DOJ's $23M contract for critical IT functions awarded to Rolling Bay, LLC, lacked competition

Contract Overview

Contract Amount: $23,013,714 ($23.0M)

Contractor: Rolling BAY, LLC

Awarding Agency: Department of Justice

Start Date: 2012-12-20

End Date: 2013-12-31

Contract Duration: 376 days

Daily Burn Rate: $61.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS ROLLING BAY, LLC "SUBJECT TO AVAILABILITY OF FY13 FUNDS" START 01/01/2013 END 12/31/2013

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25401

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $23.0 million to ROLLING BAY, LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS ROLLING BAY, LLC "SUBJECT TO AVAILABILITY OF FY13 FUNDS" START 01/01/2013 END 12/31/2013 Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined scope and cost structure. 2. Awarded in late 2012 for a 2013 performance period, the contract was not competed under simplified acquisition procedures. 3. The sole awardee, Rolling Bay, LLC, suggests a lack of broader market engagement for these critical IT services. 4. The contract's duration of 376 days aligns with typical annual IT service agreements. 5. The specific NAICS code (518210) points to services related to computing infrastructure and data processing. 6. The contract was designated for 'Award Without Provisions' (AW: DO), implying specific conditions for its execution.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The lack of competition raises concerns about whether the government secured the best possible price. Comparing it to similar contracts for critical IT functions would require data on the scope of services, service level agreements, and the number of bidders for those comparable contracts. Given the sole-source nature, it's difficult to assess if the $23 million represents a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED UNDER SAP,' indicating it was not openly competed through standard simplified acquisition procedures. The absence of competition suggests that either a sole-source justification was made, or the procurement process did not involve soliciting bids from multiple vendors. This limited competition raises questions about the government's ability to leverage market forces to achieve optimal pricing and service delivery.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. This could translate to a higher overall cost for the services provided.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the primary beneficiary, receiving critical IT infrastructure and data processing services. The services provided are essential for the operational continuity and data management of the ATF. The contract's geographic impact is primarily within West Virginia, where the contractor is based. The contract supports IT infrastructure and data processing, indirectly impacting the agency's workforce by ensuring the tools they need are functional.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for critical IT functions may lead to higher costs and reduced innovation.
Limited transparency into the sole-source justification process.
Potential for vendor lock-in due to the absence of competitive pressure.
The contract's value of $23 million for a single year warrants scrutiny regarding cost-effectiveness without competitive benchmarking.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded to a single entity suggests a potentially specialized capability or existing relationship.
The contract duration of over a year indicates a need for sustained IT support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure providers, data processing, and web hosting. The market for these services is highly competitive, with numerous large and small businesses offering a wide range of solutions. Government spending in this area is substantial, driven by the need for robust and secure IT systems across all agencies. Comparable spending benchmarks would typically involve analyzing contracts for similar IT infrastructure and data processing services awarded to other federal agencies, considering factors like scope, duration, and number of bidders.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting goals. The fact that it was not competed under SAP and awarded to a single entity suggests that small businesses were likely not primary participants in this specific procurement. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement and financial management controls. The Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division would be responsible for monitoring performance and ensuring compliance. Transparency regarding the sole-source justification and the specific services rendered would be crucial for effective oversight. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

IT Infrastructure Services
Data Processing Services
Cloud Computing Services
Managed IT Services
Federal IT Modernization Programs

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.0 million to ROLLING BAY, LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS ROLLING BAY, LLC "SUBJECT TO AVAILABILITY OF FY13 FUNDS" START 01/01/2013 END 12/31/2013

Who is the contractor on this award?

The obligated recipient is ROLLING BAY, 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 $23.0 million.

What is the period of performance?

Start: 2012-12-20. End: 2013-12-31.

What specific IT functions were covered under this $23 million contract?

The contract, awarded to Rolling Bay, LLC, falls under NAICS code 518210, which encompasses Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. While the exact breakdown of services is not detailed in the provided data, it implies support for the core IT infrastructure necessary for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) operations. This could include server hosting, data storage, network management, and potentially cloud-based services essential for the agency's mission-critical functions. The firm-fixed-price nature suggests a defined scope of these services for the contract period.

Why was this contract not competed, and what was the justification for a sole-source award?

The provided data states the contract was 'NOT COMPETED UNDER SAP,' indicating it bypassed standard simplified acquisition procedures. The specific justification for this lack of competition or sole-source award is not detailed. Typically, sole-source awards require a formal justification, such as the unique capability of a single contractor, an urgent need that precludes competition, or a follow-on contract where only one source can provide the required services. Without this justification, it is difficult to assess the validity of awarding $23 million without exploring competitive options.

How does the $23 million contract value compare to similar IT infrastructure contracts awarded by the DOJ or other agencies?

Direct comparison of the $23 million contract value is difficult without more specific details on the scope of services, service level agreements (SLAs), and the duration of comparable contracts. However, for critical IT functions like computing infrastructure and data processing, $23 million for a roughly one-year period is a significant investment. To benchmark effectively, one would need to analyze other DOJ or federal contracts for similar NAICS codes (e.g., 518210) awarded during the same period (2013), looking at the number of bidders, contract types (firm-fixed-price), and the specific services rendered to determine if this represents a fair market price or if the lack of competition inflated costs.

What are the potential risks associated with awarding a large IT contract without competition?

Awarding a significant IT contract like this one without competition carries several risks. Firstly, it can lead to higher costs for taxpayers, as the government foregoes the potential for price reductions through competitive bidding. Secondly, it may stifle innovation, as the incumbent contractor faces less pressure to improve services or adopt new technologies. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future. Finally, a lack of competition can reduce transparency and accountability, potentially masking inefficiencies or suboptimal performance.

What was Rolling Bay, LLC's track record prior to or during this contract period?

The provided data does not include information on Rolling Bay, LLC's specific track record, past performance, or any prior contracts with the federal government before or during the 2013 performance period of this $23 million contract. To assess their reliability and capability, a review of their contract history, past performance evaluations (e.g., from the Contractor Performance Assessment Reporting System - CPARS), and any relevant certifications or industry standing would be necessary. Understanding their experience with similar critical IT functions would be crucial for evaluating the risk associated with this sole-source award.

What is the historical spending trend for similar IT infrastructure services within the ATF or DOJ?

The provided data only includes details for this single contract from 2013. To establish historical spending trends for IT infrastructure services within the ATF or DOJ, a broader dataset encompassing multiple years and various contracts would be required. This would involve analyzing spending patterns for NAICS code 518210 and related IT service categories, identifying key contractors, and observing fluctuations in contract values and award volumes. Such an analysis would help contextualize the $23 million expenditure and identify any significant increases or shifts in IT service procurement over time.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10440 BALLS FORD RD STE 200, MANASSAS, VA, 10

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,013,714

Exercised Options: $23,013,714

Current Obligation: $23,013,714

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJA11ICO0001

IDV Type: IDC

Timeline