DOJ's $20.6M Monster Web-Based Employment System contract awarded to Merlin International, Inc

Contract Overview

Contract Amount: $20,605,193 ($20.6M)

Contractor: Merlin International, Inc.

Awarding Agency: Department of Justice

Start Date: 2019-10-01

End Date: 2026-09-30

Contract Duration: 2,556 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MONSTER WEB-BASED EMPLOYMENT PROCESSING SYSTEM

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $20.6 million to MERLIN INTERNATIONAL, INC. for work described as: MONSTER WEB-BASED EMPLOYMENT PROCESSING SYSTEM Key points: 1. Value for money appears fair given the 7-year duration and fixed-price nature. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include the long performance period and the specific nature of the system. 4. Performance context is within the Federal Prison System's need for employment processing. 5. Sector positioning is within IT services for government operations.

Value Assessment

Rating: fair

The contract's total value of $20.6 million over approximately 7 years averages to about $2.9 million annually. This figure needs to be benchmarked against similar government IT system development and maintenance contracts. Without specific details on the system's complexity and user base, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty for the government, which is a positive indicator.

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 bids. The data does not specify the number of bidders, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on both technical merit and cost.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions being considered, potentially reducing overall expenditure.

Public Impact

Benefits federal correctional institutions by providing a centralized employment processing system. Delivers IT services for managing inmate and staff employment data. Geographic impact is nationwide, supporting Bureau of Prisons facilities. Workforce implications include IT support staff and system administrators for the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (7 years) could lead to scope creep or evolving technological needs not fully addressed.
Reliance on a single system for critical employment processing carries inherent operational risks.
The specific nature of 'Monster Web-Based Employment Processing System' suggests a niche application where market comparables might be limited.

Positive Signals

Firm fixed-price contract provides budget certainty.
Awarded under full and open competition, suggesting a robust selection process.
Clear performance period (2019-2026) allows for structured project management.

Sector Analysis

This contract falls within the government's broader IT services sector, specifically focusing on software development and maintenance for administrative functions. The market for government IT solutions is substantial, with agencies continually seeking to modernize systems. Comparable spending benchmarks would involve looking at other large-scale IT system procurements for federal agencies, particularly those involving human resources or case management.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. As a large contract awarded through full and open competition, it is likely that larger prime contractors were the primary awardees. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Justice's Federal Prison System. Accountability measures are embedded in the firm fixed-price contract terms and performance requirements. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed system functionalities may not be publicly disclosed.

Related Government Programs

Federal IT Modernization Programs
Bureau of Prisons IT Infrastructure
Government Human Resources Systems
Criminal Justice Information Systems

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for scope creep over the 7-year performance period.
System criticality requires robust contingency and disaster recovery planning.
Dependence on a single vendor for a core operational system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20.6 million to MERLIN INTERNATIONAL, INC.. MONSTER WEB-BASED EMPLOYMENT PROCESSING SYSTEM

Who is the contractor on this award?

The obligated recipient is MERLIN INTERNATIONAL, 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 $20.6 million.

What is the period of performance?

Start: 2019-10-01. End: 2026-09-30.

What is the track record of Merlin International, Inc. with federal contracts, particularly within the Department of Justice?

Merlin International, Inc. has a history of securing federal contracts, including those with the Department of Justice. Analyzing their past performance on similar IT projects, especially those involving system development and long-term maintenance, is crucial. A review of their contract history would reveal their success rates, any past performance issues or disputes, and their experience with firm fixed-price agreements. Understanding their financial stability and capacity to handle a contract of this magnitude is also important for assessing risk and ensuring successful delivery of the Monster Web-Based Employment Processing System.

How does the per-unit cost or overall value of this contract compare to similar government employment processing systems?

Benchmarking the value of the Monster Web-Based Employment Processing System contract requires comparing its total cost ($20.6 million over ~7 years) and annual average cost (approx. $2.9 million) against similar systems procured by other federal agencies or even state governments. Key comparison points would include the system's scope, number of users, complexity of features (e.g., integration with other systems, reporting capabilities), and the level of customization required. Without detailed specifications, a direct comparison is difficult, but this contract's value should be assessed against the market rates for developing and maintaining large-scale, specialized government IT applications.

What are the primary risks associated with the long performance period (7 years) for this IT system?

The 7-year performance period for the Monster Web-Based Employment Processing System presents several risks. Technological obsolescence is a significant concern; IT systems can become outdated rapidly, potentially requiring costly upgrades or replacements before the contract ends. Scope creep is another risk, where requirements may expand beyond the original agreement, leading to cost overruns or delays if not managed effectively. Furthermore, maintaining system security and compliance with evolving federal regulations over such a long period requires continuous vigilance and investment. The contractor's ability to sustain performance and adapt to changing needs throughout the contract's life is critical.

How effective has the Bureau of Prisons been in managing similar large-scale IT procurements in the past?

Assessing the Bureau of Prisons' (BOP) effectiveness in managing large-scale IT procurements requires reviewing their historical contract performance, including any challenges faced with system implementation, budget adherence, and timely delivery. Past Inspector General reports or GAO audits related to BOP IT projects could provide valuable insights into their program management capabilities, oversight mechanisms, and any recurring issues. Understanding their track record helps in evaluating the likelihood of successful execution for the Monster Web-Based Employment Processing System and identifying potential areas where enhanced oversight might be necessary.

What is the historical spending trend for employment processing systems within the Federal Prison System?

Analyzing historical spending on employment processing systems within the Federal Prison System (FPS) or Bureau of Prisons (BOP) is essential for context. This involves examining previous contracts for similar systems, including their duration, cost, and the vendors involved. Understanding whether spending has been consistent, increasing, or decreasing provides insight into the agency's investment priorities and potential budget cycles. Comparing the current $20.6 million contract to past expenditures can help determine if this represents a significant increase, a standard replacement cycle, or a consolidation of services.

Are there any known performance issues or contract disputes related to Merlin International, Inc. on previous DOJ or similar federal contracts?

Investigating Merlin International, Inc.'s performance history on prior federal contracts, especially those with the Department of Justice or for comparable IT systems, is crucial for risk assessment. This involves searching contract databases (like FPDS-NG or SAM.gov) for past performance evaluations, any reported disputes, contract modifications due to issues, or terminations. A clean record with positive performance reviews would indicate a lower risk, while evidence of recurring problems or unresolved disputes would raise significant concerns about the successful delivery of the Monster Web-Based Employment Processing System.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15BNAS19QRCA00128

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD 8TH FL, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,285,450

Exercised Options: $21,821,124

Current Obligation: $20,605,193

Actual Outlays: $15,401,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC17B

IDV Type: GWAC

Timeline