DOJ's FBI awards $70.6M task order for computer systems design services to Planet Technologies, Inc

Contract Overview

Contract Amount: $70,584,278 ($70.6M)

Contractor: Planet Technologies, Inc.

Awarding Agency: Department of Justice

Start Date: 2021-06-12

End Date: 2025-03-11

Contract Duration: 1,368 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER 11 UNDER MES IDIQ TA3

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $70.6 million to PLANET TECHNOLOGIES, INC. for work described as: TASK ORDER 11 UNDER MES IDIQ TA3 Key points: 1. Value for money appears fair given the fixed-price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract potentially shifting some risk to the contractor. 4. Performance context is a task order under a larger IDIQ, implying a pre-vetted contractor. 5. Sector positioning is within IT services, a common area for federal procurement.

Value Assessment

Rating: fair

This $70.6 million task order, awarded under a Firm Fixed Price structure, suggests a defined scope and budget. Comparing it to similar IT services contracts within the Department of Justice or FBI requires access to a broader dataset of comparable task orders. However, the fixed-price nature generally aims to provide cost certainty for the government, assuming the scope was well-defined at the time of award. The duration of over three years also allows for potential economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, allowing the government to solicit proposals from a wide range of qualified vendors. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended, which can lead to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving a fair market price.

Public Impact

The primary beneficiary is the Federal Bureau of Investigation (FBI), which will receive computer systems design services. These services are crucial for maintaining and potentially upgrading the FBI's IT infrastructure, supporting its law enforcement and national security missions. The geographic impact is likely concentrated around the FBI's operational centers, primarily in Maryland, where the contract is managed. Workforce implications may include the direct employment of IT professionals by Planet Technologies, Inc. and potentially indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements were not precisely defined, which could impact cost and schedule under a fixed-price contract.
Dependence on a single contractor for critical IT systems design services could pose a risk if performance issues arise.
The long duration of the task order may lead to technology obsolescence if not managed proactively.

Positive Signals

Awarded under a full and open competition, suggesting a competitive process that should yield fair pricing.
Firm Fixed Price contract type provides cost certainty for the government, shifting performance risk to the contractor.
Task order issued under an existing IDIQ contract (MES IDIQ TA3) implies the contractor has already passed initial vetting and demonstrated capability.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically computer systems design. The federal IT services market is substantial, with agencies consistently investing in modernizing their systems. This contract represents a portion of the FBI's broader IT spending, which aims to support its complex operational needs. Benchmarks for similar IT services contracts vary widely based on complexity, duration, and specific services, but a $70 million award over three years for design services is significant.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this task order. This suggests that the competition was not specifically targeted towards small businesses. While Planet Technologies, Inc. may have its own subcontracting plans, the primary award is not a small business set-aside, meaning large businesses were likely the primary focus of the competition. This contract does not appear to directly benefit the small business ecosystem through a set-aside mechanism.

Oversight & Accountability

Oversight for this task order would primarily fall under the Department of Justice's internal contracting and program management offices, as well as the Federal Bureau of Investigation's contracting officers and technical monitors. Transparency is facilitated by public contract award databases. Accountability measures are inherent in the Firm Fixed Price contract type, where the contractor is responsible for delivering the defined scope within budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FBI IT Modernization Programs
Department of Justice IT Services Contracts
General Services Administration (GSA) IT Schedule Contracts
IT Services for Law Enforcement Agencies
Computer Systems Design and Related Services

Risk Flags

Potential for scope creep
Technological obsolescence risk
Contractor performance dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $70.6 million to PLANET TECHNOLOGIES, INC.. TASK ORDER 11 UNDER MES IDIQ TA3

Who is the contractor on this award?

The obligated recipient is PLANET TECHNOLOGIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $70.6 million.

What is the period of performance?

Start: 2021-06-12. End: 2025-03-11.

What is the track record of Planet Technologies, Inc. in performing similar federal IT services contracts?

Planet Technologies, Inc. has a history of performing federal IT services contracts, including work with various agencies. A detailed review of their past performance, particularly on similar task orders or prime contracts, would be necessary to fully assess their track record. This includes examining past performance evaluations, any contract disputes or terminations, and their experience with the specific types of computer systems design services required. Their ability to successfully manage projects of this scale and complexity, within budget and schedule, is a key indicator of future performance.

How does the awarded price of $70.6 million compare to market rates for similar computer systems design services?

Determining if $70.6 million is competitive requires benchmarking against similar contracts awarded by federal agencies or within the private sector for comparable services. Factors influencing market rates include the specific technologies involved, the complexity of the systems, the required expertise, the duration of the contract (over three years in this case), and the geographic location. Without access to a detailed breakdown of the services and the specific labor categories and rates proposed by Planet Technologies, Inc., a precise comparison is difficult. However, the full and open competition suggests an effort to achieve market-based pricing.

What are the primary risks associated with this specific task order, and how are they being mitigated?

Key risks include potential scope creep, technological obsolescence, and contractor performance issues. Scope creep is mitigated by the Firm Fixed Price contract type, which incentivizes the contractor to manage the defined scope tightly. However, clear requirements definition and change control processes are crucial. Technological obsolescence is a risk inherent in long-term IT contracts; mitigation involves proactive technology refresh strategies and ensuring the contract allows for adaptation. Contractor performance risk is managed through ongoing oversight, performance metrics, and the potential for corrective actions if issues arise. The IDIQ structure also implies some level of pre-qualification.

How effective is the current IT infrastructure of the FBI, and how will this contract contribute to its improvement?

The effectiveness of the FBI's current IT infrastructure is a complex internal assessment. This task order is intended to provide computer systems design services, which could range from developing new systems to enhancing existing ones, or providing architectural guidance. The contribution to improvement will depend on the specific tasks awarded under this order and the quality of the design services provided by Planet Technologies, Inc. Effective IT infrastructure is critical for the FBI's mission, supporting data analysis, communication, investigations, and cybersecurity. The success of this contract will be measured by its ability to deliver designs that lead to more robust, secure, and efficient systems.

What has been the historical spending trend for computer systems design services by the FBI or DOJ?

Analyzing historical spending trends for computer systems design services by the FBI and DOJ would reveal patterns in their investment in IT infrastructure. This includes understanding the volume of such contracts, the average award values, and the primary contractors utilized. Such analysis can help identify periods of increased investment, potential shifts in technology focus, and the overall budget allocated to these critical services. Understanding these trends provides context for the current $70.6 million award, indicating whether it represents a typical investment or a significant increase/decrease in spending for this category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20400 OBSERVATION DR STE 107, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,040,522

Exercised Options: $71,040,522

Current Obligation: $70,584,278

Actual Outlays: $74,992,614

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJF171200V0004548

IDV Type: IDC

Timeline