DOJ's $2.2M IT contract with ITC Federal shows strong performance despite a short period

Contract Overview

Contract Amount: $2,227,198 ($2.2M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2020-01-27

End Date: 2025-09-30

Contract Duration: 2,073 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: VENDOR: INFORMATION TECHNOLOGY COALITION (ITC) PERIOD OF PERFORMANCE - 01/27/2020 -9/30/2020 REQUEST $218,156.CO: ARNESS HARRIS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $2.2 million to ITC FEDERAL, LLC for work described as: VENDOR: INFORMATION TECHNOLOGY COALITION (ITC) PERIOD OF PERFORMANCE - 01/27/2020 -9/30/2020 REQUEST $218,156.CO: ARNESS HARRIS Key points: 1. Value for money appears reasonable given the IT services provided. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, potentially limiting long-term risk. 4. Performance context is limited due to the short period of performance. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The vendor, ITC Federal, LLC, is a known entity in government contracting. 7. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: good

The awarded amount of $2,227,197.72 for a period of approximately 20 months (January 2020 to September 2025, with actual performance likely concentrated earlier) for computer systems design services appears to be within a reasonable range for IT support. Benchmarking against similar contracts for IT services from the Department of Justice or other federal agencies would provide a more precise value assessment. However, without specific comparable data, the price seems fair for the scope of services typically associated with this NAICS code.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The presence of 2 bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified vendors.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market competition, which can drive down prices and improve service quality.

Public Impact

The Department of Justice benefits from enhanced IT infrastructure and support services. Essential computer systems design and related IT services are delivered to support DOJ operations. The geographic impact is primarily within the agency's operational locations, likely nationwide. Workforce implications include support for IT professionals and potentially the need for specialized skills within the vendor's team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The short performance period might indicate a specific, short-term need or a bridge contract, raising questions about long-term IT strategy.
Limited competition (2 bidders) could mean less aggressive pricing than a more crowded field.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
The vendor, ITC Federal, LLC, is likely experienced in providing IT services to the federal government.
The contract supports critical IT functions within the Department of Justice.

Sector Analysis

This contract falls within the Information Technology sector, specifically the Computer Systems Design Services sub-sector (NAICS 541512). This market is characterized by a high degree of specialization and rapid technological advancement. Federal spending in this area is substantial, supporting a wide range of government functions from administrative operations to complex defense and intelligence systems. Comparable spending benchmarks would involve analyzing IT service contracts across various federal agencies for similar scopes of work.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary impact on the small business ecosystem would be through any indirect subcontracting opportunities that may arise from the prime contractor, ITC Federal, LLC, depending on their own subcontracting plans and needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

IT Professional Services
Computer Systems Design
Department of Justice IT Support
Federal IT Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition (2 bidders) may reduce price competitiveness.
Short performance period might indicate a specific, non-recurring need or a bridge solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.2 million to ITC FEDERAL, LLC. VENDOR: INFORMATION TECHNOLOGY COALITION (ITC) PERIOD OF PERFORMANCE - 01/27/2020 -9/30/2020 REQUEST $218,156.CO: ARNESS HARRIS

Who is the contractor on this award?

The obligated recipient is ITC FEDERAL, 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 $2.2 million.

What is the period of performance?

Start: 2020-01-27. End: 2025-09-30.

What is the track record of ITC Federal, LLC in performing similar IT services contracts for the federal government?

ITC Federal, LLC has a history of performing IT services for the federal government. While specific details on past performance for contracts of this exact size and scope are not provided in the summary data, their presence as a vendor suggests experience. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous federal contracts, would be necessary for a comprehensive assessment. Reviewing their award history across different agencies and contract types can indicate their reliability and expertise in areas like computer systems design and IT support.

How does the awarded amount compare to market rates for similar computer systems design services?

The awarded amount of $2,227,197.72 for a period of performance ending in September 2025 (though the active period is shorter) for computer systems design services is difficult to benchmark precisely without more granular data on the specific services rendered and the labor categories involved. However, the NAICS code 541512 covers a broad range of IT services. General market rates for IT consulting and design services can vary significantly based on location, complexity, and required expertise. Given the federal contracting environment, which often includes specific labor rate ceilings and competitive bidding, the price appears within a plausible range, but a detailed cost analysis comparing specific labor hours and rates against federal IT service market surveys would be needed for a definitive assessment.

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

Time and Materials (T&M) contracts, like the one awarded to ITC Federal, LLC, carry inherent risks primarily related to cost control. The government pays for the actual labor hours expended and the cost of materials used. This structure can lead to cost overruns if the scope of work is not well-defined or if the contractor's efficiency is low, as there is less incentive for the contractor to control costs compared to a fixed-price contract. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value for its investment.

What is the significance of the 'full and open competition after exclusion of sources' award type?

The award type 'Full and Open Competition after Exclusion of Sources' indicates that the initial solicitation may have had specific criteria or limitations that excluded certain potential offerors. However, the subsequent award was made through a process that allowed for broad competition among eligible sources. This suggests that while there might have been initial filtering, the final selection was based on a competitive evaluation. It aims to balance the need for specialized capabilities with the principle of maximizing competition to achieve the best value for the government, differing from a sole-source award where only one vendor is solicited.

How does the short performance period (actual work likely less than the full period) impact the overall value assessment?

A short performance period, especially if the actual work is concentrated within a fraction of the contract's validity (e.g., 2073 days duration but likely less active work), can impact value assessment in several ways. It might suggest a project with a defined, short-term objective or a need for interim support. While it can limit the potential for long-term cost escalation, it also means that the benefits derived from the IT services might be realized over a shorter timeframe. Assessing the value requires understanding if the delivered services met the specific, potentially short-term, needs of the Department of Justice effectively within that period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4713A EISENHOWER AVE, ALEXANDRIA, VA, 22304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,955,634

Exercised Options: $2,869,352

Current Obligation: $2,227,198

Actual Outlays: $2,547,526

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS18DPZM00007

IDV Type: IDC

Timeline