FBI awards $5.6M contract for visitor services support, raising questions about competition and value

Contract Overview

Contract Amount: $5,656,598 ($5.7M)

Contractor: D7, LLC

Awarding Agency: Department of Justice

Start Date: 2022-09-30

End Date: 2027-01-31

Contract Duration: 1,584 days

Daily Burn Rate: $3.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FBI EXPERIENCE- SUPPORT SERVICE- FOR VISITOR SERVICES REPRESENTATIVES (VSRS). PROVIDE ADMINISTRATIVE AND PROGRAM SUPPORT SERVICE TO ASSIST WITH THE DEVELOPMENT AND OPERATIONS OF THE FBI EXPERIENCE AT J. EDGAR HOOVER (JEH) BUILDING, WASHINGTON, DC.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $5.7 million to D7, LLC for work described as: FBI EXPERIENCE- SUPPORT SERVICE- FOR VISITOR SERVICES REPRESENTATIVES (VSRS). PROVIDE ADMINISTRATIVE AND PROGRAM SUPPORT SERVICE TO ASSIST WITH THE DEVELOPMENT AND OPERATIONS OF THE FBI EXPERIENCE AT J. EDGAR HOOVER (JEH) BUILDING, WASHINGTON, DC. Key points: 1. Contract awarded to D7, LLC for administrative and program support for the FBI Experience. 2. The contract duration extends over 1500 days, indicating a long-term need for these services. 3. The award method is 'Not Available for Competition', suggesting limited or no prior solicitation. 4. The total contract value is approximately $5.6 million, with a significant portion allocated to labor hours. 5. The FBI Experience aims to enhance public engagement and understanding of the Bureau's work. 6. The contract is a Purchase Order, a less complex instrument than a traditional contract.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to the lack of publicly available comparable data for 'FBI Experience' visitor services. The pricing structure, based on labor hours, makes it difficult to assess cost-effectiveness without detailed breakdowns of rates and hours. The absence of competition further complicates a direct value-for-money assessment, as there's no market-driven price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'Not Available for Competition' procedure, indicating that the agency did not conduct a competitive solicitation process. This typically occurs when only one source is capable of meeting the requirement. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and innovation.

Taxpayer Impact: Taxpayers may not be receiving the best possible price or service due to the absence of competitive bidding. This procurement method bypasses the usual checks and balances that competition provides in ensuring cost-effectiveness.

Public Impact

The primary beneficiaries are visitors to the FBI Experience at the J. Edgar Hoover Building, who will receive administrative and program support. The contract supports the development and operations of the FBI Experience, enhancing public outreach and education. The services are geographically focused on Washington, D.C., specifically at the JEH Building. The contract implies a need for personnel to manage visitor interactions and support program activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced service quality.
The 'Not Available for Competition' award method limits transparency and accountability in the procurement process.
Limited public information on the specific services and performance metrics makes it difficult to assess effectiveness.
The contract's duration and value warrant closer scrutiny to ensure continued justification for sole-source awards.

Positive Signals

The contract supports a public-facing initiative (FBI Experience) aimed at improving public understanding of the FBI.
The award is to D7, LLC, suggesting an existing relationship or specialized capability.
The contract is a Purchase Order, which can be a more agile procurement method for specific needs.

Sector Analysis

The contract falls under the 'All Other Support Services' category, which is broad and encompasses a wide range of professional and administrative support. The market for such services is highly competitive, with numerous firms offering specialized support. However, for niche requirements like supporting a specific federal agency's public-facing experience, specialized firms or those with existing security clearances may be favored, potentially leading to less open competition.

