DOJ's $19M Purchase Order to Cox Nevada Telecom for IT Services Lacks Competition
Contract Overview
Contract Amount: $19,015 ($19.0K)
Contractor: COX Nevada Telcom LLC
Awarding Agency: Department of Justice
Start Date: 2024-03-02
End Date: 2027-03-01
Contract Duration: 1,094 days
Daily Burn Rate: $17/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY24-28 D48 BTOOLKIT(ITD) LV
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89101
State: Nevada Government Spending
Plain-Language Summary
Department of Justice obligated $19,015 to COX NEVADA TELCOM LLC for work described as: FY24-28 D48 BTOOLKIT(ITD) LV Key points: 1. Significant spending on IT services by the U.S. Marshals Service. 2. Sole reliance on Cox Nevada Telecom raises concerns about market competition. 3. Potential for inflated costs due to the absence of competitive bidding. 4. The IT services sector is broad, making direct comparisons challenging without specific service details.
Value Assessment
Rating: questionable
The contract value of $19.015 million over three years is substantial. Without competitive bids, it's difficult to assess if this represents fair market value for 'Other Computer Related Services'. Benchmarking is impossible without more specific service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for multiple vendors to bid and offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these IT services.
Public Impact
Taxpayers may be overpaying for essential IT services due to a lack of competitive bidding. The U.S. Marshals Service relies on a single vendor, potentially creating vendor lock-in and future dependency. Limited transparency into the justification for a sole-source award hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency on sole-source justification
Positive Signals
- Contract awarded to a specific vendor for essential services
- Clear contract duration and pricing structure (firm fixed price)
Sector Analysis
The U.S. Marshals Service is procuring 'Other Computer Related Services' (NAICS 541519). This category is broad and can encompass a wide range of IT support, maintenance, and consulting. Spending benchmarks for this specific sub-sector are difficult to establish without more granular detail on the services provided.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The award was not competed, raising questions about the oversight process that led to a sole-source determination. Further review is needed to understand the justification and ensure accountability in future procurements.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on sole-source justification
- Broad service description hinders detailed analysis
Tags
other-computer-related-services, department-of-justice, nv, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $19,015 to COX NEVADA TELCOM LLC. FY24-28 D48 BTOOLKIT(ITD) LV
Who is the contractor on this award?
The obligated recipient is COX NEVADA TELCOM LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (U.S. Marshals Service).
What is the total obligated amount?
The obligated amount is $19,015.
What is the period of performance?
Start: 2024-03-02. End: 2027-03-01.
What specific IT services are being procured under this contract, and how do they align with the U.S. Marshals Service's mission needs?
The contract is categorized under NAICS code 541519, 'Other Computer Related Services.' This broad classification lacks specificity. Understanding the exact nature of these services, such as network maintenance, software support, or cybersecurity, is crucial to assessing their necessity and value to the U.S. Marshals Service's operational requirements and mission effectiveness.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The data explicitly states the contract was 'NOT COMPETED.' A sole-source award typically requires a strong justification, such as unique capabilities or urgent need. Without this justification, it's impossible to assess the risk of vendor lock-in or the potential for inflated pricing due to the absence of market competition and price discovery.
How does the $19 million contract value compare to industry benchmarks for similar 'Other Computer Related Services' provided to federal agencies?
Benchmarking this $19 million contract is challenging due to the broad 'Other Computer Related Services' classification and the sole-source nature of the award. Without specific service details and competitive pricing data, it's difficult to determine if this represents good value for taxpayers. A comparison to similar, competitively procured contracts would be necessary for a meaningful assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 15M10224QA4700010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1700 VEGAS DR, LAS VEGAS, NV, 89106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,525
Exercised Options: $19,015
Current Obligation: $19,015
Actual Outlays: $4,049
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-03-02
Current End Date: 2027-03-01
Potential End Date: 2029-03-01 00:00:00
Last Modified: 2026-04-02
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