DOJ's FBI awards $7.3M IT services contract to APRIVA ISS LLC, raising questions about competition and value

Contract Overview

Contract Amount: $7,330,840 ($7.3M)

Contractor: Apriva ISS LLC

Awarding Agency: Department of Justice

Start Date: 2022-09-08

End Date: 2026-09-07

Contract Duration: 1,460 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: N/A

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85020

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $7.3 million to APRIVA ISS LLC for work described as: N/A Key points: 1. The contract was awarded on a sole-source basis, limiting competitive pressure and potentially impacting price. 2. The duration of the contract (4 years) suggests a need for sustained IT support services. 3. The fixed-price contract type offers cost certainty but may not fully capture performance variations. 4. The geographic location in Arizona (AZ) may indicate specific operational needs for the FBI. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $7.3 million contract is challenging without comparable sole-source IT services contracts. The firm fixed-price structure provides cost predictability for the FBI. However, the lack of competition means there's no direct market comparison to assess if APRIVA ISS LLC's pricing is optimal or if alternative solutions could offer better value. Further analysis would require understanding the specific services rendered and their criticality to FBI operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services due to unique capabilities, proprietary technology, or urgent needs. The lack of competition means the FBI did not benefit from a bidding process that could drive down prices or encourage innovative solutions from a wider pool of contractors.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. This sole-source award limits the government's ability to leverage market forces for cost savings.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential computer systems design services. This contract supports the FBI's operational capabilities and technological infrastructure. The services are being delivered in Arizona (AZ), potentially impacting local IT support jobs or resources. The contract's duration suggests a long-term need for specialized IT expertise within the Bureau.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for innovation.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if market rates for similar services are lower.
Limited opportunity for small businesses to participate in this contract.

Positive Signals

Firm fixed-price contract provides budget certainty for the FBI.
Contract duration suggests a stable, ongoing need for these services.
Award to a single vendor may indicate specialized expertise required.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. The total federal spending in this category is substantial, with numerous contracts awarded annually. The FBI's reliance on such services highlights the critical role of IT infrastructure in modern law enforcement and intelligence gathering.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no specific provisions for small business participation were mandated. This means that larger, established firms were likely considered or that the nature of the requirement did not lend itself to a small business set-aside. There is no information provided regarding subcontracting plans, which could potentially involve small businesses, but it is not a guaranteed outcome.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement and financial management controls. The Federal Bureau of Investigation (FBI) would be responsible for monitoring contractor performance and ensuring compliance with contract terms. Transparency regarding the sole-source justification and the specific services rendered would be key to assessing accountability. There is no explicit mention of Inspector General involvement in the provided data, but they typically have jurisdiction over federal spending.

Related Government Programs

FBI IT Modernization Programs
Department of Justice IT Services Contracts
Federal Computer Systems Design Services
Sole-Source IT Procurement

Risk Flags

Sole-source award raises concerns about competition and value.
Lack of detailed justification for sole-source award.
Potential for higher costs due to lack of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.3 million to APRIVA ISS LLC. N/A

Who is the contractor on this award?

The obligated recipient is APRIVA ISS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2022-09-08. End: 2026-09-07.

What specific computer systems design services are being provided under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512). However, the specific nature of these services is not detailed. Typically, this category includes designing, developing, and implementing IT systems, which can range from network architecture and software integration to cybersecurity solutions and data management platforms. For the FBI, these services could be critical for maintaining and upgrading their internal IT infrastructure, supporting investigative tools, or enhancing data analysis capabilities. A deeper dive into the contract's statement of work would be necessary to understand the precise deliverables and technical requirements.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED' and the award method as 'PURCHASE ORDER', strongly implying a sole-source or limited competition scenario. Federal procurement regulations (like FAR Part 6) allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling requirements. Without further documentation from the Department of Justice or the FBI, the precise justification remains unknown. This lack of competition raises concerns about whether the government secured the best possible value and price for taxpayers.

How does the contract value of $7.3 million compare to similar IT services contracts awarded by the FBI or other law enforcement agencies?

Comparing the $7.3 million contract value requires context regarding the duration and scope of services. This contract spans 1460 days (approximately 4 years), making the annual value around $1.83 million. Without knowing the specific IT services provided (e.g., cybersecurity, software development, network management), a direct comparison is difficult. However, for a 4-year engagement involving specialized IT design services for a major federal agency like the FBI, this value appears within a plausible range, assuming the services are complex and require specialized expertise. A more precise benchmark would necessitate analyzing contracts with similar service descriptions and contract lengths within the federal IT procurement landscape.

What are the potential risks associated with a sole-source IT services contract of this magnitude?

The primary risk of a sole-source IT services contract is the potential for inflated pricing due to the absence of competitive pressure. The government may end up paying more than necessary if market alternatives exist. Another risk is vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult to switch or negotiate favorable terms in the future. Furthermore, without competition, there's a reduced incentive for the contractor to innovate or provide exceptional service beyond the contract's minimum requirements. Finally, the justification for sole-source awards can sometimes be opaque, raising concerns about fairness and potential impropriety.

What is APRIVA ISS LLC's track record with federal contracts, particularly with the Department of Justice or FBI?

The provided data indicates that APRIVA ISS LLC is the contractor for this specific purchase order. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would reveal the company's history of federal contract awards, their performance ratings (if available), and the types of services they have provided to various agencies. Without access to this broader contract history, it's impossible to definitively comment on APRIVA ISS LLC's overall track record, especially concerning their performance with the Department of Justice or the FBI on similar IT services.

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: 7600 N 16TH ST, PHOENIX, AZ, 85020

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,108,021

Exercised Options: $12,160,897

Current Obligation: $7,330,840

Actual Outlays: $6,211,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline