DOJ Awards $7M IT Services Contract to ITC Federal for Computer Systems Design
Contract Overview
Contract Amount: $7,014,339 ($7.0M)
Contractor: ITC Federal, LLC
Awarding Agency: Department of Justice
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $6.4K/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: COPS IT SERVICES TOWO
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $7.0 million to ITC FEDERAL, LLC for work described as: COPS IT SERVICES TOWO Key points: 1. Contract value of $7,014,338.92 for computer systems design services. 2. Awarded under full and open competition after exclusion of sources. 3. Potential risk associated with Time and Materials pricing structure. 4. Services are for the Department of Justice, Offices, Boards and Divisions. 5. Contract duration is 1095 days, ending September 30, 2026.
Value Assessment
Rating: fair
The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed carefully. Benchmarking T&M contracts for similar IT services is challenging due to variable labor rates and scope creep potential.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. However, the T&M pricing structure may limit price discovery and could lead to higher costs than fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for IT services. The T&M nature of the contract presents a risk of increased costs if not closely monitored, potentially impacting the overall value for taxpayers.
Public Impact
Ensures the Department of Justice has necessary IT support for its operations. Supports federal agencies in maintaining and designing computer systems. Potential for cost increases due to Time and Materials pricing. Contract duration of nearly three years provides stability for IT services.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Time and Materials pricing
- Potential for scope creep
- Limited price predictability
Positive Signals
- Full and open competition
- Long-term contract duration
- Supports critical agency functions
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, with benchmarks varying based on complexity and service type. The $7M value is moderate for a multi-year IT services contract.
Small Business Impact
The contract was awarded to ITC FEDERAL, LLC, which is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of Justice is responsible for oversight of this contract. The Time and Materials pricing model necessitates robust oversight to ensure costs remain reasonable and within budget, requiring diligent monitoring of labor hours and rates.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Time and Materials pricing model
- Potential for cost overruns
- Lack of small business participation noted
- Limited price predictability
Tags
computer-systems-design-services, department-of-justice, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $7.0 million to ITC FEDERAL, LLC. COPS IT SERVICES TOWO
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 $7.0 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What specific IT services are included under this contract?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). This typically includes designing and integrating hardware, software, and communication technologies. Detailed service descriptions would be found in the contract's statement of work, outlining specific tasks like system architecture, network design, software implementation support, and IT consulting.
What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?
The primary risk of T&M is the potential for cost overruns, as the final price is not fixed and depends on the actual labor hours and material costs incurred. This can lead to budget unpredictability and potentially higher overall spending compared to fixed-price contracts. Effective oversight and clear task definitions are crucial to mitigate these risks.
How does the 'full and open competition after exclusion of sources' method impact the value for taxpayers?
This method suggests that while the competition was open, certain sources were excluded based on specific criteria, possibly related to capability or prior performance. Ideally, this still allows for competitive pricing. However, the T&M structure introduces uncertainty, meaning the ultimate value for taxpayers depends heavily on effective contract management and performance monitoring to prevent inflated costs.
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: 15JPSS23Q00000061
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: $22,661,265
Exercised Options: $7,724,558
Current Obligation: $7,014,339
Actual Outlays: $5,314,668
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
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2033-09-30 00:00:00
Last Modified: 2025-12-02
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