DOJ awards $60.9M for IT support, data processing, and web hosting to Eagle Harbor, LLC

Contract Overview

Contract Amount: $60,916,610 ($60.9M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Justice

Start Date: 2024-02-01

End Date: 2029-01-31

Contract Duration: 1,826 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

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

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Justice obligated $60.9 million to EAGLE HARBOR, LLC for work described as: DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY Key points: 1. Contract value of $60.9M over 5 years suggests a significant investment in IT infrastructure and services. 2. The contract's focus on data processing and web hosting indicates a need for robust digital operational capabilities. 3. Awarded to Eagle Harbor, LLC, the contract's performance will be monitored by the Bureau of Alcohol, Tobacco, Firearms and Explosives. 4. The duration of nearly five years allows for sustained support and potential for long-term strategic IT planning. 5. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor. 6. The contract is not set aside for small businesses, indicating a focus on larger, established providers.

Value Assessment

Rating: good

The contract's total value of $60.9 million over approximately five years averages to about $12.2 million annually. This figure needs to be benchmarked against similar IT support and data processing contracts awarded by federal agencies to determine if it represents a competitive price. Without specific comparable contract data, a precise value-for-money assessment is challenging, but the duration and scope suggest a substantial, potentially market-rate investment.

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,' which implies that while the competition was broad, specific sources may have been excluded based on predefined criteria. This suggests a competitive process was intended, but the exact number of bidders and the rationale for excluding certain sources would require further investigation to fully assess the breadth of competition.

Taxpayer Impact: A full and open competition, even with exclusions, generally promotes price discovery and encourages multiple vendors to bid, which can lead to more favorable pricing for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Justice and its component agencies, likely the ATF, who will receive enhanced IT support and data processing capabilities. Services delivered include data entry, imaging, indexing, IT support, and related information technology services, crucial for modern law enforcement and administrative functions. The geographic impact is primarily within Alaska (ST: AK, SN: ALASKA), suggesting a localized operational focus for these IT services. Workforce implications may include the need for specialized IT personnel within the agency or reliance on the contractor's skilled workforce to manage these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems are deeply integrated.
Risk of cost overruns if the scope of work expands beyond initial projections.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

The fixed-price contract structure incentivizes the contractor to manage costs efficiently.
A five-year contract duration allows for stability and continuity of essential IT services.
Full and open competition, even with exclusions, suggests a robust bidding process that could yield competitive pricing.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data processing, web hosting, and IT support. The market for these services is highly competitive, with numerous federal and commercial providers. The total federal spending on IT services is in the hundreds of billions annually, making this contract a relatively small portion of the overall federal IT budget but significant for the specific needs of the ATF. Benchmarking against similar contracts for data processing and IT support within law enforcement agencies would provide further context on pricing and scope.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as it is not set aside for small businesses (SS: false, SB: false). This suggests that the requirement was likely fulfilled by larger companies capable of handling the scale and complexity of the IT services. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for smaller firms to participate in this specific contract's execution.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through federal contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal IT Infrastructure Services
Data Processing and Hosting Services
Law Enforcement IT Support
Department of Justice IT Contracts
Alaska Federal Contracts

Risk Flags

Potential for limited competition due to 'Exclusion of Sources'
Lack of explicit small business subcontracting requirements
Dependence on a single contractor for critical IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $60.9 million to EAGLE HARBOR, 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 EAGLE HARBOR, 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 $60.9 million.

What is the period of performance?

Start: 2024-02-01. End: 2029-01-31.

What is the track record of Eagle Harbor, LLC in performing similar federal IT support and data processing contracts?

A review of Eagle Harbor, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, the types and values of previous contracts, and any reported issues or successes. For instance, if they have a history of successfully delivering complex IT solutions on time and within budget for agencies with similar needs, it would indicate a lower performance risk. Conversely, a history of performance issues, contract disputes, or significant cost overruns would raise concerns. Without specific data on their past performance, it is difficult to definitively assess their reliability for this $60.9 million contract.

How does the annual value of this contract compare to similar IT support and data processing contracts awarded by the Department of Justice or other law enforcement agencies?

The annual value of this contract, approximately $12.2 million ($60.9M / 5 years), needs to be benchmarked against comparable contracts. For example, comparing it to other DOJ or ATF contracts for IT support, data processing, and web hosting services of similar scope and duration would reveal if the pricing is competitive. If similar contracts awarded through full and open competition are valued significantly lower, it might suggest this contract is priced above market rates. Conversely, if it aligns with or is lower than benchmarks, it indicates good value for money. Access to a database of federal contract awards with detailed pricing information is crucial for this comparative analysis.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award type for this contract?

The 'Full and Open Competition After Exclusion of Sources' (FOUC AES) award type presents a nuanced risk profile. While it aims for broad competition, the 'exclusion of sources' implies that certain potential bidders were deliberately disqualified based on specific criteria, which could be related to security, capability, or other factors. The risk lies in whether these exclusions were justified and did not unduly limit competition, potentially leading to less favorable pricing or fewer innovative solutions. If the exclusions were arbitrary or overly restrictive, it could reduce the competitive pressure on the awarded contractor, potentially impacting long-term value for taxpayers. A thorough review of the justification for exclusions is needed to assess this risk.

What is the potential impact of this contract on the ATF's ability to modernize its IT infrastructure and data management capabilities?

This $60.9 million contract is likely to have a significant positive impact on the ATF's IT modernization efforts. By securing dedicated funding and a five-year service period for data entry, imaging, indexing, IT support, and web hosting, the ATF can ensure the stability and enhancement of its critical digital infrastructure. This allows for the implementation of updated systems, improved data accessibility, and more robust cybersecurity measures. The sustained support can facilitate the transition to more advanced technologies, enabling better data analysis for law enforcement operations and administrative efficiency. The long-term nature of the contract also provides a predictable foundation for strategic IT planning and upgrades.

How does the fixed-price contract type (PT: FIRM FIXED PRICE) influence cost control and performance incentives for Eagle Harbor, LLC?

The Firm Fixed Price (FFP) contract type is designed to provide the government with cost certainty and shift the risk of cost overruns to the contractor, Eagle Harbor, LLC. Under an FFP agreement, the contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and to complete the work within budget. If Eagle Harbor, LLC incurs higher-than-expected costs, their profit margin will decrease. Conversely, if they can complete the work under budget, their profit will increase. This structure encourages proactive cost management and efficient service delivery, aligning the contractor's financial interests with the government's objective of obtaining services at a set price.

What is the historical spending trend for similar IT support and data processing services within the Department of Justice over the past five years?

Analyzing historical spending trends for similar IT support and data processing services within the Department of Justice (DOJ) over the past five years would provide valuable context for this $60.9 million award. This would involve examining the total annual expenditure on such services, the number and value of contracts awarded, and the primary contractors involved. Understanding these trends can reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether the DOJ is consolidating or diversifying its IT service providers. Such an analysis could also highlight any significant shifts in technology or service requirements that might explain changes in spending patterns and inform future procurement strategies.

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

Solicitation ID: 15A00021R00000101

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

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: $60,916,610

Exercised Options: $60,916,610

Current Obligation: $60,916,610

Actual Outlays: $49,467,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15A00023DAQA00029

IDV Type: IDC

Timeline