DOJ awards BAE Systems $37.5M for IT integration support, with potential for significant growth

Contract Overview

Contract Amount: $37,476,428 ($37.5M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2022-11-01

End Date: 2026-09-30

Contract Duration: 1,429 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: GENERAL INTEGRATION (GI) SUPPORT LABOR

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $37.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: GENERAL INTEGRATION (GI) SUPPORT LABOR Key points: 1. Contract value suggests a substantial need for ongoing IT integration services. 2. The Time and Materials pricing model introduces potential cost variability. 3. BAE Systems' selection indicates a reliance on established IT support providers. 4. The contract duration extends over several fiscal years, implying long-term program needs. 5. The specific IT services are crucial for the operational efficiency of DOJ's various divisions.

Value Assessment

Rating: fair

The contract's value of $37.5 million over approximately four years for IT integration support is moderate for a federal contract of this nature. Without specific benchmarks for comparable 'General Integration Support Labor' contracts within the Department of Justice or similar agencies, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, can lead to costs exceeding initial estimates if not closely managed. Benchmarking against industry standards for IT support services would be necessary for a more definitive evaluation of pricing efficiency.

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 had the opportunity to bid. The fact that it is a single delivery order suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for competitive task orders. The presence of full and open competition generally promotes price discovery and encourages vendors to offer competitive pricing to secure the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price and quality for the IT integration services required by the Department of Justice.

Public Impact

The Department of Justice's various offices, boards, and divisions will benefit from enhanced IT integration and support. Services delivered include computer systems design and integration, crucial for modernizing government IT infrastructure. The primary geographic impact is likely within the Washington D.C. metropolitan area, where many DOJ headquarters and operational units are located. The contract supports a workforce of IT professionals, potentially including engineers, technicians, and project managers, both within the contractor and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored and managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of the services.
The duration of the contract (over 4 years) necessitates ongoing vigilance to ensure continued value and alignment with evolving DOJ needs.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
BAE Systems is a large, established defense and technology contractor with significant experience in government IT services.
The contract addresses a critical need for IT integration support within the Department of Justice.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services industry. This sector encompasses a wide range of activities, including designing and integrating hardware and software systems, IT consulting, and custom software development. The federal government is a major consumer of these services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and improve operational efficiency across various agencies. Comparable spending benchmarks would typically be found within IT services categories for large federal agencies, often measured in the hundreds of millions or billions annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, BAE Systems, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. The extent of small business subcontracting would need to be further investigated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments, particularly under the Time and Materials (T&M) structure. Transparency is facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense (DoD) IT Support Services
Department of Homeland Security (DHS) IT Modernization Programs
National Institutes of Health (NIH) IT Services

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Long contract duration may lead to technology obsolescence or scope misalignment.
Lack of specific performance metrics in award data hinders immediate quality assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.5 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. GENERAL INTEGRATION (GI) SUPPORT LABOR

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 $37.5 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-09-30.

What is the historical spending pattern for 'General Integration (GI) Support Labor' within the Department of Justice?

Analyzing historical spending patterns for 'General Integration (GI) Support Labor' within the Department of Justice (DOJ) requires access to detailed contract databases beyond the provided snippet. Typically, such analysis would involve querying the Federal Procurement Data System (FPDS) or similar repositories for all contracts awarded under NAICS code 541512 (Computer Systems Design Services) or specific contract line item numbers (CLINs) related to 'integration support labor' by the DOJ over several fiscal years. This would reveal trends in contract values, awardees, contract types (e.g., T&M vs. Firm-Fixed-Price), and duration. Without this historical data, it's difficult to ascertain if the current $37.5 million award represents an increase, decrease, or steady level of spending for these services. Understanding past spending helps contextualize the current award's significance and identify potential shifts in procurement strategy or program needs.

How does the Time and Materials (T&M) pricing structure for this contract compare to industry best practices for IT integration services?

The Time and Materials (T&M) pricing structure, used in this $37.5 million DOJ contract with BAE Systems, is common for IT services where the scope of work can be variable or evolve over time. Industry best practices often recommend T&M for tasks with undefined requirements or when research and development activities are involved. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts. Best practices for managing T&M contracts include establishing strong ceiling prices, requiring detailed labor hour tracking, implementing robust oversight, and defining clear milestones. Agencies often prefer to transition to more fixed-price arrangements as project scope solidifies. For IT integration, a hybrid approach or a phased transition from T&M to fixed-price elements as requirements become clearer is often considered a best practice to balance flexibility with cost control.

What is BAE Systems' track record with similar IT integration support contracts within the federal government?

BAE Systems Technology Solutions & Services Inc. has a significant track record of performing IT integration support and related services for various U.S. federal agencies. As a large defense and technology contractor, they frequently compete for and win contracts involving complex systems integration, software development, and IT infrastructure support. To assess their specific track record for 'General Integration (GI) Support Labor' similar to this DOJ award, one would examine their past performance on contracts with agencies like the Department of Defense, NASA, and other civilian departments. Key indicators to review include contract values, performance ratings (if available), any past performance disputes or corrective actions, and the types of IT services delivered. Their extensive experience suggests a capability to handle such requirements, but a detailed review of past performance on comparable contracts is crucial for a complete assessment.

What are the potential risks associated with the duration and value of this contract for the Department of Justice?

The duration of this contract, spanning from November 1, 2022, to September 30, 2026 (approximately four years), and its value of $37.5 million present several potential risks for the Department of Justice (DOJ). Firstly, the extended timeline increases the risk of technological obsolescence; IT systems and integration needs can evolve rapidly, potentially making the contracted services less relevant or requiring costly modifications. Secondly, the Time and Materials (T&M) pricing structure, while offering flexibility, carries a significant risk of cost escalation if not rigorously managed, potentially exceeding the initial $37.5 million estimate. Thirdly, long-term reliance on a single contractor, even one with a good track record like BAE Systems, can reduce future competition and potentially lead to complacency or less aggressive pricing in subsequent procurements. Finally, ensuring consistent performance quality and alignment with evolving DOJ strategic objectives over such a long period requires sustained and effective government oversight.

How does the 'Computer Systems Design Services' (NAICS 541512) category spending by the DOJ compare to other federal agencies?

Comparing the Department of Justice's (DOJ) spending in the 'Computer Systems Design Services' (NAICS 541512) category to other federal agencies requires analyzing aggregate procurement data. Agencies like the Department of Defense (DoD), NASA, and the Department of Homeland Security (DHS) typically represent the largest spenders in this category due to their extensive IT infrastructure and complex mission requirements. The DOJ's spending, while substantial, is generally smaller in scale compared to these larger departments. However, the specific nature of DOJ's mission, which involves law enforcement, justice administration, and national security, necessitates significant investment in specialized IT systems and integration services. Therefore, while the absolute dollar amount might be lower than DoD, the strategic importance and complexity of DOJ's IT needs within this category can be equally critical.

Industry Classification

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

Solicitation ID: 15JPSS22Q00000087

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $108,367,957

Exercised Options: $54,654,713

Current Obligation: $37,476,428

Actual Outlays: $33,296,328

Subaward Activity

Number of Subawards: 121

Total Subaward Amount: $23,435,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0053

IDV Type: GWAC

Timeline