DOJ's $13.18M IT Support Contract Awarded to Favor Techconsulting, LLC

Contract Overview

Contract Amount: $13,179,470 ($13.2M)

Contractor: Favor Techconsulting, LLC

Awarding Agency: Department of Justice

Start Date: 2020-10-01

End Date: 2026-08-31

Contract Duration: 2,160 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAX DIVISION ENTERPRISE IT SUPPORT. DATE OF CONTRACT AWARD FOR ONE YEAR THEREAFTER WITH FIVE (5) TWELVE-MONTH OPTION PERIODS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $13.2 million to FAVOR TECHCONSULTING, LLC for work described as: TAX DIVISION ENTERPRISE IT SUPPORT. DATE OF CONTRACT AWARD FOR ONE YEAR THEREAFTER WITH FIVE (5) TWELVE-MONTH OPTION PERIODS Key points: 1. The contract aims to provide enterprise IT support services for the Tax Division. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration spans over five years, indicating a long-term need for these services. 4. The primary service category is Computer Systems Design Services. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award is a Delivery Order, suggesting it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $13.18 million contract for IT support is challenging without specific performance metrics or comparable contract data. The Time and Materials (T&M) pricing structure, while common for IT services, can lead to higher costs if not managed closely, compared to fixed-price contracts. The absence of detailed cost breakdowns or performance-based metrics makes a definitive value-for-money assessment difficult at this stage. However, the duration and scope suggest a significant investment in critical IT infrastructure for the Tax Division.

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,' which typically means the solicitation was broadly advertised, but specific sources were excluded for defined reasons. The presence of 6 bidders indicates a degree of competition. However, the 'exclusion of sources' clause warrants further investigation to understand if it limited the competitive landscape and potentially impacted price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices. However, the exclusion of certain sources may have limited the overall number of potential bidders, potentially impacting the extent of cost savings achieved for taxpayers.

Public Impact

The primary beneficiaries are the employees of the Department of Justice's Tax Division, who will receive enhanced IT support. Services delivered include computer systems design and related IT support, crucial for the division's operations. The geographic impact is primarily within the Department of Justice's facilities, likely concentrated in Virginia where the contractor is based. Workforce implications may include the need for specialized IT personnel to fulfill the contract requirements, potentially impacting both the contractor's and the DOJ's IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition could have limited the number of competitive bids.
Lack of detailed performance metrics makes it difficult to assess the true value for money.
The contract's duration of over five years requires ongoing oversight to ensure continued relevance and cost-effectiveness.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Multiple bidders (6) participated, suggesting market interest and a competitive process.
The contract supports critical IT infrastructure for the Tax Division, ensuring operational continuity.
The contractor, Favor Techconsulting, LLC, is likely vetted through the competitive process.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under Computer Systems Design Services, a segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. The federal government is a significant consumer of these services, with spending often benchmarked against industry standards for IT support, system integration, and cybersecurity. The $13.18 million value over five years places this contract within the mid-tier range for specialized IT support within a large federal agency.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes small businesses in its subcontracting efforts. Further review of the contract details would be needed to ascertain any subcontracting provisions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures are inherent in the contract's performance clauses and payment terms. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Justice IT Support Contracts
Tax Division IT Modernization Efforts
Computer Systems Design Services IDIQ Contracts
Federal IT Services Procurement

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Limited competition if 'exclusion of sources' was not well-justified.
Reliance on contractor performance for critical IT functions.
Need for strong government oversight to manage T&M contract effectively.
Cybersecurity risks associated with contractor access to sensitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13.2 million to FAVOR TECHCONSULTING, LLC. TAX DIVISION ENTERPRISE IT SUPPORT. DATE OF CONTRACT AWARD FOR ONE YEAR THEREAFTER WITH FIVE (5) TWELVE-MONTH OPTION PERIODS

Who is the contractor on this award?

The obligated recipient is FAVOR TECHCONSULTING, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-08-31.

What is the track record of Favor Techconsulting, LLC in performing similar federal IT support contracts?

Assessing Favor Techconsulting, LLC's track record requires a deep dive into their past performance on federal contracts. This would involve reviewing contract databases (like FPDS) for previous awards, contract values, agencies served, and performance evaluations. Specific attention should be paid to contracts for Computer Systems Design Services and enterprise IT support. Understanding their history with Time and Materials (T&M) contracts is also crucial, as T&M requires diligent oversight to prevent cost overruns. A review of past performance ratings, any contract disputes, or terminations would provide a comprehensive picture of their reliability and capability to fulfill the DOJ's requirements.

How does the estimated cost of $13.18 million compare to similar IT support contracts for federal agencies of the DOJ's size?

Comparing the $13.18 million cost requires benchmarking against similar IT support contracts awarded to federal agencies of comparable size and complexity. Factors such as the scope of services (e.g., help desk, network management, cybersecurity, system design), contract duration (5 years), and the specific IT environment of the Tax Division are critical. Without access to detailed service level agreements and specific deliverables, a precise comparison is difficult. However, for enterprise-wide IT support over a five-year period, this figure appears to be within a reasonable range, assuming comprehensive services are included. A more granular analysis would involve comparing the per-year cost or cost per user against industry benchmarks for government IT support contracts.

What are the primary risks associated with a Time and Materials (T&M) contract for enterprise IT support?

The primary risk with a Time and Materials (T&M) contract for enterprise IT support is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements compensate the contractor based on the actual hours worked and the cost of materials used. If not managed with rigorous oversight, contractors may not have a strong incentive to control labor hours or material costs, leading to expenditures exceeding initial estimates. This necessitates robust monitoring of timesheets, labor categories, material invoices, and regular progress reviews by the government. Additionally, defining the 'materials' and ensuring fair market pricing for them is crucial. The government must actively manage the scope and effort to mitigate these risks.

What is the significance of the 'exclusion of sources' clause in the contract's competitive process?

The 'exclusion of sources' clause in a 'Full and Open Competition' award indicates that while the competition was generally open, specific potential bidders were intentionally excluded. The reasons for exclusion must be justified and documented, often relating to national security, proprietary information, or specific capabilities not met by certain vendors. This clause can significantly impact the level of competition. If legitimate and well-justified, it ensures that only capable and appropriate vendors participate. However, if the exclusion is overly broad or lacks strong justification, it could limit competition, potentially leading to higher prices or reduced innovation. Understanding the specific rationale behind the exclusion is key to assessing its impact on taxpayer value.

How does this contract align with the Department of Justice's broader IT modernization or digital transformation goals?

This contract for enterprise IT support is fundamental to the Department of Justice's ability to maintain and potentially modernize its IT infrastructure. Reliable IT support ensures the day-to-day operations of the Tax Division can continue seamlessly, which is a prerequisite for any modernization efforts. The specific services procured under this contract, such as computer systems design, could directly contribute to modernization by enabling upgrades, integrations, or the implementation of new technologies. However, the contract's primary focus appears to be on support rather than new system development. Its alignment with broader goals depends on whether the IT support provided enables or hinders future modernization initiatives, and if the contractor's expertise can be leveraged for strategic IT improvements.

What are the potential implications of this contract on the cybersecurity posture of the Tax Division?

The cybersecurity implications of this IT support contract are significant. The contractor will have access to and responsibility for maintaining the systems that house sensitive taxpayer data. Therefore, Favor Techconsulting, LLC must adhere to stringent federal cybersecurity standards (e.g., NIST guidelines, FISMA requirements). The contract should include specific clauses related to data protection, access controls, incident response, and vulnerability management. The quality of the IT support provided directly impacts the Tax Division's ability to defend against cyber threats. A robust cybersecurity framework within the contract, coupled with diligent oversight and the contractor's proven cybersecurity capabilities, is essential to safeguarding sensitive information.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7400 BEAUFONT SPRINGS DR STE 300, RICHMOND, VA, 23225

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,652,241

Exercised Options: $14,371,708

Current Obligation: $13,179,470

Actual Outlays: $12,397,741

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS18DPZM00004

IDV Type: IDC

Timeline