DOJ's $3.46M Administrative Support Contract Awarded to Muse Technologies Inc. with No Competition

Contract Overview

Contract Amount: $3,461,784 ($3.5M)

Contractor: Muse Technologies Inc

Awarding Agency: Department of Justice

Start Date: 2020-03-09

End Date: 2026-05-31

Contract Duration: 2,274 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT THE BUSINESS NEEDS OF THE FOLLOWING BRANCHES/FUNCTIONS WITHIN THE OFFICE OF ADMINISTRATION (OA): BUDGET (BUDGET FORMULATION, AND/OR BUDGET EXECUTION), SECURITY (PERSONNEL, AND/OR PHYSICAL), FACILITY, FINANCE, RECORD MANAGEMENT, AND ADMIN.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $3.5 million to MUSE TECHNOLOGIES INC for work described as: SUPPORT THE BUSINESS NEEDS OF THE FOLLOWING BRANCHES/FUNCTIONS WITHIN THE OFFICE OF ADMINISTRATION (OA): BUDGET (BUDGET FORMULATION, AND/OR BUDGET EXECUTION), SECURITY (PERSONNEL, AND/OR PHYSICAL), FACILITY, FINANCE, RECORD MANAGEMENT, AND ADMIN. Key points: 1. Contract provides essential administrative support across multiple DOJ branches, including budget, security, and finance. 2. The 'Not Available for Competition' award raises questions about the extent of market research conducted. 3. A Time and Materials contract type can pose cost control challenges if not closely managed. 4. The contract duration of over 6 years suggests a long-term need for these services. 5. The specific North American Industry Classification System (NAICS) code 541611 indicates a focus on management consulting services. 6. The award to Muse Technologies Inc. represents a significant investment in internal administrative functions for the DOJ.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.46 million contract is challenging without more detailed service descriptions and performance metrics. The Time and Materials (T&M) pricing structure, while common for evolving needs, can lead to cost overruns if not meticulously monitored. Comparing it to similar administrative support contracts within the Department of Justice or other large federal agencies would require access to detailed pricing data and scope of work for those contracts. Without this, it's difficult to definitively assess if the pricing represents fair market value or if it's competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' justification, indicating that a full and open competition was not pursued. The specific reasons for this determination are not detailed in the provided data. Typically, sole-source awards occur when only one responsible source can provide the required services. The lack of competition means there was no opportunity to solicit bids from multiple vendors, potentially limiting price discovery and the government's ability to secure the most advantageous terms.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not explore options from other qualified vendors. This could result in a higher overall cost compared to what might have been achieved through a competitive bidding process.

Public Impact

The Office of Administration (OA) within the Department of Justice benefits directly from the enhanced administrative support. Services provided include crucial support for budget formulation and execution, personnel and physical security, facility management, finance operations, and records management. The geographic impact is primarily within Maryland, where the contract is managed. The contract supports the operational efficiency of various branches within the DOJ, indirectly impacting the workforce by ensuring smooth administrative processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Time and Materials contract type carries inherent risk of cost escalation without stringent oversight.
The long contract duration (over 6 years) necessitates robust performance management to ensure continued value.
Limited transparency on the justification for sole-source award raises concerns about market research adequacy.

Positive Signals

Contract supports critical administrative functions essential for the DOJ's operations.
Award to a single vendor may indicate specialized capabilities or a long-standing relationship.
The contract aims to provide comprehensive support across multiple vital branches within the OA.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category encompassing a wide range of professional services aimed at improving organizational efficiency and effectiveness. The federal market for these services is substantial, with agencies frequently outsourcing functions related to strategic planning, operational improvement, and administrative support. This contract fits within that sector by providing essential operational support to the Department of Justice's administrative functions. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar administrative support services, often measured by contract value and duration.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss=false) and does not explicitly mention subcontracting goals for small businesses (sb=false). Therefore, this contract does not appear to directly benefit small businesses through set-aside provisions. The lack of small business participation noted in the award details suggests that opportunities for small businesses to engage in subcontracting may be limited or were not a primary consideration in the contract's structure. Further analysis would be needed to determine if any subcontracting plans were established post-award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of Administration and the contracting officer. As a Time and Materials contract, rigorous monitoring of labor hours and costs is crucial. Transparency is limited by the sole-source nature of the award and the lack of detailed public reporting on performance metrics. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Justice Administrative Support Services
Federal Management Consulting Services
Office of Administration Support Contracts
Sole-Source Contract Awards
Time and Materials Contracts

