DOJ awards $2.24M for nationwide IT maintenance, with a 1-year term and 6158 bids

Contract Overview

Contract Amount: $2,241,677 ($2.2M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Justice

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $6.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PSS - NATIONWIDE MAINTENANCE SERVICES OY4

Place of Performance

Location: LAGUNA HILLS, ORANGE County, CALIFORNIA, 92653

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $2.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: PSS - NATIONWIDE MAINTENANCE SERVICES OY4 Key points: 1. Value for money appears reasonable given the competitive bidding process and the 1-year duration. 2. Strong competition indicated by 6158 bids suggests potential for favorable pricing. 3. Risk indicators are low due to the short contract term and established service category. 4. Performance context is for nationwide IT maintenance, a common and essential government function. 5. Sector positioning is within IT services, specifically 'Other Computer Related Services'. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: good

The contract value of $2.24 million for a 1-year nationwide IT maintenance service appears reasonable, especially considering the high number of bids received. Benchmarking against similar IT maintenance contracts is difficult without more specific service details, but the competitive nature suggests pricing was likely market-driven. The Time and Materials pricing structure warrants close monitoring to ensure costs remain within expectations and align with the delivered services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (System for Award Management), which typically implies a full and open competition for smaller dollar value procurements. The exceptionally high number of 6158 bids indicates robust market interest and a highly competitive environment. This level of competition is ideal for price discovery and should have driven down costs for the government.

Taxpayer Impact: The extensive competition means taxpayers likely benefited from a more favorable price than would have been achieved in a less contested procurement. It also suggests that multiple capable vendors were vying for the work, increasing the likelihood of selecting a high-quality provider.

Public Impact

Federal agencies nationwide will benefit from continued IT maintenance services, ensuring operational continuity. Essential IT infrastructure support will be provided, covering a broad range of computer-related services. The geographic impact is nationwide, supporting federal operations across the United States. Workforce implications are likely minimal for the awarding agency, with the contractor providing the necessary personnel for maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
The broad scope of 'Other Computer Related Services' could lead to scope creep if not clearly defined.
Reliance on a single awardee for nationwide services could pose continuity risks if the contractor faces performance issues.

Positive Signals

The high number of bids (6158) suggests a healthy and competitive market for these services.
The short 1-year duration allows for periodic re-evaluation of needs and contractor performance.
The contract is for essential IT maintenance, a critical function for government operations.

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 a wide range of IT support, consulting, and integration services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a small portion of overall federal IT spending, focused on operational maintenance rather than large-scale system development.

Small Business Impact

While this contract was competed, there is no explicit indication of a small business set-aside. Given the high number of bids, it is possible that small businesses participated in the competition. However, without specific subcontracting plans or set-aside information, the direct impact on the small business ecosystem is unclear. Larger prime contractors often utilize small business subcontractors, which could be a downstream benefit.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice contracting officers and program managers. The Time and Materials nature necessitates close monitoring of hours and materials to ensure compliance with the contract terms and prevent cost overruns. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Operations and Maintenance Services
Nationwide IT Support Contracts
Computer Facilities Management Services
IT Professional Services

Risk Flags

Time and Materials Contract Type
Broad Service Category (NAICS 541519)
Nationwide Service Delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC. PSS - NATIONWIDE MAINTENANCE SERVICES OY4

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS 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 $2.2 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the track record of CYNERGY PROFESSIONAL SYSTEMS LLC with federal contracts, particularly in IT maintenance?

A review of federal procurement data indicates that CYNERGY PROFESSIONAL SYSTEMS LLC has a history of receiving federal contracts. To assess their track record specifically for IT maintenance, one would need to examine past awards for similar services, including contract values, performance evaluations (if available), and any reported issues or successes. Without access to detailed performance metrics or past performance questionnaires, it's difficult to definitively gauge their reliability and expertise in this specific domain. However, winning a contract with such a high number of competitors suggests they met the basic qualifications and presented a competitive offer.

How does the awarded price compare to market rates for similar nationwide IT maintenance services?

Determining the precise market rate for 'nationwide IT maintenance services' is complex due to the variability in service scope, Service Level Agreements (SLAs), and geographic coverage. The awarded value of $2.24 million for a 1-year contract, with 6158 bids, suggests a competitive pricing environment. To benchmark effectively, one would need to compare the estimated hours, labor rates, and material costs against industry surveys and publicly available data for similar government or commercial contracts. The Time and Materials (T&M) structure means the final cost is dependent on actual effort, making a direct price comparison challenging without detailed service breakdowns. However, the high competition implies the government likely secured a price reflective of market conditions.

What are the primary risks associated with this Time and Materials (T&M) contract structure for IT maintenance?

The primary risk with a Time and Materials (T&M) contract for IT maintenance is the potential for cost overruns if not managed rigorously. Unlike fixed-price contracts, T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the cost of materials. This structure can incentivize longer task durations or less efficient work if oversight is lacking. For the government, risks include difficulty in accurately forecasting total costs, potential for scope creep without clear definition, and the need for robust monitoring of labor hours and material usage. Effective management requires detailed tracking, regular reporting, and strong communication between the government and the contractor to ensure value is received for the expenditures.

How effective is the 'full-and-open' competition with 6158 bids in ensuring optimal value for taxpayers?

A 'full-and-open' competition with an exceptionally high number of bids, such as 6158 in this case, is generally considered highly effective in ensuring optimal value for taxpayers. This level of competition drives down prices as multiple vendors vie to win the contract, often by offering their most competitive rates. It also increases the likelihood that the government selects a vendor offering a strong balance of price and technical capability. The sheer volume of bids suggests a robust market response, indicating that the government's requirements were well-defined and accessible to a wide range of potential providers, thereby maximizing the potential for a cost-effective outcome.

What are the implications of the 'Other Computer Related Services' (NAICS 541519) classification for the scope of work?

The classification 'Other Computer Related Services' (NAICS 541519) is very broad and encompasses a wide array of IT support functions that do not fit into more specific categories like software development, network management, or data processing. This could include services such as IT consulting, system integration support, help desk operations, IT equipment installation and repair, and IT project management. For this contract, it implies the scope could be diverse, covering various aspects of IT maintenance and support nationwide. The breadth necessitates clear definition within the contract's Statement of Work (SOW) to avoid ambiguity, ensure the contractor understands expectations, and allow for effective performance monitoring and value assessment.

What is the typical duration for nationwide IT maintenance contracts of this value, and how does this contract compare?

Nationwide IT maintenance contracts can vary significantly in duration, often ranging from one to five years, with options for extension. Contracts valued around $2.24 million, especially those for ongoing maintenance, are frequently awarded for initial terms of one to three years. This specific contract's duration of one year (364 days) is relatively short. This short term can be advantageous as it allows the agency to reassess needs, performance, and market conditions more frequently, potentially leading to better pricing in subsequent contract periods or the opportunity to switch providers if necessary. It also limits the government's long-term commitment and exposure to potential performance issues.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 23187 LA CADENA, STE 102, LAGUNA HILLS, CA, 92653

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, 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: $2,241,677

Exercised Options: $2,241,677

Current Obligation: $2,241,677

Actual Outlays: $2,242,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS20G00000334

IDV Type: BOA

Timeline