DOJ's FBI awarded $23M to ImmixTechnology for IT hardware and software, with limited competition

Contract Overview

Contract Amount: $23,031,918 ($23.0M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Justice

Start Date: 2017-12-18

End Date: 2018-11-30

Contract Duration: 347 days

Daily Burn Rate: $66.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM MAINFRAME SOFTWARE AND MAINTENANCE, "DISTRIBUTED (NONMAINFRAME) SOFTWARE AND MAINTENANCE, AND DATAPOWER APPLIANCE HARDWARE AND SOFTWARE AND MAINTENANCE.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $23.0 million to IMMIXTECHNOLOGY INC for work described as: IBM MAINFRAME SOFTWARE AND MAINTENANCE, "DISTRIBUTED (NONMAINFRAME) SOFTWARE AND MAINTENANCE, AND DATAPOWER APPLIANCE HARDWARE AND SOFTWARE AND MAINTENANCE. Key points: 1. The contract's value appears reasonable given the scope of IT hardware, software, and maintenance services. 2. Competition was limited, raising potential concerns about price discovery and optimal value for taxpayer funds. 3. The contract duration of approximately one year presents a moderate risk for long-term IT strategy alignment. 4. This spending supports critical IT infrastructure for the FBI's law enforcement and investigative operations. 5. The IT sector is characterized by rapid technological change, requiring continuous evaluation of hardware and software needs. 6. The FBI's reliance on specific vendors for specialized hardware and software can create dependencies.

Value Assessment

Rating: fair

The contract value of $23 million for IT hardware, software, and maintenance is substantial. Benchmarking against similar contracts for large federal agencies is challenging without more specific details on the exact hardware and software procured. However, the price appears within a plausible range for enterprise-level IT solutions. The fixed-price nature of the contract shifts some risk to the contractor, but the lack of robust competition could mean the government did not secure the best possible pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed on a full and open basis, indicating a limited competition approach. The specific reasons for this limitation are not detailed in the provided data. Limited competition can sometimes result from the need for specialized products or services that only a few vendors can provide, or it could be due to specific contract vehicles used. Without knowing the number of bidders or the justification for limited competition, it's difficult to definitively assess its impact on price discovery.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers if effective market forces are not engaged to drive down costs through robust bidding.

Public Impact

Federal law enforcement agencies, specifically the FBI, benefit from access to necessary IT hardware and software. The services delivered include the provision and maintenance of critical IT infrastructure, supporting daily operations. The geographic impact is likely nationwide, as the FBI operates across the United States. Workforce implications include enabling FBI personnel with the tools needed for investigations and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Risk of vendor lock-in if specific proprietary hardware/software is required.
Need for ongoing monitoring to ensure performance meets FBI requirements.

Positive Signals

Procurement of essential IT resources for national security and law enforcement.
Fixed-price contract structure can provide cost certainty if scope is well-defined.
Contract supports a critical government function, ensuring operational continuity.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on hardware, software, and maintenance. The IT market is highly dynamic, with constant innovation and evolving needs. Federal spending in this area is significant, supporting a wide range of government functions. Comparable spending benchmarks would typically involve analyzing IT procurements by other large federal agencies for similar types of equipment and services, considering factors like volume, duration, and specific technology requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, ImmixTechnology Inc., is likely a mid-to-large-sized business, and their role in fulfilling this contract does not inherently create opportunities for small business subcontractors unless specified within the contract's terms or through the contractor's own business practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice's Federal Bureau of Investigation (FBI). Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and payment clauses. Transparency is facilitated through contract databases like FPDS, which record award details. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

FBI IT Modernization Programs
Department of Justice Information Technology Services
Federal Law Enforcement Technology Procurement
Enterprise Software Licensing and Maintenance
Computer Hardware Procurement for Government Agencies

Risk Flags

Limited Competition
Potential for Overpricing
Vendor Lock-in Risk
Reliance on Specific Technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.0 million to IMMIXTECHNOLOGY INC. IBM MAINFRAME SOFTWARE AND MAINTENANCE, "DISTRIBUTED (NONMAINFRAME) SOFTWARE AND MAINTENANCE, AND DATAPOWER APPLIANCE HARDWARE AND SOFTWARE AND MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2017-12-18. End: 2018-11-30.

