DOJ DEA Awards $72M T&M Contract for Intelligence Support Services to Eagle Harbor, LLC

Contract Overview

Contract Amount: $72,096,044 ($72.1M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of Justice

Start Date: 2022-05-23

End Date: 2027-03-22

Contract Duration: 1,764 days

Daily Burn Rate: $40.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: (T&M) CONTRACT FOR PROFESSIONAL, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES (PTASS) FOR THE INTELLIGENCE DIVISION (NC) MERRIFIELD, CHANTILLY, AND ARLINGTON, VA (HQ)

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $72.1 million to EAGLE HARBOR, LLC for work described as: (T&M) CONTRACT FOR PROFESSIONAL, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES (PTASS) FOR THE INTELLIGENCE DIVISION (NC) MERRIFIELD, CHANTILLY, AND ARLINGTON, VA (HQ) Key points: 1. Contract awarded via full and open competition after exclusion of sources. 2. Time and Materials (T&M) contract type can pose cost control risks. 3. Intelligence Division support services are critical for DEA operations. 4. The contract duration is over 4 years, indicating a significant commitment. 5. No small business participation noted in this award.

Value Assessment

Rating: questionable

The Time and Materials (T&M) contract type, while flexible, offers less price certainty compared to fixed-price contracts. Benchmarking T&M contracts for similar professional, technical, and administrative support services is challenging due to variable labor rates and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific source limitations. This method aims for competition while potentially focusing on specialized capabilities.

Taxpayer Impact: The use of T&M pricing without clear cost ceilings could lead to higher than anticipated expenditures for taxpayers if not closely managed.

Public Impact

Ensures continued operational support for the DEA's Intelligence Division. Potential for cost overruns due to T&M contract type. Supports specialized professional, technical, and administrative functions. Awardee is Eagle Harbor, LLC, a single entity for this order. Contract spans multiple locations in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

T&M contract type
Lack of small business participation
Potential for scope creep

Positive Signals

Full and open competition
Critical support services for intelligence division

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), which encompasses a broad range of technical and advisory services. Spending in this sector can vary widely based on project complexity and duration, with T&M contracts often used for research and development or undefined scopes.

Small Business Impact

The award data indicates that small business participation was not a factor in this specific contract award. This suggests the prime contractor, Eagle Harbor, LLC, is likely a larger entity or that the specific requirements did not lend themselves to subcontracting with small businesses.

Oversight & Accountability

Oversight will be crucial to manage the T&M aspects of this contract, ensuring that hours and costs are reasonable and directly related to the defined scope of work for the Intelligence Division. Regular performance reviews and cost audits are recommended.

Related Government Programs

Engineering Services
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Time and Materials contract type increases cost uncertainty.
Potential for unmanaged scope creep.
Lack of small business participation.
Exclusion of sources in competition method requires scrutiny.
Long contract duration (over 4 years).

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $72.1 million to EAGLE HARBOR, LLC. (T&M) CONTRACT FOR PROFESSIONAL, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES (PTASS) FOR THE INTELLIGENCE DIVISION (NC) MERRIFIELD, CHANTILLY, AND ARLINGTON, VA (HQ)

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $72.1 million.

What is the period of performance?

Start: 2022-05-23. End: 2027-03-22.

What is the estimated total cost if the contract reaches its maximum value, and how does this compare to similar intelligence support contracts?

The contract has a maximum value of $72,096,043.74 over its duration. Benchmarking this against similar intelligence support contracts is difficult without more specific details on the services provided and the labor categories involved. However, the T&M structure means the final cost could be significantly lower or higher depending on actual effort expended.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' method, and how are they mitigated?

This method implies that while competition was sought, certain sources were excluded, potentially limiting the pool of qualified bidders. Risks include missing out on potentially more innovative or cost-effective solutions from excluded firms. Mitigation relies on a robust justification for exclusions and thorough evaluation of the remaining bidders' proposals.

How will the DEA ensure effective delivery of professional, technical, and administrative support services under a T&M contract to meet intelligence division needs?

Effective delivery will depend on strong contract management by the DEA. This includes clearly defining performance expectations, closely monitoring labor hours and rates, conducting regular progress reviews, and implementing strict change control processes. Proactive communication with Eagle Harbor, LLC will be essential to address any issues promptly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $123,483,881

Exercised Options: $123,471,085

Current Obligation: $72,096,044

Actual Outlays: $57,677,652

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $28,313,346

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8111

IDV Type: IDC

Timeline