DOJ's $62.8M IT Support Contract with SAVA Workforce Solutions Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $62,865,861 ($62.9M)

Contractor: Sava Workforce Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2009-04-15

End Date: 2020-03-11

Contract Duration: 3,983 days

Daily Burn Rate: $15.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $62.9 million to SAVA WORKFORCE SOLUTIONS LLC for work described as: IT SUPPORT SERVICES Key points: 1. Significant spending of $62.8M over 11 years on IT support services. 2. Sole-source award to SAVA Workforce Solutions LLC raises competition concerns. 3. Contract type (Cost Plus Award Fee) may incentivize cost overruns. 4. Lack of small business participation noted. 5. Long contract duration (3983 days) limits flexibility and potential for better pricing.

Value Assessment

Rating: questionable

The contract's Cost Plus Award Fee structure, combined with a lack of competition, makes a definitive pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if the $62.8M represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in higher costs than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid due to the sole-source award. Limited opportunities for other qualified vendors, including small businesses, to compete for this significant contract. The long duration of the contract suggests a potential lack of agility in adapting to evolving IT needs and market prices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Award Fee contract type
Lack of small business participation
Long contract duration

Positive Signals

Contract has been in place for a significant period, suggesting some level of consistent service delivery.

Sector Analysis

IT support services are crucial for government operations. Benchmarks for similar contracts vary widely based on scope and complexity, but competitive bidding typically drives costs down. This contract's sole-source nature and cost-plus structure are atypical for achieving optimal value.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss=false, sb=false). This represents a missed opportunity to support small business growth and leverage their specialized capabilities.

Oversight & Accountability

The sole-source nature of this contract warrants further oversight to ensure the DEA received fair value and that the justification for not competing the award was robust. Accountability for cost management under the Cost Plus Award Fee structure is also critical.

Related Government Programs

Engineering Services
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Lack of competition
Sole-source award justification
Potential for cost overruns (Cost Plus Award Fee)
No small business participation
Long contract duration limiting flexibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $62.9 million to SAVA WORKFORCE SOLUTIONS LLC. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SAVA WORKFORCE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $62.9 million.

What is the period of performance?

Start: 2009-04-15. End: 2020-03-11.

What was the specific justification for awarding this significant IT support contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without detailed documentation, it's difficult to assess if alternatives were thoroughly explored. A competitive process would likely have yielded better pricing and potentially more innovative solutions, making the lack of competition a key area for oversight.

How effectively was cost control managed under the Cost Plus Award Fee structure, and did performance incentives align with taxpayer value?

Cost Plus Award Fee contracts can incentivize contractors to increase costs if award fees are not tightly linked to cost efficiency. Oversight is needed to ensure that the 'award' portion truly reflected exceptional performance beyond just cost incurrence, and that the government actively managed and scrutinized costs to prevent unnecessary spending.

Given the contract's long duration and sole-source nature, what steps were taken to ensure the services remained relevant and cost-effective over time?

Long-term sole-source contracts risk becoming outdated or overpriced. Regular reviews, market research, and potential re-competition are essential to ensure continued relevance and cost-effectiveness. The absence of these could mean the DEA paid for services or technologies that were no longer optimal or competitively priced.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DEA-09-R-0004

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 13873 PARK CENTER RD STE 400 N, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $94,256,924

Exercised Options: $68,081,174

Current Obligation: $62,865,861

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline