DOJ awards $45.25M to INSERSO CORPORATION for IT infrastructure and customer support services

Contract Overview

Contract Amount: $45,250,468 ($45.3M)

Contractor: Inserso Corporation

Awarding Agency: Department of Justice

Start Date: 2022-07-01

End Date: 2026-08-06

Contract Duration: 1,497 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OCIO ENTERPRISE INFRASTRUCTURE MANAGEMENT AND CUSTOMER SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $45.3 million to INSERSO CORPORATION for work described as: OCIO ENTERPRISE INFRASTRUCTURE MANAGEMENT AND CUSTOMER SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure and support for the Office of Justice Programs. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The services provided fall under Computer Systems Design, a critical area for government operations. 5. The awardee, INSERSO CORPORATION, will be responsible for enterprise infrastructure management and customer support. 6. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $45.25M over approximately four years for enterprise IT infrastructure and customer support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that the overall investment aligns with industry standards for comprehensive service delivery. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Further analysis of specific labor rates against market benchmarks would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of 10 bidders suggests a healthy level of competition for this significant IT services contract. A competitive process generally leads to better price discovery and a wider range of technical solutions, benefiting the agency.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received competitive pricing for essential IT services.

Public Impact

The Office of Justice Programs (OJP) will benefit from enhanced IT infrastructure and customer support, improving operational efficiency. Services delivered include enterprise infrastructure management and customer support, crucial for maintaining government IT systems. The contract is geographically focused on Virginia (VA), where the primary performance is expected. The contract supports the IT workforce by engaging a contractor to manage and support critical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed effectively.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
The 'Exclusion of Sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration suggests a stable and reliable service provider is expected.
The contractor, INSERSO CORPORATION, is tasked with essential IT functions critical to agency operations.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the federal IT landscape. The market for these services is substantial, with agencies consistently investing in infrastructure modernization and support. The $45.25M award is a significant sum, reflecting the complexity and scale of enterprise-level IT management. Comparable contracts in this space often involve multi-year engagements for system integration, maintenance, and user support, aligning with the services outlined here.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, INSERSO CORPORATION, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Justice Programs' contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), outlining deliverables, service levels, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged.

Related Government Programs

IT Infrastructure Services
Enterprise IT Support
Computer Systems Design
Customer Relationship Management (CRM) Systems
IT Service Management (ITSM)

Risk Flags

Potential for scope creep due to labor-hour contract type.
Dependence on contractor for critical IT infrastructure.
Cybersecurity risks associated with managed IT systems.
Effectiveness of 'Exclusion of Sources' justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $45.3 million to INSERSO CORPORATION. OCIO ENTERPRISE INFRASTRUCTURE MANAGEMENT AND CUSTOMER SUPPORT

Who is the contractor on this award?

The obligated recipient is INSERSO CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $45.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-08-06.

What is INSERSO CORPORATION's track record with federal IT contracts, particularly those involving enterprise infrastructure and customer support?

A review of federal procurement data indicates that INSERSO CORPORATION has a history of performing IT services for various government agencies. While specific details on past performance for contracts of this exact scale and scope require deeper analysis of individual contract histories, their presence in the federal IT market suggests experience. To fully assess their track record, one would examine past performance evaluations, any contract disputes or terminations, and the successful completion of similar projects. This would provide insight into their reliability, technical capabilities, and ability to manage complex IT environments and provide consistent customer support.

How does the awarded amount of $45.25M compare to similar enterprise IT infrastructure and customer support contracts awarded by the Department of Justice or other large federal agencies?

The $45.25M contract value over approximately four years for enterprise IT infrastructure and customer support is substantial, reflecting a significant investment. When compared to similar large-scale IT support contracts awarded by agencies like the Department of Defense or HHS, this figure appears to be within a reasonable range for comprehensive, long-term service delivery. However, a precise benchmark requires comparing the specific services, labor categories, geographic scope, and performance metrics against a curated set of comparable contracts. Factors such as the number of users supported, the complexity of the infrastructure managed, and the criticality of the systems can significantly influence contract value.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential cost overruns due to the labor-hours pricing model, contractor performance issues impacting critical IT services, and cybersecurity vulnerabilities within the managed infrastructure. Mitigation strategies likely involve robust contract oversight, including regular performance reviews, audits of labor hours, and strict adherence to security protocols. The contract's performance work statement (PWS) should clearly define acceptable performance levels and remedies for deficiencies. Furthermore, the competitive nature of the award suggests a pool of qualified bidders, reducing the risk of selecting an underperforming contractor.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring both broad competition and specific agency needs are met?

This contracting approach aims to balance broad competition with the need to potentially exclude certain sources based on specific, justifiable criteria (e.g., national security, prior performance issues, or specific technical requirements). While it allows for a wider pool of bidders than a sole-source award, the exclusion of sources means competition is not entirely unrestricted. Its effectiveness hinges on the justification for exclusions; if well-reasoned and documented, it can lead to a highly qualified pool of bidders addressing specific agency needs. However, poorly justified exclusions could limit competition and potentially increase costs or reduce innovation.

What is the historical spending trend for similar IT infrastructure and customer support services within the Office of Justice Programs or the Department of Justice?

Analyzing historical spending trends for IT infrastructure and customer support within the OJP and DOJ would reveal patterns of investment in these critical areas. Typically, federal agencies show consistent or increasing spending on IT services due to evolving technological needs, cybersecurity imperatives, and the digitization of government functions. A review of past contracts would indicate whether this $45.25M award represents a significant increase, a continuation of existing investment levels, or a shift in strategy. Understanding these trends helps contextualize the current award and forecast future IT spending needs.

What are the implications of the contract being awarded as a Delivery Order under an IDIQ contract?

Awarding this as a Delivery Order (DO) under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that the underlying IDIQ vehicle itself was previously competed. This means the broader scope and terms were established earlier. The DO then specifies the exact quantity, delivery schedule, and price for this particular task. This approach offers flexibility for the agency to procure services as needed over time while leveraging a pre-competed framework. It implies that INSERSO CORPORATION was one of potentially multiple awardees on the parent IDIQ contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15PTDE22Q00000007

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 8180 GREENSBORO DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,136,583

Exercised Options: $55,590,080

Current Obligation: $45,250,468

Actual Outlays: $40,032,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00162

IDV Type: GWAC

Timeline