FBI's $12.6M IT Support Contract Awarded to Straitsys Inc. for Non-Enterprise Services

Contract Overview

Contract Amount: $12,585,803 ($12.6M)

Contractor: Straitsys Inc

Awarding Agency: Department of Justice

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $11.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NON-ENTERPRISE INFORMATION TECHNOLOGY (NEIT) SUPPORT SERVICES FOR THE FBI LAB DIVISION

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $12.6 million to STRAITSYS INC for work described as: NON-ENTERPRISE INFORMATION TECHNOLOGY (NEIT) SUPPORT SERVICES FOR THE FBI LAB DIVISION Key points: 1. The contract is for non-enterprise IT support services for the FBI Lab Division. 2. Straitsys Inc. received a firm-fixed-price contract valued at $12,585,802.90. 3. The contract duration is 1095 days, ending September 24, 2026. 4. This award is not available for competition, raising questions about price discovery. 5. The NAICS code 541519 indicates 'Other Computer Related Services'.

Value Assessment

Rating: questionable

The contract is firm-fixed-price, which can offer cost certainty. However, without competitive bidding, it's difficult to assess if the $12.6M price represents fair market value compared to similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is explicitly stated as 'NOT AVAILABLE FOR COMPETITION'. This sole-source award limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for this $12.6M contract means taxpayers may be paying a premium for IT support services, as there was no opportunity for multiple vendors to bid and drive down the price.

Public Impact

FBI Lab operations rely on consistent IT support to maintain critical functions. The sole-source nature of this contract may limit opportunities for other qualified IT service providers. Taxpayers are funding essential but potentially over-priced IT services due to a lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for inflated costs

Positive Signals

Essential IT support for FBI labs
Firm-fixed-price contract

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. The federal IT services market is vast, with significant spending annually. Benchmarks for similar support services are difficult to establish without competitive data, but sole-source awards often exceed market rates.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Therefore, this specific award does not directly benefit small businesses in the IT services sector.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the FBI is receiving value for taxpayer money and that the justification for non-competition is robust.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Potential for overpayment due to absence of market competition.
Limited opportunity for small businesses.
Dependence on a single contractor for critical IT support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.6 million to STRAITSYS INC. NON-ENTERPRISE INFORMATION TECHNOLOGY (NEIT) SUPPORT SERVICES FOR THE FBI LAB DIVISION

Who is the contractor on this award?

The obligated recipient is STRAITSYS 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 $12.6 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What is the specific justification for awarding this contract on a sole-source basis, and has it been adequately documented and approved?

The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION' but does not detail the specific justification. Typically, sole-source awards require rigorous justification, such as a unique capability, urgent need, or lack of market availability. Oversight bodies would need to review the official justification documentation to ensure it meets federal procurement regulations and that the government's interests were protected.

How does the $12.6M price compare to industry benchmarks for similar IT support services, considering the lack of competitive bidding?

Without competitive bids, a direct price comparison is challenging. The $12.6M price for 1095 days of 'Other Computer Related Services' for FBI labs could be higher than market rates. A thorough review would involve benchmarking against publicly available contract data for similar services, adjusted for scope, complexity, and location, to identify potential cost inefficiencies.

What are the potential risks to FBI Lab operations if Straitsys Inc. fails to deliver adequate IT support under this contract?

The primary risk is disruption to critical FBI laboratory functions, which rely heavily on IT infrastructure. Failures in non-enterprise IT support could lead to data loss, system downtime, delayed investigations, and compromised evidence. The FBI would need contingency plans and clear performance metrics within the contract to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 ADVANCED GATEWAY SW, HUNTSVILLE, AL, 35808

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

Financial Breakdown

Contract Ceiling: $13,146,037

Exercised Options: $13,146,037

Current Obligation: $12,585,803

Actual Outlays: $9,611,942

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline