DOJ's $61.2M contract for data services awarded to BA-ZAI JV, LLC, with 82 bids received

Contract Overview

Contract Amount: $61,240,739 ($61.2M)

Contractor: Ba-Zai JV, LLC

Awarding Agency: Department of Justice

Start Date: 2022-01-16

End Date: 2024-01-31

Contract Duration: 745 days

Daily Burn Rate: $82.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $61.2 million to BA-ZAI JV, LLC for work described as: DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY Key points: 1. The contract value of $61.2 million over its period of performance suggests a significant need for data processing and IT support. 2. A high number of bids (82) indicates robust market interest and potential for competitive pricing. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type implies a structured procurement process that aimed for broad participation. 4. The contract's focus on data entry, imaging, indexing, and IT support aligns with critical operational needs for agencies like the ATF. 5. The firm-fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs for the government. 6. The contract duration of 745 days (approximately 2 years) provides a stable period for service delivery and performance evaluation.

Value Assessment

Rating: good

The contract value of $61.2 million for data processing and IT support services appears reasonable given the scope and duration. Benchmarking against similar large-scale data management contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor can deliver efficiently. However, 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

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the government actively sought proposals from a wide range of qualified vendors. Receiving 82 bids is a strong indicator of a competitive marketplace for these services. This high level of competition generally leads to better price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: A highly competitive bidding process, evidenced by 82 offers, suggests that taxpayer dollars are likely being used efficiently, as contractors are incentivized to offer their best pricing to win the contract.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) benefits from enhanced data management and IT support, crucial for its law enforcement and regulatory functions. Services delivered include data entry, imaging, indexing, and IT support, which are foundational for efficient agency operations and record-keeping. The contract's geographic impact is primarily within the United States, supporting federal agency operations. The contract supports a specialized workforce in data processing and IT services, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Ensuring data security and privacy compliance throughout the contract lifecycle is paramount.
Performance monitoring needs to be robust to ensure service levels are consistently met.
Dependence on a single awardee for critical data processing functions could pose a risk if the contractor faces operational issues.

Positive Signals

The extensive competition (82 bids) suggests a healthy market and potential for high-quality service delivery.
The firm-fixed-price contract type provides cost certainty for the government.
The contract supports a critical government function, indicating strategic importance and likely well-defined requirements.
The award to a joint venture (BA-ZAI JV, LLC) may indicate a focus on leveraging diverse capabilities.

Sector Analysis

The contract falls within the IT and data processing sector, specifically under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services). This sector is characterized by rapid technological advancements and a high demand for specialized services. The market size for such services supporting federal agencies is substantial, with numerous companies competing for government contracts. This specific award represents a significant investment in maintaining and improving the government's data management capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if BA-ZAI JV, LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Justice's Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Performance monitoring, adherence to contract terms, and quality assurance are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. The potential for Inspector General involvement exists if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal data management services
IT support contracts
Law enforcement agency IT procurements
Data processing and hosting services
Bureau of Alcohol, Tobacco, Firearms and Explosives contracts

Risk Flags

Potential for performance issues
Data security and privacy risks
Contractor dependency
Transition challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61.2 million to BA-ZAI JV, LLC. DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is BA-ZAI JV, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $61.2 million.

What is the period of performance?

Start: 2022-01-16. End: 2024-01-31.

What is the track record of BA-ZAI JV, LLC in performing similar federal contracts?

Information regarding the specific track record of BA-ZAI JV, LLC in performing federal contracts of this magnitude and scope is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies' experiences. A thorough review would require examining past performance evaluations (e.g., CPARS reports) for this entity and its constituent members on previous government contracts. Understanding their history with data entry, imaging, indexing, and IT support services, particularly for law enforcement or similar agencies, would be crucial for assessing their capability and reliability in fulfilling this $61.2 million award.

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

The provided data does not include a detailed cost breakdown or specific unit pricing that would allow for a direct comparison to market rates. The total contract value of $61.2 million is for a period of approximately two years. To assess value for money, one would need to benchmark the estimated cost per service unit (e.g., per record processed, per hour of IT support) against industry standards and rates paid by other federal agencies for comparable services. The high number of bids (82) suggests competitive pricing was sought, but without specific benchmarks, it's difficult to definitively state if the price is optimal.

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

Key risks include potential performance deficiencies by the contractor, data security breaches, and challenges in transitioning services if issues arise. Mitigation strategies likely involve robust performance monitoring by the ATF, adherence to strict data security protocols mandated by the government, and clear contract terms defining deliverables and quality standards. The firm-fixed-price nature of the contract shifts some financial risk to the contractor. However, the government must maintain vigilant oversight to ensure compliance and address any emerging issues promptly to prevent service disruptions or data compromises.

How effective is the competition level in ensuring optimal value for taxpayers on this contract?

The contract was awarded under full and open competition after exclusion of sources, with 82 bids received. This high level of competition is a strong positive indicator for taxpayer value. It suggests that multiple capable vendors vied for the contract, driving down prices and encouraging innovation. The government likely benefited from a wide range of proposals and pricing structures, allowing for selection of the best overall value. This competitive environment reduces the risk of overpayment and enhances the likelihood that the services will be delivered efficiently and effectively.

What is the historical spending pattern for data processing and IT support services by the ATF or DOJ?

The provided data focuses on a single contract award and does not offer historical spending patterns for the ATF or DOJ in this category. To analyze historical spending, one would need to access procurement data over several fiscal years, identifying all contracts related to data processing, imaging, indexing, and IT support services awarded by these agencies. Comparing the current $61.2 million contract value against previous expenditures would reveal trends in spending levels, average contract values, and the number of awards, providing context on whether this contract represents an increase, decrease, or stable level of investment in these services.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this contract?

This award type signifies that the government initially intended full and open competition but later excluded certain sources, possibly due to specific technical requirements, security clearances, or other pre-defined criteria that narrowed the field from the absolute broadest possible pool. However, it still implies a significant level of competition among the remaining eligible sources. The fact that 82 bids were received suggests that even with exclusions, the competition remained robust, which is generally favorable for achieving competitive pricing and selecting a high-quality solution for the government.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 ROCKVILLE PIKE STE 400, ROCKVILLE, MD, 20852

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,419,770

Exercised Options: $80,633,046

Current Obligation: $61,240,739

Actual Outlays: $11,584,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJA16AHDQV0429

IDV Type: IDC

Timeline