DOJ awards $37.9M IT support contract to BAE Systems, highlighting full and open competition

Contract Overview

Contract Amount: $37,885,627 ($37.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2021-09-22

End Date: 2022-09-21

Contract Duration: 364 days

Daily Burn Rate: $104.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $37.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IT SUPPORT Key points: 1. Contract Value: $37.9 million for IT support services. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Firm fixed price contract type mitigates cost overrun risk. 4. Sector: Information Technology (IT) services.

Value Assessment

Rating: good

The contract value of $37.9 million for one year of IT support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors vie for the award.

Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, ensuring taxpayer dollars are used efficiently for essential IT support.

Public Impact

Ensures continued IT support for the Department of Justice. Supports critical infrastructure for federal law enforcement and justice operations. BAE Systems, a major defense contractor, will provide the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single vendor for critical IT infrastructure.
Scope creep could increase costs if not managed tightly.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.
Experienced vendor selected.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government operations, and benchmarks vary widely based on service complexity and scale.

Small Business Impact

The contract was awarded to BAE Systems, a large business. There is no indication that small businesses were subcontracted for this specific award, which could be an area for future consideration.

Oversight & Accountability

The award process under full and open competition suggests adherence to procurement regulations. Ongoing oversight will be necessary to ensure performance and adherence to contract terms.

Related Government Programs

Computer Systems Design Services
Department of Justice Contracting
Federal Prison Industries / Unicor Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor.
Scope creep risk.
Lack of explicit small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IT SUPPORT

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison Industries / Unicor).

What is the total obligated amount?

The obligated amount is $37.9 million.

What is the period of performance?

Start: 2021-09-22. End: 2022-09-21.

What specific IT support services are included in this contract?

The contract is for 'Computer Systems Design Services' (NAICS 541512). This typically encompasses a broad range of IT support, including system design, integration, installation, and potentially maintenance and troubleshooting of computer hardware and software systems.

What is the potential risk associated with a single delivery order for a full and open competition?

While the initial award was competitive, a single delivery order might limit future opportunities for other vendors if the scope is very specific. However, the 'full and open' nature suggests the initial competition was broad, and future needs could be re-competed.

How does this contract contribute to the overall effectiveness of the Department of Justice?

Reliable IT support is fundamental to the DOJ's operations, enabling case management, data analysis, communication, and administrative functions. This contract ensures the continuity of these essential technological services, directly impacting the agency's ability to fulfill its mission.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $37,885,627

Exercised Options: $37,885,627

Current Obligation: $37,885,627

Actual Outlays: $-29,767,676

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200007W

IDV Type: GWAC

Timeline