DOJ's $6.3M IT Support Contract Awarded to ITC Federal, LLC for Web Services

Contract Overview

Contract Amount: $6,367,153 ($6.4M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ATR IT WEB SUPPORT SERVICES UNDER THE ITSS5 SDVOSB CONTRACT VEHICLE. PERIOD OF PERFORMANCE IS SEP 30, 2021 TO SEP 29, 2022 WITH FOUR 1 YEAR OPTIONS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $6.4 million to ITC FEDERAL, LLC for work described as: ATR IT WEB SUPPORT SERVICES UNDER THE ITSS5 SDVOSB CONTRACT VEHICLE. PERIOD OF PERFORMANCE IS SEP 30, 2021 TO SEP 29, 2022 WITH FOUR 1 YEAR OPTIONS. Key points: 1. Contract awarded under a Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside vehicle, indicating a focus on supporting specific business categories. 2. The contract utilizes a Time and Materials (T&M) pricing structure, which can present cost control challenges if not closely managed. 3. Performance period spans five years, including options, suggesting a long-term need for these IT support services. 4. The contract was awarded via Full and Open Competition after Exclusion of Sources, implying a competitive process but with specific source considerations. 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services, a common area for federal IT support. 6. The award is a Delivery Order against an existing contract vehicle, suggesting a streamlined procurement process for established services.

Value Assessment

Rating: fair

The contract's value of approximately $6.37 million over its potential five-year period for IT web support services appears moderate for federal IT contracts. Benchmarking against similar Computer Systems Design Services (NAICS 541512) contracts would be necessary for a precise value-for-money assessment. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost overruns if not meticulously monitored against established labor rates and estimated hours. Without detailed breakdowns of labor categories and hours, a definitive assessment of pricing competitiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Full and Open Competition after Exclusion of Sources, indicating that while the competition was broad, certain sources were specifically excluded. The data indicates three bidders participated in this competition. A competition level with three bidders suggests a reasonable degree of market interest, which typically aids in price discovery. However, the 'Exclusion of Sources' clause warrants further investigation to understand its potential impact on the breadth of competition and ultimate pricing.

Taxpayer Impact: The competitive process, despite the exclusion of some sources, likely resulted in a fair market price for taxpayers. The presence of multiple bidders generally prevents excessively high pricing, ensuring that taxpayer funds are used efficiently for the required services.

Public Impact

The Department of Justice (DOJ) benefits from continuous IT web support, ensuring the functionality and accessibility of its online platforms. Services delivered include computer systems design and related support, crucial for maintaining the operational integrity of DOJ's digital infrastructure. The primary geographic impact is within the United States, supporting federal operations managed by the DOJ. The contract supports IT professionals and potentially impacts the broader IT services sector through its demand for specialized skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it lacks a fixed ceiling on labor hours.
The 'Exclusion of Sources' clause in the competition type requires scrutiny to ensure it did not unduly limit competition and potentially inflate costs.
Limited public information on the specific IT web support services required makes it difficult to benchmark performance and value comprehensively.

Positive Signals

Awarded under an ITSS5 SDVOSB contract vehicle, aligning with federal goals to support Service-Disabled Veteran-Owned Small Businesses.
The contract is a Delivery Order against an existing vehicle, suggesting a potentially efficient procurement process and established vendor relationship.
The competition involved three bidders, indicating some level of market interest and a competitive bid environment.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the Department of Justice being significant consumers. This contract falls under Computer Systems Design Services (NAICS 541512), a segment focused on designing and integrating hardware and software. Spending in this sector is driven by the need for modernizing legacy systems, enhancing cybersecurity, and improving user experience for digital services. Comparable spending benchmarks would typically involve analyzing IT support contracts across various agencies with similar scope and duration.

Small Business Impact

While this specific contract was not a small business set-aside, it was awarded under the ITSS5 SDVOSB contract vehicle. This indicates that the overarching contract vehicle itself is designed to promote Service-Disabled Veteran-Owned Small Businesses. The prime contractor, ITC Federal, LLC, is likely leveraging this vehicle to fulfill the government's requirement. Further analysis would be needed to determine if subcontracting opportunities exist for other small businesses, including those within the SDVOSB category.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice's contracting officers and program managers. As a Delivery Order under a larger vehicle, the underlying contract likely has its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

IT Support Services
Computer Systems Design Services
IT Professional Services
Cloud Computing Services
Cybersecurity Services
Federal IT Modernization

Risk Flags

Time and Materials Pricing
Limited Competition Data
Exclusion of Sources Clause

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6.4 million to ITC FEDERAL, LLC. ATR IT WEB SUPPORT SERVICES UNDER THE ITSS5 SDVOSB CONTRACT VEHICLE. PERIOD OF PERFORMANCE IS SEP 30, 2021 TO SEP 29, 2022 WITH FOUR 1 YEAR OPTIONS.

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 $6.4 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

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

ITC Federal, LLC has a history of performing IT services for the federal government, often within the scope of IT support, systems integration, and professional services. Their performance on previous contracts, particularly those involving web support and computer systems design, would be a key indicator of their capability. Reviewing past performance evaluations, contract modifications, and any reported issues or successes on prior federal awards would provide a clearer picture. The company's experience with SDVOSB set-aside vehicles and adherence to federal acquisition regulations are also important factors. A deeper dive into their contract history, including the types of agencies served and the complexity of past projects, is crucial for a comprehensive assessment of their track record.

How does the pricing structure (Time and Materials) compare to other federal IT support contracts of similar scope?

Time and Materials (T&M) contracts offer flexibility but can be less predictable in terms of final cost compared to Firm-Fixed-Price (FFP) contracts. For IT support services, T&M is often used when the scope of work is not clearly defined or is expected to evolve. However, it places a significant burden on the government to closely monitor labor hours and rates to prevent cost overruns. When compared to FFP contracts for similar IT support, T&M can sometimes appear more expensive if not managed tightly, as it accounts for actual effort rather than a pre-agreed price. Benchmarking requires comparing the loaded labor rates and estimated hours against market data and historical government T&M awards for comparable services.

What are the specific risks associated with the 'Full and Open Competition after Exclusion of Sources' award type?

The 'Full and Open Competition after Exclusion of Sources' award type presents a nuanced risk. While it aims for broad competition, the exclusion of specific sources can limit the pool of potential bidders. The risk lies in whether these exclusions were justified and necessary, or if they inadvertently restricted competition, potentially leading to higher prices or reduced innovation. If the excluded sources were capable and competitive, their absence could mean the government did not receive the best possible value. Understanding the rationale behind the exclusion is critical. If the exclusions were based on specific capabilities or certifications required for the task, then the competition might still be robust among qualified entities. However, if the exclusions were arbitrary, it poses a risk to cost-effectiveness and market fairness.

What is the potential impact of the five-year performance period (including options) on IT service delivery and cost management?

A five-year performance period, including options, for IT web support services offers both benefits and risks. On the positive side, it provides stability and continuity for the Department of Justice, ensuring that essential IT functions are consistently maintained without frequent re-procurement disruptions. This long-term engagement can also foster a deeper understanding of the agency's specific needs by the contractor, potentially leading to more tailored and efficient service delivery. However, it also presents risks. For a Time and Materials contract, a longer period increases the potential for cost escalation if labor rates increase significantly or if project scope creep is not managed effectively. Furthermore, it reduces the government's agility to adopt newer technologies or switch to different service providers if performance issues arise or if market conditions change dramatically.

How does the SDVOSB set-aside vehicle influence the overall value and accessibility of this contract for veteran-owned businesses?

The contract being awarded under the ITSS5 SDVOSB contract vehicle is a positive signal for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). This vehicle is specifically designed to channel federal contracting dollars towards these businesses, helping them meet their growth and revenue goals. For veteran-owned businesses, it signifies an opportunity to compete for and win federal contracts. The value is realized not only through the direct contract award but also by potentially creating subcontracting opportunities for other SDVOSBs or small businesses. The existence of such vehicles is a key component of the government's strategy to support veteran entrepreneurship and ensure that a portion of federal spending benefits those who have served.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFPID04062021

Offers Received: 3

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: $10,582,946

Exercised Options: $8,257,138

Current Obligation: $6,367,153

Actual Outlays: $7,754,298

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