DOJ's DEA awards $41.2M for Translation Services to City of Philadelphia, raising concerns about competition
Contract Overview
Contract Amount: $41,202 ($41.2K)
Contractor: City of Philadelphia
Awarding Agency: Department of Justice
Start Date: 2026-04-02
End Date: 2026-05-11
Contract Duration: 39 days
Daily Burn Rate: $1.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: TRANSLATION SERVICES
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106
Plain-Language Summary
Department of Justice obligated $41,201.6 to CITY OF PHILADELPHIA for work described as: TRANSLATION SERVICES Key points: 1. Significant contract value of $41.2 million for translation services. 2. Sole-source award to a city government entity, limiting market competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on specialized language services for law enforcement operations.
Value Assessment
Rating: questionable
The contract value of $41.2 million for a 39-day period is exceptionally high. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates for similar translation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to inflated costs as there is no market pressure to offer competitive pricing.
Taxpayer Impact: Taxpayers may be overpaying for translation services due to the absence of a competitive bidding process.
Public Impact
Limited access to specialized translation services for federal agencies. Potential for increased costs impacting agency budgets. Reduced opportunities for small businesses in the translation services market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for short duration
- Sole-source award
Positive Signals
- Essential service for law enforcement operations
- Award to a government entity
Sector Analysis
The translation and interpretation services sector is diverse, with many small businesses offering specialized linguistic support. A $41.2 million award for a short duration, especially if sole-sourced, is unusual and warrants scrutiny against industry benchmarks.
Small Business Impact
The sole-source nature of this award, particularly to a city government entity, likely excludes small businesses from participating and competing for this significant contract, limiting their market access.
Oversight & Accountability
The lack of competition raises questions about the oversight of this procurement. Further review is needed to understand why this contract was not competed and if adequate justification exists for the sole-source award.
Related Government Programs
- Translation and Interpretation Services
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- High value for short duration
- Potential for overpayment
- Limited small business participation
Tags
translation-and-interpretation-services, department-of-justice, pa, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $41,201.6 to CITY OF PHILADELPHIA. TRANSLATION SERVICES
Who is the contractor on this award?
The obligated recipient is CITY OF PHILADELPHIA.
Which agency awarded this contract?
Awarding agency: Department of Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $41,201.6.
What is the period of performance?
Start: 2026-04-02. End: 2026-05-11.
What is the justification for awarding this substantial contract on a sole-source basis, especially given the short duration?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For a translation services contract, especially one of this value and duration, the rationale needs to be exceptionally strong. Without competitive bidding, it's difficult to ascertain if the government received the best value or if alternative, more cost-effective solutions were overlooked.
How does the per-unit cost of these translation services compare to industry benchmarks, given the lack of competition?
Without a competitive bidding process, establishing a reliable per-unit cost benchmark is challenging. The absence of multiple bids means there's no market-driven data to compare against. It's crucial to investigate if the government conducted an independent cost analysis or relied on historical data that might not reflect current market rates, potentially leading to overpayment.
What is the potential impact on future federal procurements for translation services if sole-source awards become a trend?
If sole-source awards for essential services like translation become a trend, it could stifle innovation and competition within the industry. This may lead to consistently higher prices for federal agencies, reduced quality as providers face less pressure to perform, and limited opportunities for small and disadvantaged businesses to enter the federal market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 3 S PENN SQ, PHILADELPHIA, PA, 19107
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,202
Exercised Options: $41,202
Current Obligation: $41,202
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-05-11
Potential End Date: 2026-05-11 00:00:00
Last Modified: 2026-04-02
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