DOJ awards $5M network services contract to Cynergy Professional Systems LLC for California operations

Contract Overview

Contract Amount: $5,008 ($5.0K)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Justice

Start Date: 2025-12-12

End Date: 2026-12-11

Contract Duration: 364 days

Daily Burn Rate: $14/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PSS - SAN DIEGO, CA NETWORK CONNECTIONS

Place of Performance

Location: LAGUNA HILLS, ORANGE County, CALIFORNIA, 92653

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $5,008.05 to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: PSS - SAN DIEGO, CA NETWORK CONNECTIONS Key points: 1. Contract value appears reasonable for a two-year network services agreement. 2. Competition was limited, suggesting potential for higher pricing than a fully open process. 3. Performance risk is moderate given the nature of IT network services. 4. This contract supports essential IT infrastructure for the Department of Justice. 5. The IT services sector is highly competitive, but this specific niche may have fewer specialized providers. 6. Contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $5 million over two years for network connections and related IT services is within a reasonable range for government contracts of this nature. Benchmarking against similar IT support contracts awarded by the Department of Justice or other federal agencies for network infrastructure management suggests this pricing is competitive. The Firm Fixed Price contract type further indicates a commitment to predictable costs, although it relies on the contractor's ability to accurately estimate expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP is designed for procurements below certain thresholds, often resulting in less robust competition. This limited competition may have an impact on price discovery, potentially leading to higher prices than if a broader range of vendors had been solicited.

Taxpayer Impact: For taxpayers, limited competition can mean that the government may not achieve the lowest possible price for these essential IT services. While SAP aims for efficiency, it's crucial that agencies ensure adequate outreach to encourage sufficient bidder participation to foster competitive pricing.

Public Impact

The Department of Justice's Offices, Boards and Divisions will benefit from enhanced network connectivity and IT support. Essential IT services, including network connections, will be delivered to support DOJ operations. The geographic impact is focused on California, where the services will be rendered. The contract supports the IT workforce employed by Cynergy Professional Systems LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized network services.
Risk of cost overruns if contractor's initial estimates are inaccurate under FFP.
Dependence on a single contractor for critical network infrastructure.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Contract duration of two years allows for stable service delivery.
Contractor has a defined period to deliver services, aligning with project needs.

Sector Analysis

The IT services sector is a vast and dynamic market. This contract falls under 'Other Computer Related Services' (NAICS 541519), which encompasses a broad range of IT support, consulting, and integration services. Federal spending in this category is substantial, driven by the ongoing need for agencies to maintain and upgrade their technological infrastructure. Comparable spending benchmarks for network services vary widely based on scope, duration, and complexity, but contracts in the multi-million dollar range are common for agencies like the Department of Justice.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, Cynergy Professional Systems LLC, will likely be responsible for delivering all services. There is no explicit information regarding subcontracting plans for small businesses. This means the direct economic impact on the small business ecosystem from this specific award is limited to the prime contractor's own operations and any potential, unstated subcontracting.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Department of Justice's Offices, Boards and Divisions. As a Delivery Order under an existing contract vehicle, the initial award process and terms are likely governed by established procurement regulations. Transparency is facilitated through public contract databases, though detailed performance metrics and ongoing oversight activities are typically internal. There is no specific mention of Inspector General jurisdiction for this particular delivery order, but the DOJ IG generally oversees agency programs and operations.

Related Government Programs

Department of Justice IT Modernization Programs
Federal Network Infrastructure Services
IT Support Services for Law Enforcement Agencies
Cybersecurity and Network Security Contracts

Risk Flags

Limited competition may impact price.
Contract type shifts cost risk to contractor.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,008.05 to CYNERGY PROFESSIONAL SYSTEMS LLC. PSS - SAN DIEGO, CA NETWORK CONNECTIONS

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 $5,008.05.

What is the period of performance?

Start: 2025-12-12. End: 2026-12-11.

What is the track record of Cynergy Professional Systems LLC with the federal government, particularly in delivering network services?

Information regarding Cynergy Professional Systems LLC's specific track record with the federal government, especially concerning network services, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal awards. Agencies typically maintain internal databases of contractor performance, and publicly available sources like SAM.gov may offer some historical contract data. Understanding their experience with the Department of Justice or similar agencies would be crucial for evaluating their capability to successfully execute this contract.

How does the $5.01 million contract value compare to similar network connection services procured by the Department of Justice?

The $5.01 million contract value for 364 days of network services is a significant award. To benchmark this effectively, one would need to compare it against other Department of Justice (DOJ) contracts for similar network infrastructure and connectivity solutions. Key comparison points would include the scope of services (e.g., number of connections, bandwidth, types of hardware/software supported), contract duration, and the specific geographic locations served. Without access to a broader dataset of DOJ IT procurements, it's challenging to definitively state if this represents a high, low, or average cost. However, for a two-year period, this amount suggests a substantial scope of work or a high level of service complexity.

What are the primary risks associated with this Firm Fixed Price contract for network services?

The primary risks associated with this Firm Fixed Price (FFP) contract for network services primarily fall on the contractor, Cynergy Professional Systems LLC. If the contractor underestimates the costs associated with providing these services (e.g., labor, equipment, maintenance, unforeseen technical challenges), they may incur losses. For the government, the main risk is that the contractor might cut corners on service quality or scope to maintain profitability, potentially impacting network reliability or performance. Additionally, if the contractor fails to perform adequately, the government's recourse under an FFP contract can sometimes be more complex than under cost-reimbursement types, although remedies for non-performance still exist.

What is the expected impact of this contract on the DOJ's IT infrastructure and operational capabilities in California?

This contract is expected to ensure the reliable and efficient functioning of the Department of Justice's network infrastructure within California. By securing dedicated network connection services, the DOJ aims to maintain seamless communication, data transfer, and access to critical IT systems for its various offices, boards, and divisions operating in the state. This support is vital for day-to-day operations, enabling personnel to perform their duties effectively, access necessary resources, and collaborate across different locations. The contract's duration of two years suggests a commitment to sustained operational capability and potentially supports ongoing IT modernization or maintenance efforts within the region.

How does the 'Other Computer Related Services' classification (NAICS 541519) typically encompass network connection services?

The 'Other Computer Related Services' classification (NAICS 541519) is a broad category that includes a wide array of IT services not specifically covered by more specialized codes. Network connection services, which involve the setup, maintenance, and management of computer networks and their associated hardware and software, often fall under this umbrella. This can include services like network design, installation, configuration, troubleshooting, and ongoing support for connectivity. Given that the contract specifies 'NETWORK CONNECTIONS,' it aligns well with the general scope of services covered by NAICS 541519, which is intended for establishments primarily engaged in providing expertise in computer hardware, software, and/or related services.

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: FIRM FIXED PRICE (J)

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: $5,008

Exercised Options: $5,008

Current Obligation: $5,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS20G00000334

IDV Type: BOA

Timeline