DOJ's FBI awards $28.6M IT services contract to Planet Technologies, Inc. under full and open competition

Contract Overview

Contract Amount: $28,579,272 ($28.6M)

Contractor: Planet Technologies, Inc.

Awarding Agency: Department of Justice

Start Date: 2017-06-12

End Date: 2023-06-11

Contract Duration: 2,190 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TASK ORDER 0001 THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE IT SERVICES IN THE AREAS OF SYSTEMS ENGINEERING, INFRASTRUCTURE ADMINISTRATION, SOFTWARE ENGINEERING, WEBSITE DEVELOPMENT, AND SYSTEM SUPPORT AND MAINTENANCE FOR ENTERPRISE WIDE COLLABORATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $28.6 million to PLANET TECHNOLOGIES, INC. for work described as: IGF::OT::IGF TASK ORDER 0001 THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE IT SERVICES IN THE AREAS OF SYSTEMS ENGINEERING, INFRASTRUCTURE ADMINISTRATION, SOFTWARE ENGINEERING, WEBSITE DEVELOPMENT, AND SYSTEM SUPPORT AND MAINTENANCE FOR ENTERPRISE WIDE COLLABORATION Key points: 1. The contract focuses on a broad range of IT services including systems engineering, infrastructure administration, and software development. 2. Planet Technologies, Inc. secured this contract through a full and open competitive process. 3. The contract duration spans six years, indicating a long-term need for these IT services. 4. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns. 5. The contract was awarded as a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle. 6. The services are concentrated within the District of Columbia, impacting federal IT operations in the capital.

Value Assessment

Rating: good

The contract's value of $28.6 million over six years for comprehensive IT services appears reasonable, especially given the broad scope. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure also provides cost certainty for the government, mitigating risk of unexpected price increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this method generally fosters robust price discovery and encourages multiple vendors to compete, potentially leading to better value. The use of a competitive process suggests the agency sought the best available solution and price.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and ensures that the government receives services at market-competitive rates.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from enhanced IT systems and support. Services delivered include critical IT functions such as systems engineering, infrastructure management, and software development. The geographic impact is primarily within the District of Columbia, supporting federal operations. The contract supports a workforce involved in IT service delivery and maintenance within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's solutions become deeply integrated.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Scope creep could lead to increased costs if not managed tightly, despite the fixed-price nature.

Positive Signals

The firm-fixed-price contract type shifts cost risk to the contractor.
Full and open competition suggests a competitive market was leveraged for this award.
The six-year duration allows for stable IT support and planning.
The broad range of IT services indicates a comprehensive approach to agency needs.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide array of services, from custom software development to IT infrastructure management. Federal spending in this area is substantial, driven by the continuous need for modernization, cybersecurity, and operational efficiency across all agencies. Comparable contracts often involve multi-year durations and significant dollar values, reflecting the complexity and criticality of IT systems for government operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. However, the prime contractor, Planet Technologies, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the FBI's program management office. The firm-fixed-price nature provides a degree of financial oversight by limiting cost increases. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Services
Systems Engineering
Infrastructure Support
Software Development
Enterprise IT Management

Risk Flags

Potential for performance issues impacting critical FBI IT operations.
Risk of cost escalation if scope is not tightly managed despite FFP.
Dependence on a single vendor for essential IT functions.
Ensuring adequate transition support at contract end.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.6 million to PLANET TECHNOLOGIES, INC.. IGF::OT::IGF TASK ORDER 0001 THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE IT SERVICES IN THE AREAS OF SYSTEMS ENGINEERING, INFRASTRUCTURE ADMINISTRATION, SOFTWARE ENGINEERING, WEBSITE DEVELOPMENT, AND SYSTEM SUPPORT AND MAINTENANCE FOR ENTERPRISE WIDE COLLABORATION

Who is the contractor on this award?

The obligated recipient is PLANET TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2017-06-12. End: 2023-06-11.

What is the track record of Planet Technologies, Inc. with federal contracts, particularly within the Department of Justice?

Planet Technologies, Inc. has a history of securing federal contracts, including those with the Department of Justice and its various components like the FBI. Their awards often span IT services, cloud solutions, and cybersecurity. Analyzing their past performance on similar contracts would involve reviewing contract close-out reports, past performance questionnaires, and any documented issues or successes. A review of public databases like FPDS-NG or SAM.gov can provide insights into the volume and types of contracts they have held, their award history, and their status as a contractor. Understanding their experience with firm-fixed-price contracts and long-duration delivery orders is crucial for assessing their capability to manage this specific $28.6 million award effectively over its six-year term.

How does the awarded price of $28.6 million compare to similar IT services contracts awarded by the FBI or other DOJ components?

To benchmark the $28.6 million award, one would compare it against IT services contracts of similar scope, duration, and complexity awarded by the FBI or other Department of Justice agencies. Key comparison points include the specific services (systems engineering, infrastructure, software development), the contract type (firm-fixed-price), and the period of performance (six years). For instance, if the FBI previously awarded a 5-year contract for similar IT support services at $25 million, this new award might be considered comparable or slightly higher, potentially reflecting inflation, expanded scope, or market rate adjustments. Conversely, if other agencies awarded larger contracts for less comprehensive services, this award could represent good value. Access to detailed contract data, including the number of bidders and specific task orders, would refine this comparison.

What are the primary risks associated with this contract for the FBI, and how are they mitigated?

The primary risks for the FBI in this contract include potential underperformance by Planet Technologies, Inc., leading to disruptions in critical IT services; the risk of cost overruns if the firm-fixed-price (FFP) contract is poorly managed or scope creep occurs; and the risk of vendor lock-in due to deep integration of services. Mitigation strategies include robust performance monitoring through Service Level Agreements (SLAs), regular progress reviews, and clear contract management processes. The FFP structure itself mitigates financial risk for the government by placing cost responsibility on the contractor. To counter vendor lock-in, the FBI could ensure clear contract clauses regarding data ownership, intellectual property, and transition assistance, facilitating future competition or in-house management of services.

How effective is the 'full and open competition' approach in ensuring value for money for this specific IT services contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money for IT services contracts. By allowing all responsible sources to bid, it fosters a competitive environment where vendors are incentivized to offer their best pricing and technical solutions to win the contract. This broad competition increases the likelihood that the FBI will receive services at a price reflecting market rates and that the chosen solution is technically superior. While the specific number of bidders isn't detailed here, the process itself maximizes the potential for cost savings and innovation compared to less competitive procurement methods. Effective evaluation criteria and a well-defined Statement of Work are crucial to fully realize the value-for-money benefits of this approach.

What are the historical spending patterns for IT services at the FBI, and how does this contract fit within that trend?

Historical spending patterns for IT services at the FBI typically show a consistent and significant investment in maintaining and modernizing its complex technological infrastructure. This includes substantial outlays for systems integration, network management, software development, and cybersecurity solutions to support its law enforcement and intelligence missions. This $28.6 million, six-year contract for comprehensive IT services fits within this trend by addressing core operational needs. Its value and duration suggest it is a significant, but likely not unprecedented, component of the FBI's overall IT budget. Analyzing past contracts of similar scope and value would reveal whether this award represents an increase, decrease, or stable level of IT service procurement for the Bureau.

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) › PROFESSIONAL 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

Address: 20400 OBSERVATION DR STE 107, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $32,159,253

Exercised Options: $28,579,272

Current Obligation: $28,579,272

Actual Outlays: $16,301,488

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJF171200V0004548

IDV Type: IDC

Timeline