DOJ's $7.3M IT contract to Cox Florida Telcom raises questions on competition and value

Contract Overview

Contract Amount: $7,346 ($7.3K)

Contractor: COX Florida Telcom LP

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2027-03-01

Contract Duration: 882 days

Daily Burn Rate: $8/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24-28 D17 BTOOLKIT(ITD)- PNS COX

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32514

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $7,346 to COX FLORIDA TELCOM LP for work described as: FY24-28 D17 BTOOLKIT(ITD)- PNS COX Key points: 1. The contract's full value is $7.3 million over its period of performance. 2. This award was not competed, raising concerns about potential overpayment. 3. The IT services procured are classified under 'Other Computer Related Services'. 4. The contract duration is approximately 882 days. 5. The primary place of performance is Florida. 6. The contract type is Firm Fixed Price, which can limit flexibility but provides cost certainty.

Value Assessment

Rating: questionable

Benchmarking the value of this $7.3 million IT services contract is challenging without a competitive process. The lack of competition means there's no market-driven price discovery to compare against. While Firm Fixed Price contracts offer cost certainty, the absence of bids prevents an assessment of whether Cox Florida Telcom's pricing is competitive. Further analysis would require understanding the specific services rendered and comparing them to industry benchmarks for similar IT support in the Florida region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other vendors. The U.S. Marshals Service did not solicit bids from multiple companies. This approach limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The U.S. Marshals Service will benefit from the IT services provided under this contract. These services are crucial for supporting the operational needs of the agency. The primary geographic impact is within Florida, where the services will be performed. The contract supports the technology infrastructure necessary for law enforcement operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can indicate potential vendor lock-in or limited market research.
The specific IT services and their necessity require further scrutiny to ensure value for money.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
The contract supports essential IT services for a federal law enforcement agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. The IT services market is vast and competitive, with numerous providers offering a wide array of solutions. However, sole-source awards bypass this competitive landscape. Comparable spending benchmarks for IT support services vary significantly based on scope, complexity, and geographic location. Without competitive bids, it's difficult to ascertain if this $7.3 million award aligns with typical market rates for similar services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a set-aside means that opportunities for small businesses to participate in this specific contract are limited unless they are part of Cox Florida Telcom's supply chain or chosen as subcontractors by the prime vendor.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service's contracting and program management offices. Transparency regarding the justification for the sole-source award and the performance metrics would be key areas for oversight. The Department of Justice's Office of the Inspector General may also have jurisdiction to investigate if any improprieties are suspected.

Related Government Programs

IT Support Services
Computer Related Services
Federal Law Enforcement Technology

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Limited transparency on service specifics and justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7,346 to COX FLORIDA TELCOM LP. FY24-28 D17 BTOOLKIT(ITD)- PNS COX

Who is the contractor on this award?

The obligated recipient is COX FLORIDA TELCOM LP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7,346.

What is the period of performance?

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

What is the specific nature of the 'Other Computer Related Services' being procured for the U.S. Marshals Service?

The provided data classifies the service under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support functions, including IT management consulting, computer facilities management, network management, and IT support services not elsewhere classified. Without more detailed contract documentation, the precise services are not specified. However, given the agency (U.S. Marshals Service), these services likely relate to maintaining and supporting the agency's IT infrastructure, networks, and potentially specialized law enforcement technology systems. Understanding the exact deliverables is crucial for assessing value and performance.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source or limited competition award. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the availability of only one responsible source, urgent and compelling needs, or specific statutory authorities. For a sole-source award of this magnitude ($7.3 million), the U.S. Marshals Service would need to have documented a strong justification, such as unique capabilities possessed by Cox Florida Telcom, a critical need that could not be met by other vendors within the required timeframe, or a prior relationship that established specialized knowledge essential for the service. Without this documented justification, the award raises concerns about adherence to competitive principles.

How does the $7.3 million contract value compare to historical spending on similar IT services by the U.S. Marshals Service or other DOJ components?

Comparing this $7.3 million contract value requires access to historical spending data for the U.S. Marshals Service and the broader Department of Justice (DOJ) on similar IT services. Without that comparative data, it's difficult to definitively state whether this amount is high, low, or average. However, given that it's a sole-source award for a period of approximately 30 months (September 2024 to March 2027), the annual value is roughly $2.9 million. This figure should be benchmarked against IT support contracts for agencies of similar size and mission within the federal government. A lack of competitive bidding makes it harder to assess if this represents a fair market price.

What are the potential risks associated with a sole-source IT services contract of this size?

The primary risk associated with a sole-source IT services contract of this size is the potential for inflated costs due to the absence of competitive pressure. Without bids from other vendors, taxpayers may be paying more than necessary for the services rendered. Another risk is vendor lock-in, where the government becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future. Furthermore, a lack of competition can sometimes lead to complacency in service quality or innovation from the awarded contractor. The government also misses out on potentially better solutions or more cost-effective approaches that other vendors might offer.

What performance metrics or oversight mechanisms are in place to ensure Cox Florida Telcom delivers satisfactory IT services under this contract?

The provided data does not specify the performance metrics or oversight mechanisms for this contract. However, standard government contracting practice dictates that contracts, even sole-source ones, should include performance standards, deliverables, and methods for monitoring contractor performance. The U.S. Marshals Service would typically assign a Contracting Officer's Representative (COR) or Technical Monitor to oversee the contractor's work, ensure compliance with the contract terms, and verify that services meet the required quality and timeliness. Regular performance reviews and reporting are usually part of the oversight process to ensure accountability and value.

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: 15M10224QA4700323

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3405 MCLEMORE DR, PENSACOLA, FL, 32514

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,178

Exercised Options: $7,346

Current Obligation: $7,346

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline