DOJ's $22M SimpliFile Contract for Electronic Lien Recording Lacks Competition
Contract Overview
Contract Amount: $22,000 ($22.0K)
Contractor: Simplifile LC
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $60/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY 2026 SIMPLIFILE ELECTRONIC RECORDING OF LIEN SERVICES
Place of Performance
Location: PROVO, UTAH County, UTAH, 84604
State: Utah Government Spending
Plain-Language Summary
Department of Justice obligated $22,000 to SIMPLIFILE LC for work described as: FY 2026 SIMPLIFILE ELECTRONIC RECORDING OF LIEN SERVICES Key points: 1. Contract awarded to SimpliFile LC for electronic lien recording services. 2. Significant spending of $22,000,000 over one year. 3. Sole source award raises concerns about price discovery and value. 4. Services fall under 'All Other Legal Services' NAICS code 541199.
Value Assessment
Rating: questionable
The contract's value of $22 million for a single year of electronic lien recording services appears high, especially given the lack of competitive bidding. Without market analysis or comparison to similar contracts, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP) and appears to be a sole-source award to SimpliFile LC. The lack of competition limits price discovery and may lead to inflated costs for taxpayers.
Taxpayer Impact: The absence of competition for a $22 million contract means taxpayers may be overpaying for these essential legal services.
Public Impact
Citizens and businesses relying on the Department of Justice for lien recording services may face inefficiencies or higher costs. The lack of transparency in the procurement process could erode public trust in government contracting. Potential for missed opportunities to leverage innovative solutions from a wider pool of vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competition
- No small business participation noted
Positive Signals
- Firm fixed price contract can provide cost certainty if priced appropriately.
Sector Analysis
The legal services sector, particularly specialized areas like electronic record-keeping for liens, can be prone to consolidation and limited vendor options. Benchmarking against similar government or private sector contracts for electronic filing systems is crucial for assessing value.
Small Business Impact
There is no indication of small business participation in this contract. Given the sole-source nature and the specific service, it's unclear if opportunities for small businesses were explored or if the nature of the service inherently excludes them.
Oversight & Accountability
The sole-source award warrants close oversight from the Department of Justice to ensure the contractor is delivering services effectively and at a reasonable cost. Transparency regarding the justification for the sole-source award is essential for accountability.
Related Government Programs
- All Other Legal Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- No small business set-aside identified
- High contract value for a single year
Tags
all-other-legal-services, department-of-justice, ut, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $22,000 to SIMPLIFILE LC. FY 2026 SIMPLIFILE ELECTRONIC RECORDING OF LIEN SERVICES
Who is the contractor on this award?
The obligated recipient is SIMPLIFILE LC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $22,000.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for awarding this contract sole-source, and were alternative solutions considered?
The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' suggesting a sole-source or limited competition approach. A thorough justification, including market research and a determination of why only SimpliFile LC could meet the requirement, is necessary. This justification should detail any alternatives explored and why they were deemed unsuitable to ensure fair and effective use of taxpayer funds.
How does the $22 million price tag compare to industry benchmarks for similar electronic lien recording services?
Without specific performance metrics or detailed service descriptions, a direct cost comparison is challenging. However, $22 million for a one-year contract for electronic lien recording services is substantial. Benchmarking against contracts for similar IT-enabled legal services or electronic document management systems, considering volume and complexity, would be necessary to assess if this price is competitive and represents good value.
What measures are in place to ensure the effectiveness and efficiency of SimpliFile's electronic lien recording services?
As this is a firm-fixed-price contract, the primary mechanism for ensuring effectiveness is likely through defined service level agreements (SLAs) and performance standards within the contract. The Department of Justice should actively monitor SimpliFile's performance against these metrics, track system uptime, data accuracy, and processing times to ensure the services meet the government's needs and taxpayer expectations.
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 UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15JA0522Q00000090
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5072 N 300 W, PROVO, UT, 84604
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,000
Exercised Options: $22,000
Current Obligation: $22,000
Actual Outlays: $9,246
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 15JA0522A00000241
IDV Type: BPA
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-08
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