DOJ Awards $27.9M AWS ECP Contract to Effectual Public Sector for Custom Programming

Contract Overview

Contract Amount: $27,946,699 ($27.9M)

Contractor: Effectual Public Sector Inc

Awarding Agency: Department of Justice

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $76.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AMAZON WEB SERVICES ECP AWS CONTRACT

Place of Performance

Location: JERSEY CITY, HUDSON County, NEW JERSEY, 07310

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $27.9 million to EFFECTUAL PUBLIC SECTOR INC for work described as: AMAZON WEB SERVICES ECP AWS CONTRACT Key points: 1. Contract value of $27.9M for cloud services. 2. Awarded under full and open competition. 3. Potential risk associated with sole-source vendor reliance. 4. IT sector spending for federal prison system.

Value Assessment

Rating: fair

The contract value of $27.9M for cloud services appears reasonable given the scope and duration. However, without specific performance metrics or detailed service breakdowns, a precise pricing assessment against similar contracts is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Enhances IT infrastructure for the Federal Prison System. Supports critical operational needs through cloud services. Potential for improved data management and accessibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in potential
Reliance on a single provider for critical services
Data security and privacy concerns

Positive Signals

Leverages established cloud infrastructure
Supports modernization efforts
Competitive award process

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Federal spending on cloud computing and related IT services has been steadily increasing to modernize infrastructure and improve efficiency.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses, suggesting it was awarded to a larger entity capable of fulfilling the complex requirements.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance standards and that the services provided align with the Department of Justice's objectives and security protocols.

Related Government Programs

Custom Computer Programming Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Vendor lock-in
Data security and privacy
Reliance on a single cloud provider
Potential for cost overruns if not managed effectively

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $27.9 million to EFFECTUAL PUBLIC SECTOR INC. AMAZON WEB SERVICES ECP AWS CONTRACT

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 $27.9 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the expected return on investment for this cloud computing contract?

The return on investment is expected to be realized through improved operational efficiency, enhanced data security, and potential cost savings compared to maintaining on-premise infrastructure. Specific ROI metrics should be tracked against performance benchmarks to quantify the value delivered over the contract's lifecycle.

What are the primary risks associated with relying on Amazon Web Services for federal prison system operations?

Primary risks include potential vendor lock-in, dependence on a single provider for critical infrastructure, and data security vulnerabilities. Ensuring robust security protocols, contingency plans, and regular audits are essential to mitigate these risks and maintain operational continuity.

How effectively will this contract support the modernization goals of the Federal Prison System?

This contract is expected to significantly support modernization by providing scalable and flexible cloud infrastructure. It enables the adoption of advanced technologies, improves data accessibility for staff, and can streamline various administrative and operational processes, contributing to overall system efficiency.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $27,946,699

Exercised Options: $27,946,699

Current Obligation: $27,946,699

Actual Outlays: $19,326,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F135BA

IDV Type: FSS

Timeline