal regulations and security protocols. The long duration of the contract necessitates ongoing vigilance to ensure continued alignment with agency needs and technological advancements.

What has been the historical spending trend for similar IT support services by the Department of Justice or the ATF?

The provided data focuses on a single contract award and does not offer historical spending trends. To analyze historical spending, one would need to examine the Department of Justice's and the ATF's procurement data over several fiscal years for categories such as 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' (NAICS 518210) and other relevant IT support service codes. This would reveal patterns in spending levels, types of contracts awarded (e.g., FFP vs. cost-plus), and the primary contractors utilized. Such analysis is crucial for understanding budget allocation, identifying potential increases or decreases in IT service reliance, and assessing the consistency of procurement strategies.

What is the potential impact of this contract on the broader IT services market, particularly concerning competition and innovation?

This contract, being a significant award to Eagle Harbor, LLC, represents a substantial portion of the federal IT services market for computing infrastructure and data processing within the ATF's purview. Its full and open competition nature suggests it contributes positively to market dynamism by allowing multiple vendors to vie for the business. However, the concentration of such a large contract with one prime contractor could potentially limit opportunities for smaller, innovative firms to enter the federal space directly, unless they are part of a subcontracting team. The long-term nature might also influence the pace of innovation if the contract terms do not incentivize adoption of the latest technologies.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15A00021R00000005

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST STE 100, 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: $198,877,944

Exercised Options: $198,877,944

Current Obligation: $198,877,944

Actual Outlays: $111,869,801

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15A00021DAQA00135

IDV Type: IDC

Timeline