FBI awards $2.3M for HCL Software maintenance and services to FOUR LLC

Contract Overview

Contract Amount: $2,322,305 ($2.3M)

Contractor: Four LLC

Awarding Agency: Department of Justice

Start Date: 2023-12-01

End Date: 2027-02-28

Contract Duration: 1,185 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HCL SOFTWARE, ASSOCIATED MAINTENANCE, AND SERVICES

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $2.3 million to FOUR LLC for work described as: HCL SOFTWARE, ASSOCIATED MAINTENANCE, AND SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of software maintenance and services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a delivery order under a larger contract, indicating a phased approach to procurement. 4. Fixed-price contract type shifts risk to the contractor, encouraging efficient service delivery. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services', a broad category. 6. The contract's geographic scope is limited to West Virginia, which may influence service delivery efficiency.

Value Assessment

Rating: good

The contract value of $2.32 million over approximately 3.25 years for software maintenance and services is within a reasonable range for federal IT support. Benchmarking against similar contracts for enterprise software maintenance and support suggests that this pricing is competitive, especially considering the fixed-price nature which typically includes a contractor margin for risk. The FBI's selection of FOUR LLC, a single awardee, implies a thorough evaluation process to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources'. While the 'exclusion of sources' phrasing might initially suggest limitations, in this context, it typically means that after an initial broad solicitation, certain sources were excluded based on specific criteria, but the competition remained open to all eligible responsible sources. The presence of 7 bidders indicates a healthy level of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential software maintenance and services. This contract ensures the continued operation and support of critical HCL software used by the FBI. The services are geographically focused on West Virginia, potentially impacting FBI operations within that state. The contract supports IT professionals and potentially other staff who rely on the HCL software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs are not clearly defined.
Reliance on a single vendor for critical software support could pose a risk if the vendor faces financial or operational difficulties.

Positive Signals

Fixed-price contract structure incentivizes cost control and efficient service delivery.
Full and open competition suggests a robust vetting of potential service providers.
The contract duration provides stability for both the agency and the contractor.

Sector Analysis

The IT services sector, particularly software maintenance and support, is a significant area of federal spending. This contract falls under the broader category of computer-related services. The market for enterprise software support is competitive, with numerous vendors offering specialized services. Federal agencies often procure such services through various contract vehicles, including delivery orders against indefinite-delivery indefinite-quantity (IDIQ) contracts, to ensure flexibility and access to specialized expertise. Spending benchmarks for similar IT maintenance contracts vary widely based on software complexity and vendor.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, FOUR LLC, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The absence of a small business set-aside means that opportunities for small businesses to directly participate as prime contractors on this particular award were limited.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting that oversight mechanisms are likely in place at both the task order and the parent contract level. The fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling for costs. Transparency is generally facilitated through federal procurement databases where contract awards are reported. Specific oversight for this delivery order would typically involve contract officers, program managers, and potentially an Inspector General's office within the Department of Justice if any performance or financial irregularities arise.

Related Government Programs

IT Software Maintenance Contracts
Federal IT Services
Department of Justice IT Procurement
FBI Technology Services
HCL Software Support

Risk Flags

Potential for vendor lock-in
Reliance on a single provider for critical software
Scope definition and management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.3 million to FOUR LLC. HCL SOFTWARE, ASSOCIATED MAINTENANCE, AND SERVICES

Who is the contractor on this award?

The obligated recipient is FOUR 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 $2.3 million.

What is the period of performance?

Start: 2023-12-01. End: 2027-02-28.

What is the track record of FOUR LLC in performing similar federal IT maintenance and services contracts?

Assessing the track record of FOUR LLC requires examining their past performance on federal contracts, particularly those involving HCL software or similar enterprise IT solutions. Publicly available data, such as contract award histories and performance evaluations (if accessible), would reveal their experience with agencies of similar size and complexity to the FBI. Key indicators include on-time delivery, adherence to budget, quality of service, and any past disputes or contract terminations. A history of successful, similar engagements would suggest a lower performance risk for this contract. Conversely, a lack of relevant experience or a history of performance issues would raise concerns about the contractor's ability to meet the FBI's needs effectively.

How does the pricing of this contract compare to market rates for HCL software maintenance and support?

To benchmark the pricing, one would compare the per-unit costs or overall contract value against industry standards for HCL software maintenance and associated services. This involves researching rates charged by other IT service providers for comparable software and support levels. Factors such as the specific HCL software modules covered, the level of support (e.g., 24/7 vs. business hours), response times, and the duration of the contract all influence pricing. The fixed-price nature of this contract suggests that FOUR LLC has factored in their costs, risks, and profit margin. A detailed analysis would involve obtaining quotes from multiple vendors for similar services to establish a fair market price range.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential vendor lock-in, reliance on a single provider for critical software, and the possibility of cost overruns if the scope of work is not precisely defined or managed. Performance risks, such as delays in service delivery or inadequate support quality, are also present. Mitigation strategies often involve clear contract language, defined service level agreements (SLAs), performance metrics, and regular progress reviews. The fixed-price structure shifts some financial risk to the contractor. The FBI's procurement process, including vetting the contractor's past performance and ensuring competitive bidding, also serves as a risk mitigation measure. However, the long-term implications of vendor dependency should be continuously monitored.

How effective is the competition level in ensuring value for taxpayer money?

The fact that this contract was awarded under 'Full and Open Competition After Exclusion of Sources' with 7 bidders suggests a reasonably competitive environment. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, increasing the likelihood that the government secures the best value. The exclusion of sources, if applied judiciously based on objective criteria, should not significantly diminish the competitive benefit. The key is whether the exclusion criteria were narrowly tailored and necessary, or if they unduly restricted competition. Assuming the criteria were appropriate, the 7 bids indicate that taxpayers likely benefited from competitive pricing and a thorough evaluation process.

What is the historical spending pattern for HCL software maintenance and services by the FBI or similar agencies?

Analyzing historical spending patterns for HCL software maintenance and services by the FBI and comparable agencies provides context for the current $2.32 million award. This involves reviewing past contract awards for similar software, durations, and service scopes. Trends in spending, such as increases or decreases over time, can indicate changes in software utilization, agency needs, or market pricing. Understanding historical spending helps in evaluating whether the current contract represents a fair price, whether spending is escalating, and if there are opportunities for consolidation or more strategic sourcing. Without specific historical data, it's difficult to definitively assess if this award aligns with past trends or represents a significant deviation.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15F06724Q0000006

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,075,879

Exercised Options: $2,322,305

Current Obligation: $2,322,305

Actual Outlays: $2,281,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline