DOJ's $8.6M software maintenance contract awarded to Advanced Technologies Group LLC

Contract Overview

Contract Amount: $8,596,511 ($8.6M)

Contractor: Advanced Technologies Group LLC

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BEMR ANNUAL MAINTENANCE FY23-FY27

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63132

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $8.6 million to ADVANCED TECHNOLOGIES GROUP LLC for work described as: BEMR ANNUAL MAINTENANCE FY23-FY27 Key points: 1. Contract value appears reasonable given the duration and scope of software maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which transfers some risk to the contractor. 4. This contract supports essential IT infrastructure for the Federal Prison System. 5. The contractor has a single award for this specific service. 6. The contract duration is over three years, indicating a long-term need.

Value Assessment

Rating: good

The contract's total value of approximately $8.6 million over four years for software maintenance is within a reasonable range for enterprise-level IT support. Benchmarking against similar software maintenance contracts for federal agencies of comparable size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on service level agreements.

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 a bid. This method generally fosters a competitive environment, potentially leading to better pricing and service offerings. The data does not specify the number of bidders, which would provide further insight into the intensity of the competition. A robust competition typically benefits the government by driving down costs and improving quality.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a wide range of bids and encourages contractors to offer their best pricing and services.

Public Impact

The Federal Prison System benefits from continuous and reliable maintenance of its software systems. Essential IT services are delivered to support the operational needs of correctional facilities. The contract's geographic impact is nationwide, supporting facilities managed by the Bureau of Prisons. The contract supports the IT workforce responsible for maintaining and operating these software systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements (SLAs) in the provided data makes it difficult to assess contractor performance objectively.
The duration of the contract (over three years) could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for a critical IT function warrants close monitoring of performance and potential future competition.

Positive Signals

The use of firm-fixed-price contract type helps to control costs and provides budget certainty.
Awarding under full and open competition suggests a fair and transparent procurement process.
The contract supports essential functions for the Bureau of Prisons, indicating a critical need being met.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software maintenance and support. The North American Industry Classification System (NAICS) code 511210 (Software Publishers) is listed, though the service is maintenance rather than new software development or sales. The market for IT maintenance services is substantial, with federal agencies being significant consumers. Comparable spending benchmarks would involve analyzing other federal contracts for similar software maintenance agreements, considering factors like the criticality of the software and the size of the user base.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary focus of this contract appears to be on larger, established vendors capable of providing comprehensive software maintenance services. The impact on the small business ecosystem is neutral in this instance, as it was not specifically designed to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Justice's Federal Prison System. Accountability measures are inherent in the firm-fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance reports and internal oversight processes are generally not publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) compliance
Bureau of Prisons IT Modernization Efforts
Software Licensing and Maintenance Agreements
Cloud Computing Services (if applicable to underlying software)

Risk Flags

Potential for performance issues if contractor lacks expertise.
Risk of security vulnerabilities if software is not updated promptly.
Budgetary constraints could impact future renewals or scope.
Dependence on a single vendor for critical system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8.6 million to ADVANCED TECHNOLOGIES GROUP LLC. BEMR ANNUAL MAINTENANCE FY23-FY27

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGIES GROUP LLC.

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 $8.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the track record of Advanced Technologies Group LLC in providing similar software maintenance services to federal agencies?

Assessing the track record of Advanced Technologies Group LLC requires a deeper dive into their past performance on federal contracts. This would involve reviewing contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (Contractor Performance Assessment Reporting System - CPAS), and any documented issues or successes. Without this specific data, it's difficult to definitively state their expertise. However, being awarded a contract of this nature by the Department of Justice suggests they have met certain pre-qualification criteria and demonstrated capability. Further investigation into their history with similar software, contract types (firm-fixed-price), and agency types (law enforcement, corrections) would provide a more robust understanding of their reliability and competence in delivering these critical maintenance services.

How does the annual cost of this contract compare to industry benchmarks for similar software maintenance?

The annual cost for this contract averages approximately $2.15 million ($8.6M / 4 years). To benchmark this effectively, we would need to compare it against industry data for maintenance of the specific software involved (if known) or comparable enterprise software suites used by large organizations. Factors influencing this benchmark include the criticality of the software, the number of users, the complexity of the system, and the required service level agreements (SLAs). For instance, maintenance for mission-critical financial or security software often commands higher fees than for less sensitive applications. Without knowing the specific software and its market, a precise comparison is difficult. However, for a large federal agency like the Bureau of Prisons, this annual figure appears within a plausible range for comprehensive support, assuming it covers 24/7 support, regular updates, and technical assistance.

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

The primary risks associated with this contract include potential underperformance by the contractor, leading to system downtime or security vulnerabilities; cost overruns if the firm-fixed-price structure is not adequately managed; and vendor lock-in due to the long-term nature of the agreement. Mitigation strategies include robust contract oversight by the agency, clearly defined performance metrics and SLAs (though not detailed in the provided data), regular performance reviews, and contingency planning for service disruptions. The firm-fixed-price nature itself mitigates cost overrun risk for the government, placing that burden on the contractor. To counter vendor lock-in, the agency should maintain awareness of alternative solutions and foster an environment where the contractor is incentivized to perform well to secure future business.

What is the expected effectiveness of this contract in ensuring the operational continuity of the Federal Prison System's IT infrastructure?

The effectiveness of this contract in ensuring operational continuity hinges on the contractor's ability to provide timely and competent maintenance, updates, and technical support for the software systems utilized by the Federal Prison System. Given that this is a maintenance contract for existing software, its primary goal is to prevent degradation, address bugs, and ensure systems remain functional and secure. The firm-fixed-price structure incentivizes the contractor to deliver these services efficiently. However, true effectiveness also depends on the quality of the software itself and the agency's internal IT management. If the software is outdated or inherently unstable, even excellent maintenance may not guarantee seamless operations. The contract's success will be measured by the reduction in system failures, security incidents, and user-reported issues related to the maintained software.

How has federal spending on software maintenance evolved, and where does this contract fit within that trend?

Federal spending on IT, including software maintenance, has generally trended upwards over the past decade, driven by increasing digitalization, cybersecurity needs, and the adoption of new technologies. Agencies are often required to maintain legacy systems while also investing in modern solutions. This contract, valued at approximately $8.6 million over four years, represents a specific allocation for maintaining essential software within the Bureau of Prisons. It fits within the broader trend of agencies dedicating significant resources to ensure the ongoing functionality and security of their IT assets. While specific historical spending data for this exact software or system isn't provided, this award reflects the consistent need for such services across government, particularly in operational environments like correctional facilities where IT reliability is paramount.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15BNAS22Q00000513

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 10880 LINPAGE PL, SAINT LOUIS, MO, 63132

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

Financial Breakdown

Contract Ceiling: $11,144,595

Exercised Options: $8,596,511

Current Obligation: $8,596,511

Actual Outlays: $7,004,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0006R

IDV Type: FSS

Timeline