DOJ's FBI awards $163M IT infrastructure maintenance contract to KeyW Corp

Contract Overview

Contract Amount: $163,093,891 ($163.1M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Justice

Start Date: 2018-08-16

End Date: 2023-08-15

Contract Duration: 1,825 days

Daily Burn Rate: $89.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ITSSS STOR 176 - SOTERA - O&M SERVICE LABOR ONLY. THIS MANPOWER IS NEEDED TO MAINTAIN SENTINEL IT INFRASTRUCTURE IN A 24X7 ENTERPRISE WORKING ENVIRONMENT.

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $163.1 million to THE KEYW CORPORATION for work described as: ITSSS STOR 176 - SOTERA - O&M SERVICE LABOR ONLY. THIS MANPOWER IS NEEDED TO MAINTAIN SENTINEL IT INFRASTRUCTURE IN A 24X7 ENTERPRISE WORKING ENVIRONMENT. Key points: 1. Contract provides essential 24x7 IT infrastructure maintenance for the FBI's Sentinel system. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration of five years indicates a long-term need for these services. 4. The Time and Materials pricing structure may pose cost control challenges. 5. The contract is a Delivery Order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. Comparing this to similar IT maintenance contracts for large federal agencies would require access to proprietary pricing data. However, the total award amount of over $163 million over five years suggests a significant investment in maintaining critical IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of six bidders (no) suggests a competitive environment, which typically benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria are not provided, but the competition level is a positive indicator.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms. This approach helps ensure the government is not overpaying for essential services.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, ensuring the operational continuity of its critical Sentinel IT infrastructure. Essential IT infrastructure maintenance services are delivered, supporting the FBI's law enforcement and national security missions. The contract's impact is primarily national, given the FBI's scope of operations. Workforce implications include the potential for skilled IT professionals to be employed by the contractor to perform these maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely monitored and managed.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The duration of the contract (5 years) means potential for vendor lock-in if not managed proactively.
Reliance on a single delivery order under a larger IDIQ could concentrate risk if the prime contractor faces issues.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Multiple bidders participated, suggesting a healthy market for these services.
The contract supports critical national security and law enforcement functions.
The contractor, The KeyW Corporation, has a track record in providing IT services to the government.

Sector Analysis

This contract falls within the Information Technology services sector, specifically focusing on IT infrastructure maintenance and operations. The market for such services is substantial, with federal agencies being major consumers. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by agencies like the Department of Defense or other intelligence community components. The NAICS code 541519, 'Other Computer Related Services,' indicates a broad category, but the description points to core IT operational support.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The absence of set-asides means that opportunities for small businesses to directly participate in this contract are limited unless they are part of the prime contractor's supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the FBI. Accountability measures are usually tied to contract performance clauses and deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FBI IT Infrastructure Support
Sentinel System Maintenance
IT Operations and Maintenance Services
Federal Law Enforcement IT Contracts
Department of Justice IT Spending

Risk Flags

Potential for cost overruns due to T&M pricing.
Risk of technology obsolescence over the 5-year term.
Need for robust oversight to ensure value for money.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $163.1 million to THE KEYW CORPORATION. ITSSS STOR 176 - SOTERA - O&M SERVICE LABOR ONLY. THIS MANPOWER IS NEEDED TO MAINTAIN SENTINEL IT INFRASTRUCTURE IN A 24X7 ENTERPRISE WORKING ENVIRONMENT.

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $163.1 million.

What is the period of performance?

Start: 2018-08-16. End: 2023-08-15.

What is the historical spending pattern for IT infrastructure maintenance at the FBI, and how does this contract compare?

Analyzing historical spending for IT infrastructure maintenance at the FBI requires access to detailed budget and contract data over several fiscal years. Without this specific data, a direct comparison is difficult. However, a $163 million award over five years averages approximately $32.6 million annually. This figure can be benchmarked against the FBI's overall IT budget and the proportion allocated to infrastructure maintenance. Trends in federal IT spending often show an increasing demand for robust infrastructure to support data-intensive operations, suggesting that such investments are consistent with broader government needs. Past contracts for similar services, if available, would provide a more precise comparison point for cost and scope.

What specific IT infrastructure components does the Sentinel system encompass, and what are the key maintenance requirements?

The Sentinel system is a critical investigative case management system used by the FBI. Its IT infrastructure likely includes servers, storage, networking equipment, databases, and associated software, operating within a 24x7 enterprise environment. Key maintenance requirements would encompass hardware upkeep, software patching and updates, system monitoring, performance tuning, troubleshooting, and ensuring high availability and disaster recovery capabilities. The contract's focus on 'O&M SERVICE LABOR ONLY' suggests the contractor provides the human resources for these tasks, rather than the hardware or software itself. Detailed specifications of the infrastructure and specific maintenance tasks would be outlined in the contract's Statement of Work (SOW).

How does the Time and Materials (T&M) pricing structure impact cost control and value for money in this contract?

The Time and Materials (T&M) pricing structure, used in this contract, bases payment on the direct labor hours at specified hourly rates and the actual cost of materials. While offering flexibility to adapt to changing requirements, T&M contracts inherently carry a higher risk of cost overruns for the government compared to fixed-price contracts. Effective cost control relies heavily on stringent oversight, detailed tracking of labor hours, and well-defined ceilings or limits within the contract. For value for money, the government must ensure that the labor rates are competitive and that the work performed is efficient and necessary. Without robust monitoring and management, T&M can lead to less predictable costs and potentially lower value if not managed diligently.

What are the potential risks associated with a five-year contract for IT infrastructure maintenance?

A five-year contract for IT infrastructure maintenance presents several potential risks. Firstly, technology evolves rapidly; a five-year commitment might lock the FBI into using potentially outdated technologies or service approaches if the contract doesn't include mechanisms for incorporating advancements. Secondly, the T&M pricing structure, as noted, can lead to cost escalation over such a long period if not managed exceptionally well. Thirdly, there's a risk of vendor complacency or reduced innovation over time, as the contractor may feel less pressure to perform optimally once established. Finally, if the contractor's performance is unsatisfactory, terminating or modifying a long-term contract can be complex and costly.

What is the track record of The KeyW Corporation in providing similar IT services to federal agencies?

The KeyW Corporation has a history of providing IT services, including cybersecurity, intelligence analysis, and enterprise IT, to various U.S. federal agencies. While specific performance details for this particular contract are not publicly available, the company has been a significant contractor in the defense and intelligence sectors. Past performance information, often detailed in contract award justifications or performance evaluations (which are not fully public), would provide a clearer picture. However, being awarded a contract of this magnitude by the FBI suggests that KeyW met the agency's requirements and demonstrated a satisfactory track record in previous engagements or possesses the necessary capabilities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $421,743,977

Exercised Options: $421,743,977

Current Obligation: $163,093,891

Actual Outlays: $155,567,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0344L

IDV Type: FSS

Timeline