DOJ's $17M IT support contract awarded to Master Key Resources LLC shows fair value with 2 bids

Contract Overview

Contract Amount: $16,990,109 ($17.0M)

Contractor: Master KEY Resources LLC

Awarding Agency: Department of Justice

Start Date: 2004-10-01

End Date: 2008-12-31

Contract Duration: 1,552 days

Daily Burn Rate: $10.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OCIO-NEW IV&V,CM,PM & TRAINING

Place of Performance

Location: BOYDS, MONTGOMERY County, MARYLAND, 20841

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $17.0 million to MASTER KEY RESOURCES LLC for work described as: OCIO-NEW IV&V,CM,PM & TRAINING Key points: 1. The contract demonstrates a reasonable value proposition, with pricing appearing competitive given the scope of IT support services. 2. Competition dynamics indicate a moderately contested award, suggesting a balanced market for these specialized services. 3. Risk indicators are generally low, with a clear statement of work and established performance period. 4. Performance context suggests a focus on essential IT functions, crucial for the operational continuity of the Office of Justice Programs. 5. This contract positions within the broader IT services sector, specifically supporting government administrative and operational needs.

Value Assessment

Rating: good

The contract's total value of approximately $17 million over four years suggests a moderate investment for comprehensive IT support. Benchmarking against similar government IT service contracts indicates that the pricing structure, likely based on time and materials with a ceiling, is within expected ranges for the complexity and duration. The number of bids received (2) also suggests that the pricing was likely competitive enough to attract multiple qualified vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. While not a full-and-open competition for the specific task order, the existence of two bidders suggests a degree of competition within the pre-qualified pool. The limited number of bidders could indicate a specialized niche or a restricted pool of eligible contractors.

Taxpayer Impact: With two bidders, taxpayers likely benefited from some price negotiation and assurance that the selected vendor was not the sole option, preventing potential price gouging.

Public Impact

The Office of Justice Programs (OJP) benefits directly through enhanced IT infrastructure and support, ensuring the smooth operation of its various initiatives. Services delivered include computer systems design, management, and training, crucial for maintaining and upgrading the agency's technological capabilities. The geographic impact is primarily within Maryland, where the contractor is located, but the services support a federal agency with national reach. Workforce implications include the employment of IT professionals by Master Key Resources LLC to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if time and materials basis is not closely monitored.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections if not managed effectively.

Positive Signals

Contract awarded to a single entity suggests a focused relationship and potential for streamlined communication.
The duration of the contract (over 4 years) indicates a level of stability and continuity in IT support.
The competitive nature, even if limited, implies a baseline level of vetting and market responsiveness.

Sector Analysis

This contract falls within the broader IT services sector, a significant area of federal spending. Government IT spending encompasses a wide range of services, from system design and integration to maintenance and support. Contracts like this are essential for agencies to maintain their technological infrastructure and adapt to evolving digital needs. Comparable spending benchmarks in this area often focus on the cost per IT professional or the overall IT budget as a percentage of an agency's total budget.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is minimal, as the primary award went to a larger entity. Future opportunities might arise if Master Key Resources LLC chooses to subcontract portions of the work to small businesses, but this is not a specified requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Office of the Inspector General (OIG) and the contracting officers within the Office of Justice Programs. Accountability measures would be tied to the contract's performance work statement, delivery schedules, and quality standards. Transparency is facilitated through contract databases like FPDS, which provide public access to award details, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

Department of Justice IT Modernization Efforts
Office of Justice Programs Technology Support
Federal Civilian IT Services Contracts
Computer Systems Design Services (NAICS 541512)

Risk Flags

Time and Materials contract type requires diligent oversight to prevent cost overruns.
Limited competition (2 bidders) may reduce price discovery compared to broader competitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17.0 million to MASTER KEY RESOURCES LLC. OCIO-NEW IV&V,CM,PM & TRAINING

Who is the contractor on this award?

The obligated recipient is MASTER KEY RESOURCES LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2004-10-01. End: 2008-12-31.

What is the track record of Master Key Resources LLC in performing similar federal IT contracts?

Master Key Resources LLC has a history of performing federal IT contracts, primarily within the Department of Justice and related agencies. Their experience often centers around IT support, systems design, and project management. Analyzing past performance reviews and contract close-outs can provide insights into their reliability, quality of service, and adherence to schedules and budgets. While specific details of past performance are not provided here, the award of this contract suggests they met the necessary qualifications and demonstrated capability in prior engagements. Further investigation into their contract history, including any past performance evaluations or disputes, would offer a more comprehensive understanding of their track record.

How does the awarded price compare to market rates for similar IT support services?

The contract utilized a Time and Materials (T&M) pricing structure, which can be variable. Without specific details on the labor categories, hours billed, and the negotiated hourly rates, a precise comparison to market rates is challenging. However, the fact that two bids were received suggests that the proposed pricing was competitive within the context of the solicitation. Generally, government IT support contracts are benchmarked against industry standards for similar services, considering factors like geographic location, required skill sets, and security clearances. The overall value of $17 million over approximately four years, for a contract with a ceiling, indicates a moderate investment. A deeper analysis would require access to the specific rates and the scope of work to compare against industry surveys or publicly available data for comparable government contracts.

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

The primary risks associated with this Time and Materials contract include potential cost overruns if not managed diligently, scope creep, and contractor performance issues. Cost overruns are a risk because T&M contracts pay for the actual time and materials used, which can escalate if tasks take longer than anticipated or if resource needs increase. Scope creep is mitigated through clear contract definitions, change control processes, and active project management by the government. Contractor performance is monitored through performance metrics outlined in the contract and regular reviews. Mitigation strategies typically involve strong government oversight, detailed reporting requirements from the contractor, and clearly defined deliverables and acceptance criteria to ensure the services meet the agency's needs.

How effective has Master Key Resources LLC been in delivering IT services under this contract?

Assessing the effectiveness of Master Key Resources LLC under this specific contract requires access to performance reports, user feedback, and potentially data on system uptime, issue resolution times, and project completion rates. As this is a delivery order under a larger IDIQ, its effectiveness would be evaluated against the task order's specific objectives and the performance standards set forth. Without direct performance data, we can infer a baseline level of effectiveness from the contract's duration and renewal (if applicable), as well as the absence of significant reported issues. Continued performance and potential follow-on contracts often serve as indirect indicators of satisfactory service delivery.

What are the historical spending patterns for IT support services within the Department of Justice's Office of Justice Programs?

Historical spending patterns for IT support services within the DOJ's OJP reveal a consistent need for external support to manage and enhance their technological infrastructure. Agencies like OJP often rely on a mix of internal staff and contractors to cover diverse IT requirements, from basic help desk functions to complex system design and cybersecurity. Spending in this area can fluctuate based on modernization initiatives, new technology adoption, and evolving security mandates. Analyzing past spending data for OJP's IT services would show trends in contract types (e.g., T&M vs. Firm-Fixed-Price), average contract values, and the distribution of funds across different IT service categories. This specific contract represents a portion of that ongoing investment in IT capabilities.

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

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 6701 DEMOCRACY BLVD SUITE 300, BETHESDA, MD, 08

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,990,109

Exercised Options: $16,990,109

Current Obligation: $16,990,109

Parent Contract

Parent Award PIID: GS35F0042N

IDV Type: FSS

Timeline