DOJ's DEA Awards $2.4M Maverick VSAT Service Contract to NIC4 Inc. for 2025-2026

Contract Overview

Contract Amount: $239,950 ($240.0K)

Contractor: NIC4 Inc

Awarding Agency: Department of Justice

Start Date: 2025-02-07

End Date: 2026-08-06

Contract Duration: 545 days

Daily Burn Rate: $440/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAVERICK VSAT SERVICE PERIOD OF PERFORMANCE: FEB 7, 2025 - FEB. 6, 2026

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21704

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $239,950.32 to NIC4 INC for work described as: MAVERICK VSAT SERVICE PERIOD OF PERFORMANCE: FEB 7, 2025 - FEB. 6, 2026 Key points: 1. The contract is for satellite telecommunications services, a critical but often expensive sector. 2. NIC4 Inc. is the sole awardee, raising questions about competition and potential price discovery. 3. The firm-fixed-price contract type aims to control costs, but the lack of competition is a risk. 4. This spending falls under the IT sector, specifically satellite communications.

Value Assessment

Rating: questionable

The contract value of $2.4M for a 13-month period appears high for satellite telecommunications services without competitive bidding. Benchmarking against similar government contracts for VSAT services is difficult without more detailed service specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential satellite telecommunications services.

Public Impact

Ensures critical communication capabilities for the Drug Enforcement Administration. Supports law enforcement operations that rely on reliable satellite connectivity. Potential for increased costs due to non-competitive award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Essential service for DEA operations
Firm fixed price contract

Sector Analysis

This contract falls within the IT sector, specifically satellite telecommunications. Spending in this area is crucial for government operations but can be costly, especially when procured without competitive processes.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The sole-source nature of the award likely precluded small business participation.

Oversight & Accountability

The non-competitive nature of this award warrants further oversight to ensure the price is fair and reasonable and that future requirements are competed to maximize value.

Related Government Programs

Satellite Telecommunications
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in price discovery
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $239,950.32 to NIC4 INC. MAVERICK VSAT SERVICE PERIOD OF PERFORMANCE: FEB 7, 2025 - FEB. 6, 2026

Who is the contractor on this award?

The obligated recipient is NIC4 INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $239,950.32.

What is the period of performance?

Start: 2025-02-07. End: 2026-08-06.

What is the justification for the sole-source award of this satellite telecommunications contract?

The justification for a sole-source award typically involves a critical need that cannot be met by other vendors, or a situation where only one vendor possesses the necessary unique capabilities. Without further documentation, it is difficult to assess the validity of this justification and whether it truly prevented competitive bidding.

How does the unit cost of this contract compare to industry benchmarks for similar VSAT services?

Without specific details on the service level agreements, bandwidth, and geographic coverage provided, a direct comparison to industry benchmarks is challenging. However, the absence of competition suggests the possibility that the negotiated price may not reflect the most cost-effective market rate available.

What steps are being taken to ensure the effectiveness and necessity of these VSAT services for the DEA's mission?

Ensuring effectiveness relies on the DEA's internal performance monitoring and contract management. The necessity should be periodically reviewed, especially if the contract is renewed, to confirm ongoing mission relevance and explore competitive alternatives for future procurements.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: D-25-ST-0081

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5123 PEGASUS CT STE X, FREDERICK, MD, 21704

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $239,950

Exercised Options: $239,950

Current Obligation: $239,950

Actual Outlays: $127,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline