DOJ awards $30M contract for legal support services, with significant portion allocated to time and materials

Contract Overview

Contract Amount: $29,899,136 ($29.9M)

Contractor: Forfeiture Support Associates LLC

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FY23 DO 657

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $29.9 million to FORFEITURE SUPPORT ASSOCIATES LLC for work described as: FY23 DO 657 Key points: 1. Contract value indicates substantial need for ongoing legal services. 2. Time and Materials pricing structure may pose cost control challenges. 3. Competition level suggests a potentially healthy market for these services. 4. Contract duration extends over several fiscal years, implying long-term requirements. 5. The specific NAICS code points to a niche but essential legal service area.

Value Assessment

Rating: fair

The contract's total value of approximately $30 million over four years suggests a significant investment in legal support. Benchmarking this against similar contracts for 'All Other Legal Services' (NAICS 541199) is challenging without more specific service details. However, the Time and Materials (T&M) pricing model, while common, can lead to cost overruns if not carefully managed and monitored. The obligated amount of $20.5 million suggests a substantial portion of the contract value has been committed, but the remaining value is subject to future task orders and potential cost increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a robust bidding process.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors to bid, potentially leading to better value.

Public Impact

The Department of Justice benefits from specialized legal support services. Services likely encompass a range of legal assistance critical to departmental operations. The contract supports legal professionals and administrative staff within the DOJ. Geographic impact is likely national, supporting DOJ offices across the country. Workforce implications include employment for legal professionals and support staff at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing.
Scope creep could increase costs if not managed tightly.
Dependence on a single contractor for critical legal services.
Performance variability inherent in T&M contracts.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long contract duration allows for stable service provision.
Specific NAICS code indicates specialized expertise is being procured.
Contractor has a track record with government contracts (implied by award).

Sector Analysis

The legal services sector is a critical component of government operations, supporting regulatory compliance, litigation, and administrative functions. NAICS code 541199, 'All Other Legal Services,' covers a broad range of specialized legal activities not classified elsewhere. The market for these services is competitive, with numerous firms capable of providing support. This contract fits within the broader federal spending on professional services, which often includes legal, consulting, and administrative support, representing a significant portion of the federal budget.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, FORFEITURE SUPPORT ASSOCIATES LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract may be limited unless they are part of a larger subcontracting effort.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. The contract's performance will be monitored against defined deliverables and service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to the contract's execution.

Related Government Programs

Department of Justice Legal Services Contracts
Federal Professional Services Procurement
Time and Materials Contract Vehicles
Legal Support Services for Government Agencies

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for stringent oversight to manage T&M expenditures.
Scope definition and management critical for cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29.9 million to FORFEITURE SUPPORT ASSOCIATES LLC. FY23 DO 657

Who is the contractor on this award?

The obligated recipient is FORFEITURE SUPPORT ASSOCIATES 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 $29.9 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the historical spending pattern for legal services under NAICS code 541199 by the Department of Justice?

Analyzing historical spending for NAICS 541199 by the Department of Justice reveals a consistent demand for specialized legal services. While specific figures fluctuate year-to-year based on litigation needs and policy initiatives, the DOJ regularly obligates tens of millions of dollars annually within this category. This contract, with its $30 million ceiling over four years, aligns with the department's typical investment in such services. Past awards within this NAICS code often involve support for investigations, asset forfeiture, and complex litigation, suggesting that FORFEITURE SUPPORT ASSOCIATES LLC's services are likely aligned with these critical functions. Understanding these patterns helps contextualize the current award as part of an ongoing need rather than an isolated expenditure.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar legal services?

Time and Materials (T&M) contracts, like the one awarded to FORFEITURE SUPPORT ASSOCIATES LLC, are often used when the scope of work is not clearly defined at the outset or is expected to evolve. This structure reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost certainty. FFP contracts provide greater cost predictability but require a well-defined scope. For legal services, T&M can be advantageous for unpredictable caseloads or investigative work, but it necessitates robust oversight to prevent cost overruns and ensure efficiency. The government's ability to effectively manage and monitor labor hours and material costs is crucial for achieving value under a T&M arrangement.

What are the potential risks associated with a $30 million contract awarded under Time and Materials pricing?

A significant risk with a $30 million Time and Materials (T&M) contract is the potential for cost escalation beyond initial estimates. Without a fixed ceiling on total costs, the government is vulnerable if labor hours are inefficiently utilized or if material costs increase unexpectedly. Scope creep, where the project expands beyond its original intent without a corresponding adjustment in contract value or oversight, is another major concern. Effective contract management, including detailed tracking of hours, rigorous review of invoices, and clear definition of tasks, is paramount. Additionally, ensuring the contractor maintains adequate staffing levels and expertise throughout the contract's duration is vital to prevent delays and maintain service quality, which can indirectly impact overall costs.

What does the 'All Other Legal Services' (NAICS 541199) category typically encompass for federal agencies?

The 'All Other Legal Services' category (NAICS 541199) is a broad classification for legal services not specifically covered by other NAICS codes. For federal agencies like the Department of Justice, this often includes specialized support functions such as legal research, drafting legal documents, providing expert opinions, assisting in litigation preparation, and managing specific legal processes like asset forfeiture or administrative hearings. It can also encompass services related to regulatory compliance, contract review, and internal investigations. The breadth of this category means that contracts awarded under it can vary significantly in scope and focus, depending on the agency's unique needs and the specific expertise required from the contractor.

How does the contract duration of 1460 days (approx. 4 years) impact the value proposition for the government?

A contract duration of approximately four years (1460 days) offers several potential benefits for the government. Firstly, it allows for continuity of essential services, reducing the administrative burden and potential disruption associated with frequent re-procurement. This long-term stability can foster a stronger working relationship between the agency and the contractor, potentially leading to improved service quality and efficiency as the contractor gains deeper familiarity with the agency's specific needs and processes. Furthermore, a longer contract term can sometimes enable the contractor to invest more in specialized resources or personnel, potentially leading to better outcomes. However, it also necessitates robust performance monitoring throughout the period to ensure continued value and address any performance issues promptly.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 20110 ASHBROOK PL STE 220, ASHBURN, VA, 20147

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: $32,447,344

Exercised Options: $32,447,344

Current Obligation: $29,899,136

Actual Outlays: $23,460,336

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,117,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS20D00000271

IDV Type: IDC

Timeline