DOJ awards $5.58M IT support contract to ITC Federal, LLC for 2 years

Contract Overview

Contract Amount: $5,575,830 ($5.6M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2026-09-30

Contract Duration: 730 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: JOCIO SDS JMD IT SUPPORT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $5.6 million to ITC FEDERAL, LLC for work described as: JOCIO SDS JMD IT SUPPORT SERVICES Key points: 1. Contract value appears reasonable for the scope of IT support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Potential risks include reliance on a single vendor for critical IT functions. 4. Performance will be assessed against defined service level agreements. 5. This contract falls within the broader IT services sector for government agencies. 6. The contract type is Time and Materials, which can pose budget uncertainty if not managed closely.

Value Assessment

Rating: good

The contract value of $5.58 million over two years for IT support services seems aligned with market rates for similar government contracts. Benchmarking against other IT support contracts of comparable size and scope within the Department of Justice or other federal agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates careful monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep.

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,' indicating that proposals were solicited from all eligible sources. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and better service offerings for the government. The exclusion of sources clause might warrant further investigation into its justification.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through competitive bidding and ensuring the government receives the best value.

Public Impact

The Department of Justice's various offices, boards, and divisions will benefit from enhanced IT support. Services delivered include computer systems design and related support. The geographic impact is primarily within the operational areas of the Department of Justice. The contract supports IT professionals and potentially impacts the broader IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely managed.
Reliance on a single vendor could create a single point of failure for critical IT infrastructure.
The 'Exclusion of Sources' clause in the competition type requires scrutiny to ensure fairness and prevent potential anti-competitive practices.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract duration of two years provides stability for IT support services.
The vendor, ITC FEDERAL, LLC, is being awarded a contract, suggesting they meet the government's requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a typical expenditure for an agency like the Department of Justice, aiming to ensure the smooth operation of its digital systems and support its mission-critical functions.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific contract may not directly benefit small businesses through set-asides, the prime contractor, ITC FEDERAL, LLC, may engage small businesses as subcontractors. An analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Justice. Performance will be monitored against the contract's terms, including service level agreements and delivery schedules. Transparency is generally maintained through contract databases and reporting requirements, though specific oversight mechanisms for Time and Materials contracts often focus on diligent tracking of labor hours and material costs.

Related Government Programs

IT Support Services
Computer Systems Design Services
Department of Justice IT Contracts
Federal IT Services

Risk Flags

Time and Materials pricing can lead to cost uncertainty.
Potential for vendor lock-in if not managed properly.
Need for strong oversight to ensure performance and cost control.
The 'Exclusion of Sources' clause warrants further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.6 million to ITC FEDERAL, LLC. JOCIO SDS JMD IT SUPPORT SERVICES

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 $5.6 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-30.

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

Assessing the track record of ITC FEDERAL, LLC is crucial for understanding their capability to deliver on this $5.58 million IT support contract. A review of past performance evaluations, contract awards, and any reported issues or successes on similar federal contracts would provide insight into their reliability, technical expertise, and adherence to timelines and budgets. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be essential for this analysis. Without specific data on past performance, it's difficult to definitively gauge their suitability beyond meeting the minimum requirements for this award.

How does the awarded amount compare to the estimated value or independent government cost estimate for these IT support services?

Comparing the awarded amount of $5.58 million to the government's independent cost estimate (ICE) or the agency's budget allocation for these IT support services is a key indicator of value for money. If the awarded price is significantly lower than the ICE, it suggests strong competition or potentially an underestimated scope by the government. Conversely, if it's higher, it might indicate a less competitive bidding environment or an overly optimistic initial estimate. Understanding this comparison helps determine if taxpayers received a fair price for the services rendered.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT support service, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fixed fee or profit. This can lead to unpredictable final costs if project scope expands or if labor hours are inefficiently utilized. Mitigation strategies typically involve robust oversight, detailed tracking of all hours and materials, clear definition of 'materials,' and establishing ceiling prices or 'not-to-exceed' clauses. The Department of Justice's contracting officers must actively monitor expenditures and contractor performance to control costs.

What specific IT systems or services are covered under this contract, and how critical are they to the Department of Justice's mission?

The contract specifies 'Computer Systems Design Services' and 'IT Support Services.' To fully assess its impact, a detailed breakdown of the specific systems, networks, software, or hardware maintenance covered is needed. Understanding the criticality involves determining if these services support core law enforcement functions, administrative operations, data management, or internal communication systems. If the services are for mission-critical infrastructure, any disruption could have significant operational consequences for the Department of Justice, highlighting the importance of reliable vendor performance and contingency planning.

How has the Department of Justice's spending on IT support services evolved over the past five years, and does this contract align with historical trends?

Analyzing the Department of Justice's historical spending on IT support services over the last five years provides context for this $5.58 million award. Trends in spending can reveal patterns of increasing or decreasing investment in IT infrastructure, changes in procurement strategies (e.g., shift towards cloud services, consolidation of contracts), or responses to evolving technological needs. Comparing this contract's value and duration to previous similar awards helps determine if it represents a typical expenditure, a significant increase, or a decrease, offering insights into the agency's IT budget management and strategic priorities.

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

Solicitation ID: 15JPSS23Q00000064

Offers Received: 1

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: $9,599,054

Exercised Options: $5,575,830

Current Obligation: $5,575,830

Actual Outlays: $4,086,454

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