DOJ's FBI awards $4.6M IT services contract to Chronos Operations LLC, raising questions about competition

Contract Overview

Contract Amount: $4,591,180 ($4.6M)

Contractor: Chronos Operations LLC

Awarding Agency: Department of Justice

Start Date: 2023-09-29

End Date: 2026-09-29

Contract Duration: 1,096 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICE

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $4.6 million to CHRONOS OPERATIONS LLC for work described as: IT SERVICE Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competitive bidding. 2. The firm fixed-price contract type suggests predictable costs, but the lack of competition hinders price benchmarking. 3. The contract duration of 1096 days (3 years) indicates a significant, long-term commitment. 4. The specific IT service category (Other Computer Related Services) is broad and requires further definition for precise value assessment. 5. The award to a single vendor warrants scrutiny regarding the justification for not pursuing a competitive process.

Value Assessment

Rating: questionable

The contract's value of $4.6 million over three years for IT services is difficult to benchmark without more specific service details and comparable contract data. The 'Other Computer Related Services' NAICS code is very broad. Given the sole-source award, it's challenging to assess if this represents fair market value or if competitive pressures could have yielded better pricing. The firm fixed-price structure provides cost certainty for the government, but the absence of competition means the government may not be benefiting from the most economical pricing available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, Chronos Operations LLC, was solicited. The justification for this approach is not provided in the data. Typically, sole-source awards occur when only one vendor possesses the unique capability or proprietary technology required, or in emergency situations. Without further information on the procurement process, it is impossible to determine the extent of competition or if alternative vendors were considered.

Taxpayer Impact: Sole-source awards limit taxpayer value by foregoing the potential for lower prices and better terms that can arise from a competitive bidding process. This can lead to higher overall spending for government services.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving IT services. The contract supports 'Other Computer Related Services,' which could encompass a wide range of IT support, maintenance, or development. The geographic impact is likely concentrated in Colorado, where the contract is registered, but could extend to FBI operations nationwide. The contract may impact the IT workforce within the FBI or through Chronos Operations LLC's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding for a significant IT services contract raises concerns about potential overpayment and limited vendor options.
The broad NAICS code 'Other Computer Related Services' makes it difficult to ascertain the specific services procured and their true market value.
The sole-source nature of the award requires strong justification to ensure taxpayer funds are used efficiently and effectively.

Positive Signals

The firm fixed-price contract type offers cost predictability for the FBI, mitigating risks associated with cost overruns.
The contract duration of three years suggests a stable, long-term IT support solution for the FBI.
The award to Chronos Operations LLC, while sole-source, indicates they met the FBI's specific requirements at the time of award.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under 'Other Computer Related Services,' a broad category that can include everything from IT consulting and system integration to data processing and disaster recovery. Federal agencies consistently spend billions annually on IT services, with significant portions dedicated to maintaining and modernizing existing systems. Benchmarking this contract's value is challenging due to the broad NAICS code and sole-source nature, but it represents a small fraction of the overall federal IT budget.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and that small business subcontracting was not a stated requirement (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The primary contractor, Chronos Operations LLC, is not specified as a small business in the provided data, further suggesting limited direct impact on small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal contracting and program management offices, as well as the Federal Bureau of Investigation's oversight bodies. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is limited by the sole-source nature and the lack of detailed service descriptions in the provided data.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Support Services
Federal Bureau of Investigation IT Contracts
Department of Justice IT Spending

Risk Flags

Sole-source award lacks competitive justification.
Broad NAICS code limits service specificity and value assessment.
Potential for non-competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.6 million to CHRONOS OPERATIONS LLC. IT SERVICE

Who is the contractor on this award?

The obligated recipient is CHRONOS OPERATIONS 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 $4.6 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-29.

What specific IT services are being procured under this contract, and how do they align with the FBI's mission objectives?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT functions, including but not limited to IT consulting, custom software development, IT project management, system integration, and IT support services. Without a more detailed statement of work (SOW) or contract line item numbers (CLINs), it is difficult to pinpoint the exact services. However, these services are likely intended to support the FBI's operational needs, such as maintaining its IT infrastructure, developing new technological capabilities for law enforcement, enhancing data analysis tools, or providing cybersecurity support. The specific alignment would depend on the precise nature of the services rendered under the contract.

What is the justification for awarding this contract on a sole-source basis to Chronos Operations LLC?

The provided data indicates the contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED), which typically signifies a sole-source or limited competition award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without access to the Justification and Approval (J&A) document typically required for sole-source procurements, the specific rationale remains unknown. Agencies must demonstrate that competition is not feasible or would not be in the government's best interest. This justification is crucial for ensuring fair and transparent use of taxpayer funds.

How does the pricing structure (Firm Fixed Price) and duration (3 years) of this contract compare to similar IT service contracts awarded by the FBI or other federal agencies?

The contract utilizes a Firm Fixed Price (FFP) structure, which is common for IT services where the scope of work is well-defined, providing cost certainty to the government. The duration of 1096 days (3 years) is also within a typical range for significant IT service contracts. However, comparing pricing is challenging without knowing the specific services and deliverables. FFP contracts aim to shift risk to the contractor, but the absence of competition in this sole-source award means the government may not have achieved the most competitive price possible. Benchmarking would require access to detailed SOWs and pricing data from comparable FFP IT contracts awarded competitively by the FBI or similar agencies.

What is Chronos Operations LLC's track record with federal contracts, particularly with the FBI or Department of Justice?

The provided data indicates Chronos Operations LLC (co: CHRONOS OPERATIONS LLC) has been awarded this specific contract by the FBI. To assess their track record, a deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to identify other contracts awarded to this entity. This would reveal the types of services they have provided, the agencies they have served, the contract values, and their performance history. A history of successful contract performance, particularly with the FBI or DOJ, could lend some confidence to this award, although it does not negate the concerns raised by the sole-source nature of this particular procurement.

What are the potential risks associated with a sole-source IT services contract of this magnitude and duration?

Sole-source contracts carry inherent risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive process, representing a potential loss of value for taxpayers. Secondly, it can foster vendor lock-in, making it difficult and costly to switch providers in the future, even if performance issues arise or better solutions become available. Thirdly, without the pressure of competition, there might be less incentive for the contractor to innovate or provide exceptional service. Finally, the justification for a sole-source award must be robust; if the justification is weak or flawed, it raises concerns about the integrity of the procurement process and the efficient use of government funds.

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 - 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: 1155 KELLY JOHNSON BLVD, COLORADO SPRINGS, CO, 80920

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,719,516

Exercised Options: $9,182,129

Current Obligation: $4,591,180

Actual Outlays: $3,546,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline