DOJ awards $10.7M contract for T&A Replacement System to Lentech, Inc

Contract Overview

Contract Amount: $10,706,085 ($10.7M)

Contractor: Lentech, Inc

Awarding Agency: Department of Justice

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: T&A REPLACEMENT SYSTEM

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87193

State: New Mexico Government Spending

Plain-Language Summary

Department of Justice obligated $10.7 million to LENTECH, INC for work described as: T&A REPLACEMENT SYSTEM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a critical area for agency modernization. 3. The duration of 1095 days indicates a significant, long-term project. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The contract is not set aside for small businesses, potentially limiting small business participation. 6. The award is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of the 'T&A Replacement System' and comparing it to similar system modernization efforts. The firm-fixed-price structure is generally favorable for the government, as it caps costs. However, the overall value depends heavily on the successful delivery of the system and its long-term operational efficiency. Without more detailed performance metrics or comparable contract data, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple vendors likely had the opportunity to compete. The level of competition, number of bidders, and their respective proposals would determine the extent to which price discovery was effective in securing a competitive price for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services, as contractors vie to win the award.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving a modernized Time & Attendance (T&A) system. The services delivered include computer systems design, crucial for developing and implementing new software solutions. The geographic impact is likely concentrated within the FBI's operational locations, primarily in New Mexico where the contract is managed. Workforce implications include the potential for improved efficiency for FBI personnel through a streamlined T&A process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'T&A Replacement System' requirements are not clearly defined upfront.
Dependence on Lentech, Inc. for successful system implementation and potential vendor lock-in.
Risk of integration challenges with existing FBI IT infrastructure.
Ensuring the system meets evolving federal data security and privacy regulations.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a critical operational need for the FBI (T&A system).
The contractor, Lentech, Inc., is likely experienced in providing similar IT services.

Sector Analysis

The IT services sector, specifically focusing on custom computer systems design, is a significant area of federal spending. Agencies constantly seek to modernize legacy systems to improve efficiency, security, and data management. This contract for a T&A replacement system fits within the broader trend of digital transformation in government. Comparable spending benchmarks would involve looking at other large-scale IT system development and integration projects within federal agencies, particularly those focused on human resources or operational management systems.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. While there is no explicit subcontracting requirement mentioned, the prime contractor, Lentech, Inc., may choose to subcontract portions of the work. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of a larger team or subcontracting effort.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Bureau of Investigation (FBI) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency would be enhanced through regular reporting requirements and potential performance reviews. The Department of Justice's Office of the Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Human Resources Information Systems
Time and Attendance Systems Modernization
FBI IT Modernization Programs
Custom Software Development Services

Risk Flags

Potential for scope creep
Integration challenges with existing systems
Contractor performance risk
Data security and compliance risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.7 million to LENTECH, INC. T&A REPLACEMENT SYSTEM

Who is the contractor on this award?

The obligated recipient is LENTECH, 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 $10.7 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the specific functionality and scope of the 'T&A Replacement System' being developed?

The provided data does not detail the specific functionalities of the 'T&A Replacement System.' However, 'Time and Attendance' (T&A) systems typically manage employee work hours, leave requests, and payroll data. A 'replacement system' implies that the FBI is upgrading or replacing an existing T&A solution, likely to improve accuracy, efficiency, compliance with labor laws, or integration with other HR and payroll systems. The scope would encompass requirements gathering, system design, development, testing, deployment, and potentially training and ongoing support. The contract's classification as 'Computer Systems Design Services' (NAICS 541512) confirms it involves the design and development of custom computer systems.

How does the $10.7 million cost compare to similar federal T&A system replacement projects?

Directly comparing the $10.7 million cost to similar federal T&A system replacement projects is difficult without access to a comprehensive database of comparable contracts, including their specific scope, complexity, and duration. However, for a system designed to serve a large federal agency like the FBI, $10.7 million over three years (1095 days) for design and development services appears to be within a reasonable range, assuming it covers a comprehensive solution. Larger, more complex enterprise resource planning (ERP) system modernizations can cost tens or hundreds of millions of dollars. The firm-fixed-price nature of this contract suggests that the government has negotiated a ceiling price, which is a positive indicator for cost control.

What are the key performance indicators (KPIs) for this contract, and how will Lentech, Inc.'s performance be measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for a system development contract, KPIs would focus on aspects such as on-time delivery of milestones, adherence to budget (though less critical with FFP), system functionality and performance (e.g., processing speed, uptime), user satisfaction, defect rates, and successful integration with existing systems. The FBI's program managers and contracting officers would be responsible for monitoring Lentech, Inc.'s performance against the contract's statement of work and any defined performance standards. Failure to meet these could result in contractual remedies.

What is Lentech, Inc.'s track record with the federal government, particularly in delivering IT system design services?

The provided data does not include specific details on Lentech, Inc.'s past performance or track record with the federal government. To assess their track record, one would typically review contract databases (like FPDS or SAM.gov) for previous awards to Lentech, Inc., examine past performance evaluations (if publicly available), and look for any documented issues or successes on prior government contracts, especially those involving similar IT system design and development services. A positive track record with relevant experience would increase confidence in their ability to successfully deliver this T&A replacement system.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or delays (though mitigated by FFP). Technical risks involve integration challenges with existing FBI infrastructure and ensuring the new system is secure and compliant with federal regulations. Contractor performance risk is also present, where Lentech, Inc. might not deliver the system as specified. Mitigation strategies would typically involve robust project management, clear definition of requirements, regular progress reviews, stringent testing protocols, and contingency planning. The firm-fixed-price contract itself mitigates financial risk for the government.

How does this contract align with the FBI's broader IT modernization strategy?

This contract for a T&A Replacement System directly aligns with the FBI's broader IT modernization strategy by addressing a fundamental operational system. Modernizing T&A systems is crucial for improving administrative efficiency, ensuring accurate record-keeping for personnel, and potentially integrating with other HR and financial management systems. Such upgrades are often part of a larger effort to move away from legacy systems, enhance data security, and improve the overall technological infrastructure to better support the FBI's law enforcement and intelligence missions. This specific contract likely represents a component of a larger, strategic initiative to update critical business systems.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4405 WESTRIDGE CT NW, ALBUQUERQUE, NM, 87114

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,117,027

Exercised Options: $10,706,085

Current Obligation: $10,706,085

Actual Outlays: $10,272,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0451V

IDV Type: FSS

Timeline