DOJ awards $3.5M for IT services to Flywheel Data LLC, highlighting a need for specialized computer support

Contract Overview

Contract Amount: $3,494,657 ($3.5M)

Contractor: Flywheel Data LLC

Awarding Agency: Department of Justice

Start Date: 2025-04-30

End Date: 2026-04-30

Contract Duration: 365 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TITLE: FY25 RECUR/STVP/FLYWHEEL/$3,494,657.16/SUPPLIES REQUESTOR: MICHAEL Z DAVIS AFT#: AFT25-ST-004823 ITJA#: ITJA0015858 DELIVERY DATE: 04/30/2025

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $3.5 million to FLYWHEEL DATA LLC for work described as: TITLE: FY25 RECUR/STVP/FLYWHEEL/$3,494,657.16/SUPPLIES REQUESTOR: MICHAEL Z DAVIS AFT#: AFT25-ST-004823 ITJA#: ITJA0015858 DELIVERY DATE: 04/30/2025 Key points: 1. Contract awarded for IT services, indicating a demand for specialized computer-related support within the agency. 2. The contract value of $3.5 million suggests a significant investment in maintaining or upgrading IT infrastructure. 3. Competition was full and open after exclusion of sources, implying a structured procurement process. 4. The duration of the contract is one year, suggesting a need for ongoing or project-specific IT assistance. 5. The award to a single vendor, Flywheel Data LLC, warrants a closer look at the competitive landscape. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of 'Other Computer Related Services'.

Value Assessment

Rating: fair

Benchmarking the value of this $3.5 million contract for 'Other Computer Related Services' is challenging without specific service details. However, given the full and open competition, the pricing is presumed to be fair market value. Comparing it to similar IT service contracts within the Department of Justice or other federal agencies would provide better context on whether this represents a good deal for the services rendered. The fixed-price nature of the contract helps manage cost risks for the government.

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 while the competition was open, certain sources may have been excluded based on specific criteria. With 7 bidders, this suggests a reasonably competitive environment, which typically leads to better price discovery and value for the government. The exclusion of sources warrants further investigation to understand the rationale and ensure it did not unduly limit competition.

Taxpayer Impact: A competitive process with multiple bidders generally benefits taxpayers by driving down prices and encouraging innovation. The exclusion of sources, however, could potentially limit the number of competitive bids received, impacting the final price.

Public Impact

The primary beneficiaries are likely the Drug Enforcement Administration (DEA) and potentially other components within the Department of Justice requiring IT support. Services delivered are expected to include 'Other Computer Related Services,' which could encompass IT consulting, system integration, data management, or software development. The geographic impact is primarily within Virginia, where the contract is managed or services are delivered. Workforce implications may include the need for specialized IT personnel within the agency or reliance on the contractor's skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure it was justified and did not unnecessarily restrict the bidder pool.
Lack of detailed service description makes it difficult to fully assess value for money and performance metrics.
The contract's duration of 365 days may be insufficient for complex, long-term IT projects, potentially leading to follow-on contracts.

Positive Signals

Full and open competition, even with exclusions, suggests an effort to find the best value.
The presence of 7 bidders indicates market interest and a degree of vendor capability.
The firm fixed-price contract type provides cost certainty for the government.

Sector Analysis

The IT services sector is vast and highly competitive. Contracts for 'Other Computer Related Services' (NAICS 541519) can range from basic IT support to highly specialized consulting. Federal spending in this area is substantial, driven by the need for agencies to maintain and modernize their technological infrastructure. This contract fits within the broader category of IT support services, essential for government operations. Comparable spending benchmarks would depend heavily on the specific services rendered, but federal IT spending often runs into billions annually across various agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Flywheel Data LLC chooses to engage small businesses. Without explicit subcontracting requirements or goals, the direct benefit to small businesses is uncertain. The competitive nature of the award suggests larger, established firms may have been better positioned to bid.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, allowing for review. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Justice IT Modernization Initiatives
Federal Civilian IT Services Contracts
Law Enforcement Technology Support
Data Management and Analytics Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of specific service details hinders full value assessment.
Vendor performance history not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.5 million to FLYWHEEL DATA LLC. TITLE: FY25 RECUR/STVP/FLYWHEEL/$3,494,657.16/SUPPLIES REQUESTOR: MICHAEL Z DAVIS AFT#: AFT25-ST-004823 ITJA#: ITJA0015858 DELIVERY DATE: 04/30/2025

Who is the contractor on this award?

The obligated recipient is FLYWHEEL DATA LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2025-04-30. End: 2026-04-30.

What is the specific nature of the 'Other Computer Related Services' being procured under this contract?

The provided data does not specify the exact services covered under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide array of IT functions, including but not limited to IT consulting, custom software development, data processing services, IT system integration, and computer facilities management. To fully assess the contract's value and performance, a detailed statement of work (SOW) or performance work statement (PWS) would be necessary. Understanding the specific deliverables, such as network maintenance, cybersecurity support, cloud migration assistance, or specialized software implementation, is crucial for a comprehensive analysis.

How does the pricing of this contract compare to similar IT service contracts awarded by the Department of Justice or other federal agencies?

Without specific details on the services rendered and the labor categories or hours involved, a direct pricing comparison is difficult. However, the contract is a firm fixed-price award resulting from a competition with 7 bidders. This suggests that the pricing was deemed competitive at the time of award. To conduct a thorough benchmark, one would need to identify contracts with similar NAICS codes, contract types, and service scopes within the federal government. Analyzing the average hourly rates or total contract values for comparable services, adjusted for factors like contract duration, complexity, and geographic location, would provide a more robust comparison. The fact that it was full and open competition after exclusion of sources implies a structured pricing evaluation process.

What are the potential risks associated with awarding an IT services contract to a single vendor, even after a competitive process?

Even with a competitive process, awarding a contract to a single vendor carries inherent risks. These include vendor lock-in, where the agency becomes overly reliant on one provider, potentially limiting future flexibility or negotiation leverage. There's also the risk of performance issues if the vendor fails to meet expectations, which could disrupt critical IT operations. Furthermore, if the initial competition, despite being 'full and open after exclusion of sources,' did not adequately capture the full market potential, the government might not have secured the absolute best value. Continuous monitoring of performance, adherence to contract terms, and regular market assessments are crucial to mitigate these risks.

What is the track record of Flywheel Data LLC in performing federal IT service contracts?

Information regarding Flywheel Data LLC's specific track record with federal IT service contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any reported issues or successes. Understanding their experience with similar scope and scale contracts, their financial stability, and their history of meeting deadlines and quality standards is essential. Without this background, it's difficult to gauge their reliability and capability for this specific $3.5 million award.

How does this contract align with the Department of Justice's broader IT modernization or strategic goals?

The alignment of this contract with the Department of Justice's (DOJ) broader IT modernization or strategic goals is not explicitly stated in the provided data. However, any contract for IT services, especially under a broad category like 'Other Computer Related Services,' typically supports the agency's operational needs, which often include modernization efforts. To determine specific alignment, one would need to consult the DOJ's strategic IT plans, budget justifications, and program objectives. For instance, if the DOJ is focused on enhancing data analytics capabilities or upgrading its network infrastructure, this contract could be a component of those larger initiatives. The duration and scope would indicate whether it's for ongoing support or a specific project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,494,657

Exercised Options: $3,494,657

Current Obligation: $3,494,657

Actual Outlays: $3,494,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD90B

IDV Type: GWAC

Timeline