DOJ's $8.5M IT Toolkit Contract Awarded to Micronesian Telecommunications Corporation

Contract Overview

Contract Amount: $8,534 ($8.5K)

Contractor: Micronesian Telecommunications Corporation

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2027-03-01

Contract Duration: 882 days

Daily Burn Rate: $10/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24-28 D93 BTOOLKIT(ITD) SAIPAN, NMI

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Justice obligated $8,534.18 to MICRONESIAN TELECOMMUNICATIONS CORPORATION for work described as: FY24-28 D93 BTOOLKIT(ITD) SAIPAN, NMI Key points: 1. Contract awarded to a single provider, limiting competitive pricing. 2. Focus on IT services for the U.S. Marshals Service in the Northern Mariana Islands. 3. Potential for higher costs due to lack of competition. 4. Sector is IT services, with a specific NAICS code of 541519.

Value Assessment

Rating: questionable

The contract's value of $8.5M over approximately 2.5 years needs benchmarking against similar IT service contracts for government agencies. Without competitive bids, it's difficult to ascertain if the pricing is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to less favorable pricing and reduced innovation compared to an open competition.

Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, which could result in a higher overall cost for the services provided.

Public Impact

Ensures IT support for critical U.S. Marshals Service operations in Saipan, NMI. Potential for limited local IT vendor engagement due to sole-source nature. Impact on federal IT spending in the Pacific region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Addresses specific IT needs for a remote location
Supports law enforcement operations

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Benchmarks for similar IT support contracts for federal agencies are crucial for evaluating value, especially in remote locations.

Small Business Impact

The contract was not awarded to a small business, and the sole-source nature limits opportunities for small businesses to participate in this specific procurement.

Oversight & Accountability

Oversight will be critical to ensure the U.S. Marshals Service receives the contracted services effectively and that the pricing remains justified despite the lack of competition.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
U.S. Marshals Service Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price escalation
Limited market research evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8,534.18 to MICRONESIAN TELECOMMUNICATIONS CORPORATION. FY24-28 D93 BTOOLKIT(ITD) SAIPAN, NMI

Who is the contractor on this award?

The obligated recipient is MICRONESIAN TELECOMMUNICATIONS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $8,534.18.

What is the period of performance?

Start: 2024-09-30. End: 2027-03-01.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details, it's difficult to assess if these criteria were met, but it directly impacts the potential for competitive pricing and taxpayer value.

What are the risks associated with a sole-source IT services contract in a remote location?

Risks include inflated pricing due to lack of competition, potential vendor lock-in, and limited recourse if service quality or delivery falters. In remote locations, the vendor may have less incentive to maintain high standards or competitive pricing.

How will the effectiveness of these IT services be measured and ensured?

Effectiveness should be measured through defined performance metrics and service level agreements (SLAs) within the contract. Regular performance reviews by the U.S. Marshals Service are essential to ensure the IT toolkit services meet operational requirements.

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: 15M10224QA4700324

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: TEKKEN ST, SAIPAN, MP, 96950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,750

Exercised Options: $14,750

Current Obligation: $8,534

Actual Outlays: $750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline