DOJ's $42M AWS Cloud & Web Dev Contract Awarded to Effectual Public Sector Inc

Contract Overview

Contract Amount: $42,030,100 ($42.0M)

Contractor: Effectual Public Sector Inc

Awarding Agency: Department of Justice

Start Date: 2020-04-01

End Date: 2025-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AWS GOV CLOUD ACCOUNTS AND WEB DEVELOPMENT

Place of Performance

Location: OXON HILL, PRINCE GEORGES County, MARYLAND, 20745

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $42.0 million to EFFECTUAL PUBLIC SECTOR INC for work described as: AWS GOV CLOUD ACCOUNTS AND WEB DEVELOPMENT Key points: 1. Contract focuses on critical cloud infrastructure and web development for the Bureau of Prisons. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration extends over five years, indicating a long-term need. 4. Delivery order award type suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract is structured using labor hours, which can be efficient for evolving requirements but requires careful monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task order details or comparable contract data. The total award amount of $42 million over five years averages to approximately $8.4 million annually. This figure needs to be assessed against the scope and complexity of AWS cloud account management and web development services provided to the Federal Prison System. Without more granular data on labor rates, hours, and specific deliverables, a definitive value-for-money assessment is difficult. However, the use of labor hours necessitates close oversight to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the full and open nature suggests a robust selection process. The agency likely sought to leverage the broadest possible market to meet its requirements for AWS cloud services and web development.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services due to market forces. This approach encourages a wider range of contractors to compete, driving efficiency and innovation.

Public Impact

The Federal Prison System / Bureau of Prisons benefits from enhanced cloud infrastructure and web development capabilities. Improved IT services can support the operational efficiency and security of correctional facilities. The contract supports the modernization of digital services within a key component of the Department of Justice. Workforce implications may include the need for specialized IT personnel within Effectual Public Sector Inc. to manage cloud environments and develop web applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts require diligent monitoring to ensure efficient use of taxpayer funds and prevent scope creep.
The long duration of the contract (over five years) necessitates ongoing performance evaluation to ensure continued value.
Dependence on a single vendor for critical cloud infrastructure and web development could pose a risk if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable terms.
The contract addresses essential IT modernization needs for the Bureau of Prisons, indicating strategic alignment with agency goals.
The use of AWS GovCloud implies adherence to specific government security and compliance standards for cloud services.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending on cloud computing, custom software development, and web services. Contracts like this, falling under NAICS code 541511 (Custom Computer Programming Services), are common across many government agencies. The Department of Justice, like other large federal entities, relies heavily on IT to manage its complex operations. Spending benchmarks for similar cloud and web development services vary widely based on scope, complexity, and security requirements, but this $42 million award over five years represents a substantial investment in modernizing critical infrastructure.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, Effectual Public Sector Inc., will be responsible for fulfilling the contract requirements. While not a set-aside, the competitive nature of full and open contracts can sometimes lead to opportunities for small businesses as subcontractors if the prime contractor chooses to engage them for specialized services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Justice, specifically the contracting officers and program managers responsible for the Federal Prison System / Bureau of Prisons IT initiatives. The contract's performance will be monitored against established deliverables and service level agreements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Justice IT Modernization Programs
Federal Bureau of Prisons IT Services
AWS Cloud Services Contracts
Custom Computer Programming Services
Web Development Services

Risk Flags

Potential for cost overruns due to labor hour contract type if not closely managed.
Long contract duration requires sustained performance monitoring.
Dependence on a single vendor for critical IT services.
Need for robust security protocols given the sensitive nature of federal prison data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $42.0 million to EFFECTUAL PUBLIC SECTOR INC. AWS GOV CLOUD ACCOUNTS AND WEB DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is EFFECTUAL PUBLIC SECTOR INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $42.0 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-09-30.

What is the track record of Effectual Public Sector Inc. in delivering similar cloud and web development services to federal agencies?

Assessing the track record of Effectual Public Sector Inc. requires a review of their past performance on federal contracts, particularly those involving AWS cloud services and custom web development. Information on past performance, including client satisfaction, adherence to schedule and budget, and technical execution, is typically available through sources like the Federal Procurement Data System (FPDS) and potentially through past performance questionnaires submitted during the bidding process. A detailed analysis would involve examining the size, scope, and complexity of their previous projects, as well as any documented performance issues or commendations. Without specific data on their past performance on comparable contracts, it is difficult to definitively assess their capabilities for this significant DOJ award.

How does the pricing structure (labor hours) compare to fixed-price or other contract types for similar federal IT services?

Labor hour contracts, like the one used here, offer flexibility for evolving requirements but can be less predictable in terms of final cost compared to fixed-price contracts. For federal IT services, fixed-price contracts are often preferred when the scope is well-defined, as they shift cost risk to the contractor. However, for complex projects like cloud migration and custom development where requirements may change, labor hour contracts can be advantageous if managed diligently. Benchmarking requires comparing the average hourly rates and estimated hours against market rates for similar skill sets (e.g., cloud architects, developers) and against historical data for similar government projects. The Department of Justice's choice of labor hours suggests a need for adaptability, but it necessitates robust oversight to ensure cost efficiency and prevent overruns.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for this contract would likely focus on the successful implementation and ongoing management of AWS GovCloud accounts, the development and deployment of web applications, and adherence to security and compliance standards. Specific KPIs could include system uptime and availability, response times for cloud services, successful completion of development milestones, user satisfaction with web applications, and compliance with relevant federal regulations (e.g., FedRAMP, FISMA). The contract's performance work statement (PWS) or statement of work (SOW) would detail these specific metrics and their associated targets. Regular performance reviews between the DOJ and Effectual Public Sector Inc. would track progress against these KPIs.

What is the historical spending trend for custom computer programming services within the Federal Prison System / Bureau of Prisons?

Analyzing historical spending trends for custom computer programming services within the Federal Prison System / Bureau of Prisons requires accessing procurement data over several fiscal years. This would involve querying databases like FPDS for contracts awarded under NAICS code 541511 to the Bureau of Prisons. Trends might reveal an increasing or decreasing reliance on external contractors for these services, shifts in technology focus (e.g., from traditional software to cloud-based solutions), and average contract values. Understanding these patterns can provide context for the current $42 million award, indicating whether it represents a significant increase, a continuation of existing investment levels, or a strategic shift in IT procurement for the agency.

Are there any known risks associated with Effectual Public Sector Inc.'s ability to manage large-scale cloud infrastructure projects?

Assessing risks associated with Effectual Public Sector Inc.'s ability to manage large-scale cloud infrastructure projects involves reviewing their past performance data, financial stability, and any documented issues on previous contracts. Specific risks could include technical challenges in migrating or managing complex AWS environments, potential security vulnerabilities if not managed according to stringent government standards, and the contractor's capacity to scale resources effectively to meet the demands of the Bureau of Prisons. Information on past performance, including any instances of project delays, cost overruns, or security incidents, would be crucial. Additionally, the contractor's certifications and experience with AWS GovCloud specifically are important indicators of their preparedness for this type of federal contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15BNAS20Q00000017

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 163 WATERFRONT ST, OXON HILL, MD, 20745

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,060,732

Exercised Options: $42,060,732

Current Obligation: $42,030,100

Actual Outlays: $36,148,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F135BA

IDV Type: FSS

Timeline