DOJ's $3.6M administrative support contract awarded to Muse Technologies Inc. shows potential for cost efficiencies

Contract Overview

Contract Amount: $3,601,628 ($3.6M)

Contractor: Muse Technologies Inc

Awarding Agency: Department of Justice

Start Date: 2020-05-01

End Date: 2026-05-31

Contract Duration: 2,221 days

Daily Burn Rate: $1.6K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

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 $3.6 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. Awarded to Muse Technologies Inc., the contract value is $3,601,627.87 over its period of performance. 3. The contract was not competed under SAP, raising questions about the level of competition and potential cost savings. 4. Performance is rated as 'good', indicating satisfactory delivery of services. 5. The contract's duration is 2,221 days, spanning from May 1, 2020, to May 31, 2026. 6. The primary service is Administrative Management and General Management Consulting Services (NAICS 541611).

Value Assessment

Rating: good

The contract's value of approximately $3.6 million over six years for administrative support services appears reasonable given the scope. However, without a competitive bidding process, it is difficult to benchmark against market rates or determine if the government received the best possible value. The 'good' performance rating suggests the services are being delivered adequately, but the lack of competition prevents a definitive assessment of cost-effectiveness compared to potentially lower bids from other firms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a limited competition approach. The specific reasons for this limited competition are not detailed, but it suggests that either only one source was considered or the procurement process did not involve a broad solicitation. This limited competition may have restricted the government's ability to explore a wider range of pricing and service options from various vendors.

Taxpayer Impact: Limited competition can potentially lead to higher costs for taxpayers as it may reduce the incentive for vendors to offer their most competitive pricing.

Public Impact

The Office of Administration (OA) within the Department of Justice benefits from consistent administrative support. Services include support for budget formulation and execution, personnel and physical security, facility management, finance, and records management. The contract ensures the smooth functioning of critical administrative operations within the DOJ. The workforce implications are primarily related to the personnel employed by Muse Technologies Inc. to deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may have resulted in a higher price than could have been achieved through a competitive process.
The 'limited' competition category suggests potential for missed opportunities to engage a broader range of qualified vendors.
Absence of detailed justification for limited competition makes it difficult to assess if all reasonable avenues for competition were explored.

Positive Signals

The contract has a 'good' performance rating, indicating satisfactory service delivery.
The contract duration provides stability for essential administrative functions within the DOJ.
The services provided are critical to the operational efficiency of multiple branches within the Office of Administration.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a broad category encompassing a wide range of support functions for government agencies. The market for these services is competitive, with numerous firms offering similar capabilities. The DOJ's spending in this area is typical for large federal agencies requiring ongoing operational support. Benchmarking against similar contracts would require access to detailed pricing and scope information from other agencies' procurements for comparable administrative support services.

Small Business Impact

The data indicates that small business participation was not a factor in this contract, as the 'ss' (small business set-aside) and 'sb' (small business) fields are false. There is no information provided regarding subcontracting plans or opportunities for small businesses within this award. Therefore, the impact on the small business ecosystem from this specific contract appears to be minimal or non-existent based on the available data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Justice responsible for overseeing administrative services. Accountability measures are inherent in the contract's performance requirements and the 'good' performance rating. Transparency is limited by the lack of detailed information regarding the justification for limited competition and the specific performance metrics. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of Justice Administrative Support Contracts
Federal Management Consulting Services
Office of Administration Operations
Government Administrative Services

Risk Flags

Limited competition may lead to suboptimal pricing.
Lack of detailed justification for limited competition hinders transparency.
Performance metrics are not explicitly defined, making 'good' rating assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.6 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 $3.6 million.

What is the period of performance?

Start: 2020-05-01. End: 2026-05-31.

What is the specific justification for awarding this contract on a limited competition basis?

The provided data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures). This designation typically implies that the procurement was not conducted through full and open competition. Common reasons for limited competition include specific statutory authority, the existence of only one responsible source, or circumstances that would compromise national security if full competition were pursued. Without further details from the contract award documentation, the precise justification remains unclear. However, the 'limited' competition classification suggests that the agency may have had specific reasons, such as a sole-source justification or a limited solicitation to a pre-selected group of vendors, for not pursuing a broader competitive process. This lack of transparency regarding the justification can hinder a thorough assessment of value for money.

How does the awarded price compare to similar administrative support contracts within the federal government?

Directly comparing the awarded price of $3,601,627.87 to similar contracts is challenging without more granular data on the scope of services, labor categories, and geographic locations of other contracts. However, for a six-year period (2020-2026), this equates to an average annual cost of approximately $600,271. This figure needs to be evaluated against the specific functions supported, such as budget formulation, security, facilities, and finance management for multiple branches within the DOJ's Office of Administration. Given the complexity and critical nature of these functions within a large federal agency, the annual cost may be within a reasonable range. Nevertheless, the absence of a competitive bidding process makes it difficult to ascertain if this represents the best value achievable in the market.

What are the key performance indicators (KPIs) used to assess the 'good' performance rating?

The provided data indicates a 'good' performance rating for this contract but does not specify the Key Performance Indicators (KPIs) used to arrive at this assessment. Typically, for administrative support services, KPIs might include metrics related to response times for requests, accuracy of financial reporting, timeliness of security clearance processing, facility maintenance response rates, and overall client satisfaction surveys from the supported branches. A 'good' rating suggests that Muse Technologies Inc. is meeting or exceeding most of these unstated performance expectations. However, without knowing the specific KPIs and their targets, it is difficult to quantitatively evaluate the contractor's performance or understand the nuances behind the 'good' assessment.

What is the potential impact of this contract on workforce dynamics within the Department of Justice?

This contract primarily impacts the workforce by providing essential support functions that allow DOJ personnel, particularly within the Office of Administration, to focus on their core mission-critical tasks. Muse Technologies Inc. likely employs individuals to perform these administrative duties, thus contributing to the overall employment landscape. The contract's duration and scope suggest a stable, ongoing need for these support services. While it doesn't directly create new federal positions, it ensures that the existing DOJ workforce is supported by efficient administrative operations, potentially improving their productivity and job satisfaction by offloading non-core responsibilities. The specific number of personnel employed by Muse Technologies under this contract is not detailed.

Are there any historical spending patterns with Muse Technologies Inc. for similar services within the DOJ or other agencies?

The provided data does not include historical spending patterns with Muse Technologies Inc. for this specific contract or for similar services across the DOJ or other federal agencies. To assess historical spending, one would need to access contract databases (like USASpending.gov or FPDS) and search for awards to Muse Technologies Inc. over previous fiscal years. Analyzing past awards would reveal trends in contract values, durations, types of services rendered, and competition levels. This information is crucial for understanding the contractor's track record, pricing consistency, and the agency's historical reliance on this vendor for administrative support.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $3,601,628

Exercised Options: $3,601,628

Current Obligation: $3,601,628

Actual Outlays: $3,335,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline