DOJ's $17.7M software development contract with RGS Associates, Inc. awarded via competitive delivery order

Contract Overview

Contract Amount: $17,704,058 ($17.7M)

Contractor: RGS Associates, Inc.

Awarding Agency: Department of Justice

Start Date: 2008-09-30

End Date: 2013-12-31

Contract Duration: 1,918 days

Daily Burn Rate: $9.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE DEVELOPMENT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $17.7 million to RGS ASSOCIATES, INC. for work described as: SOFTWARE DEVELOPMENT SERVICES Key points: 1. The contract utilized a Time and Materials pricing structure, which can pose risks if not closely managed. 2. Awarded as a competitive delivery order, indicating multiple bids were considered. 3. The duration of the contract (1918 days) suggests a significant, long-term project. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. The contract was awarded to RGS Associates, Inc., a single entity for this specific order. 6. The base contract value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: fair

The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not rigorously monitored. Benchmarking T&M contracts for similar software development services is challenging without detailed scope and labor rates. The total award of $17.7 million over approximately five years suggests a significant investment. Without specific performance metrics or comparison data, it's difficult to definitively assess value for money, but the competitive award process offers some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle, likely allowing for multiple bidders to propose solutions. The presence of two bids (no: 2) suggests a moderate level of competition for this specific delivery order. While competition is present, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source acquisition. However, with only two bids, there is a possibility that a more competitive environment could have yielded even greater savings.

Public Impact

The Department of Justice benefits from enhanced software development capabilities, potentially improving internal operations and service delivery. The services delivered likely include custom software design, development, and potentially maintenance, tailored to DOJ's specific needs. The contract's impact is primarily within the District of Columbia, where the Department of Justice is headquartered. The contract supports a workforce of software developers, systems designers, and project managers, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost escalation due to Time and Materials pricing without strict controls.
Limited competition (2 bids) may have resulted in a higher price than a more robust bidding process.
Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded through a competitive process, suggesting a degree of market vetting.
The contract duration indicates a stable, long-term need being met.
The contractor, RGS Associates, Inc., has secured a significant award, implying capability and past performance.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The market for such services is vast and highly competitive, with numerous firms offering specialized development capabilities. The Department of Justice's spending on IT services is a significant portion of its overall budget, reflecting the critical role technology plays in law enforcement and administrative functions. Comparable spending benchmarks would typically involve analyzing other large federal IT development contracts, considering factors like agency, service type, and contract vehicle.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless RGS Associates, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice. Accountability measures would be tied to performance metrics outlined in the contract and the delivery order terms. Transparency is generally facilitated through contract award databases like FPDS. The specific Inspector General jurisdiction would depend on the DOJ component awarding the contract, but the DOJ Office of the Inspector General would likely have oversight.

Related Government Programs

Department of Justice IT Services
Federal Software Development Contracts
Computer Systems Design Services
Time and Materials Contracts
Competitive Delivery Orders

Risk Flags

Time and Materials Pricing
Limited Competition
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17.7 million to RGS ASSOCIATES, INC.. SOFTWARE DEVELOPMENT SERVICES

Who is the contractor on this award?

The obligated recipient is RGS ASSOCIATES, 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 $17.7 million.

What is the period of performance?

Start: 2008-09-30. End: 2013-12-31.

What is the track record of RGS Associates, Inc. with federal contracts, particularly in software development?

RGS Associates, Inc. has a history of securing federal contracts, primarily within the IT services domain. While this specific award of $17.7 million for software development services to the Department of Justice is substantial, a comprehensive review would involve examining their entire federal contract portfolio. This includes analyzing past performance on similar projects, any reported contract disputes or terminations, and their overall financial stability. Understanding their experience with Time and Materials contracts and their ability to manage scope and cost effectively would be crucial. A deeper dive into their contract history might reveal patterns in their bidding strategies, success rates, and client agencies, providing a clearer picture of their capabilities and reliability as a federal contractor.

How does the $17.7 million value compare to similar software development contracts within the Department of Justice or other federal agencies?

The $17.7 million value for this software development contract is a significant sum, placing it in the mid-to-large tier for federal IT service awards. To benchmark this value, one would compare it against similar contracts awarded by the Department of Justice and other agencies like the Department of Defense, DHS, or GSA for comparable services (e.g., custom software development, systems integration). Factors such as contract duration, specific technical requirements, and the labor categories involved heavily influence pricing. Contracts with longer durations or highly specialized technical needs often command higher total values. A comparison would ideally involve analyzing the average cost per year or per deliverable for similar projects to determine if this contract represents a fair market price or if it appears unusually high or low.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual hours worked by labor and the actual cost of materials. This can lead to increased costs for the government if the project scope is not well-defined, if contractor efficiency is low, or if there is scope creep. Effective oversight, including detailed monitoring of labor hours, validation of material costs, and robust change management processes, is essential to mitigate these risks. Without such controls, the government may end up paying significantly more than initially anticipated.

Given the 'COMPETITIVE DELIVERY ORDER' award type and only two bidders, what is the likely impact on price discovery and potential savings for taxpayers?

Awarding a contract as a 'Competitive Delivery Order' with two bidders suggests that the requirement was competed, which is generally positive for taxpayers. However, the limited number of bidders (two) indicates a moderate level of competition. While competition is better than a sole-source award, a higher number of bidders typically leads to more aggressive pricing and greater potential for cost savings. With only two bidders, there's a risk that the price might not reflect the full benefit of a highly competitive market. Taxpayers may have saved money compared to a sole-source scenario, but potentially less than if more firms had vied for the contract.

How does the NAICS code 541512 (Computer Systems Design Services) inform our understanding of the services provided under this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' provides a clear indication of the contract's focus. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. Services typically include analysis of an organization's needs for data processing and information systems, and the design of solutions, including software development and systems integration. Therefore, this contract likely involved RGS Associates, Inc. in activities such as requirements gathering, system architecture design, custom software coding, testing, and potentially implementation and support for the Department of Justice's IT infrastructure.

What are the implications of the contract's start date (2008-09-30) and end date (2013-12-31) for assessing its performance and value?

The contract's duration, spanning from late 2008 to the end of 2013 (approximately 5 years and 3 months), indicates a long-term engagement for software development services. This extended period allows for the development and potential refinement of complex systems. Assessing performance and value retrospectively requires examining deliverables, milestones met, and user satisfaction over this entire timeframe. It also implies that the initial requirements may have evolved, necessitating flexibility in the contract's execution. Evaluating the contract's success would involve looking at whether the developed software met the DOJ's needs throughout its lifecycle and whether the T&M costs remained within reasonable expectations given the scope and duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2121 CRYSTAL DR STE 709, ARLINGTON, VA, 22202

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $42,155,738

Exercised Options: $17,704,058

Current Obligation: $17,704,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5862H

IDV Type: FSS

Timeline