DOJ awards $25.5M for IT services to World Wide Technology, citing BPA pricing

Contract Overview

Contract Amount: $25,476,218 ($25.5M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Justice

Start Date: 2023-08-30

End Date: 2025-03-01

Contract Duration: 549 days

Daily Burn Rate: $46.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE: IRB SEVER BUY PRICING: IAW BPA DELIVERY: IAW BPA

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $25.5 million to WORLD WIDE TECHNOLOGY LLC for work described as: PURCHASE: IRB SEVER BUY PRICING: IAW BPA DELIVERY: IAW BPA Key points: 1. Contract leverages existing Blanket Purchase Agreement (BPA) for pricing, suggesting potential for favorable rates. 2. Sole-source award raises questions about competition and potential for overpayment. 3. IT services contract for offices, boards, and divisions indicates broad internal support needs. 4. Firm Fixed Price contract type shifts risk to the contractor, potentially stabilizing costs. 5. Contract duration of 549 days (approx. 1.5 years) provides a defined period for service delivery. 6. The award falls under Other Computer Related Services, a broad category within IT.

Value Assessment

Rating: fair

The contract's pricing is stated as 'IAW BPA,' meaning 'in accordance with Blanket Purchase Agreement.' This suggests that pricing was pre-negotiated and potentially benchmarked when the BPA was established. However, without access to the BPA's specific rates and comparison to current market prices for 'Other Computer Related Services,' a definitive value-for-money assessment is difficult. The award amount of $25.5 million over approximately 1.5 years is substantial, and the lack of open competition means there's a risk that the pricing may not be as competitive as it could be.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP.' The data indicates it was awarded sole-source, meaning only one vendor, World Wide Technology LLC, was solicited. This limits the opportunity for price discovery and may result in higher costs for the government compared to a fully competed contract. The rationale for a sole-source award is not provided in the data.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

The Department of Justice (DOJ) benefits from this contract by securing necessary IT services. Services delivered likely include a range of computer-related support, potentially encompassing hardware, software, and network maintenance or upgrades. The geographic impact is likely nationwide, given the 'WORLD WIDE' nature of the contractor and the broad scope of the DOJ. Workforce implications are indirect, as the contract supports internal DOJ operations rather than directly hiring external personnel for specific tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for better value.
Lack of transparency regarding the justification for sole-source procurement.
Pricing is based on a BPA, which may not reflect current market rates.
Contract duration of over 1.5 years locks in a single vendor for a significant period.

Positive Signals

Leverages an existing BPA, potentially streamlining procurement and ensuring some level of pre-negotiated pricing.
Firm Fixed Price contract type provides cost certainty for the government.
World Wide Technology LLC is a large, established IT solutions provider, suggesting experience and capability.
Award supports critical IT functions within the Department of Justice.

Sector Analysis

This contract falls within the Information Technology sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). This is a broad category encompassing services like IT consulting, system integration, and computer facilities management. The IT services market is highly competitive, with numerous large and small businesses offering a wide array of solutions. Government spending in this area is substantial, supporting a vast range of agency operations. Benchmarking this contract's value is challenging without specific service details, but IT services represent a significant portion of federal procurement budgets.

Small Business Impact

This contract was not awarded to a small business (ss: false) and does not appear to have a small business set-aside component (sb: false). As a sole-source award to a large prime contractor, there are no explicit subcontracting requirements for small businesses mandated by this specific award. The impact on the small business ecosystem is neutral to negative, as opportunities that might have been available through a competitive bid process are instead consolidated with a single large vendor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers responsible for IT services. The contract type (Firm Fixed Price) provides some cost control. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Services (General)
Computer Facilities Management
IT Consulting Services
Blanket Purchase Agreements (BPAs)

Risk Flags

Sole-source award
Lack of competition justification
Pricing based on legacy BPA
Broad service category (Other Computer Related Services)

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.5 million to WORLD WIDE TECHNOLOGY LLC. PURCHASE: IRB SEVER BUY PRICING: IAW BPA DELIVERY: IAW BPA

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY 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 $25.5 million.

What is the period of performance?

Start: 2023-08-30. End: 2025-03-01.

What specific IT services are being procured under this contract?

The provided data indicates the contract is for 'Other Computer Related Services' (NAICS 541519) under the Department of Justice. This is a broad category that can encompass a wide range of IT support, including but not limited to IT consulting, system integration, network management, hardware/software support, and IT infrastructure services. Without further details or access to the contract's statement of work (SOW), the precise nature and scope of the services remain unspecified. This lack of specificity makes it difficult to fully assess the contract's alignment with DOJ's needs or to benchmark its value effectively against similar specialized IT service procurements.

What is the justification for awarding this contract sole-source to World Wide Technology LLC?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and implies a sole-source award. However, the specific justification for this sole-source determination is not included. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source capable of providing the required services, or in certain emergency situations. Without this justification, it is impossible to assess whether the sole-source award was appropriate and in the government's best interest. This lack of transparency raises concerns about potential limitations in competition and price discovery.

How does the pricing 'IAW BPA' compare to market rates for similar IT services?

The pricing is stated as 'IAW BPA,' meaning 'in accordance with Blanket Purchase Agreement.' This indicates that the rates were established when the BPA was originally negotiated, likely with World Wide Technology LLC. While BPAs can offer efficiencies and pre-negotiated pricing, their rates may not always reflect current market conditions. To assess value, these BPA rates would need to be benchmarked against prevailing market prices for 'Other Computer Related Services' in the relevant geographic area and for similar contract scopes. Without access to the specific BPA rates and independent market research, it's difficult to determine if this $25.5 million award represents a good value or if the government could have secured better pricing through open competition.

What is the track record of World Wide Technology LLC with the Department of Justice?

World Wide Technology LLC is a large, established IT solutions provider with extensive experience in government contracting. While specific details of their past performance with the Department of Justice are not provided in this data snippet, their presence as a prime contractor suggests a history of successful engagements. Federal procurement databases often track contractor performance ratings and past contract awards. A deeper analysis would involve reviewing these records to understand their history of meeting deadlines, quality standards, and budget constraints on previous DOJ contracts or similar federal agency procurements.

What are the potential risks associated with a sole-source IT services contract of this magnitude?

The primary risks associated with a sole-source IT services contract of this magnitude ($25.5 million) include: 1) Lack of competitive pricing: Without competition, the government may pay higher prices than necessary. 2) Limited innovation: A single vendor may have less incentive to introduce innovative solutions. 3) Vendor lock-in: The government becomes dependent on the incumbent vendor, making future transitions potentially difficult and costly. 4) Potential for complacency: The vendor may become less responsive or proactive due to the absence of competitive pressure. 5) Risk of inadequate performance: While WWT is a large company, any contract carries performance risks, which are harder to mitigate without alternative options readily available.

How does this contract fit into the broader IT spending landscape of the Department of Justice?

This $25.5 million contract for 'Other Computer Related Services' represents a component of the Department of Justice's overall IT expenditure. The DOJ, like most large federal agencies, relies heavily on IT to support its diverse mission, which includes law enforcement, judicial administration, and policy development. IT spending typically covers a wide range of areas such as infrastructure, software development, cybersecurity, data management, and end-user support. This specific contract likely addresses a critical need within the 'Offices, Boards and Divisions' segment of the DOJ, contributing to their operational efficiency. Understanding its place requires comparing it to the DOJ's total IT budget and other IT contracts awarded across the department.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,476,218

Exercised Options: $25,476,218

Current Obligation: $25,476,218

Actual Outlays: $25,233,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 15JPSS22A00000118

IDV Type: BPA

Timeline