DOJ's FBI awards $4.1M Agile Development Environment contract to Obsidian Global, LLC

Contract Overview

Contract Amount: $4,061,460 ($4.1M)

Contractor: Obsidian Global, LLC

Awarding Agency: Department of Justice

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $11.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: JOINT AGILE DEVELOPMENT ENVIRONMENT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $4.1 million to OBSIDIAN GLOBAL, LLC for work described as: JOINT AGILE DEVELOPMENT ENVIRONMENT Key points: 1. Contract awarded via BPA Call under Schedule, suggesting a pre-competed framework. 2. Time and Materials pricing structure may pose cost control challenges. 3. Limited competition indicated by the award type, potentially impacting price discovery. 4. Contract duration of 364 days aligns with typical project-based needs. 5. Focus on Agile Development Environment points to modernization efforts within the FBI. 6. Small business participation is not explicitly mandated by this award.

Value Assessment

Rating: fair

The contract's value of approximately $4.1 million for a one-year period for IT services appears within a reasonable range for specialized development environments. However, the Time and Materials (T&M) pricing model necessitates close monitoring to ensure cost efficiency. Without specific benchmarks for 'Agile Development Environment' services, a direct value-for-money assessment is challenging, but the BPA Call mechanism suggests some level of pre-negotiated rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Schedule (likely GSA Schedule) via a BPA Call. While this indicates some competition within the GSA Schedule framework, it is not full and open competition. The number of bidders is not specified, but BPA Calls often involve a limited number of pre-qualified vendors, which can streamline the acquisition process but may reduce the breadth of price discovery compared to a fully competed solicitation.

Taxpayer Impact: The limited competition may result in less aggressive pricing than a broad solicitation, potentially leading to higher costs for taxpayers. However, the use of a BPA Call could also indicate efficiency gains that offset some of these concerns.

Public Impact

Federal Bureau of Investigation (FBI) personnel will benefit from enhanced agile development capabilities. Services delivered will support the modernization and efficiency of FBI's software development lifecycle. The contract's geographic impact is primarily within Virginia, where the FBI has significant operations. Workforce implications include potential support for IT professionals specializing in agile methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed diligently.
Limited competition may not yield the most cost-effective solution for the government.
The specific nature of 'Agile Development Environment' requires clear performance metrics to ensure value.

Positive Signals

Awarded via a BPA Call, suggesting a streamlined and potentially efficient procurement process.
Contract duration is aligned with typical project needs, allowing for flexibility.
Focus on agile development aligns with modern IT best practices for software delivery.

Sector Analysis

The IT services sector, particularly custom software development and IT support, is a significant area of federal spending. This contract falls under 'Other Computer Related Services' (NAICS 541519), which encompasses a broad range of IT support and development activities. Federal agencies increasingly rely on agile methodologies to accelerate software delivery and adapt to changing requirements. Spending in this category is driven by the need for continuous modernization of IT systems across government.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. Obsidian Global, LLC is likely a large business, given the contract value. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract are limited, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the FBI's contracting officers and program managers. As a Time and Materials contract, robust oversight of labor hours and material costs is crucial. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FBI IT Modernization Programs
GSA Schedule IT Contracts
Agile Software Development Services
Department of Justice IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may impact optimal price discovery.
Need for robust oversight to manage T&M contract effectively.
Clarity of 'Agile Development Environment' scope is critical for performance evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.1 million to OBSIDIAN GLOBAL, LLC. JOINT AGILE DEVELOPMENT ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is OBSIDIAN GLOBAL, 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 $4.1 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is Obsidian Global, LLC's track record with federal contracts, particularly for IT services?

Obsidian Global, LLC has a history of federal contracting, primarily within the IT services domain. A review of publicly available data indicates they have secured various contracts across different agencies, often related to IT support, software development, and cloud services. Their performance history, including past performance evaluations and any reported issues, would be critical in assessing their capability to deliver on this specific 'Joint Agile Development Environment' contract. Understanding their experience with similar agile development environments and their ability to manage Time and Materials contracts effectively is key to evaluating their suitability.

How does the $4.1 million contract value compare to similar 'Agile Development Environment' contracts awarded by the FBI or other agencies?

Benchmarking the $4.1 million contract value requires comparing it against similar 'Agile Development Environment' procurements. This includes contracts for setting up and managing development platforms, providing agile coaching, or implementing agile tools and methodologies. Factors such as contract duration (1 year here), scope of services, specific technologies involved, and the agency's size and complexity influence pricing. Without specific comparable contract data for 'Agile Development Environments,' it's difficult to definitively state if $4.1 million is high or low. However, for a one-year engagement focused on establishing or enhancing such an environment, it appears to be within a plausible range for specialized IT services.

What are the primary risks associated with a Time and Materials (T&M) contract for agile development services?

The primary risk with a Time and Materials (T&M) contract for agile development services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed rigorously, this can lead to escalating costs, especially in dynamic agile environments where scope can evolve. Key risks include inefficient labor utilization, scope creep that isn't adequately controlled, and difficulty in accurately forecasting the total project cost. Effective oversight, clear task definitions, and strong project management are essential to mitigate these risks and ensure the government receives good value.

How effective are BPA Calls under GSA Schedules for ensuring competitive pricing for specialized IT services?

BPA Calls under GSA Schedules can be an effective tool for ensuring competitive pricing, but the level of competition varies. They allow agencies to establish pre-negotiated agreements (BPAs) with multiple vendors holding the same GSA Schedule contract. When an agency needs a service, they can issue a BPA Call to a subset of these vendors, often requiring at least three quotes. This process streamlines acquisition and leverages pre-competed pricing. However, the competition is limited to vendors on that specific schedule and within the BPA pool, which may not be as broad as a full and open solicitation. The effectiveness in achieving competitive pricing depends on the number of vendors included in the BPA, the clarity of the requirements in the BPA Call, and the agency's diligence in soliciting and evaluating quotes.

What are the implications of awarding this contract via a BPA Call instead of a full and open competition?

Awarding this contract via a BPA Call implies a streamlined procurement process, leveraging existing GSA Schedule contracts and pre-negotiated terms. This typically leads to faster award times compared to full and open competition. However, it also means the competition is limited to vendors already holding the relevant GSA Schedule and potentially those specifically included in the BPA. This can reduce the pool of potential bidders and may limit the downward pressure on pricing that a broader, full and open competition could generate. For taxpayers, this could mean potentially higher costs, although the efficiency gains from using a BPA Call might partially offset this.

What performance metrics should the FBI focus on to ensure the success of this 'Joint Agile Development Environment' contract?

To ensure the success of this 'Joint Agile Development Environment' contract, the FBI should focus on several key performance metrics. These should include metrics related to the development team's velocity and throughput (e.g., story points completed per sprint), lead time for changes (time from code commit to production), cycle time (time to complete a work item), and defect rates (number of bugs found post-release). Additionally, metrics on system uptime and performance of the development environment itself, user satisfaction among development teams, and adherence to budget and schedule are crucial. Regular reviews and feedback loops within the agile framework will be essential for continuous improvement and value delivery.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1055 THOMAS JEFFERSON ST NW, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $42,656,613

Exercised Options: $7,676,393

Current Obligation: $4,061,460

Actual Outlays: $160,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15F06724A0000366

IDV Type: BPA

Timeline