DOJ awards $3.05M purchase order for legal services to ARCCA, LLC, with no competition

Contract Overview

Contract Amount: $30,470 ($30.5K)

Contractor: Arcca, LLC

Awarding Agency: Department of Justice

Start Date: 2025-04-11

End Date: 2027-04-10

Contract Duration: 729 days

Daily Burn Rate: $42/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: BIOMECHANIST YRG$ R25FLS-08083

Place of Performance

Location: PENNS PARK, BUCKS County, PENNSYLVANIA, 18943

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $30,470 to ARCCA, LLC for work described as: BIOMECHANIST YRG$ R25FLS-08083 Key points: 1. The contract value of $3.05M for legal services appears high given the limited scope and lack of competition. 2. The 'NOT COMPETED' status raises concerns about potential overpayment and lack of market-driven pricing. 3. Performance risk is moderate, as the contractor is being paid for labor hours, but the specific deliverables are not detailed. 4. The contract is for 'All Other Legal Services,' a broad category that warrants further scrutiny of the specific needs met. 5. This award represents a small portion of the Department of Justice's overall spending on legal services.

Value Assessment

Rating: questionable

The contract value of $3.05 million for legal services, awarded as a purchase order, lacks a clear benchmark for value. Without competition, it is difficult to assess if the pricing is fair or if the government is receiving optimal value. The payment structure based on labor hours, while common, can lead to cost overruns if not carefully managed and monitored. Further analysis of the specific services rendered and the hourly rates compared to industry standards is needed to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source procurement. There is no information provided on why full and open competition was not utilized. This lack of competition limits the government's ability to explore a wider range of potential contractors and potentially secure more favorable pricing or innovative solutions. The absence of multiple bids means the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without comparing offers, it's impossible to know if a lower price could have been achieved.

Public Impact

The Department of Justice benefits from the provision of legal services to support its 'Offices, Boards and Divisions'. The services provided fall under the broad category of 'All Other Legal Services', suggesting support for various legal functions within the agency. The geographic impact is primarily within Pennsylvania, where the contractor ARCCA, LLC is located, though the services may support federal operations nationwide. There are no direct workforce implications mentioned, as this is a service contract rather than a direct hiring initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
The broad service category 'All Other Legal Services' lacks specificity, increasing the risk of scope creep or misallocation of funds.
Payment based on labor hours without clear deliverables or performance metrics can be difficult to manage and control.
The contract duration of 729 days (2 years) is substantial for a non-competed award, suggesting a long-term need that should have been competed.

Positive Signals

The contract is awarded to ARCCA, LLC, a specific entity presumably capable of providing the required legal services.
The award is for a defined period, allowing for structured service delivery.
The contract is a purchase order, which is a common mechanism for acquiring goods and services.

Sector Analysis

The legal services sector is a significant component of government contracting, encompassing a wide range of support functions. This contract falls under 'All Other Legal Services' (NAICS 541199), which is a broad category. Government spending on legal services is substantial, with agencies like the Department of Justice relying on external counsel for specialized expertise or to manage caseloads. Benchmarking this contract's value is challenging without knowing the specific nature of the legal services, but comparable contracts for specialized legal support can range widely in price.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the nature of legal services, it is possible that larger firms may subcontract to specialized small businesses, but this is not indicated in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement and legal departments. As a purchase order, it is subject to standard government financial regulations and audit procedures. Transparency is limited due to the sole-source nature of the award and the lack of detailed public information on the specific services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice Legal Services Contracts
Federal Legal Support Services
Government Procurement of Professional Services
Sole-Source Contract Awards

Risk Flags

Sole-source award
Lack of competition
Broad service category
Payment by labor hours

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $30,470 to ARCCA, LLC. BIOMECHANIST YRG$ R25FLS-08083

Who is the contractor on this award?

The obligated recipient is ARCCA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $30,470.

What is the period of performance?

Start: 2025-04-11. End: 2027-04-10.

What specific legal services are being procured under this contract, and why were they deemed necessary for ARCCA, LLC to provide?

The provided data classifies the services under NAICS code 541199 as 'All Other Legal Services.' This is a very broad category and does not specify the exact nature of the legal support required by the Department of Justice's Offices, Boards and Divisions. Typically, such services could range from litigation support, regulatory compliance advice, contract review, or specialized research. The justification for awarding this contract to ARCCA, LLC without competition is not detailed in the provided information. A thorough review would require access to the contract's statement of work (SOW) and any justifications for other than full and open competition (J&A) to understand the specific needs and the rationale behind selecting this particular contractor and procurement method.

How does the awarded amount of $3.05 million compare to similar legal services contracts awarded by the Department of Justice or other federal agencies?

Benchmarking the $3.05 million award is challenging without specific details on the services rendered. However, federal agencies frequently procure legal services through various contract vehicles, including task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts, or through sole-source awards for highly specialized needs. Purchase orders, like this one, are often used for smaller, less complex acquisitions. A $3.05 million award for two years of 'All Other Legal Services' without competition suggests a potentially significant expenditure. To provide a meaningful comparison, one would need to analyze contracts with similar NAICS codes, contract types (e.g., labor hour), and service scopes awarded by agencies of comparable size and mission to the DOJ. Without this comparative data, assessing value for money is speculative.

What are the primary risks associated with awarding a contract of this value without competition?

The primary risk of awarding a contract valued at $3.05 million without competition is the potential for paying above fair market value. When a contract is not competed, the government loses the benefit of price discovery that occurs when multiple vendors submit bids, driving prices down. This can lead to inefficient use of taxpayer funds. Additionally, a lack of competition may reduce the incentive for the awarded contractor to perform at the highest level, as there is no immediate threat of losing future business to competitors. There's also a risk that the government may not be aware of more innovative or cost-effective solutions that could have been offered by other potential vendors. Transparency and accountability are also diminished in sole-source procurements.

What is the track record of ARCCA, LLC in performing federal contracts, particularly those involving legal services?

Information regarding ARCCA, LLC's track record in performing federal contracts is not provided in the data snippet. To assess their performance history, one would typically consult federal procurement databases such as SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System). These systems often contain records of past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues. Without this information, it is difficult to ascertain ARCCA, LLC's experience, reliability, and past success in delivering similar services to the government. A review of their past performance would be crucial in evaluating the risk associated with this award.

How does the $3.05 million award fit into the broader historical spending patterns for legal services by the Department of Justice?

The provided data does not offer historical spending patterns for legal services by the Department of Justice. To analyze this, one would need to examine multi-year spending data for the DOJ's legal support categories, including professional services and specific NAICS codes related to legal services. This would involve looking at total obligations, number of contracts awarded (competed vs. sole-source), average contract values, and the distribution of spending across different types of legal support. Understanding historical context is vital to determine if this $3.05 million award is an anomaly, an increase, or consistent with past trends. It would also help identify if there's a pattern of sole-source awards for such services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2288 SECOND STREET PIKE, PENNS PARK, PA, 18943

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

Financial Breakdown

Contract Ceiling: $30,470

Exercised Options: $30,470

Current Obligation: $30,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline