DoD Awards $23.3M for Computer Storage Devices to JFL Consulting, LLC Under Sole-Source Contract
Contract Overview
Contract Amount: $23,293,805 ($23.3M)
Contractor: JFL Consulting, LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-29
End Date: 2026-11-14
Contract Duration: 960 days
Daily Burn Rate: $24.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TRANSPORT SYSTEMS HARDWARE SUPPLIES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20392
Plain-Language Summary
Department of Defense obligated $23.3 million to JFL CONSULTING, LLC for work described as: TRANSPORT SYSTEMS HARDWARE SUPPLIES Key points: 1. Significant award for computer storage devices, indicating demand in defense hardware. 2. Sole-source award raises questions about price discovery and potential for better value. 3. Risk of limited competition impacting cost-effectiveness for taxpayer funds. 4. Focus on IT hardware within the defense sector.
Value Assessment
Rating: questionable
The contract value of $23.3M for computer storage devices needs benchmarking against similar sole-source awards. Without competitive bidding, it's difficult to ascertain if the price reflects fair market value or if taxpayers are overpaying.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs compared to a competitive environment. The rationale for sole-sourcing is critical for assessing value.
Taxpayer Impact: The lack of competition in this $23.3M award means taxpayers may not be receiving the best possible price for these essential hardware supplies.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense relies on this supplier for critical hardware, highlighting potential supply chain risks if alternatives are not explored. Transparency in the sole-source justification is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Definitive contract provides clear terms
- Firm fixed price mitigates cost overrun risk
Sector Analysis
This award falls within the IT hardware sector, specifically computer storage device manufacturing, a critical component for defense operations. Benchmarks for similar hardware procurements, especially sole-source ones, are essential for evaluating this contract's value.
Small Business Impact
The contract was awarded to JFL CONSULTING, LLC, a small business. While supporting small businesses is a priority, the sole-source nature of this award warrants scrutiny to ensure fair opportunity principles are upheld where feasible.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of Defense to ensure the price is fair and reasonable and that the supplies meet all specified requirements. Accountability for the justification of non-competition is key.
Related Government Programs
- Computer Storage Device Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Risk of supply chain disruption.
- Lack of transparency in price justification.
- Limited opportunity for technological advancement through competition.
Tags
computer-storage-device-manufacturing, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to JFL CONSULTING, LLC. TRANSPORT SYSTEMS HARDWARE SUPPLIES
Who is the contractor on this award?
The obligated recipient is JFL CONSULTING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2024-03-29. End: 2026-11-14.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for sole-source procurement is critical for understanding why competitive procedures were not utilized. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of available sources. The process for determining fair and reasonable pricing in sole-source contracts often involves detailed cost analysis, comparison to historical prices, or market research to establish a benchmark, even without direct bids.
What are the potential risks associated with relying on a single supplier for critical computer storage hardware, especially within a sole-source context?
Sole-source contracts carry inherent risks, including potential price inflation due to lack of competition, limited innovation, and supply chain vulnerability. If the sole provider faces production issues, financial instability, or geopolitical challenges, the Department of Defense could face significant disruptions. This dependence also reduces leverage for negotiating better terms or exploring alternative, potentially more advanced, technologies.
How does this $23.3M award align with the Department of the Navy's broader IT hardware procurement strategies and small business goals?
This award's alignment depends on whether it fits into a strategic sourcing initiative or addresses a specific, urgent need. While awarding to a small business is positive, the sole-source aspect raises questions about whether competitive opportunities were missed. Evaluating this against the Navy's overall spending on similar hardware and its success in fostering broader small business participation in competitive bids is essential.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Storage Device Manufacturing
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018924R0015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3927 RHODE HARBOR RD, EDGEWATER, MD, 21037
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $36,959,624
Exercised Options: $23,293,805
Current Obligation: $23,293,805
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-29
Current End Date: 2026-11-14
Potential End Date: 2029-11-14 00:00:00
Last Modified: 2025-12-31
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