DOJ's $5.08M IT Toolkit Contract Awarded to PTI Pacifica Inc. with No Competition

Contract Overview

Contract Amount: $5,080 ($5.1K)

Contractor: PTI Pacifica Inc

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2027-03-01

Contract Duration: 882 days

Daily Burn Rate: $6/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24-28 D93 BTOOLKIT(ITD) GUAM, PTI

Place of Performance

Location: TAMUNING, GUAM County, GUAM, 96913

Plain-Language Summary

Department of Justice obligated $5,080 to PTI PACIFICA INC for work described as: FY24-28 D93 BTOOLKIT(ITD) GUAM, PTI Key points: 1. The contract's value of $5.08 million over its period of performance raises questions about potential overspending due to the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and may not reflect the best value achievable in a competitive market. 3. Performance risk indicators are not immediately apparent, but the absence of competition could mask underlying issues. 4. This IT services contract for the U.S. Marshals Service in Guam is positioned within the broader IT support sector. 5. The contract's duration of approximately 2.4 years suggests a need for ongoing IT support services.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to benchmark the value for money. The $5.08 million price tag for IT toolkit services over nearly three years requires scrutiny. Comparable contracts for similar IT support services in the Pacific region, especially those competed openly, would provide a better basis for assessing if this price is fair and reasonable. The firm fixed-price structure offers some cost certainty, but the lack of competition prevents a true value assessment against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, PTI Pacifica Inc., was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting offers from multiple interested parties. The lack of competition means there was no opportunity for other qualified vendors to bid, potentially leading to a higher price than might be achieved through open competition. The U.S. Marshals Service would need to justify this sole-source award based on specific circumstances, such as unique capabilities or urgent needs.

Taxpayer Impact: Taxpayers may be paying a premium for these IT services due to the absence of competitive pressure. Without multiple bids, there is less assurance that the government secured the most cost-effective solution available in the market.

Public Impact

The U.S. Marshals Service in Guam will benefit from the provision of IT toolkit services, likely supporting their operational needs. Essential IT support and services will be delivered to enhance the technological infrastructure of the agency in the specified region. The geographic impact is concentrated in Guam, addressing specific federal agency requirements in that location. The contract supports the IT workforce by engaging PTI Pacifica Inc. for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit innovation and the adoption of potentially better or more cost-effective solutions from other vendors.
Transparency in the justification for a sole-source award is crucial for public trust and accountability.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract is awarded to a specific vendor, PTI Pacifica Inc., indicating a known entity is performing the service.
The contract duration suggests a stable, ongoing need for these IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under IT services and support. The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' encompasses a broad range of IT activities. The market for IT services is vast and highly competitive, with numerous firms offering specialized solutions. However, sole-source awards, like this one, bypass typical market dynamics. Benchmarking would ideally involve comparing pricing for similar IT support contracts awarded competitively, considering factors like scope of work, duration, and geographic location.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the 'sb' field is false and the contract was not competed. There is no indication of small business set-aside provisions or subcontracting requirements. This sole-source award does not appear to directly benefit the small business ecosystem or promote subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service's contracting and program management offices. As a sole-source award, the justification and necessity for the procurement would be subject to internal agency review and potentially higher-level procurement oversight bodies within the Department of Justice. Transparency regarding the specific justification for the sole-source award and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IT Support Services
Computer Related Services
Federal IT Procurement
Department of Justice Contracts
U.S. Marshals Service Operations

Risk Flags

Sole-source award bypasses competitive bidding process.
Potential for non-competitive pricing.
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,080 to PTI PACIFICA INC. FY24-28 D93 BTOOLKIT(ITD) GUAM, PTI

Who is the contractor on this award?

The obligated recipient is PTI PACIFICA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,080.

What is the period of performance?

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

What is the specific justification provided by the Department of Justice for awarding this IT toolkit contract on a sole-source basis to PTI Pacifica Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is capable of providing the required services, or in cases of urgent and compelling need where competition is not feasible. For this contract, the U.S. Marshals Service would have had to document and approve such a justification, which might relate to unique proprietary technology, specialized expertise held exclusively by PTI Pacifica Inc., or a critical, time-sensitive requirement that precluded a competitive process. Without access to the official justification document, it is impossible to ascertain the precise rationale.

How does the $5.08 million contract value compare to similar IT toolkit services procured competitively by federal agencies?

Direct comparison is challenging without knowing the exact scope and deliverables of the 'IT D93 BTOOLKIT(ITD) GUAM, PTI' services. However, a $5.08 million contract for IT services over approximately 2.4 years (September 2024 to March 2027) averages around $2.1 million per year. In the competitive IT services market, pricing can vary significantly based on complexity, required expertise, and geographic location. Agencies often procure similar IT support, software development, or system integration services through competitive processes. If this contract were competed, it's plausible that multiple bids could have resulted in a lower overall price or offered a wider range of service options at different price points, potentially yielding better value for the government compared to a sole-source award where market pressures are absent.

What are the potential risks associated with awarding a significant IT contract without competition?

The primary risk of awarding a significant IT contract without competition is the potential for inflated costs. Without the pressure of competing bids, the awarded contractor may not be incentivized to offer the most competitive pricing. This can lead to the government paying more than necessary for the services. Another risk is the lack of innovation; a competitive environment often encourages vendors to propose novel or more efficient solutions. Furthermore, a sole-source award can limit the government's access to a broader pool of talent and potentially superior technologies or methodologies that other vendors might offer. It also raises concerns about transparency and fairness in the procurement process, potentially impacting public trust.

What is the track record of PTI Pacifica Inc. in performing federal IT contracts, particularly sole-source awards?

Information regarding PTI Pacifica Inc.'s specific track record with federal IT contracts, especially sole-source awards, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any publicly available information on their previous government engagements. Understanding their experience with similar IT toolkit services, their performance quality, and their history of meeting deadlines and budget constraints would be crucial. If they have a strong history of successful contract performance, it might lend some confidence to this award, although it does not negate the inherent risks of a sole-source procurement.

How does the geographic location (Guam) influence the cost and competition dynamics for this IT contract?

The geographic location in Guam can significantly influence both cost and competition for federal IT contracts. Guam is a U.S. territory located in the Western Pacific, which often entails higher logistical costs, travel expenses, and potentially a smaller pool of local or readily available IT service providers compared to the continental U.S. These factors can drive up the overall cost of service delivery. Furthermore, the limited number of qualified vendors operating in or willing to service remote locations like Guam can naturally reduce the level of competition, sometimes making sole-source or limited competition awards more common or justifiable from a practical standpoint, though still requiring careful scrutiny.

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: 15M10224QA4700325

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 122 W HARMON INDUSTRIAL PARK RD, BARRIGADA, GU, 96913

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

Financial Breakdown

Contract Ceiling: $11,251

Exercised Options: $7,161

Current Obligation: $5,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline