DOJ's ATF awarded $18.5M for computing infrastructure to SAGE SYSTEMS TECHNOLOGIES, LLC, with limited competition

Contract Overview

Contract Amount: $18,529,915 ($18.5M)

Contractor: Sage Systems Technologies, LLC

Awarding Agency: Department of Justice

Start Date: 2008-12-16

End Date: 2009-12-29

Contract Duration: 378 days

Daily Burn Rate: $49.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAGE 1 "SUBJECT TO AVAIABLITY OF FY09 FUNDS" START 10-1-09 END 9-30-09 PICKING UP OPTION 3 OF THE SAGE 1 CONTRACT.

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25401

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $18.5 million to SAGE SYSTEMS TECHNOLOGIES, LLC for work described as: SAGE 1 "SUBJECT TO AVAIABLITY OF FY09 FUNDS" START 10-1-09 END 9-30-09 PICKING UP OPTION 3 OF THE SAGE 1 CONTRACT. Key points: 1. The contract's value appears reasonable given the scope of computing infrastructure and data processing services. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. The contract was awarded under a firm-fixed-price structure, which shifts some risk to the contractor. 4. Performance is tied to the availability of FY09 funds, indicating potential budget constraints. 5. This contract falls within the IT services sector, specifically data processing and hosting. 6. The contractor, SAGE SYSTEMS TECHNOLOGIES, LLC, has secured this award, indicating prior success or established relationship.

Value Assessment

Rating: fair

The contract value of $18.5 million for one year of service (Option 3) for computing infrastructure and data processing seems within a reasonable range for government IT services. However, without specific details on the scope of services, hardware, and software included, a precise benchmark is difficult. The firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive. Comparing this to similar contracts for comparable services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for open competition, indicating a limited procurement approach. The specific reasons for this limitation are not detailed in the provided data. A limited competition scenario typically involves fewer bidders than a full and open competition, which can impact the government's ability to secure the lowest possible price. The number of bidders is not specified, making it hard to assess the extent of competition.

Taxpayer Impact: Limited competition can lead to higher costs for taxpayers as the pool of potential providers is restricted, potentially reducing price discovery and negotiation leverage.

Public Impact

The primary beneficiary is the Department of Justice, specifically the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which receives essential computing infrastructure and data processing services. The services delivered include computing infrastructure, data processing, and web hosting, crucial for the ATF's operational needs. The geographic impact is primarily within West Virginia, where the contract is managed or services are potentially delivered. The contract supports the IT workforce within SAGE SYSTEMS TECHNOLOGIES, LLC, and potentially indirectly supports government IT personnel who rely on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in suboptimal pricing for taxpayers.
The contract's duration is tied to the availability of FY09 funds, introducing a degree of uncertainty.
Lack of detailed service scope makes it difficult to fully assess value for money.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
The contract is for essential IT infrastructure, supporting critical government functions.
The award to SAGE SYSTEMS TECHNOLOGIES, LLC suggests a potentially established and capable provider.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' category. The IT services market is highly competitive and dynamic, with significant government spending. Comparable spending benchmarks would involve analyzing other federal contracts for similar IT infrastructure and data processing services, considering factors like service level agreements, scale, and duration. The size of this contract, approximately $18.5 million for a year, places it as a mid-to-large-sized IT service contract within the federal landscape.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The focus remains on the prime contractor, SAGE SYSTEMS TECHNOLOGIES, LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice IT Services
Bureau of Alcohol, Tobacco, Firearms and Explosives Contracts
Computing Infrastructure Services
Data Processing Services
Web Hosting Services
Federal IT Procurement

Risk Flags

Limited competition may lead to higher costs.
Contract performance contingent on funding availability.
Lack of detailed scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.5 million to SAGE SYSTEMS TECHNOLOGIES, LLC. SAGE 1 "SUBJECT TO AVAIABLITY OF FY09 FUNDS" START 10-1-09 END 9-30-09 PICKING UP OPTION 3 OF THE SAGE 1 CONTRACT.

Who is the contractor on this award?

The obligated recipient is SAGE SYSTEMS TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2008-12-16. End: 2009-12-29.

What is the track record of SAGE SYSTEMS TECHNOLOGIES, LLC with the federal government, particularly with the Department of Justice?

The provided data indicates that SAGE SYSTEMS TECHNOLOGIES, LLC is the contractor for this specific award. To assess their broader track record, one would need to examine historical contract data for this company across various federal agencies. This would involve looking at the number of contracts awarded, their total value, the types of services provided, and performance ratings if available. A deeper dive into past performance, including any past performance evaluations or disputes, would offer a more comprehensive understanding of their reliability and capability in fulfilling federal contracts, especially within the Department of Justice.

How does the $18.5 million contract value compare to similar IT infrastructure contracts awarded by the ATF or other DOJ components?

Benchmarking this $18.5 million contract requires comparing it against similar IT infrastructure and data processing contracts awarded by the ATF or other Department of Justice components. Key comparison points would include the duration of the contract, the specific services rendered (e.g., cloud hosting, on-premise infrastructure, managed services), the number of users or systems supported, and the service level agreements (SLAs) in place. Without these details, a direct comparison is challenging. However, for a one-year contract for computing infrastructure and data processing, $18.5 million suggests a significant scope of services, potentially supporting a large number of users or critical systems within the ATF.

What are the specific risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract award, and how were they mitigated?

A 'NOT AVAILABLE FOR COMPETITION' (or limited competition) award carries inherent risks, primarily the potential for higher costs due to a lack of robust price competition. This can also lead to less innovation and potentially a less optimal solution if the chosen contractor is not the best fit. Mitigation strategies typically involve thorough justification for the limited competition, ensuring the chosen contractor possesses unique capabilities or is the only source, and negotiating the best possible terms and price within the constrained environment. The government should have documented the rationale for this limited competition, such as a follow-on to a previous contract where switching vendors would be costly or impractical, or a specific, unique requirement.

What is the expected effectiveness of the computing infrastructure and data processing services provided under this contract for the ATF's mission?

The effectiveness of the computing infrastructure and data processing services is critical for the ATF's mission, which involves law enforcement and regulatory functions. Reliable and robust IT infrastructure is essential for data management, communication, analysis, and operational support. The contract's focus on computing infrastructure, data processing, and web hosting suggests it underpins many of the ATF's digital operations. Its effectiveness will depend on the contractor's ability to meet service level agreements, ensure uptime, provide adequate security, and scale resources as needed. The firm-fixed-price nature implies the contractor is incentivized to deliver these services efficiently to maintain profitability.

How has federal spending on 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' (NAICS 518210) evolved over the past five years, and where does this contract fit?

Federal spending on NAICS code 518210, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' has generally seen a significant increase over the past five years, driven by the government's push towards cloud computing, digital transformation, and enhanced data analytics capabilities. Agencies are increasingly outsourcing these services to leverage specialized expertise and reduce the burden of managing complex IT infrastructure. This $18.5 million contract, awarded in FY09 (though the data reflects an option period ending in 2009, the contract start date is 2008), represents a specific instance of this spending trend. While this particular award is older, it reflects the foundational need for such services that continues to drive current federal IT procurement in this sector.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: OLD Harbor Native Corporation (UEI: 187615534)

Address: 900 WEST 5TH AVENUE, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,529,915

Exercised Options: $18,529,915

Current Obligation: $18,529,915

Parent Contract

Parent Award PIID: DJA06D000022

IDV Type: IDC

Timeline