DOJ awards $58.5M software license contract to Blue Tech Inc. for IT services

Contract Overview

Contract Amount: $58,472 ($58.5K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Justice

Start Date: 2026-01-26

End Date: 2027-01-25

Contract Duration: 364 days

Daily Burn Rate: $161/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE LICENSES

Place of Performance

Location: LA JOLLA, SAN DIEGO County, CALIFORNIA, 92038

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $58,471.92 to BLUE TECH INC. for work described as: SOFTWARE LICENSES Key points: 1. Contract value represents a significant investment in IT infrastructure for the Department of Justice. 2. Full and open competition suggests a competitive bidding process, potentially leading to favorable pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of one year with potential for extensions indicates ongoing need for these services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services. 6. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $58.5 million for a one-year software license agreement appears reasonable given the scope of IT services typically required by a federal agency like the Department of Justice. Benchmarking against similar software licensing contracts within the federal government would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government as it caps the contractor's potential earnings and transfers cost overrun risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that all responsible sources were permitted to submit offers. This competitive approach is designed to ensure the government receives the best possible value by fostering a robust bidding environment. The specific number of bidders is not provided, but the open competition suggests multiple entities likely vied for this award, which is a positive sign for price discovery.

Taxpayer Impact: A fully and openly competed contract generally benefits taxpayers by driving down prices through competition and ensuring that the government is not locked into a single provider, which could lead to inflated costs over time.

Public Impact

The Department of Justice's various offices, boards, and divisions will benefit from access to necessary software licenses. This contract supports the ongoing IT operations and potentially the modernization efforts within the DOJ. The services delivered are crucial for the efficient functioning of the agency's administrative and potentially investigative functions. The geographic impact is primarily national, supporting DOJ operations across the United States. The contract ensures that DOJ personnel have the tools they need to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software being licensed makes it difficult to assess if the price is competitive.
The duration of the contract (one year) might indicate a need for frequent re-evaluation of software needs and pricing.
The 'After Exclusion of Sources' clause, while part of full and open competition, warrants a review of why specific sources might have been excluded initially.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these IT services.
Firm fixed-price contract type transfers cost overrun risk to the contractor.
The contract is for software licenses, a common and essential IT procurement category.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing and related services. The IT services market for federal agencies is substantial, with significant spending allocated annually to software, hardware, and IT support. Contracts like this are essential for maintaining and upgrading the technological infrastructure that government agencies rely on. Comparable spending benchmarks would involve analyzing other federal contracts for similar software licenses or IT support services awarded to large technology providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Blue Tech Inc. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. This means that the primary benefit to the small business ecosystem would be indirect, through potential competition in future IDIQ vehicles or if Blue Tech Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program managers within the Department of Justice. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified software licenses by the deadline. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were suspected.

Related Government Programs

Department of Justice IT Modernization Initiatives
Federal Software Licensing Programs
IT Services for Law Enforcement Agencies
Cloud Computing Services (if applicable to the software)

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with software
Need for detailed cost breakdown to ensure value

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $58,471.92 to BLUE TECH INC.. SOFTWARE LICENSES

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $58,471.92.

What is the period of performance?

Start: 2026-01-26. End: 2027-01-25.

What specific software licenses are being procured under this contract, and how do their costs compare to commercial off-the-shelf (COTS) pricing?

The provided data does not specify the exact software licenses being procured. To assess value for money, a detailed breakdown of the software titles, versions, and quantities would be necessary. This information would allow for a direct comparison with commercial pricing, including any government volume discounts or enterprise license agreements available directly from software vendors or through authorized resellers. Without this granularity, it's challenging to definitively benchmark the per-unit cost or overall value against market rates. The firm fixed-price nature of the contract implies that Blue Tech Inc. has already factored in their acquisition costs and profit margins, but the government's ability to verify the reasonableness of these margins is limited without knowing the underlying software costs.

What is the track record of Blue Tech Inc. in delivering similar IT services and software licenses to federal agencies?

Blue Tech Inc.'s track record in delivering similar IT services and software licenses to federal agencies is a critical factor in assessing performance risk. A review of their past performance on government contracts, particularly those involving software licensing and IT support for agencies of similar size and complexity to the Department of Justice, would be informative. This includes examining past performance evaluations, on-time delivery rates, and any history of contract disputes or modifications. Positive past performance suggests a lower risk of delivery issues, while a history of challenges might indicate potential problems. Information on their financial stability and capacity to handle a contract of this magnitude would also be relevant.

How does the $58.5 million contract value compare to historical DOJ spending on similar software licenses?

Comparing the $58.5 million contract value to historical DOJ spending on similar software licenses requires access to historical procurement data. Analyzing previous awards for software licenses within the DOJ, particularly those covering comparable IT functions or user bases, would provide a benchmark. Trends in software licensing costs, vendor consolidation, and shifts towards subscription-based models can influence year-over-year spending. If this award represents a significant increase or decrease compared to prior periods, it warrants further investigation into the reasons, such as changes in software requirements, vendor pricing strategies, or the scope of services included.

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

Potential risks for this contract include vendor lock-in if the software is proprietary and difficult to replace, cybersecurity vulnerabilities associated with the software, and the possibility of cost overruns if the scope of work expands beyond the initial agreement (though mitigated by the fixed-price structure). Performance risk also exists, where Blue Tech Inc. might fail to deliver the licenses or support as agreed. Mitigation strategies typically involve robust contract management, clear performance metrics, defined security requirements, and contingency planning. The 'Full and Open Competition' aspect helps mitigate pricing risks by ensuring competitive offers.

What is the anticipated impact of this contract on the DOJ's overall IT infrastructure and operational efficiency?

This contract is expected to ensure the DOJ has the necessary software licenses to maintain and potentially enhance its IT infrastructure, directly impacting operational efficiency. Access to up-to-date software can improve productivity, enable new functionalities, and strengthen cybersecurity posture. The specific impact depends heavily on the nature of the software being licensed; for example, licenses for collaboration tools could improve inter-agency communication, while licenses for data analytics software could enhance investigative capabilities. The successful delivery and implementation of these licenses are crucial for realizing the intended operational benefits.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $58,472

Exercised Options: $58,472

Current Obligation: $58,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline