DOJ's $20M IT services contract with BAE Systems saw 1 bidder, raising questions on value and competition

Contract Overview

Contract Amount: $20,182,621 ($20.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2004-07-31

End Date: 2013-04-30

Contract Duration: 3,195 days

Daily Burn Rate: $6.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BPA-ADP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $20.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: BPA-ADP Key points: 1. The contract's value of $20.2 million over its lifespan suggests a significant investment in IT services. 2. With only one bidder, the competition dynamics are a key area for scrutiny regarding price discovery. 3. The duration of the contract (over 8 years) indicates a long-term need for these IT services. 4. The fixed-price nature of the contract aims to control costs, but the lack of competition may have inflated the price. 5. The 'Other Computer Related Services' NAICS code points to a broad scope of IT support. 6. The contract was awarded to BAE Systems, a major defense and technology contractor.

Value Assessment

Rating: questionable

Benchmarking the value of this $20.2 million contract is challenging without specific service details. However, the sole-source nature of the competition, despite being labeled 'competitive delivery order,' raises concerns about whether the government secured the best possible price. Comparing it to similar IT service contracts for federal agencies of comparable size and scope would be necessary for a more definitive value assessment. The long performance period (over 8 years) also warrants scrutiny to ensure the pricing remained competitive throughout its term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' but only had one bidder, which suggests a limited competitive environment. While the process was intended to be competitive, the outcome indicates potential barriers to entry or a lack of interested and qualified vendors. The limited competition means that the government may not have benefited from the full range of pricing and innovation that a more robust bidding process could have provided.

Taxpayer Impact: A single bidder limits the government's ability to negotiate favorable terms and prices, potentially leading to higher costs for taxpayers. It also reduces the incentive for contractors to offer their most competitive pricing.

Public Impact

The Department of Justice benefits from sustained IT support services, crucial for its operations. The contract likely supports various administrative and operational functions within the DOJ's Offices, Boards and Divisions. Services provided under this contract contribute to the overall efficiency and effectiveness of federal law enforcement and justice administration. The geographic impact is primarily within the District of Columbia, where the DOJ is headquartered. The contract supports a workforce involved in delivering and managing IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of robust competition may have led to suboptimal pricing for taxpayers.
The long contract duration (over 8 years) could mask inefficiencies or price creep if not closely monitored.
The broad 'Other Computer Related Services' NAICS code might obscure the specific value and cost-effectiveness of individual services.

Positive Signals

The contract utilized a Firm Fixed Price (FFP) structure, which helps in cost control and predictability.
The award was made to a large, established contractor (BAE Systems), suggesting a degree of reliability and experience.
The contract was a delivery order under a BPA, potentially indicating a streamlined procurement process for established needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services.' The federal IT services market is substantial, with agencies consistently investing in hardware, software, and support to maintain and upgrade their technological infrastructure. Contracts like this are common as agencies outsource specialized IT functions. Benchmarks for similar IT support contracts can vary widely based on scope, duration, and the specific services rendered, but a $20 million spend over 8 years for a single entity suggests a significant, ongoing requirement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like BAE Systems might limit direct opportunities for small businesses unless they are part of the prime's subcontracting chain. Further analysis would be needed to determine if small businesses were indirectly involved or if there were missed opportunities for their participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. The long duration and significant value necessitate robust oversight to ensure performance standards are met and costs remain justified. Transparency is generally facilitated through contract databases like FPDS, but detailed performance reviews and audits are internal processes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Professional Services
Information Technology Support
Contracting Vehicles (BPA)
Department of Justice IT Procurement

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. BPA-ADP

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2004-07-31. End: 2013-04-30.

What specific IT services were provided under this contract, and how did their scope evolve over its 8-year duration?

The contract, identified by NAICS code 541519 (Other Computer Related Services), likely encompassed a broad range of IT support. This could include network administration, system maintenance, software support, cybersecurity services, and potentially hardware management. Without access to the specific Statement of Work (SOW) or task orders issued under this BPA-ADP, the precise evolution of services is unknown. However, given the long duration, it's probable that the services adapted to technological advancements and changing DOJ requirements. The 'Other Computer Related Services' designation suggests flexibility but also a lack of specificity, making it difficult to assess the value of individual service components without further detail.

How does the per-unit cost or hourly rate for services under this contract compare to market rates for similar IT support in the DC area?

Determining a precise per-unit cost or hourly rate benchmark is difficult without knowing the specific services rendered and the labor categories involved. The contract was a Firm Fixed Price (FFP) award under a BPA, meaning pricing was likely negotiated upfront. However, the limited competition (one bidder) raises concerns that the negotiated rates might not be as competitive as they could have been in a more open market. To perform a true benchmark, one would need to compare the billed rates for specific roles (e.g., network engineer, help desk technician) against prevailing rates for similar skill sets and experience levels in the Washington D.C. metropolitan area, factoring in the government's purchasing power and any volume discounts.

What was the rationale for awarding this contract with only one bidder, despite it being labeled 'competitive delivery order'?

The designation 'COMPETITIVE DELIVERY ORDER' suggests that the initial procurement vehicle (likely a Blanket Purchase Agreement or BPA) was competed. However, the subsequent award of this specific delivery order to only one vendor implies that either only one vendor responded to the specific request for this order, or that the initial competition for the BPA was structured in a way that limited subsequent access. Potential reasons for a single bidder on a delivery order include highly specialized requirements that only one vendor could meet, a lack of market research leading to insufficient outreach, or a situation where other potential bidders were disqualified or chose not to participate. Understanding the specific BPA's terms and the solicitation for this delivery order is crucial to fully assess the rationale.

What is BAE Systems' track record with the Department of Justice and other federal agencies for similar IT service contracts?

BAE Systems is a large, established defense and technology contractor with a significant presence across various U.S. federal agencies, including the Department of Justice. Their track record generally includes providing a wide array of services, from IT and cybersecurity to engineering and logistics. For IT services specifically, BAE Systems has historically held numerous contracts with agencies like the Department of Defense, NASA, and others. Their performance history with the DOJ would need to be reviewed through contract performance reports (e.g., CPARS) and historical spending data to assess their reliability, quality of service, and adherence to contract terms on similar engagements. Generally, large contractors like BAE Systems are expected to have robust processes and experienced personnel.

How has the total spending on 'Other Computer Related Services' (NAICS 541519) by the Department of Justice trended over the past decade?

Analyzing the spending trend for NAICS 541519 at the DOJ over the past decade would reveal patterns in the agency's reliance on external IT support services. A rising trend might indicate increasing outsourcing or a growing need for specialized IT functions. Conversely, a declining trend could suggest insourcing, consolidation of contracts, or shifts in IT strategy. This specific contract represents a portion of that spending. Examining the broader trend provides context for the significance of this particular award and helps identify potential areas of increased or decreased investment in outsourced IT support by the DOJ over time.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PL, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,182,621

Exercised Options: $20,182,621

Current Obligation: $20,182,621

Parent Contract

Parent Award PIID: GS35F0045K

IDV Type: FSS

Timeline