DOJ's $11.3M IT Support Contract with Indus Corporation for Computer Systems Design Services

Contract Overview

Contract Amount: $11,321,553 ($11.3M)

Contractor: Indus Corporation

Awarding Agency: Department of Justice

Start Date: 2004-09-30

End Date: 2008-02-29

Contract Duration: 1,247 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT SERVICES FOR THE CRIMINAL DIV.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $11.3 million to INDUS CORPORATION for work described as: IT SUPPORT SERVICES FOR THE CRIMINAL DIV. Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators include contract duration and potential for scope creep in IT services. 4. Performance context relies on the successful delivery of computer systems design services. 5. Sector positioning within IT support services for government agencies. 6. Spending context is within the Department of Justice's broader IT procurement landscape.

Value Assessment

Rating: fair

The contract value of $11.3 million over approximately 3.5 years for IT support services appears within a reasonable range for government IT contracts of this nature. Benchmarking against similar Computer Systems Design Services (NAICS 541512) contracts awarded by the Department of Justice or other federal agencies would provide a clearer picture of value for money. The pricing structure, based on labor hours, necessitates careful monitoring to ensure efficiency and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a full and open solicitation. The fact that it was a competitive award suggests that multiple bidders likely vied for this contract, which generally promotes better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the competitive nature is a positive sign for ensuring a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price competition among vendors, leading to potentially lower costs compared to sole-source or limited competition scenarios.

Public Impact

The Criminal Division of the Department of Justice benefits from enhanced IT support services. Services delivered include computer systems design and related IT support. Geographic impact is primarily within the District of Columbia, where the DOJ is headquartered. Workforce implications may involve the need for specialized IT personnel to support the division's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed effectively.
Risk of scope creep in IT projects without clear definition and oversight.
Dependence on a single contractor for critical IT infrastructure support.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Contract duration provides stability for IT support operations.
Focus on essential IT support services for a key government division.

Sector Analysis

This contract falls within the IT support services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is crucial for government operations, providing the technological backbone for various agencies. Spending in this area is substantial across the federal government, with agencies continually investing in IT modernization and support to maintain operational efficiency and security. Comparable spending benchmarks would involve looking at other IT support contracts awarded to similar-sized firms for federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Indus Corporation, is likely a larger entity capable of handling this scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice's Criminal Division. Accountability measures would be tied to the delivery order's performance work statement and terms. Transparency is generally facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice IT Procurement
Federal IT Support Services
Computer Systems Design Services Contracts
Criminal Division Operations Support

Risk Flags

Potential for cost overruns due to labor hour billing.
Need for strong government oversight to manage scope and hours.
Contract duration may require re-competition planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11.3 million to INDUS CORPORATION. IT SUPPORT SERVICES FOR THE CRIMINAL DIV.

Who is the contractor on this award?

The obligated recipient is INDUS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2004-09-30. End: 2008-02-29.

What was the specific performance history of Indus Corporation on this contract?

The provided data does not include specific performance metrics or historical performance ratings for Indus Corporation on this particular contract. To assess their track record, one would need to consult performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) if available. Generally, for a contract of this duration (approximately 3.5 years), performance would be evaluated based on adherence to the statement of work, timeliness of delivery, quality of services, and responsiveness to issues. A lack of readily available performance data suggests that either the contract concluded without significant issues or that such data is not publicly accessible through standard contract databases.

How does the total contract value of $11.3 million compare to similar IT support contracts within the Department of Justice?

The total contract value of $11.3 million for IT support services over approximately 3.5 years is a moderate-sized award within the Department of Justice. The DOJ, like many large federal agencies, procures a wide range of IT services, from small, specialized task orders to large, multi-year enterprise-wide solutions. To benchmark effectively, one would compare this contract's value against other 'Computer Systems Design Services' (NAICS 541512) contracts awarded by the DOJ or its components (like the Criminal Division) for similar scopes of work and durations. Without access to a comprehensive database of DOJ IT spending and contract specifics, a precise comparison is difficult, but $11.3M is not an outlier for supporting a major division's IT needs.

What are the primary risks associated with a 'Labor Hours' contract type for IT support?

The primary risks associated with a 'Labor Hours' contract type for IT support revolve around cost control and potential for scope creep. Since payment is based on the hours worked by contractor personnel multiplied by fixed hourly rates, there is an inherent incentive for contractors to bill for more hours. This necessitates robust oversight from the government to ensure that the hours billed are reasonable, necessary, and directly related to the contract's objectives. Without diligent monitoring, costs can escalate beyond initial estimates. Additionally, the 'Labor Hours' structure can sometimes blur the lines of defined deliverables, making it easier for project scope to expand informally, leading to unplanned cost increases and delays if not managed proactively through change control processes.

How effective was the competitive bidding process in ensuring a fair market price for these IT services?

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which implies that it was competed under a full and open solicitation. This competitive nature is generally the government's best tool for ensuring a fair market price. By allowing multiple vendors to bid, the government can leverage market forces to obtain competitive pricing. The effectiveness of this specific competition in securing a 'fair' price depends on factors not detailed in the provided data, such as the number of bids received, the realism of the winning bid compared to others, and the government's negotiation leverage. However, the fact that it was competed is a strong indicator that the government sought to achieve competitive pricing.

What is the historical spending trend for IT support services within the Criminal Division of the DOJ?

The provided data represents a single contract award from 2004 to 2008. To understand historical spending trends for IT support services within the Criminal Division of the DOJ, a broader analysis of contract awards over multiple years would be required. This would involve examining all IT support contracts (across various NAICS codes and contract types) awarded to the Criminal Division or its predecessors during a significant period (e.g., the last 5-10 years). Such an analysis would reveal patterns in spending levels, types of services procured, dominant contractors, and shifts in technology focus. This single data point does not provide sufficient information to establish a historical trend.

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

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS RD STE 300, VIENNA, VA, 22182

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,321,553

Exercised Options: $11,321,553

Current Obligation: $11,321,553

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4829H

IDV Type: FSS

Timeline