DOJ's $14M IT Management Services Contract Awarded to Master Key Resources LLC

Contract Overview

Contract Amount: $14,052,520 ($14.1M)

Contractor: Master KEY Resources LLC

Awarding Agency: Department of Justice

Start Date: 2008-07-21

End Date: 2014-01-19

Contract Duration: 2,008 days

Daily Burn Rate: $7.0K/day

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OCIO-IT MANAGEMENT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $14.1 million to MASTER KEY RESOURCES LLC for work described as: OCIO-IT MANAGEMENT SERVICES Key points: 1. Contract awarded for IT management services, indicating a need for specialized technical support. 2. The contract duration spans over 5 years, suggesting a long-term requirement for these services. 3. Awarded as 'Other Direct Costs' (ODC), this contract type may involve variable costs. 4. The contract was awarded by the Department of Justice, Office of Justice Programs. 5. The state of Maryland is listed as the place of performance. 6. The contractor, Master Key Resources LLC, has secured this significant federal award.

Value Assessment

Rating: fair

The total value of this contract is $14,052,520.27. Without specific benchmarks for IT management services of this scope and duration, it is difficult to definitively assess value for money. The 'Other Direct Costs' (ODC) award type suggests that costs may fluctuate based on actual expenses incurred, which can make precise cost-effectiveness analysis challenging. Further comparison with similar contracts for IT management services within the Department of Justice or other federal agencies would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. The 'unknown' classification suggests that information regarding the solicitation process, number of bidders, and the specific type of competition (e.g., full and open, sole source, limited) is not readily available. Understanding the competitive landscape is crucial for assessing whether the government received the best possible pricing and terms.

Taxpayer Impact: Without clear information on the competition, it's difficult to ascertain the impact on taxpayer dollars. A more competitive process typically leads to better pricing, while a less competitive one might result in higher costs.

Public Impact

The Department of Justice benefits from specialized IT management services to support its operations. This contract likely supports various IT infrastructure, software, and operational needs within the Office of Justice Programs. The primary geographic impact is in Maryland, where the services are performed. The contract may have implications for the IT workforce within the Department of Justice and potentially for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information hinders assessment of optimal value.
The 'Other Direct Costs' (ODC) award type can introduce cost variability.
Limited insight into specific performance metrics or outcomes achieved.

Positive Signals

Long-term contract award suggests sustained need and potential for stable service delivery.
Award to a specific contractor indicates a selection based on perceived capability.
Contract duration of over 5 years implies a significant commitment and potential for deep integration.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on management services. The federal IT market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure and operational support. Contracts like this are common as agencies outsource specialized IT functions to manage complex systems, ensure cybersecurity, and support data management. Benchmarking would require comparing this contract's value and scope against other federal IT management service contracts, considering factors like service level agreements and specific technical requirements.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Without this information, it's challenging to assess the direct impact on the small business ecosystem. Federal procurement policies often aim to ensure small businesses receive a fair share of contracting opportunities, either through direct awards or subcontracting. Further investigation into the contract's specific terms and the contractor's subcontracting plan would be needed.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of Justice's Office of Justice Programs. Accountability would be tied to the contract's performance metrics and deliverables. Transparency is often facilitated through contract databases and reporting requirements, though the level of detail can vary. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Management Services
Department of Justice IT Contracts
Office of Justice Programs Procurement
Federal IT Support Services
Other Direct Costs Contracts

Risk Flags

Lack of detailed competition information.
Potential for cost variability with ODC contract type.
Limited public performance data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14.1 million to MASTER KEY RESOURCES LLC. OCIO-IT MANAGEMENT SERVICES

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 $14.1 million.

What is the period of performance?

Start: 2008-07-21. End: 2014-01-19.

What specific IT management services were included under this contract?

The provided data identifies the contract as being for 'OCIO-IT MANAGEMENT SERVICES'. While the specific sub-tasks are not detailed, this generally encompasses a broad range of IT support functions. These could include IT strategy and planning, infrastructure management (servers, networks, data centers), cybersecurity operations, IT asset management, help desk and end-user support, software development lifecycle support, data management and analytics, and IT policy and compliance. The 'Other Direct Costs' (ODC) nature of the award suggests that the contractor would incur direct costs related to performing these services, which would then be billed to the government, potentially including labor, materials, and other direct expenses.

How does the $14 million contract value compare to similar IT management service contracts within the federal government?

Comparing the $14 million value requires context regarding the contract's duration and scope. This contract, awarded in 2008 and ending in 2014, had a duration of approximately 5.5 years. For its time, $14 million over that period represents an average annual value of roughly $2.5 million. This figure is moderate for federal IT management services, which can range from a few hundred thousand dollars for specialized tasks to hundreds of millions for large-scale enterprise-wide support. To provide a precise comparison, one would need to identify contracts with similar service offerings (e.g., help desk, network management, cybersecurity) and similar durations awarded within the same timeframe or to comparable agencies like the Department of Justice.

What are the potential risks associated with an 'Other Direct Costs' (ODC) contract type for IT management services?

The primary risk associated with an 'Other Direct Costs' (ODC) contract type, especially for services like IT management, is the potential for cost overruns and a lack of precise cost control. Unlike fixed-price contracts, ODC contracts reimburse the contractor for actual direct costs incurred, plus a fee or profit. If not managed diligently, this can lead to the government paying more than initially anticipated, particularly if the scope of work expands or if the contractor's direct costs are higher than expected. Effective oversight, detailed tracking of expenses, and clear definitions of what constitutes a direct cost are crucial to mitigate these risks and ensure value for money.

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

Information on the specific track record of Master Key Resources LLC for this particular $14 million IT management services contract is limited based solely on the provided data. However, the award itself indicates that the company was deemed capable of fulfilling the Department of Justice's requirements at the time of selection. To assess their broader track record, one would need to examine past performance evaluations, other federal contracts awarded to them (especially in the IT management domain), their CPARS (Contractor Performance Assessment Reporting System) ratings, and any publicly available information regarding their project successes and challenges. A deeper dive would reveal their experience with similar contract types and government agencies.

How effective was this contract in meeting the Department of Justice's IT management needs?

The provided data does not contain specific metrics or evaluations regarding the effectiveness of this contract in meeting the Department of Justice's IT management needs. Effectiveness would typically be assessed through performance reviews, user satisfaction surveys, achievement of key performance indicators (KPIs) related to system uptime, response times, security incident resolution, and project completion rates. Without access to these performance reports or post-contract evaluations, it is impossible to definitively state how effective the contract was. The renewal or non-renewal of such contracts, or subsequent awards to the same contractor, can sometimes serve as indirect indicators of satisfaction.

What were the historical spending patterns for IT management services at the Office of Justice Programs prior to this contract?

The provided data does not include historical spending patterns for IT management services at the Office of Justice Programs (OJP) prior to the award of this contract in 2008. To analyze historical spending, one would need access to OJP's procurement data from previous fiscal years. This would involve identifying similar IT management service contracts, their values, durations, and the contractors involved. Understanding past spending trends would help contextualize the $14 million awarded to Master Key Resources LLC, revealing whether it represented an increase, decrease, or consistent level of investment in these services by the OJP.

Contractor Details

Address: 6701 DEMOCRACY BLVD SUITE 300, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $16,513,268

Exercised Options: $16,513,263

Current Obligation: $14,052,520

Parent Contract

Parent Award PIID: GS35F0042N

IDV Type: FSS

Timeline