DOJ Awards $2.175M for Computer Systems Design to Ontic Technologies Inc
Contract Overview
Contract Amount: $2,175,000 ($2.2M)
Contractor: Ontic Technologies Inc
Awarding Agency: Department of Justice
Start Date: 2023-09-26
End Date: 2026-09-25
Contract Duration: 1,095 days
Daily Burn Rate: $2.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ONTIC CORE PLATFORM
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78756
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $2.2 million to ONTIC TECHNOLOGIES INC for work described as: ONTIC CORE PLATFORM Key points: 1. Significant contract awarded to a single vendor, Ontic Technologies Inc. 2. Focus on Computer Systems Design Services, a key area for federal agencies. 3. Potential risk associated with a sole-source or limited competition award. 4. The contract duration of 1095 days suggests a long-term need.
Value Assessment
Rating: questionable
The award of $2.175 million for computer systems design services is a substantial amount. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may result in a higher cost to taxpayers than a fully competed contract.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The DEA's reliance on a single vendor for critical computer systems design could pose a risk if the vendor fails to perform. Transparency in government contracting is reduced when contracts are not competed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Addresses a specific agency need
- Fixed-price contract can control costs if scope is well-defined
Sector Analysis
Computer Systems Design Services are crucial for modernizing and maintaining federal IT infrastructure. Benchmarks for this sector vary widely based on complexity and specific services, but a $2.175M award over three years for a single vendor warrants scrutiny.
Small Business Impact
This contract was awarded to Ontic Technologies Inc. and there is no indication of subcontracting opportunities for small businesses in the provided data. Further investigation would be needed to determine if small businesses were considered.
Oversight & Accountability
The non-competed nature of this award suggests a need for robust oversight to ensure the justification for sole-source procurement is valid and that the price is fair and reasonable.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to lack of competition.
- Dependency on a single vendor creates performance risk.
- Limited opportunity for small business participation.
Tags
computer-systems-design-services, department-of-justice, tx, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $2.2 million to ONTIC TECHNOLOGIES INC. ONTIC CORE PLATFORM
Who is the contractor on this award?
The obligated recipient is ONTIC TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $2.2 million.
What is the period of performance?
Start: 2023-09-26. End: 2026-09-25.
What is the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's impossible to confirm the validity of the sole-source justification for Ontic Technologies Inc.'s contract with the DEA.
How does the $2.175 million price compare to industry benchmarks for similar computer systems design services?
A direct comparison is challenging without detailed scope of work. However, for a three-year contract, $2.175 million suggests a significant level of service. Industry benchmarks for comparable sole-source IT services often indicate higher costs than competed contracts, highlighting a potential risk of overpayment.
What are the potential risks to the DEA if Ontic Technologies Inc. fails to deliver on this contract?
The primary risk is disruption to critical IT systems and operations. As a sole-source award, the DEA may face delays and increased costs in finding and transitioning to an alternative vendor if Ontic Technologies Inc. underperforms or defaults on the contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4009 MARATHON BLVD, AUSTIN, TX, 78756
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,625,000
Exercised Options: $2,175,000
Current Obligation: $2,175,000
Actual Outlays: $2,175,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-09-26
Current End Date: 2026-09-25
Potential End Date: 2028-09-25 00:00:00
Last Modified: 2026-03-27
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