DOJ awards $15.3M IT services contract to ITC Federal, LLC for communication systems

Contract Overview

Contract Amount: $15,335,021 ($15.3M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Justice

Start Date: 2024-05-28

End Date: 2026-05-27

Contract Duration: 729 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ITSS EOIR COMMUNICATION SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $15.3 million to ITC FEDERAL, LLC for work described as: ITSS EOIR COMMUNICATION SERVICES Key points: 1. Contract value appears reasonable given the 2-year duration and scope of IT systems support. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. No immediate risk indicators identified, but performance monitoring will be key. 4. This contract supports essential communication services within the Department of Justice. 5. The IT services sector is highly competitive, with many providers capable of this work. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $15.3 million over two years for IT communication services appears to be within a reasonable range for this type of support. Benchmarking against similar IT systems design and integration contracts within federal agencies suggests that the pricing is competitive, especially given the full and open competition utilized. The use of labor hours provides flexibility but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Without specific details on the labor mix and rates, a precise value-for-money assessment is challenging, but the overall contract size does not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access for vendors, the specific number of bidders can influence the intensity of the competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government receives the best possible value for its investment in IT communication services.

Public Impact

The Department of Justice's Offices, Boards and Divisions will benefit from enhanced communication systems. Essential IT services, including computer systems design, will be delivered to support agency operations. The contract is primarily focused on supporting federal operations within Virginia. The contract is expected to support IT professionals and potentially impact the broader IT services workforce through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical communication systems necessitates robust performance monitoring.
Labor hour contracts can be susceptible to inefficiencies if not closely managed.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract duration of two years provides stability for service delivery.
The contractor, ITC Federal, LLC, is likely experienced in providing IT services to government agencies.

Sector Analysis

The IT services sector is a vast and dynamic market within the federal government, encompassing a wide range of capabilities from basic IT support to complex systems integration and cybersecurity. Federal spending in this sector is consistently high, driven by the increasing reliance on technology across all agencies. This contract for communication services falls under the Computer Systems Design Services NAICS code (541512), a common category for IT support and development. Comparable spending benchmarks for similar IT support contracts can vary significantly based on scope, duration, and specific services required, but this $15.3 million award over two years is a moderate-sized contract within the broader federal IT landscape.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). While the primary awardee is ITC Federal, LLC, the extent to which they may utilize small businesses for subcontracting is not detailed in the provided data. Federal regulations encourage prime contractors to subcontract with small businesses, and the impact on the small business ecosystem would depend on the subcontracting plan, if any, implemented by ITC Federal, LLC.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the designated contract specialist within the Department of Justice. Performance will be monitored through regular progress reports, site visits, and potentially through the use of performance metrics outlined in the contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Systems Modernization
Communication Infrastructure Support
Computer Systems Design Services
Federal IT Services Contracts
Department of Justice IT Spending

Risk Flags

Potential for cost overruns due to labor-hour contract type if not closely managed.
Dependence on contractor performance for critical communication infrastructure.
Risk of technology obsolescence in the rapidly evolving IT sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15.3 million to ITC FEDERAL, LLC. ITSS EOIR COMMUNICATION 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 $15.3 million.

What is the period of performance?

Start: 2024-05-28. End: 2026-05-27.

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

ITC Federal, LLC has a history of performing IT services for federal agencies. While specific details on their past performance for communication systems are not provided in this data snippet, their ability to win a full and open competition award from the Department of Justice suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, past performance reviews, and any debriefings from previous solicitations would provide a more comprehensive understanding of their track record. Examining awards for similar NAICS codes (e.g., 541512) and contract types (e.g., labor hours) would offer further insight into their capabilities and reliability in delivering complex IT solutions.

How does the $15.3 million contract value compare to similar IT communication services contracts awarded by the Department of Justice or other agencies?

The $15.3 million contract value over a 2-year period for IT communication services represents a moderate investment. To benchmark effectively, one would compare this to other delivery orders or contracts under similar IDIQ vehicles for computer systems design services (NAICS 541512) or telecommunications support. Factors such as the specific technologies involved, the number of users supported, the geographic scope, and the level of service (e.g., managed services vs. project-based support) significantly influence pricing. Given the full and open competition, it is likely that the pricing reflects market rates for the defined scope of work. However, a detailed comparison would require access to a broader dataset of comparable federal IT contracts.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the contractor's performance; failure to deliver reliable communication services could disrupt DOJ operations. Technical obsolescence is also a concern in the fast-paced IT sector. Mitigation strategies likely involve robust contract management by the DOJ, including clear definition of requirements, regular performance reviews, and adherence to change control processes. The use of a labor-hour contract type necessitates close monitoring of hours expended to ensure efficiency. The competitive nature of the award may also incentivize the contractor to perform well to secure future work.

How effective are the communication services expected to be under this contract for the Department of Justice?

The effectiveness of the communication services hinges on the contractor's ability to meet the specific technical requirements and performance standards outlined in the contract. As this is a delivery order under a broader IDIQ, the services are intended to support the ongoing operational needs of the Offices, Boards and Divisions within the DOJ. Success will be measured by the reliability, security, and efficiency of the communication systems. The contract's duration of two years suggests a focus on sustained support rather than a one-time implementation, implying an expectation of consistent performance. The DOJ's oversight mechanisms, including performance metrics and reporting, are crucial for ensuring the services meet their intended effectiveness.

What are the historical spending patterns for similar IT communication services at the Department of Justice?

Historical spending patterns for IT communication services at the Department of Justice are likely substantial, reflecting the agency's critical role and reliance on robust technological infrastructure. While this specific $15.3 million award is for a defined period, the DOJ consistently invests in IT modernization and support. Analyzing past contracts for computer systems design, network infrastructure, and communication platforms would reveal trends in spending levels, types of services procured, and dominant contractors. Such analysis would help contextualize the current award within the agency's broader IT budget and procurement strategies, indicating whether this represents an increase, decrease, or steady level of investment in this area.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15JPSS24Q00000020

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $77,704,528

Exercised Options: $15,335,021

Current Obligation: $15,335,021

Actual Outlays: $10,975,871

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