DOJ's FBI awards $31.1M for IT services to Brytech Inc., highlighting a competitive procurement

Contract Overview

Contract Amount: $31,143,425 ($31.1M)

Contractor: Brytech Inc

Awarding Agency: Department of Justice

Start Date: 2024-12-01

End Date: 2026-11-30

Contract Duration: 729 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM SOFTWARE, HARDWARE, AND DATAPOWER

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $31.1 million to BRYTECH INC for work described as: IBM SOFTWARE, HARDWARE, AND DATAPOWER Key points: 1. Value for money appears reasonable given the scope of IT services, though detailed benchmarking is needed. 2. The contract was awarded under full and open competition, suggesting a healthy market for these services. 3. Risk indicators are moderate, with performance duration and fixed-price terms being positive factors. 4. This contract supports critical IT infrastructure for the FBI, a key component of national security. 5. Positioned within the IT services sector, this award reflects ongoing government demand for digital solutions.

Value Assessment

Rating: good

The contract's total value of $31.1 million over two years suggests a significant investment in IT services. Benchmarking against similar contracts for computer systems design services is crucial for a definitive value assessment. The firm-fixed-price structure is generally favorable for cost control, but the specific pricing of individual components will determine the ultimate value for money. The awarded amount is within a typical range for large-scale IT support contracts of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bids suggests a competitive environment, which typically drives better pricing and service offerings for the government. This level of competition is a positive sign for price discovery and ensures that the government is likely receiving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at the most economical price, reducing the risk of overpayment.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential IT services. Services delivered include computer systems design, supporting critical law enforcement and national security operations. The contract's geographic impact is primarily within the FBI's operational areas, likely nationwide. Workforce implications include support for IT professionals and potentially indirect benefits to operational staff relying on these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
Ensuring ongoing alignment with evolving technological needs and security standards.

Positive Signals

Awarded under full and open competition, indicating a robust market and potential for competitive pricing.
Firm-fixed-price contract type helps control costs and provides budget certainty.
Long-term duration (2 years) allows for stable support and potential for deeper integration of services.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing everything from software development to network management. This contract falls under computer systems design services, a sub-sector focused on planning, designing, and integrating complex IT systems. The federal government is a major consumer of these services, with significant spending allocated annually to maintain and upgrade its technological infrastructure. Comparable spending benchmarks in this area are often in the tens to hundreds of millions of dollars for large agencies like the FBI.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, Brytech Inc., is not explicitly identified as a small business. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the FBI's contracting officers and program managers, ensuring adherence to the contract terms and performance standards. Accountability measures are embedded within the firm-fixed-price structure and the defined delivery order schedule. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

FBI IT Modernization Programs
Department of Justice IT Support Services
Federal Law Enforcement Technology Initiatives
Computer Systems Design and Integration Services

Risk Flags

Potential for vendor lock-in if not managed carefully.
Cybersecurity risks associated with handling sensitive federal data.
Ensuring adequate technical expertise within the government for oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31.1 million to BRYTECH INC. IBM SOFTWARE, HARDWARE, AND DATAPOWER

Who is the contractor on this award?

The obligated recipient is BRYTECH 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 $31.1 million.

What is the period of performance?

Start: 2024-12-01. End: 2026-11-30.

What is Brytech Inc.'s track record with federal contracts, particularly for IT services?

Brytech Inc. has a history of federal contracting, though specific details on their performance for IT services require deeper analysis of past awards and performance reviews. Examining their contract history within the General Services Administration (GSA) schedules or other contract vehicles would reveal the types and values of previous awards. Performance metrics from past contracts, if publicly available through sources like the Federal Procurement Data System (FPDS) or contractor performance databases, would indicate their reliability and quality of service. A review of any past performance issues or commendations would provide a clearer picture of their capabilities and suitability for this significant FBI contract.

How does the awarded price of $31.1 million compare to similar IT services contracts awarded by the FBI or other law enforcement agencies?

To benchmark the $31.1 million award, a comparative analysis of similar IT services contracts is necessary. This involves identifying contracts with comparable scope (e.g., computer systems design, software development, hardware integration), duration, and agency type (e.g., other federal law enforcement agencies). Data from the Federal Procurement Data System (FPDS) can be queried for such comparisons. Factors like the number of bidders, contract type (firm-fixed-price vs. cost-plus), and specific service requirements influence pricing. If this contract represents a higher or lower cost per service unit or per year compared to similar procurements, it would indicate whether the FBI secured a favorable price.

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

Key risks include potential performance deficiencies by the contractor, leading to disruptions in critical FBI IT systems. Another risk is the possibility of cost overruns if the firm-fixed-price contract contains poorly defined deliverables or if unforeseen technical challenges arise. Security risks, such as data breaches or vulnerabilities in the systems supported, are also paramount given the sensitive nature of FBI data. Mitigation strategies likely involve robust contract oversight, clear performance metrics and Service Level Agreements (SLAs), regular technical reviews, and stringent cybersecurity protocols mandated by the FBI. The competitive nature of the award also serves as a risk mitigator, as the FBI selected from multiple potential providers.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific IT services requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for IT services when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing efficiency and cost control. For the FBI, this means greater budget certainty. However, if the requirements are complex or subject to rapid technological evolution, an FFP contract could lead to the contractor being less willing to incorporate necessary changes or innovations without additional cost, potentially limiting flexibility. The effectiveness hinges on the clarity and completeness of the statement of work and the contractor's ability to meet those defined requirements within the agreed price.

What is the historical spending trend for computer systems design services by the FBI over the past five years?

Analyzing the FBI's historical spending on computer systems design services over the past five years would provide context for the current $31.1 million award. This trend analysis would involve querying FPDS for contracts classified under NAICS code 541512 (Computer Systems Design Services) awarded by the FBI. Observing whether spending has been increasing, decreasing, or remaining stable can indicate shifts in the agency's IT needs, modernization efforts, or budget allocations. A significant increase might signal new initiatives or growing reliance on external IT support, while a decrease could suggest insourcing or project completion. This historical data helps assess if the current award is an anomaly or part of a consistent pattern.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brytech, Inc.

Address: 1954 AIRPORT RD STE 288, CHAMBLEE, GA, 30341

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $48,203,987

Exercised Options: $31,143,425

Current Obligation: $31,143,425

Actual Outlays: $31,162,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F575AA

IDV Type: FSS

Timeline