DOJ awards $28.7M for IT labor support to ITC Federal, LLC, with 2 bids received

Contract Overview

Contract Amount: $28,733,742 ($28.7M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2023-07-17

End Date: 2026-07-16

Contract Duration: 1,095 days

Daily Burn Rate: $26.2K/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: JCIS ENTERPRISE NEXT GENERATION LABOR SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $28.7 million to ITC FEDERAL, LLC for work described as: JCIS ENTERPRISE NEXT GENERATION LABOR SUPPORT Key points: 1. Contract value of $28.7M over 3 years for IT labor support. 2. Competition was full and open after exclusion of sources, indicating a broad search. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The awardee, ITC Federal, LLC, is a relatively new entity in federal contracting. 5. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services. 6. The contract is a Delivery Order under a larger contract vehicle. 7. The primary performance location is Virginia.

Value Assessment

Rating: fair

The contract value of $28.7M over three years for IT labor support appears within a reasonable range for similar services, though specific benchmarks are difficult without detailed scope. The Time and Materials (T&M) pricing structure, however, introduces inherent risk for cost overruns if not managed diligently. Benchmarking against other IT labor support contracts within the Department of Justice or similar agencies would provide a clearer picture of value for money. The limited number of bids (2) also raises questions about the extent of price discovery achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests an initial broad solicitation followed by a more targeted approach. Only two bids were received, which is a relatively low number for a full and open competition. This limited competition may have restricted the range of potential pricing and innovation, potentially leading to a less competitive outcome than if more bidders had participated.

Taxpayer Impact: The limited number of bids suggests that taxpayers may not have benefited from the most competitive pricing possible. A more robust competition with a higher number of bidders could have driven down costs.

Public Impact

The Department of Justice benefits from essential IT labor support services. These services are critical for the ongoing operations and modernization of DOJ's IT infrastructure. The primary geographic impact is in Virginia, where the services will be performed. The contract supports a workforce skilled in computer systems design and IT support. The contract ensures continuity of IT operations for various offices within the DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns.
Low number of bids (2) in a full and open competition may indicate limited market interest or high barriers to entry.
The awardee, ITC Federal, LLC, may have a limited track record in large federal contracts.
The specific scope of 'enterprise next generation labor support' is broad and requires careful management to ensure value.
Potential for scope creep given the T&M nature of the contract.

Positive Signals

Awarded through a full and open competition process, suggesting an attempt to maximize reach.
The contract addresses a critical need for IT labor support within the Department of Justice.
The duration of the contract (3 years) provides stability for service delivery.
The contract is a Delivery Order, implying it's part of a pre-competed vehicle, potentially streamlining acquisition.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. Agencies rely heavily on contractors for specialized IT support, system integration, and maintenance. This contract fits within the broader category of IT professional services, which encompasses a wide range of support functions. Comparable spending benchmarks for IT labor support can vary widely based on skill sets, duration, and agency needs, but this $28.7M award over three years represents a substantial investment in maintaining and advancing the DOJ's technological capabilities.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The awardee, ITC Federal, LLC, is not explicitly identified as a small business in the provided data. Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and invoicing procedures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Labor Support Contracts
Department of Justice IT Modernization Efforts
General Services Administration (GSA) Schedules (if applicable)
Enterprise IT Support

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may result in suboptimal pricing.
Awardee's track record requires further vetting.
Scope definition and management critical for T&M success.
Potential for vendor lock-in if competition remains low.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.7 million to ITC FEDERAL, LLC. JCIS ENTERPRISE NEXT GENERATION LABOR SUPPORT

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 $28.7 million.

What is the period of performance?

Start: 2023-07-17. End: 2026-07-16.

What is the specific track record of ITC Federal, LLC in performing similar large-scale IT labor support contracts for the federal government?

Based on the provided data, ITC Federal, LLC is the awardee of this $28.7 million contract. However, the data does not offer details on the company's specific track record, past performance on similar contracts, or its history with the federal government. Further investigation into contract databases and performance reviews would be necessary to assess their experience and reliability in delivering enterprise next-generation labor support. Without this information, it is difficult to gauge their established capability and success rate in managing contracts of this magnitude and complexity.

How does the awarded price compare to market rates for similar IT labor support services, considering the Time and Materials (T&M) structure?

Benchmarking the Time and Materials (T&M) pricing for this $28.7 million contract against market rates is challenging without specific details on the labor categories, skill levels, and hourly rates involved. T&M contracts inherently allow costs to fluctuate based on actual effort expended. While the overall contract value provides a ceiling, the true 'per-unit' cost is variable. To assess value, one would need to compare the specific hourly rates proposed by ITC Federal, LLC for different roles against industry benchmarks for IT professionals in the Washington D.C. metropolitan area, factoring in the specific technical expertise required for 'enterprise next generation labor support.' The limited competition (2 bids) may also have influenced the rates offered.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT labor support requirement?

The primary risk associated with a Time and Materials (T&M) contract for IT labor support is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the cost of materials. This structure provides less incentive for the contractor to control costs efficiently, as their profit is often tied to the amount of time spent. For the government, this necessitates robust oversight, detailed tracking of labor hours, and strict management of the scope of work to prevent scope creep and ensure that the labor hours billed are reasonable and directly related to the contract requirements. Without diligent monitoring, the total cost could significantly exceed initial estimates.

What does the low number of bids (2) in a 'Full and Open Competition After Exclusion of Sources' suggest about the market for these services?

A 'Full and Open Competition After Exclusion of Sources' typically involves a broad solicitation followed by a more focused evaluation or negotiation phase. Receiving only two bids in such a scenario can suggest several possibilities. It might indicate that the market for highly specialized IT labor support services is limited, or that the requirements were so specific that only a few contractors could meet them. Alternatively, it could imply that the pre-qualification or exclusion process inadvertently narrowed the field too much, or that potential bidders perceived the contract terms or pricing structure as unattractive. This limited competition raises concerns about whether the government secured the best possible value and pricing.

How does this contract align with the Department of Justice's broader IT modernization goals?

This contract for 'JCIS ENTERPRISE NEXT GENERATION LABOR SUPPORT' directly supports the Department of Justice's IT modernization efforts by providing the necessary human resources to implement and maintain advanced technological solutions. Modernizing an enterprise IT infrastructure requires skilled personnel for system design, integration, cybersecurity, data management, and ongoing support. By securing labor support through this contract, the DOJ aims to ensure it has the expertise needed to transition to newer systems, enhance operational efficiency, and potentially improve data security and accessibility across its various components. The success of modernization hinges on having the right talent, which this contract is intended to provide.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) in understanding the scope of this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the primary purpose of this contract is to provide services related to the planning, design, development, and integration of computer systems. This typically includes activities such as analyzing user needs, designing software and hardware solutions, integrating different systems, and providing consulting on IT infrastructure. For the 'JCIS ENTERPRISE NEXT GENERATION LABOR SUPPORT' contract, this NAICS code suggests that the labor provided will focus on the technical expertise required to build, enhance, or manage the DOJ's evolving IT environment, rather than purely operational or help-desk functions.

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 - NETWORK

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: $90,418,740

Exercised Options: $32,218,117

Current Obligation: $28,733,742

Actual Outlays: $23,623,496

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