Risk Flags

Sole-source award without clear justification.
Potential for cost overruns due to Time and Materials pricing.
Lack of transparency regarding competition and market research.
Long contract duration increases risk of vendor lock-in and reduced incentive for efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.5 million to MUSE TECHNOLOGIES INC. SUPPORT THE BUSINESS NEEDS OF THE FOLLOWING BRANCHES/FUNCTIONS WITHIN THE OFFICE OF ADMINISTRATION (OA): BUDGET (BUDGET FORMULATION, AND/OR BUDGET EXECUTION), SECURITY (PERSONNEL, AND/OR PHYSICAL), FACILITY, FINANCE, RECORD MANAGEMENT, AND ADMIN.

Who is the contractor on this award?

The obligated recipient is MUSE TECHNOLOGIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2020-03-09. End: 2026-05-31.

What specific services are included under 'Administrative Management and General Management Consulting Services' for the DOJ's Office of Administration?

The contract data specifies that the services support the business needs of several branches/functions within the Office of Administration (OA), including Budget (budget formulation and/or execution), Security (personnel and/or physical), Facility, Finance, Record Management, and Administration. This implies a broad scope of support, ranging from financial planning and execution to physical and personnel security oversight, facility operations, and the management of official records. The 'Administrative Management and General Management Consulting Services' NAICS code (541611) suggests that the contractor may also provide advice and assistance on administrative and management issues, beyond just performing routine tasks. However, the exact deliverables and performance standards for each function are not detailed in the provided summary data.

Why was this contract awarded on a sole-source basis, and what market research was conducted?

The contract was explicitly marked as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. The provided data does not detail the specific justification or the extent of market research undertaken. Typically, sole-source awards are justified under circumstances such as only one vendor possessing the unique capability or expertise required, or in emergency situations. Without further information, it is impossible to ascertain the rationale behind this determination. A thorough review of the contract file, including the justification and approval (J&A) document, would be necessary to understand the market research conducted and the reasoning for foregoing a competitive process. This lack of transparency raises concerns about whether the government adequately explored all potential sources.

How does the Time and Materials (T&M) contract type impact cost control and value for money?

A Time and Materials (T&M) contract pays the contractor for direct labor hours at specified hourly rates and for the cost of materials. While T&M contracts offer flexibility, especially when the scope of work is not clearly defined or is expected to change, they carry a higher risk of cost overruns compared to fixed-price contracts. Effective cost control relies heavily on robust oversight, including detailed tracking of labor hours, verification of work performed, and strict management of material costs. For this $3.46 million contract spanning over 6 years, the Department of Justice must implement stringent monitoring mechanisms to ensure that the T&M pricing remains reasonable and that the contractor is not exploiting the structure. Without such controls, the value for money can be compromised as costs may escalate beyond initial expectations.

What is the historical spending pattern for administrative support services within the DOJ's Office of Administration?

The provided data only includes details for this specific contract awarded in March 2020. To understand historical spending patterns for administrative support services within the DOJ's Office of Administration, one would need to access historical contract databases and procurement records. This would involve searching for previous contracts awarded for similar services, identifying the vendors, contract values, durations, and competition levels. Analyzing this historical data would reveal trends in spending, identify key contractors, and assess whether reliance on sole-source awards for these services has been a consistent practice. Without this historical context, it's difficult to determine if this $3.46 million contract represents a significant increase or continuation of past spending levels.

What are the potential risks associated with a contract of this duration (over 6 years) awarded on a sole-source basis?

A contract duration of over 6 years (2274 days) awarded on a sole-source basis presents several potential risks. Firstly, the lack of competition means the government is locked into a single provider for an extended period, potentially missing out on innovations or cost efficiencies offered by other market participants. Secondly, long-term sole-source contracts can lead to complacency on the part of the contractor, potentially impacting service quality or responsiveness over time. Thirdly, without periodic re-competition, there's a reduced incentive for the contractor to maintain competitive pricing or proactively seek cost-saving measures. Finally, the government's leverage to negotiate favorable terms diminishes significantly over such a long period, especially if the services become deeply embedded within the agency's operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Muse Technologies, Inc.

Address: 4601 PRESIDENTS DR STE 240, LANHAM, MD, 20706

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,461,784

Exercised Options: $3,461,784

Current Obligation: $3,461,784

Actual Outlays: $3,318,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline