DOJ awards BAE Systems $16.4M for IT development and operations, extending existing services

Contract Overview

Contract Amount: $16,401,299 ($16.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2024-08-16

End Date: 2025-11-15

Contract Duration: 456 days

Daily Burn Rate: $36.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BAE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $16.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BAE Key points: 1. Contract value appears reasonable for a 15-month IT support and development effort. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include the Time and Materials pricing structure. 4. This contract continues existing IT services, implying a need for continuity. 5. The IT services sector is characterized by rapid technological change and high demand. 6. Spending aligns with broader federal IT modernization initiatives.

Value Assessment

Rating: good

The contract value of $16.4 million over 15 months for IT development and operations services is within a reasonable range for similar federal IT support contracts. Benchmarking against other IT services contracts of comparable duration and scope would provide further context, but the initial assessment suggests fair pricing. The Time and Materials (T&M) pricing model, while common, can introduce cost uncertainty if not closely managed, which is a factor to monitor.

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 bids. The number of bidders is not specified, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving better value. This approach generally leads to a wider range of solutions and pricing options being considered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically drives down prices and encourages innovation, leading to more cost-effective government spending.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential IT development and operations support. Services delivered include ongoing IT development, maintenance, and operational support critical for FBI systems. The contract's geographic impact is primarily focused on Maryland, where the services are likely performed or support systems located. Workforce implications may include the retention of skilled IT professionals by BAE Systems to fulfill contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not strictly managed and monitored.
The duration of the contract (456 days) is substantial, requiring sustained oversight to ensure performance.
Reliance on a single contractor for critical IT functions can pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
BAE Systems is a large, established defense and technology contractor with a significant federal presence.
The contract is a logical follow-on, implying a degree of familiarity and potentially smoother transition/execution.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to cybersecurity and cloud computing. Federal agencies consistently invest heavily in IT to maintain and modernize their infrastructure, support operations, and enhance data security. This contract for IT development and operations services fits within the broader category of IT support and professional services, a market characterized by intense competition and rapid technological advancements. Comparable spending benchmarks for IT support services can vary widely based on scope, duration, and specific skill sets required.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like BAE Systems suggests that the primary focus was on capability and full and open competition rather than small business utilization. This means that opportunities for small businesses would likely be through subcontracting if BAE Systems chooses to engage them, rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the FBI's program management office. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Software Development
IT Operations and Maintenance
Cloud Computing Services
Cybersecurity Services

Risk Flags

Time and Materials pricing structure
Potential for cost overruns
Reliance on incumbent contractor
Cybersecurity risks associated with IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BAE

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $16.4 million.

What is the period of performance?

Start: 2024-08-16. End: 2025-11-15.

What is BAE Systems' track record with the FBI and other federal agencies for similar IT services contracts?

BAE Systems Technology Solutions & Services Inc. has a substantial track record with the Department of Justice and the FBI, having received numerous awards for IT services, engineering support, and other professional services. Their history includes contracts for complex system development, integration, and sustainment. Analyzing past performance reviews and any documented issues on previous FBI contracts would provide a clearer picture of their reliability and effectiveness in delivering IT development and operations services. Benchmarking their performance on this contract against their historical performance and against industry standards for similar services will be crucial for assessing value and risk.

How does the $16.4 million value compare to similar IT development and operations contracts awarded by the FBI or other agencies?

The $16.4 million contract value over approximately 15 months (August 2024 to November 2025) for IT development and operations services needs to be benchmarked against comparable federal contracts. Factors such as the specific services required (e.g., software development, system maintenance, cloud migration), the labor categories and rates involved, and the geographic location of service delivery significantly influence pricing. Without detailed service descriptions and labor rate comparisons, a precise value assessment is difficult. However, for a contract of this duration and scope, $16.4 million appears to be within a plausible range, assuming it covers a comprehensive suite of IT support functions. Further analysis would involve comparing the estimated hours and labor mix to similar awards.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage for overhead and profit. This can lead to unpredictable costs if project scope creeps, inefficiencies arise, or if the contractor's labor rates are higher than anticipated. To mitigate these risks, robust oversight, detailed tracking of hours and materials, and clear definition of work are essential. The government must actively manage the contract to ensure that the T&M approach delivers value and does not result in excessive spending compared to a fixed-price alternative. The contract's duration and the nature of 'development and operations' suggest a need for flexibility, which T&M can provide, but vigilance is key.

How does this contract align with the FBI's broader IT modernization goals and spending patterns?

This contract for IT development and operations services likely aligns with the FBI's ongoing efforts to modernize its technological infrastructure, enhance data analytics capabilities, and improve operational efficiency. Federal agencies, including the FBI, are under constant pressure to upgrade legacy systems, adopt new technologies (like cloud computing and AI), and strengthen cybersecurity defenses. Spending on IT services is a critical component of these modernization initiatives. Analyzing the FBI's historical IT spending and comparing the scope of this contract to its stated strategic objectives would reveal the extent of its alignment. If this contract supports key programs related to data management, investigative tools, or internal systems, it would be considered a direct contribution to modernization goals.

What is the significance of this contract being a 'logical follow-on' to a previous award?

A 'logical follow-on' designation typically means this contract continues or extends services previously provided under an earlier contract, often with the same contractor. This implies that the FBI has a degree of confidence in BAE Systems' ability to perform the required services, based on their past performance. It can streamline the acquisition process by leveraging existing knowledge and infrastructure, potentially reducing transition costs and time. However, it also necessitates careful evaluation to ensure that the follow-on award is justified and that the government is not foregoing opportunities for better value or innovation that might arise from a new competitive process. The justification for a sole-source or limited competition follow-on needs to be robust.

What are the potential implications for cybersecurity given the nature of IT development and operations services?

Contracts involving IT development and operations services inherently carry cybersecurity implications. The contractor will have access to, or be responsible for, systems that may contain sensitive law enforcement or operational data. Therefore, robust cybersecurity requirements must be embedded within the contract, including adherence to federal cybersecurity standards (e.g., NIST guidelines), secure coding practices, access controls, and incident response protocols. BAE Systems' cybersecurity posture, certifications, and past performance in protecting sensitive data are critical factors. The FBI must ensure that rigorous security measures are in place and continuously monitored throughout the contract lifecycle to prevent breaches and protect national security interests.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $16,401,299

Exercised Options: $16,401,299

Current Obligation: $16,401,299

Actual Outlays: $16,403,567

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $6,719,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D00D9

IDV Type: FSS

Timeline