DOJ's FBI awards $1.2M for audiogram licenses, raising questions about competition and value

Contract Overview

Contract Amount: $1,208,192 ($1.2M)

Contractor: Shoebox Ltd

Awarding Agency: Department of Justice

Start Date: 2022-04-12

End Date: 2027-04-11

Contract Duration: 1,825 days

Daily Burn Rate: $662/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 20220177 88 AUDIOGRAM LICENSES

Place of Performance

Location: ISELIN, MIDDLESEX County, NEW JERSEY, 08830

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $1.2 million to SHOEBOX LTD for work described as: 20220177 88 AUDIOGRAM LICENSES Key points: 1. The contract was awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The per-unit cost for audiogram licenses is not benchmarked, making value assessment difficult. 3. The duration of the contract (5 years) suggests a long-term need, but the lack of competition is a concern. 4. The award to SHOEBOX LTD for audiogram licenses falls under Surgical and Medical Instrument Manufacturing. 5. The contract's value is relatively small in the context of overall federal spending, but the procurement method warrants scrutiny.

Value Assessment

Rating: questionable

The total award of $1.2 million for 88 audiogram licenses over five years presents a significant cost. Without competitive bidding, it is difficult to ascertain if this price represents fair market value. Benchmarking against similar contracts for audiogram technology or licensing is crucial for a comprehensive value assessment. The lack of transparency in pricing mechanisms further complicates the evaluation of whether the government is receiving optimal value for its investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the FBI did not solicit bids from multiple vendors. This approach is typically used when only one vendor can provide the required goods or services. However, it bypasses the competitive process, which is designed to drive down prices and encourage innovation. The lack of competition here means taxpayers may not be benefiting from the most cost-effective solution available.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing, potentially leading to higher costs for taxpayers. It also reduces the incentive for vendors to offer competitive rates.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, acquiring necessary audiogram licenses. The services delivered are related to hearing assessment technology, likely for personnel screening or monitoring. The geographic impact is concentrated within the FBI's operational areas, primarily New Jersey where the contractor is located. There are no immediate significant workforce implications directly tied to this specific contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment.
Absence of clear per-unit cost benchmarks hinders value-for-money assessment.
Sole-source procurement limits transparency and market-based price discovery.

Positive Signals

The contract addresses a specific need for audiogram licenses within the FBI.
The award is for a defined period, allowing for future re-evaluation of requirements.
The fixed-price contract type provides cost certainty for the government.

Sector Analysis

The contract falls within the broader 'Surgical and Medical Instrument Manufacturing' sector, specifically related to diagnostic equipment. This sector is characterized by innovation and specialized technology. Federal spending in this area often supports national security, public health, and law enforcement agencies. Benchmarking this contract's value against other federal procurements for similar diagnostic tools or licensing agreements would provide further context on its market alignment.

Small Business Impact

This contract was not set aside for small businesses, nor is there information indicating subcontracting opportunities for small businesses. The award to SHOEBOX LTD, a single entity, does not appear to directly impact the small business ecosystem in terms of set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Office of the Inspector General, given the FBI's affiliation. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the contract's performance clauses and delivery schedules, ensuring SHOEBOX LTD meets its obligations.

Related Government Programs

Federal Bureau of Investigation Procurement
Medical Equipment and Supplies
Sole Source Contracts
Department of Justice Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency in value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.2 million to SHOEBOX LTD. 20220177 88 AUDIOGRAM LICENSES

Who is the contractor on this award?

The obligated recipient is SHOEBOX LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.2 million.

What is the period of performance?

Start: 2022-04-12. End: 2027-04-11.

What is the specific operational need for these 88 audiogram licenses within the FBI?

The specific operational need for the 88 audiogram licenses is not detailed in the provided data. However, audiogram licenses are typically used for hearing testing and monitoring. Within the FBI, this could relate to personnel health and safety programs, particularly for agents or officers who may be exposed to loud noises, or for pre-employment and periodic medical evaluations. The exact application would require further inquiry into the FBI's internal health and safety protocols or specific program requirements.

Can the value of this contract be benchmarked against similar federal procurements?

Benchmarking the value of this contract against similar federal procurements is challenging without more specific information on the nature of the audiogram licenses and the services provided by SHOEBOX LTD. The 'Surgical and Medical Instrument Manufacturing' category is broad. To conduct a meaningful comparison, one would need to identify contracts for comparable audiogram software, hardware, or licensing agreements awarded through competitive processes. The sole-source nature of this award further complicates direct value comparisons, as competitive bids often reveal a wider range of pricing.

What are the risks associated with a sole-source award for essential medical technology?

The primary risk associated with a sole-source award for essential medical technology like audiogram licenses is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may overpay for the product or service. Additionally, sole-source awards can limit access to potentially superior or more cost-effective solutions from other vendors who were not given an opportunity to compete. This can also reduce the incentive for the awarded vendor to maintain high service levels or competitive pricing throughout the contract duration.

What is the track record of SHOEBOX LTD in providing similar services to government agencies?

Information regarding SHOEBOX LTD's track record in providing similar services, particularly to government agencies, is not available in the provided data. A thorough assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards to this contractor, reviewing performance evaluations if publicly accessible, and investigating any reported issues or successes. Understanding their past performance is crucial for evaluating the reliability and effectiveness of this sole-source award.

How does the $1.2 million expenditure compare to historical FBI spending on audiogram technology?

The provided data does not include historical FBI spending on audiogram technology, making a direct comparison impossible. To assess this, one would need to analyze past contracts awarded by the FBI for similar audiogram equipment, software, or licensing. Examining trends in spending, contract types (competitive vs. sole-source), and award values over several fiscal years would reveal whether this $1.2 million award represents an increase, decrease, or is consistent with past procurement patterns for such technologies.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 80 ABERDEEN ST SUITE 301, OTTAWA

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,648,932

Exercised Options: $1,208,192

Current Obligation: $1,208,192

Actual Outlays: $958,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline