DOJ contract for IT services awarded to POWERTRAIN, INC. for $4.24M, exercising Option Year 2

Contract Overview

Contract Amount: $4,240,755 ($4.2M)

Contractor: Powertrain, Inc.

Awarding Agency: General Services Administration

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DOJ 24322623D0011 24322623F0235 OPTION YEAR 2 EXERCISE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $4.2 million to POWERTRAIN, INC. for work described as: DOJ 24322623D0011 24322623F0235 OPTION YEAR 2 EXERCISE Key points: 1. Contract value represents a moderate increase for Option Year 2, suggesting potential scope expansion or price adjustments. 2. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 3. Performance is scheduled to conclude in late 2026, indicating a medium-term engagement. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of 'Other Computer Related Services'. 5. The contract is not set aside for small businesses, implying a focus on larger, established vendors. 6. Geographic location is Washington D.C., a common hub for federal contracting activity.

Value Assessment

Rating: fair

The contract value of $4.24 million for Option Year 2 appears to be within a reasonable range for IT services, though specific benchmarks are unavailable without more detailed service descriptions. The firm-fixed-price structure is generally favorable for the government in managing cost certainty. However, without historical data on previous option years or comparable contracts for similar services, a definitive value-for-money assessment is challenging. The duration of the option year (364 days) is standard.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources may have been excluded prior to the final award. This procurement method is less transparent than full and open competition and may limit the pool of potential bidders. The number of bidders is not specified, making it difficult to assess the intensity of competition. This approach could potentially lead to less competitive pricing.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price. While some competition existed, the exclusion of sources may have prevented a wider range of offers, potentially increasing costs.

Public Impact

The Department of Justice (DOJ) is the primary beneficiary, receiving IT services essential for its operations. The services delivered fall under 'Other Computer Related Services,' likely encompassing IT support, maintenance, or development. The geographic impact is concentrated in Washington D.C., where the DOJ is headquartered. The contract supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
Lack of detailed service description hinders precise value assessment.
The 'exclusion of sources' clause requires further scrutiny to understand its justification and impact.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Option year exercise suggests satisfaction with contractor performance in the previous period.
Contract duration is standard for an option year.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The federal IT services market is substantial, with agencies consistently investing in technology to support their missions. Contracts like this are common, representing a steady demand for IT support and solutions. Benchmarking this specific contract's value is difficult without knowing the exact nature of the 'other computer related services,' but it appears to be a standard-sized delivery order for ongoing IT support.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary awardee, POWERTRAIN, INC., is likely a larger entity capable of fulfilling the contract requirements independently. The absence of small business considerations means there is no direct positive impact on the small business ecosystem through this specific award, and potential subcontracting opportunities for small businesses are not explicitly mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Justice. As a delivery order under a larger contract vehicle, oversight mechanisms are likely established within the General Services Administration's Federal Acquisition Service framework. Transparency is moderate, as contract awards are publicly reported, but the specifics of the services and performance metrics may not be fully public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DOJ IT Support Services
GSA Federal Acquisition Service Contracts
IT Services for Federal Agencies
Computer Related Services Contracts

Risk Flags

Limited competition procurement method.
Lack of detailed service description.
Absence of historical spending data for comparison.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.2 million to POWERTRAIN, INC.. DOJ 24322623D0011 24322623F0235 OPTION YEAR 2 EXERCISE

Who is the contractor on this award?

The obligated recipient is POWERTRAIN, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What specific 'Other Computer Related Services' are being provided under this contract?

The provided data indicates the NAICS code is 541519, classified as 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT functions beyond standard software development or IT infrastructure management. Examples could include IT consulting, data processing services, computer disaster recovery services, IT support and help desk services, or specialized IT project management. Without further details from the contract's statement of work (SOW), it is impossible to determine the precise nature of the services. This lack of specificity makes it challenging to benchmark the contract's value effectively or assess its direct impact on DOJ's mission-critical functions.

How does the $4.24 million value for Option Year 2 compare to the initial award or previous option years?

The provided data only specifies the value for Option Year 2 ($4.24 million) and the contract duration (364 days). It does not include information on the initial award value or the values of any preceding option years. To assess if this represents a significant increase or decrease, historical spending data for this contract vehicle would be necessary. A substantial increase could indicate scope expansion, inflation adjustments, or potentially less competitive pricing in subsequent years. Conversely, a decrease might suggest scope reduction or cost-saving measures. Without this comparative data, it's difficult to draw conclusions about value trends over the life of the contract.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while allowing for competition, introduces specific risks. The primary risk is that the exclusion of certain sources, even if justified, may limit the diversity of innovative solutions and potentially reduce the competitive pressure on pricing. If the exclusion criteria are not well-defined or are perceived as overly restrictive, it could lead to a less optimal outcome for the government in terms of both cost and technical approach. Transparency is also a concern, as the rationale for exclusion might not always be fully disclosed, making it harder for oversight bodies and the public to verify fairness and efficiency. This method requires careful justification to ensure it serves the government's best interest.

What is the track record of POWERTRAIN, INC. in performing similar federal IT contracts?

Information regarding POWERTRAIN, INC.'s specific track record with federal IT contracts is not detailed in the provided data snippet. While the company has been awarded this contract, understanding its past performance, including successful completion of similar services, client satisfaction, and adherence to schedules and budgets on previous government projects, would require accessing broader federal procurement databases (like SAM.gov or FPDS). A strong track record typically involves consistent positive past performance reviews and a history of delivering quality services within agreed-upon terms. Without this context, assessing the reliability and expertise of POWERTRAIN, INC. for this specific DOJ requirement remains incomplete.

How does the firm-fixed-price contract type benefit the government in this scenario?

The Firm-Fixed-Price (FFP) contract type is generally advantageous for the government, especially for services where the scope of work is well-defined. Under an FFP contract, the contractor, POWERTRAIN, INC., assumes the majority of the cost risk. This means that regardless of their actual costs incurred, they are obligated to deliver the specified services for the agreed-upon price of $4.24 million. This provides the Department of Justice with significant cost certainty, making budgeting more predictable and protecting against unexpected cost overruns. The government's primary responsibility is to ensure the contractor meets the defined scope and quality standards; the financial risk associated with performance fluctuations lies with the contractor.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QACA25Q0462

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8201 CORPORATE DR STE 500, HYATTSVILLE, MD, 20785

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,240,755

Exercised Options: $4,240,755

Current Obligation: $4,240,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTSA25D0001

IDV Type: IDC

Timeline