What specific types of IBM mainframe software and distributed software were procured under this contract?

The provided data summary indicates the procurement of 'IBM MAINFRAME SOFTWARE AND MAINTENANCE, "DISTRIBUTED (NONMAINFRAME) SOFTWARE AND MAINTENANCE, AND DATAPOWER APPLIANCE HARDWARE AND SOFTWARE AND MAINTENANCE.' However, it does not specify the exact titles or versions of the IBM mainframe software or the distributed software. Similarly, the specific Datapower appliance models and their associated software are not detailed. This level of granularity is crucial for understanding the technological scope and potential obsolescence risks associated with the procured items. Without this information, it's difficult to assess if the software and hardware align with current or future IT needs and if the maintenance agreements cover critical updates and security patches effectively.

What was the justification for using a limited competition procurement strategy for this contract?

The justification for the limited competition procurement strategy is not explicitly stated in the provided data. Typically, limited competition is employed when only one or a few responsible sources are capable of providing the required supplies or services. This could be due to proprietary technology, unique capabilities, or specific existing infrastructure dependencies. For IT hardware and software, it might stem from the need to maintain compatibility with existing systems or to acquire specialized solutions only offered by a particular vendor or through a specific contract vehicle. A thorough review of the contract file, including the Justification for Other Than Full and Open Competition (JOFOC), would be necessary to understand the precise rationale and assess its validity.

How does the $23 million contract value compare to historical spending on similar IT hardware and software by the FBI or other law enforcement agencies?

Comparing the $23 million contract value requires context regarding the specific items procured and the contract duration. The contract period was approximately one year (December 18, 2017, to November 30, 2018). For large federal agencies like the FBI, annual IT spending can run into hundreds of millions or even billions of dollars. A $23 million award for specific software, hardware, and maintenance could represent a significant portion of a particular IT category budget or a smaller component of the overall IT spend. To provide a meaningful comparison, one would need to analyze historical spending patterns for similar IBM software, Datapower appliances, and related maintenance services by the FBI and peer agencies, adjusting for inflation and technological advancements over time. Without this detailed comparative analysis, it's difficult to definitively state whether this contract represents high or low spending relative to benchmarks.

What are the potential risks associated with relying on ImmixTechnology Inc. for these critical IT components?

The primary risks associated with relying on ImmixTechnology Inc. for these critical IT components revolve around vendor performance, financial stability, and potential supply chain disruptions. Given that this was a limited competition award, there's an inherent risk that the government may not have fully explored alternative solutions or secured the most competitive pricing. If ImmixTechnology Inc. experiences financial difficulties or undergoes significant business changes, it could impact their ability to provide ongoing support and maintenance, potentially disrupting FBI operations. Furthermore, dependence on a single supplier for essential hardware and software can create vulnerabilities if that supplier's products become obsolete, unsupported, or if security flaws are discovered. Continuous monitoring of the contractor's performance and financial health is essential to mitigate these risks.

What performance metrics or service level agreements (SLAs) were likely included in this contract to ensure the FBI received adequate value?

While the specific performance metrics and Service Level Agreements (SLAs) are not detailed in the provided data, contracts of this nature typically include clauses to ensure adequate value delivery. These would likely encompass requirements related to hardware delivery timelines, software installation and functionality, uptime guarantees for critical systems, response times for technical support and maintenance requests, and patch management protocols. Failure to meet these SLAs would typically result in penalties, such as reduced payments or the contractor being required to rectify the issues at their own expense. The effectiveness of these metrics in ensuring value depends on their specificity, measurability, and the rigor with which they are monitored and enforced by the FBI contracting officers.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc. (UEI: 049159957)

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,948,756

Exercised Options: $23,031,918

Current Obligation: $23,031,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DABL0103A1006

IDV Type: IDC

Timeline