DOJ's $19M Purchase Order to Cox Nevada Telecom for IT Services Lacks Competition

Contract Overview

Contract Amount: $19,015 ($19.0K)

Contractor: COX Nevada Telcom LLC

Awarding Agency: Department of Justice

Start Date: 2024-03-02

End Date: 2027-03-01

Contract Duration: 1,094 days

Daily Burn Rate: $17/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24-28 D48 BTOOLKIT(ITD) LV

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89101

State: Nevada Government Spending

Plain-Language Summary

Department of Justice obligated $19,015 to COX NEVADA TELCOM LLC for work described as: FY24-28 D48 BTOOLKIT(ITD) LV Key points: 1. Significant spending on IT services by the U.S. Marshals Service. 2. Sole reliance on Cox Nevada Telecom raises concerns about market competition. 3. Potential for inflated costs due to the absence of competitive bidding. 4. The IT services sector is broad, making direct comparisons challenging without specific service details.

Value Assessment

Rating: questionable

The contract value of $19.015 million over three years is substantial. Without competitive bids, it's difficult to assess if this represents fair market value for 'Other Computer Related Services'. Benchmarking is impossible without more specific service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for multiple vendors to bid and offer competitive pricing.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these IT services.

Public Impact

Taxpayers may be overpaying for essential IT services due to a lack of competitive bidding. The U.S. Marshals Service relies on a single vendor, potentially creating vendor lock-in and future dependency. Limited transparency into the justification for a sole-source award hinders public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The U.S. Marshals Service is procuring 'Other Computer Related Services' (NAICS 541519). This category is broad and can encompass a wide range of IT support, maintenance, and consulting. Spending benchmarks for this specific sub-sector are difficult to establish without more granular detail on the services provided.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The award was not competed, raising questions about the oversight process that led to a sole-source determination. Further review is needed to understand the justification and ensure accountability in future procurements.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-justice, nv, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19,015 to COX NEVADA TELCOM LLC. FY24-28 D48 BTOOLKIT(ITD) LV

Who is the contractor on this award?

The obligated recipient is COX NEVADA TELCOM 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 $19,015.

What is the period of performance?

Start: 2024-03-02. End: 2027-03-01.

What specific IT services are being procured under this contract, and how do they align with the U.S. Marshals Service's mission needs?

The contract is categorized under NAICS code 541519, 'Other Computer Related Services.' This broad classification lacks specificity. Understanding the exact nature of these services, such as network maintenance, software support, or cybersecurity, is crucial to assessing their necessity and value to the U.S. Marshals Service's operational requirements and mission effectiveness.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The data explicitly states the contract was 'NOT COMPETED.' A sole-source award typically requires a strong justification, such as unique capabilities or urgent need. Without this justification, it's impossible to assess the risk of vendor lock-in or the potential for inflated pricing due to the absence of market competition and price discovery.

How does the $19 million contract value compare to industry benchmarks for similar 'Other Computer Related Services' provided to federal agencies?

Benchmarking this $19 million contract is challenging due to the broad 'Other Computer Related Services' classification and the sole-source nature of the award. Without specific service details and competitive pricing data, it's difficult to determine if this represents good value for taxpayers. A comparison to similar, competitively procured contracts would be necessary for a meaningful assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15M10224QA4700010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 VEGAS DR, LAS VEGAS, NV, 89106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,525

Exercised Options: $19,015

Current Obligation: $19,015

Actual Outlays: $4,049

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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