DOJ Awards $7.4M Contract for Wireless Communication Support to Compass Point LLC

Contract Overview

Contract Amount: $7,402,364 ($7.4M)

Contractor: Compass Point LLC

Awarding Agency: Department of Justice

Start Date: 2023-04-01

End Date: 2026-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: WIRELESS COMMUNICATION SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $7.4 million to COMPASS POINT LLC for work described as: WIRELESS COMMUNICATION SUPPORT SERVICES Key points: 1. Contract awarded to Compass Point LLC for wireless communication support. 2. The contract is valued at $7.4 million over its period of performance. 3. The contract was not available for competition, raising potential concerns about price discovery. 4. The sector is administrative management and general management consulting services.

Value Assessment

Rating: questionable

Pricing cannot be assessed without competitive benchmarks. The contract type (labor hours) and lack of competition suggest potential for cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited approach. This likely restricted price discovery and may have led to a higher price than a competitive award.

Taxpayer Impact: Taxpayer funds may be used less efficiently due to the lack of competition, potentially resulting in a higher overall cost for the services.

Public Impact

Citizens may question the fairness and cost-effectiveness of contracts awarded without competition. The Department of Justice relies on these services for its operations, impacting administrative efficiency. Transparency in government contracting is crucial for public trust, especially when competition is limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Labor hour contract type
  • No small business participation noted

Positive Signals

  • Essential service for DOJ operations
  • Defined period of performance

Sector Analysis

This contract falls under administrative management and general management consulting services. Benchmarks for similar wireless communication support services are difficult to ascertain without competitive data, but typical consulting rates can vary widely.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award. Further analysis would be needed to determine if opportunities were missed for small businesses in this service area.

Oversight & Accountability

The contract's limited competition status warrants close oversight by the Department of Justice to ensure the services are necessary and priced appropriately. Accountability for performance and cost management is critical.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Justice Contracting
  • Offices, Boards and Divisions Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for cost overruns
  • Limited transparency in pricing
  • No small business set-aside identified

Tags

administrative-management-and-general-ma, department-of-justice, va, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.4 million to COMPASS POINT LLC. WIRELESS COMMUNICATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is COMPASS POINT 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 $7.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-09-30.

What is the justification for awarding this contract on a limited/non-competitive basis?

The justification for awarding this contract on a limited or non-competitive basis is not provided in the data. Typically, such awards require a documented justification, such as a sole-source requirement or urgent need, to ensure fair and responsible use of taxpayer funds. Without this justification, it's difficult to assess the necessity of foregoing competition.

What are the risks associated with a labor hour contract type for these services?

A labor hour contract type carries risks of cost overruns if the scope of work is not well-defined or if the labor hours required exceed initial estimates. Without a fixed price or ceiling, the government is billed for actual hours worked, potentially leading to higher costs than anticipated if efficiency is not maintained or if the vendor inflates hours.

How will the effectiveness of these wireless communication support services be measured?

The effectiveness of these wireless communication support services will likely be measured through performance metrics defined in the contract's statement of work. These could include service uptime, response times for support requests, successful implementation of upgrades, and overall user satisfaction. Regular performance reviews and feedback mechanisms are essential for ensuring the services meet the DOJ's operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,819,958

Exercised Options: $10,272,304

Current Obligation: $7,402,364

Actual Outlays: $4,978,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-04-01

Current End Date: 2026-09-30

Potential End Date: 2028-09-30 00:00:00

Last Modified: 2025-12-11

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