DOJ awards $38.8M IT services contract to Arlluk Technology Solutions for FBI's National Name Check Program

Contract Overview

Contract Amount: $38,765,377 ($38.8M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2022-08-11

End Date: 2026-06-15

Contract Duration: 1,404 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NATIONAL NAME CHECK PROGRAM INFORMATION TECHNOLOGY SERVICES

Place of Performance

Location: WINCHESTER, FREDERICK County, VIRGINIA, 22602

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $38.8 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: NATIONAL NAME CHECK PROGRAM INFORMATION TECHNOLOGY SERVICES Key points: 1. Contract value represents a significant investment in critical IT infrastructure for law enforcement. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of over three years indicates a long-term need for these services. 4. Focus on custom programming services highlights the need for specialized IT solutions. 5. The award to a single vendor warrants scrutiny of ongoing performance and cost management. 6. Small business participation is not explicitly detailed, requiring further investigation.

Value Assessment

Rating: good

The contract value of $38.8 million over approximately 3.7 years (August 2022 - June 2026) for IT services is within a reasonable range for a program of this nature. Benchmarking against similar custom computer programming services contracts awarded by the FBI or other Department of Justice components would provide a clearer picture of value for money. The pricing structure (Time and Materials) can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility for evolving project needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a single award does not necessarily imply a lack of competition during the bidding phase, but it does mean that Arlluk Technology Solutions was selected as the most advantageous offer. Further details on the number of bids received would offer more insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential IT services. Services delivered include custom computer programming, crucial for the National Name Check Program's functionality. The program supports national security and law enforcement efforts by facilitating background checks. Workforce implications may include the need for specialized IT professionals within the FBI or its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation under Time and Materials pricing if not closely monitored.
Dependence on a single vendor for critical IT services could pose a risk if performance falters.
Lack of explicit small business subcontracting goals requires verification of broader economic impact.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration indicates a stable, long-term requirement for these IT services.
Focus on custom programming suggests tailored solutions for specific program needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services (NAICS code 541511). This is a large and competitive market. The FBI's National Name Check Program requires specialized IT support to manage and process vast amounts of data for background checks, a critical function for national security and law enforcement. Comparable spending benchmarks for similar IT services supporting federal law enforcement agencies would be in the millions to tens of millions of dollars annually, depending on scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Arlluk Technology Solutions LLC is the prime contractor, there is no explicit information regarding subcontracting opportunities for small businesses. Further review would be needed to determine if subcontracting plans were required or if small businesses will be involved in supporting this contract, which could impact the broader small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Bureau of Investigation (FBI) contracting officers and program managers. The Department of Justice's Office of the Inspector General (OIG) may also conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases like FPDS, but detailed performance metrics and spending breakdowns are often internal.

Related Government Programs

FBI Information Technology Services
Department of Justice IT Modernization Efforts
National Security Background Check Systems
Custom Software Development for Federal Agencies

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Dependence on a single vendor for critical IT services.
Need for robust government oversight to manage contractor performance and costs.
Lack of explicit small business subcontracting requirements needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38.8 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. NATIONAL NAME CHECK PROGRAM INFORMATION TECHNOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.8 million.

What is the period of performance?

Start: 2022-08-11. End: 2026-06-15.

What is the track record of Arlluk Technology Solutions LLC with federal contracts, particularly within the Department of Justice or FBI?

A review of federal procurement data indicates that Arlluk Technology Solutions LLC has received federal contracts, though specific details on their performance history, particularly with the Department of Justice or FBI, require deeper analysis. Examining past performance evaluations, any contract disputes, or awards for similar services would provide a clearer picture of their reliability and capability. Understanding their experience with large-scale IT projects and adherence to timelines and budgets is crucial for assessing the risk associated with this $38.8 million award. Without readily available detailed performance reviews, it is difficult to definitively assess their track record beyond the fact they were selected through a competitive process.

How does the estimated value of this contract compare to similar IT services contracts for background check programs in other federal agencies?

The $38.8 million contract value for the FBI's National Name Check Program IT services, spanning approximately 3.7 years, needs to be benchmarked against similar procurements. Contracts for custom computer programming and IT support for large-scale federal databases, especially those related to national security or law enforcement, can vary significantly. For instance, contracts supporting systems like the TSA's passenger vetting or DHS's immigration databases might offer comparable data points. A preliminary assessment suggests the value is within a plausible range for such critical infrastructure, but a detailed comparison with contracts of similar scope, duration, and complexity across agencies like DHS, DOD, or SSA would be necessary to ascertain if it represents excellent, good, or fair value for money.

What are the primary risks associated with a Time and Materials (T&M) contract for custom programming services, and how are they mitigated in this case?

Time and Materials (T&M) contracts, like the one awarded to Arlluk Technology Solutions, carry inherent risks, primarily the potential for cost overruns if the scope of work is not well-defined or if labor hours are not diligently managed. This structure offers flexibility, which can be beneficial for evolving IT projects, but it places a significant burden on the government to monitor contractor effort closely. Mitigation strategies typically involve establishing labor hour ceilings, defining fixed-price components for specific deliverables, and implementing robust oversight by contracting officers and technical monitors to ensure efficient use of resources and prevent scope creep. The FBI's ability to effectively manage and oversee this T&M contract will be critical to controlling costs and achieving the desired outcomes for the National Name Check Program.

What is the historical spending trend for the National Name Check Program's IT services, and how does this award fit into that pattern?

Analyzing historical spending for the National Name Check Program's IT services is essential to understand if this $38.8 million award represents an increase, decrease, or continuation of previous investment levels. Without specific historical data for this program, it's challenging to provide a precise trend. However, IT modernization and maintenance are ongoing costs for federal agencies. If the program has been operational for a significant period, this award likely represents a continuation or upgrade of existing services. A surge in spending could indicate expansion or a major overhaul, while a decrease might suggest consolidation or outsourcing. Understanding the program's lifecycle and previous contract values would contextualize this award within a broader financial narrative.

Given the 'full and open competition' award type, how many bids were formally submitted, and what does this imply about the market for these specialized IT services?

While the contract was awarded under 'full and open competition,' the specific number of bids received is not provided in the summary data. This detail is crucial for fully assessing the competitive landscape. A high number of bids (e.g., five or more) would strongly suggest a healthy, competitive market with multiple capable vendors vying for the work, likely driving down prices and fostering innovation. Conversely, a low number of bids (e.g., two or three) might indicate a more concentrated market, potentially fewer specialized providers, or perhaps challenges in the solicitation process that deterred some potential bidders. Understanding the bid count provides a more nuanced view of the competition's effectiveness beyond the award type designation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 700, 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: $38,765,377

Exercised Options: $38,765,377

Current Obligation: $38,765,377

Actual Outlays: $31,202,699

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D001F

IDV Type: FSS

Timeline