DOJ's $5.4B IT Toolkit Contract Awarded to Charter Communications, Lacking Competition
Contract Overview
Contract Amount: $5,400 ($5.4K)
Contractor: Charter Communications Operating LLC
Awarding Agency: Department of Justice
Start Date: 2024-03-02
End Date: 2027-03-01
Contract Duration: 1,094 days
Daily Burn Rate: $5/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY24-28 D48 BTOOLKIT(ITD) RENO
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63131
State: Missouri Government Spending
Plain-Language Summary
Department of Justice obligated $5,399.64 to CHARTER COMMUNICATIONS OPERATING LLC for work described as: FY24-28 D48 BTOOLKIT(ITD) RENO Key points: 1. Significant spending on IT services over five years. 2. Sole provider raises concerns about price and innovation. 3. Potential for higher costs due to lack of competition. 4. IT services sector is highly competitive, making this award unusual.
Value Assessment
Rating: questionable
The contract value of $5.4 billion over five years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value. Benchmarking against similar IT service contracts is challenging due to the lack of disclosed pricing details and competitive context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to inflated costs for taxpayers. The absence of competition removes the incentive for the contractor to offer the most competitive pricing.
Taxpayer Impact: The lack of competition in this large contract could result in millions of dollars in unnecessary spending, directly impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for IT services due to the absence of competitive bidding. The U.S. Marshals Service might not be receiving the best value or most innovative solutions available. Government reliance on a single vendor for critical IT infrastructure can create long-term dependencies and risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm fixed price contract type
- Long-term contract provides stability
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. The IT services market is dynamic and competitive, with numerous vendors capable of providing such solutions. A $5.4 billion contract in this sector typically involves extensive competition to ensure value.
Small Business Impact
The contract was not competed, and there is no indication of small business participation. This represents a missed opportunity for small businesses to compete for a significant government contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is not being overcharged and that performance meets all requirements. Transparency regarding the justification for the sole-source award is crucial.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Missed opportunity for small businesses
- Vendor lock-in risk
- Limited innovation potential
Tags
other-computer-related-services, department-of-justice, mo, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5,399.64 to CHARTER COMMUNICATIONS OPERATING LLC. FY24-28 D48 BTOOLKIT(ITD) RENO
Who is the contractor on this award?
The obligated recipient is CHARTER COMMUNICATIONS OPERATING LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (U.S. Marshals Service).
What is the total obligated amount?
The obligated amount is $5,399.64.
What is the period of performance?
Start: 2024-03-02. End: 2027-03-01.
What is the justification for awarding this substantial IT contract sole-source, given the competitive nature of the IT services market?
The justification for a sole-source award typically involves specific circumstances such as urgent needs, unique capabilities, or lack of available alternatives. Without detailed documentation from the Department of Justice, it is impossible to ascertain the precise rationale. However, such justifications are often scrutinized to ensure they are valid and not merely a convenience.
What are the potential risks associated with a $5.4 billion sole-source IT contract for the U.S. Marshals Service?
The primary risks include inflated costs due to the absence of competitive pressure, potential for vendor lock-in, and reduced access to innovative solutions offered by other market players. There's also a risk that the contractor may not prioritize performance or customer service as highly as they would under competitive conditions, potentially impacting the Marshals Service's operational effectiveness.
How can the government ensure effective oversight and value for money on this sole-source contract?
Effective oversight requires rigorous performance monitoring, regular price reasonableness reviews (even without direct competition), and clear communication channels with the contractor. The government should actively seek market intelligence to understand prevailing rates and explore opportunities for competition in future contract renewals or related procurements. Independent audits could also provide assurance.
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 - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 15M10224QA4700008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12405 POWERSCOURT DR, SAINT LOUIS, MO, 63131
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,999
Exercised Options: $5,400
Current Obligation: $5,400
Actual Outlays: $900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-03-02
Current End Date: 2027-03-01
Potential End Date: 2029-03-01 00:00:00
Last Modified: 2026-04-02
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