Small Business Impact

The contract details indicate that small business participation is not a stated requirement (ss: false, sb: false). This suggests that small businesses are not specifically being targeted for this award or for subcontracting opportunities. Without a set-aside or subcontracting plan, the direct impact on the small business ecosystem for this particular contract is likely minimal, unless D7, LLC voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice and the Federal Bureau of Investigation. As a Purchase Order, it may have less rigorous oversight compared to larger, more complex contracts. Transparency is limited due to the sole-source nature of the award. 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 Visitor Services
Federal Building Operations Support
Public Affairs and Outreach Programs
Administrative Support Services

Risk Flags

Sole-source award
Lack of competition
Limited transparency
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.7 million to D7, LLC. FBI EXPERIENCE- SUPPORT SERVICE- FOR VISITOR SERVICES REPRESENTATIVES (VSRS). PROVIDE ADMINISTRATIVE AND PROGRAM SUPPORT SERVICE TO ASSIST WITH THE DEVELOPMENT AND OPERATIONS OF THE FBI EXPERIENCE AT J. EDGAR HOOVER (JEH) BUILDING, WASHINGTON, DC.

Who is the contractor on this award?

The obligated recipient is D7, 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 $5.7 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-01-31.

What specific services are included under 'Administrative and Program Support' for the FBI Experience?

The contract specifies providing administrative and program support to assist with the development and operations of the FBI Experience. This likely includes tasks such as managing visitor appointments, coordinating tour logistics, providing information to visitors, assisting with event planning related to the Experience, maintaining visitor logs, and potentially supporting educational or outreach materials. The exact scope would be detailed in the statement of work, which is not publicly available. The 'Labor Hours' contract type suggests that the payment is based on the time spent by personnel performing these duties, rather than fixed deliverables.

Why was this contract awarded on a sole-source basis, and what are the implications for cost?

The contract was awarded under 'Not Available for Competition,' indicating that the FBI determined only one source, D7, LLC, could meet the requirement. Reasons for this could include unique capabilities, existing security clearances, prior performance, or a critical need that precluded a lengthy competitive process. The implication for cost is that without competition, there is no market pressure to drive down prices. The FBI may have negotiated rates, but the absence of competing bids means taxpayers might be paying more than they would in a competitive scenario. A thorough justification for the sole-source award should exist within the agency.

What is the track record of D7, LLC in providing similar services to federal agencies?

Information regarding D7, LLC's specific track record in providing visitor services or similar administrative and program support to federal agencies is not readily available in the provided data. Federal procurement databases may contain past performance information, but this is typically not made public for individual contracts. To assess their track record, one would need to review their contract history, past performance evaluations (if accessible), and any publicly available information about their experience in supporting government operations, particularly in sensitive environments like law enforcement agencies.

How does the $5.6 million contract value compare to similar visitor services contracts?

Direct comparison of the $5.6 million contract value for 'FBI Experience' visitor services is difficult due to the unique nature of the program and the limited public data. Visitor services contracts can vary widely in scope and cost depending on the agency, location, and complexity of operations. Contracts for general administrative support or facility management might offer some benchmarks, but the specific focus on a public-facing 'Experience' for an agency like the FBI suggests specialized requirements. The value is spread over approximately 4.3 years (from September 2022 to January 2027), averaging around $1.3 million annually, which provides a rough annual cost perspective.

What are the potential risks associated with a sole-source contract for visitor services?

The primary risks associated with a sole-source contract for visitor services include a lack of competitive pricing, potentially leading to higher costs for taxpayers. There's also a risk of complacency from the contractor, as there's no immediate threat of losing the business to a competitor, which could impact service quality or innovation. Furthermore, the absence of a competitive process can reduce transparency and make it harder to ensure the agency is receiving the best value. Dependence on a single contractor can also pose a risk if the contractor experiences financial difficulties or fails to meet performance expectations.

What is the FBI Experience, and what is its stated purpose?

The FBI Experience is a public-facing initiative located at the J. Edgar Hoover Building in Washington, D.C. Its stated purpose is to provide the public with a greater understanding of the FBI's history, mission, and operations. It aims to demystify the work of the Bureau, showcase its investigative techniques, and foster a connection with the communities it serves. The contract for visitor services support is crucial for the effective development and ongoing operation of this public engagement platform.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1755 TELSTAR DR, COLORADO SPRINGS, CO, 80920

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

Financial Breakdown

Contract Ceiling: $6,422,208

Exercised Options: $6,422,208

Current Obligation: $5,656,598

Actual Outlays: $5,528,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline