DOJ's $249M IT Services Contract Awarded to Blue Tech Inc. for 3 Years

Contract Overview

Contract Amount: $249,304 ($249.3K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Justice

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $228/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY

Place of Performance

Location: LA JOLLA, SAN DIEGO County, CALIFORNIA, 92038

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $249,303.97 to BLUE TECH INC. for work described as: INFORMATION TECHNOLOGY Key points: 1. Contract value represents a significant investment in IT modernization for the Department of Justice. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. Blue Tech Inc. will provide 'Other Computer Related Services,' a broad category indicating diverse IT support needs. 5. The contract duration of nearly three years allows for sustained support and project continuity. 6. California is the primary geographic location, potentially indicating a concentration of DOJ IT operations there.

Value Assessment

Rating: good

The contract's fixed-price nature is a positive indicator for cost control. Benchmarking this $249 million IT services contract against similar large-scale IT procurements by federal agencies would provide a clearer picture of its value. Without specific service details or comparable contract data, a precise value-for-money assessment is challenging, but the competitive award process suggests a reasonable price was likely achieved.

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,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the 'full and open' nature suggests multiple interested parties had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Justice benefits from enhanced IT infrastructure and services, supporting its mission. Federal employees within the DOJ will receive the necessary technological support to perform their duties. The contract's impact is primarily concentrated in California, where the services will be delivered. The IT services provided could support various DOJ components, including Offices, Boards, and Divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad scope of 'Other Computer Related Services' could lead to scope creep if not managed tightly.
Reliance on a single contractor for a significant duration may pose risks if performance falters.
The exclusion of sources prior to full and open competition warrants further investigation into the rationale.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The award to a single entity simplifies contract management and oversight.
The nearly three-year duration allows for stable IT support and potential for long-term improvements.

Sector Analysis

The IT services sector is a critical component of federal spending, encompassing a wide range of support from basic network maintenance to complex software development. This $249 million contract falls within the 'Other Computer Related Services' NAICS code (541519), which is a broad category. Federal IT spending is consistently one of the largest categories of government expenditure, with agencies continually seeking to modernize systems and enhance cybersecurity. This contract likely supports the DOJ's ongoing efforts to maintain and upgrade its technological capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, Blue Tech Inc., will be responsible for delivering the services. The extent to which Blue Tech Inc. engages small businesses as subcontractors for specialized services would depend on their own business practices and the specific requirements of the contract, which are not detailed here.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, performance monitoring will be key. The Department of Justice's internal oversight bodies, as well as potential reviews by the Government Accountability Office (GAO) or the DOJ's Office of the Inspector General (OIG), would provide accountability. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Federal IT Modernization Programs

Risk Flags

Potential for scope creep due to broad service category.
Risk of contractor underperformance impacting critical DOJ IT functions.
Need for clear justification of 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $249,303.97 to BLUE TECH INC.. INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is BLUE TECH 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 $249,303.97.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is Blue Tech Inc.'s track record with federal IT contracts, particularly with the Department of Justice?

Assessing Blue Tech Inc.'s track record requires a review of their past performance on federal contracts. This includes examining contract history for similar IT services, performance ratings (if available), any past disputes or contract terminations, and their experience with the Department of Justice specifically. A history of successful, on-time, and within-budget delivery of complex IT services would be a positive indicator. Conversely, a pattern of performance issues or contract challenges could raise concerns about their capability to fulfill this significant award effectively. Further investigation into their contract portfolio and client feedback would be necessary for a comprehensive assessment.

How does the $249 million contract value compare to historical IT spending by the Department of Justice?

To benchmark the $249 million contract value, one would need to analyze the Department of Justice's historical IT spending patterns. This involves examining annual IT budgets and the value of previously awarded IT services contracts over the past several fiscal years. Comparing this award to the average size and frequency of similar IT procurements by the DOJ can indicate whether this represents a typical investment, an increase, or a decrease in spending for such services. Understanding this context helps determine if the current investment is aligned with historical trends or represents a strategic shift in IT resource allocation.

What are the specific IT services encompassed by the 'Other Computer Related Services' (NAICS 541519) category in this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can include a wide array of IT services not elsewhere classified. This might encompass IT consulting, systems integration, IT project management, data processing services, disaster recovery planning, IT support services, and potentially specialized software development or implementation. Without the detailed Statement of Work (SOW) for this specific contract, the precise nature of the services remains undefined. Understanding the specific deliverables and tasks is crucial for evaluating the contract's scope, risks, and overall value to the DOJ.

What is the significance of the 'after exclusion of sources' clause in the contract's competition type?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain potential offerors were excluded from the process before the final solicitation was issued. This exclusion must be justified by the agency, often based on specific requirements, past performance, or other documented reasons. While it still allows for open competition among the remaining eligible sources, it narrows the field compared to a purely 'full and open' competition where all responsible sources are permitted to compete without prior exclusion. The justification for such exclusions is important for ensuring fairness and maximizing competition.

What are the potential risks associated with a firm fixed-price contract for complex IT services?

Firm fixed-price (FFP) contracts are designed to provide cost certainty to the government. However, for complex IT services, there are inherent risks. If the contractor underestimates the effort, cost, or complexity involved, they may incur losses, potentially leading to reduced quality, corner-cutting, or even contractor default. Conversely, if the government underestimates its needs or the scope is poorly defined, the contractor may exploit the FFP structure to maximize profit. Effective management, clear SOWs, and robust oversight are critical to mitigating these risks and ensuring the government receives the intended value.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $249,304

Exercised Options: $249,304

Current Obligation: $249,304

Actual Outlays: $196,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline