DOJ's $42.3M legal services contract awarded to ACACIA CENTER FOR JUSTICE shows strong competition

Contract Overview

Contract Amount: $42,340,028 ($42.3M)

Contractor: Acacia Center for Justice

Awarding Agency: Department of Justice

Start Date: 2023-09-01

End Date: 2027-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FY23 LOP/LOPC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $42.3 million to ACACIA CENTER FOR JUSTICE for work described as: FY23 LOP/LOPC Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. Awarded as a Delivery Order, likely against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The North American Industry Classification System (NAICS) code 541199 points to specialized legal services. 5. The contract is a Time and Materials (T&M) type, which can pose cost control risks if not managed closely. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this $42.3 million contract for 'All Other Legal Services' is challenging without specific service details and comparable contract data. The Time and Materials pricing structure necessitates careful monitoring to ensure cost-effectiveness. While the award was competitive, the T&M nature means actual costs could fluctuate, making a definitive value assessment difficult at this stage. Further analysis would require understanding the specific tasks performed and comparing rates to market standards for similar legal support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit an offer. This approach generally fosters a robust bidding environment, potentially leading to more competitive pricing and a wider selection of qualified contractors. The specific number of bidders is not provided, but the 'full and open' designation suggests multiple proposals were likely received and evaluated.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's legal service needs. Open competition helps drive down prices and ensures that the chosen contractor offers a strong combination of quality and cost-effectiveness.

Public Impact

The Department of Justice (DOJ) benefits from specialized legal services to support its various offices and divisions. This contract likely supports a range of legal activities, potentially including research, analysis, and advisory services. The services are geographically focused on the District of Columbia, where the DOJ is headquartered. The contract may impact the legal services workforce by providing opportunities for legal professionals employed by the contractor.

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 managed and monitored.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess service quality.
The broad NAICS code (541199) for 'All Other Legal Services' suggests a wide scope, potentially leading to scope creep if not well-defined.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
The contract has a defined period of performance (4 years), providing stability for service delivery.
The contractor, ACACIA CENTER FOR JUSTICE, was selected, implying they met the government's requirements.

Sector Analysis

The legal services sector within the federal government is diverse, encompassing a wide range of support functions from litigation to policy analysis. Contracts like this, under NAICS code 541199, fall into the 'All Other Legal Services' category, often involving specialized expertise. Federal spending on legal services is substantial, supporting agencies across all branches. This contract represents a portion of the DOJ's broader procurement strategy for essential legal support, aiming to ensure operational efficiency and compliance.

Small Business Impact

This contract does not appear to have a small business set-aside designation (ss: false, sb: false). This means the competition was open to all eligible businesses, and the award was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. The impact on the small business ecosystem is indirect, as opportunities may arise if the prime contractor chooses to subcontract, but it is not a requirement of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Justice responsible for the legal services. As a Time and Materials contract, robust oversight is crucial to monitor labor hours, costs, and ensure that the work performed aligns with the contract's objectives and is performed at fair and reasonable prices. Transparency is facilitated through contract award databases, but detailed performance reporting is usually internal to the agency unless specific public reporting requirements are attached.

Related Government Programs

Department of Justice - General Legal Services
Federal Legal Support Services
Professional and Management Support Services
Contracting for Legal Counsel

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific performance metrics makes quality assessment difficult.
Broad scope indicated by NAICS code could lead to scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $42.3 million to ACACIA CENTER FOR JUSTICE. FY23 LOP/LOPC

Who is the contractor on this award?

The obligated recipient is ACACIA CENTER FOR JUSTICE.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2023-09-01. End: 2027-08-31.

What specific legal services are being procured under this contract?

The provided data indicates the contract falls under NAICS code 541199, 'All Other Legal Services.' This is a broad category that can encompass a wide array of legal support functions beyond traditional litigation or specific regulatory advice. Examples could include legal research, drafting legal documents, policy analysis, administrative support for legal proceedings, or providing expert opinions on niche legal matters. Without further details from the contract's statement of work, the precise nature of the services remains general. The Department of Justice utilizes such contracts to supplement its in-house legal expertise or to procure specialized skills not readily available internally for its various offices and divisions.

How does the $42.3 million value compare to similar legal services contracts within the federal government?

Assessing the $42.3 million value requires context regarding the contract's duration and scope. This contract spans four years (1460 days), averaging approximately $10.6 million per year. Federal spending on legal services varies significantly based on agency needs, complexity of issues, and whether services are for litigation, policy, or general counsel support. Larger agencies like the Department of Defense or the Department of Justice itself often award multi-year contracts in the tens or hundreds of millions for comprehensive legal support. This $42.3 million award appears to be a substantial, but not exceptionally large, investment for specialized legal services over a four-year period, especially considering the broad nature of 'All Other Legal Services'.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $42.3 million over four years, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if not rigorously monitored. Key risks include uncontrolled escalation of labor rates, inefficient use of contractor time, and the accumulation of material costs without a pre-defined ceiling. Effective oversight, detailed tracking of hours and expenses, and clear performance standards are critical to mitigate these risks and ensure the government receives value for its investment.

What is the track record of ACACIA CENTER FOR JUSTICE with federal contracts?

Information regarding the specific track record of ACACIA CENTER FOR JUSTICE with federal contracts is not detailed in the provided data snippet. To assess their track record, one would typically examine their past performance on similar government contracts, including their history of meeting deadlines, staying within budget, and delivering quality services. Government contract databases (like SAM.gov or FPDS) often contain award histories, past performance reviews, and any documented issues or disputes. A thorough analysis would involve reviewing these sources to understand their experience, reliability, and overall performance in fulfilling federal obligations.

How does the 'full and open competition' award mechanism impact the government's ability to secure competitive pricing?

The 'full and open competition' award mechanism is designed to maximize competition, which generally leads to more competitive pricing for the government. By allowing all responsible sources to submit offers, the government broadens the pool of potential contractors, increasing the likelihood of receiving multiple proposals. This competitive pressure encourages bidders to offer their best pricing and terms to win the contract. While the specific number of bidders isn't provided, the choice of this procurement method signals an intent to leverage market forces to achieve a fair and reasonable price for the legal services required by the Department of Justice.

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

Address: 1025 CONNECTICUT AVE NW STE 701, WASHINGTON, DC, 20036

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,340,028

Exercised Options: $42,340,028

Current Obligation: $42,340,028

Actual Outlays: $32,185,819

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $32,605,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS22D00000013

IDV Type: IDC

Timeline