DOJ's $26.1M contract for NOC & TechOne services awarded to BAE Systems, highlighting IT support needs

Contract Overview

Contract Amount: $26,140,748 ($26.1M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2020-04-01

End Date: 2022-11-30

Contract Duration: 973 days

Daily Burn Rate: $26.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EOUSA NETWORK OPERATIONS CENTER (NOC)&TECHONE SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $26.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: EOUSA NETWORK OPERATIONS CENTER (NOC)&TECHONE SERVICES Key points: 1. Contract value of $26.1M over approximately 32 months indicates significant investment in IT infrastructure. 2. Awarded via full and open competition, suggesting a robust market for these specialized IT services. 3. The 'Other Computer Related Services' NAICS code points to a broad scope of technical support. 4. Time and Materials pricing structure may pose cost control risks if not closely managed. 5. The contract's duration and value suggest a critical role in supporting DOJ's operational continuity. 6. BAE Systems, a large defense contractor, brings substantial resources to this IT services requirement.

Value Assessment

Rating: fair

The contract value of $26.1M over 32 months averages approximately $816K per month. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing model, while common for evolving IT needs, can lead to higher costs if not meticulously managed and monitored for efficiency. The absence of a fixed price or cost-plus-incentive-fee structure warrants closer scrutiny of labor hours and material costs 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, indicating that multiple vendors were likely invited to bid. The fact that it was a delivery order suggests it may have been part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle, which typically fosters competition. The presence of multiple bidders generally promotes price discovery and encourages contractors to offer competitive pricing and innovative solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, thereby maximizing the value of federal spending.

Public Impact

The Department of Justice benefits from enhanced network operations and technical support, ensuring critical IT systems remain functional. Services delivered likely include network monitoring, maintenance, troubleshooting, and technical assistance for DOJ personnel. The primary geographic impact is within Maryland, where the contractor is located, but the services support nationwide DOJ operations. This contract supports a workforce of IT professionals employed by BAE Systems, contributing to the tech sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not strictly managed, potentially exceeding budgeted amounts.
The broad NAICS code (541519) might obscure the specific services rendered, making detailed performance evaluation more complex.
Reliance on a single delivery order for such a significant IT function could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that should yield fair pricing.
BAE Systems is a large, established contractor with significant experience in government IT services, implying a lower risk of execution failure.
The contract duration of nearly three years suggests a stable, ongoing need for these critical IT support services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure support and network operations. The market for IT services to government agencies is substantial, with numerous large and small businesses competing for these contracts. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide range of IT support functions beyond standard software development or hardware maintenance. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded to federal agencies for similar scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, BAE Systems, it is unlikely to involve significant subcontracting opportunities specifically targeted at small businesses unless mandated by BAE's internal policies or broader government initiatives. The absence of small business set-asides means direct opportunities for small IT service providers in this specific procurement are limited.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

Department of Justice IT Modernization Efforts
Federal Network Operations and Security Contracts
IT Support Services for Law Enforcement Agencies
BAE Systems Government IT Contracts
Other Computer Related Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Broad NAICS code may limit specific performance evaluation.
Contractor performance risk if not adequately monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.1 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. EOUSA NETWORK OPERATIONS CENTER (NOC)&TECHONE SERVICES

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES 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 $26.1 million.

What is the period of performance?

Start: 2020-04-01. End: 2022-11-30.

What is the track record of BAE Systems Technology Solutions & Services Inc. in delivering IT support services to federal agencies, particularly within the Department of Justice?

BAE Systems Technology Solutions & Services Inc. is a significant player in the federal IT services market, often securing large contracts across various agencies, including the Department of Defense and civilian departments. Their track record typically involves complex system integration, cybersecurity, and operational support. For the Department of Justice specifically, BAE Systems has historically been involved in providing a range of IT solutions. Performance on previous DOJ contracts, if publicly available, would offer insight into their reliability, responsiveness, and ability to meet stringent government requirements. Analyzing past performance evaluations and any contract disputes or awards would provide a clearer picture of their capabilities and suitability for this specific Network Operations Center (NOC) and technology services contract.

How does the $26.1M contract value compare to similar IT support contracts awarded by the Department of Justice or other federal agencies for Network Operations Center (NOC) services?

The $26.1M contract value for approximately 32 months of service translates to an average annual value of roughly $9.75M. This figure places it in the mid-to-large tier for IT support contracts. The Department of Justice, like other large federal agencies, procures numerous IT support services. Comparing this to other NOC and related IT services contracts requires analyzing the scope, duration, and specific services offered. For instance, contracts for enterprise-wide IT help desks or comprehensive network management across multiple agencies might exceed this value significantly, while smaller, agency-specific support contracts could be lower. The 'Other Computer Related Services' NAICS code (541519) is broad, so direct comparisons are best made with contracts under the same or very similar codes that specify network operations, monitoring, and technical support functions.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract, and how are they mitigated?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, rather than a fixed price. This can lead to unpredictable expenditures if the contractor is inefficient or inflates hours/costs. Mitigation strategies typically involve robust government oversight, including detailed review of timesheets and invoices, establishing labor hour ceilings, defining specific task orders with estimated effort, and incorporating CLINs (Contract Line Item Numbers) that may have fixed-price components for materials or specific deliverables. Strong contract administration and performance monitoring are crucial to ensure the contractor remains efficient and that costs stay within reasonable bounds relative to the work performed.

What is the expected effectiveness of BAE Systems' services in ensuring the operational continuity and security of the DOJ's network infrastructure?

The effectiveness of BAE Systems' services hinges on several factors, including the clarity of the performance work statement (PWS), the adequacy of the service level agreements (SLAs), and the contractor's execution capabilities. Given BAE's experience, they are expected to provide competent support for network monitoring, incident response, and routine maintenance, contributing to operational continuity. Security effectiveness depends on adherence to DOJ's security protocols and industry best practices. The contract's duration and value suggest a recognized need for sustained support. However, actual effectiveness will be measured by metrics defined in the contract, such as system uptime, response times to incidents, and successful implementation of security measures. Continuous government oversight and performance evaluations are key to ensuring these services meet the DOJ's critical operational and security requirements.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this DOJ contract fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally shown a consistent upward trend over the past five years, reflecting the increasing reliance of government agencies on specialized IT support beyond traditional software development or hardware maintenance. This category often includes services like IT consulting, network management, data processing support, and IT infrastructure services. The $26.1M DOJ contract is a significant award within this category, indicative of the substantial investments agencies are making in maintaining and enhancing their IT operations. It aligns with the broader trend of agencies outsourcing complex IT functions to specialized providers to ensure efficiency, access expertise, and focus on core mission objectives. This specific contract contributes to the overall growth observed in this spending category.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,140,748

Exercised Options: $26,140,748

Current Obligation: $26,140,748

Actual Outlays: $26,142,799

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $559,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D00D9

IDV Type: FSS

Timeline