DOJ's $6.3M legal support contract awarded to STS Systems Integration, LLC, with no competition

Contract Overview

Contract Amount: $6,356,704 ($6.4M)

Contractor: STS Systems Integration, LLC

Awarding Agency: Department of Justice

Start Date: 2014-09-11

End Date: 2019-09-10

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF LEGAL SUPPORT SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78232

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $6.4 million to STS SYSTEMS INTEGRATION, LLC for work described as: IGF::OT::IGF LEGAL SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 5 years (1825 days) suggests a long-term need for these legal services. 3. Awarded to STS Systems Integration, LLC, a contractor whose track record and performance on similar contracts warrant further investigation. 4. The North American Industry Classification System (NAICS) code 541110 indicates services provided by offices of lawyers. 5. The contract was issued as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though details are not provided. 6. The lack of small business set-aside suggests this contract was not specifically targeted to support small businesses. 7. The contract's value of $6.36 million over five years averages to approximately $1.27 million annually.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The contract's total value of $6.36 million over five years averages to approximately $1.27 million annually. Further analysis would require comparing the rates and services provided to similar legal support contracts awarded by the Department of Justice or other federal agencies to determine if the pricing is fair and reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one contractor is capable of providing the required services, or in specific circumstances where competition is not feasible or in the government's best interest. The lack of competition means there were no other bidders to compare against, potentially leading to higher costs for taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing and value. This can result in taxpayers potentially paying more than they would if multiple vendors had competed for the contract.

Public Impact

The primary beneficiaries of this contract are the Department of Justice components requiring legal support services. The services delivered are related to legal counsel and support, essential for the functioning of the agency. The contract is geographically located in Texas (ST), indicating a concentration of service delivery or contractor presence in that state. The contract likely supports legal professionals and administrative staff within the contracting firm, contributing to employment in the legal services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency regarding the justification for a sole-source award.
Contract duration of five years may indicate a lack of flexibility to adapt to changing needs or market conditions.
No clear indication of performance metrics or evaluation criteria within the provided data.

Positive Signals

Contract addresses a specific need for legal support within the Department of Justice.
Awarded to a single entity, potentially allowing for focused expertise and streamlined communication.
Contract duration suggests a stable and predictable service provision for the agency.

Sector Analysis

The legal services sector is a critical component of the federal government's operational infrastructure, providing essential support for litigation, regulatory compliance, and advisory functions. The Department of Justice, as the primary law enforcement agency, relies heavily on these services. Spending in this sector can fluctuate based on caseloads, legislative changes, and the complexity of legal challenges. Benchmarking this contract's value would involve comparing its total value and annual expenditure against the average cost of similar legal support contracts awarded to law firms or legal service providers by federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition, had it occurred, would not have been restricted to small business concerns. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside requirement. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice's Office of Justice Programs, which awarded the contract. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of Justice Legal Services Contracts
Federal Legal Support Services
Law Enforcement Agency Support Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6.4 million to STS SYSTEMS INTEGRATION, LLC. IGF::OT::IGF LEGAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STS SYSTEMS INTEGRATION, 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 $6.4 million.

What is the period of performance?

Start: 2014-09-11. End: 2019-09-10.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) 6.302 outlines circumstances under which a contract may be awarded without full and open competition. Common justifications include the existence of only one responsible source, a national emergency, or when a statute expressly authorizes or requires that the acquisition be from a single source. Without further documentation from the Department of Justice, the precise reason for this sole-source designation remains unknown. This lack of transparency prevents an assessment of whether competition was truly not feasible or if it was a missed opportunity for cost savings.

How does the $6.36 million contract value compare to similar legal support contracts within the Department of Justice?

Comparing the $6.36 million contract value for five years of legal support services requires access to a broader dataset of similar contracts awarded by the Department of Justice (DOJ). The average annual value of this contract is approximately $1.27 million. To assess value for money, this figure should be benchmarked against contracts for comparable legal services, considering factors such as the type of legal expertise required (e.g., litigation, regulatory, advisory), the geographic location of service delivery, and the contractor's experience. Without such comparative data, it is difficult to definitively state whether this contract represents a fair and reasonable price. The sole-source nature of the award further complicates direct value comparisons.

What is the track record of STS Systems Integration, LLC on federal contracts, particularly those involving legal services?

Information regarding the specific track record of STS Systems Integration, LLC on federal contracts, especially those related to legal services, is not detailed in the provided data. A comprehensive assessment would require reviewing the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the types and values of previous federal awards. Understanding their experience in delivering legal support services, their ability to meet deadlines, and their overall client satisfaction would be crucial in evaluating their suitability and performance on this DOJ contract. The sole-source award implies a belief by the agency in their capability, but independent verification of past performance is essential.

What are the potential risks associated with a sole-source award for legal support services?

The primary risk associated with a sole-source award for legal support services is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the contractor may have less incentive to offer the most competitive pricing. Another risk is a potential reduction in innovation, as there is no competitive drive to develop more efficient or cost-effective service delivery methods. Furthermore, a sole-source award can raise concerns about fairness and equal opportunity for other capable contractors. Finally, if the sole-source justification is weak or based on incomplete information, it could lead to criticism regarding the responsible use of taxpayer funds.

How has federal spending on legal support services evolved, and where does this contract fit within that trend?

Federal spending on legal support services is a significant and ongoing expenditure across various agencies, driven by the complex legal landscape and the government's role as a litigant and regulator. Trends in this spending are influenced by factors such as changes in legislation, the volume of litigation, and evolving legal needs. This $6.36 million contract with STS Systems Integration, LLC represents a specific instance of this broader spending category within the Department of Justice. To understand its place in the trend, one would need to analyze historical spending data for legal support services at the DOJ and across the federal government, looking at overall budget allocations, average contract values, and the prevalence of sole-source versus competitive awards in this domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › Offices of Lawyers

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DJO-BJA-14-R-0106

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation

Address: 1077 CENTRAL PKWY S, SAN ANTONIO, TX, 78232

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,861,043

Exercised Options: $7,861,043

Current Obligation: $6,356,704

Actual Outlays: $194,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJOBJA14V0134

IDV Type: IDC

Timeline