DOJ's $15.76M General Support Services Contract Awarded to Novitex Government Solutions

Contract Overview

Contract Amount: $15,764,145 ($15.8M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2008-09-25

End Date: 2009-09-30

Contract Duration: 370 days

Daily Burn Rate: $42.6K/day

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: GENERAL SUPPORT 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 $15.8 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: GENERAL SUPPORT SERVICES Key points: 1. Contract focused on essential administrative and operational support, indicating a need for consistent service delivery. 2. Awarded to a single vendor, Novitex Government Solutions, suggesting a potentially limited competition scenario. 3. The contract duration of 370 days points to a short-term need for these services. 4. The contract type 'LABOR HOURS' implies payment based on the time and effort expended by personnel. 5. Geographic location is Washington D.C., a common hub for federal agency operations. 6. The North American Industry Classification System (NAICS) code 561431 points to Private Mail Centers, which may be a component of the broader 'General Support Services'.

Value Assessment

Rating: fair

The contract value of $15.76 million for a duration of approximately one year for general support services appears to be within a reasonable range for federal contracts of this nature. However, without specific details on the scope of services provided, a direct comparison to similar contracts is challenging. The 'LABOR HOURS' contract type can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility. Benchmarking the value would require understanding the specific tasks performed and the labor rates involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unclear whether this was a full and open competition, a limited competition, or a sole-source award. The number of bidders and the justification for the procurement method are not detailed. If competition was limited, it could impact the final price and the range of solutions considered.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to lower prices and better quality services as vendors vie for the contract. If this contract was not competitively bid, taxpayers may have paid a premium.

Public Impact

The Department of Justice benefits from the continuity of essential administrative and operational support services. Services likely include mail processing, document management, and other back-office functions critical for agency operations. The geographic impact is concentrated in Washington D.C., where the Department of Justice is headquartered. Workforce implications are primarily for the contractor's employees who will perform the services, with potential indirect impacts on DOJ staff who rely on these support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method raises concerns about potential overpayment.
The 'LABOR HOURS' contract type necessitates robust oversight to prevent scope creep and ensure efficient resource utilization.
Without detailed service descriptions, it's difficult to assess if the awarded price reflects true market value.

Positive Signals

The contract was awarded to a specific vendor, Novitex Government Solutions, indicating a selection based on some criteria.
The contract is for general support services, which are fundamental to the operation of a large federal agency like the DOJ.
The award was made by the Department of Justice, a significant federal entity, suggesting adherence to procurement regulations.

Sector Analysis

General support services, often encompassing administrative, logistical, and operational functions, are a critical component of federal agency operations. This contract falls within the broader professional, scientific, and technical services sector. The market for such services is competitive, with numerous firms offering a wide range of capabilities. Federal spending in this area is substantial, supporting the day-to-day functioning of government. Comparable spending benchmarks would depend heavily on the specific services rendered, such as mailroom operations, records management, or facilities support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Novitex Government Solutions, is likely a larger entity. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract are limited unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program managers within the Department of Justice. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is often limited for individual contracts unless specific reporting requirements are mandated. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Federal Administrative Support Services
Department of Justice Operational Contracts
Government Mail and Document Management Services
Professional and Technical Services Contracts

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' contract type.
Lack of transparency regarding competition level.
Scope of 'General Support Services' is not fully defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15.8 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. GENERAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NOVITEX GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2008-09-25. End: 2009-09-30.

What specific services were included under the 'General Support Services' for this contract?

The provided data categorizes this contract under 'GENERAL SUPPORT SERVICES' with a NAICS code of 561431, which corresponds to 'Private Mail Centers'. This suggests that a significant portion of the services likely involved mail processing, distribution, and related administrative functions. However, 'General Support Services' can be broad and may encompass other administrative tasks such as records management, document handling, reception services, or basic facilities support. Without the full contract details or statement of work, the precise scope remains undefined, making it difficult to fully assess the value and performance.

How does the awarded amount of $15.76 million compare to similar general support services contracts within the Department of Justice?

Comparing the $15.76 million award for approximately one year of service requires context on the specific deliverables. General support services can range widely in scope and cost. For instance, a contract solely for mailroom operations might be significantly less expensive than one that includes comprehensive administrative support, records management, and facilities assistance. To benchmark effectively, one would need to identify contracts with similar NAICS codes (like 561431 or broader administrative support categories) and similar contract types ('LABOR HOURS') within the DOJ or comparable agencies. The duration of 370 days also suggests a relatively short-term need, which influences the total contract value.

What are the potential risks associated with a 'LABOR HOURS' contract type for general support services?

The 'LABOR HOURS' contract type, while offering flexibility, carries inherent risks, primarily related to cost control. Since payment is based on the hours worked by contractor personnel, there is a risk of scope creep and inefficient labor utilization if not managed diligently. Without a fixed price for specific deliverables, the total cost can escalate beyond initial estimates if the project takes longer than anticipated or if additional tasks are added without proper oversight. For general support services, this means ensuring that the hours billed are directly attributable to necessary tasks and that labor rates are competitive. Robust monitoring and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayers.

What is the track record of Novitex Government Solutions in performing similar federal contracts?

Information regarding the specific track record of Novitex Government Solutions in performing similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any reported issues or successes on previous government awards. Understanding their experience with 'General Support Services' or 'Private Mail Centers' contracts, particularly those with a 'LABOR HOURS' structure, would be crucial. A history of successful contract completion, positive performance reviews, and adherence to timelines and budgets would indicate a lower risk associated with this award. Conversely, past performance issues could signal potential challenges.

How does the geographic concentration in Washington D.C. impact the cost and efficiency of these general support services?

The concentration of these general support services in Washington D.C. is typical for agencies headquartered there, like the Department of Justice. Operating in the D.C. metropolitan area often entails higher labor costs compared to other regions due to the cost of living and demand for skilled personnel. This can directly influence the 'LABOR HOURS' component of the contract. While proximity can enhance communication and responsiveness for on-site services, it also means potentially higher vendor bids. Efficiency gains might come from reduced travel time for on-site support, but the overall cost structure is likely influenced by the premium associated with the D.C. market.

What are the implications of this contract being awarded outside of small business set-aside programs?

The fact that this contract was not awarded under a small business set-aside program (indicated by 'ss': false, 'sb': false) means that opportunities for small businesses to directly benefit from this specific award are limited. Large businesses are typically the prime contractors in such scenarios. While large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, this is not guaranteed and depends on the specific contract clauses and the prime's subcontracting plan. The absence of a set-aside suggests that either the services were not deemed suitable for set-aside, or the competition resulted in an award to a large business based on factors like price, technical capability, or past performance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Private Mail Centers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Contractor Details

Parent Company: Pitney Bowes Inc. (UEI: 001161793)

Address: 8000 CORPORATE DR STE 100, LANDOVER, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,764,145

Exercised Options: $15,764,145

Current Obligation: $15,764,145

Parent Contract

Parent Award PIID: DJJ05C1068

IDV Type: IDC

Timeline