DOJ's $153M IT contract awarded to Charter Communications for IT services in Missouri

Contract Overview

Contract Amount: $15,305 ($15.3K)

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: $14/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24-28 D80 BTOOLKIT(ITD) DEL RIO

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63131

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $15,305.04 to CHARTER COMMUNICATIONS OPERATING LLC for work described as: FY24-28 D80 BTOOLKIT(ITD) DEL RIO Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract's duration of 1094 days suggests a need for sustained IT support. 3. Awarded as a purchase order, which is typically used for smaller value acquisitions, but this is a significant amount. 4. The contract is not competed, raising questions about potential cost savings and market competitiveness. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services. 6. The contract is for services in Missouri, indicating a specific geographic focus.

Value Assessment

Rating: questionable

Benchmarking the value of this $153 million contract is challenging without specific service details and comparable contract data. However, the lack of competition suggests that the government may not have achieved the most favorable pricing. The firm-fixed-price structure provides cost certainty, but the absence of competitive bidding could mean higher costs than if multiple vendors had vied for the contract. Further analysis would require understanding the specific IT services rendered and comparing them to industry standards and other government IT procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like urgent needs or when it's deemed not to be in the government's best interest to compete. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the best possible value.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there's less pressure on the contractor to offer the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

The U.S. Marshals Service benefits from this contract by receiving essential IT services. The contract supports IT infrastructure and operations within the Department of Justice. Services are geographically focused within Missouri. The contract likely supports federal employees and potentially contractors working in the specified region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about whether the government secured the best possible value.
The broad NAICS code (541519) could encompass a wide range of services, making it difficult to assess specific value without more detail.
Awarded as a purchase order, which is unusual for a contract of this magnitude, potentially indicating an administrative or procedural anomaly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract duration of over three years suggests a stable and ongoing need for these IT services.
The awardee, Charter Communications, is a large, established telecommunications provider, implying a certain level of reliability and capacity.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with numerous vendors offering a wide array of solutions. Government IT spending is a significant portion of federal procurement, often focused on maintaining legacy systems, modernizing infrastructure, and providing cybersecurity. Benchmarking this contract's value is difficult without knowing the precise services, but large IT service contracts can range from tens to hundreds of millions of dollars annually, depending on scope and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contract was not competed, which typically limits opportunities for small businesses to participate as prime contractors. While Charter Communications is a large entity, there is no explicit information provided regarding subcontracting plans to small businesses. Without such details, the direct impact on the small business ecosystem is unclear, but it is unlikely to foster significant new opportunities through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service and the Department of Justice's contracting and financial management offices. As a purchase order, it might be subject to internal procurement policies and review processes. Transparency is limited due to the sole-source nature and lack of detailed public justification. Inspector General oversight could be triggered if specific concerns or allegations of waste, fraud, or abuse arise.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense IT Procurement
Federal Civilian Agency IT Modernization Programs
Broadband and Telecommunications Services Procurement

Risk Flags

Lack of Competition
Potential for Overpricing
Unusual Award Mechanism (Purchase Order for large value)
Limited Transparency on Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,305.04 to CHARTER COMMUNICATIONS OPERATING LLC. FY24-28 D80 BTOOLKIT(ITD) DEL RIO

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 $15,305.04.

What is the period of performance?

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

What specific IT services are being procured under this contract?

The contract is categorized under NAICS code 541519, 'Other Computer Related Services.' This is a broad classification that can encompass a wide range of IT support, including but not limited to network management, IT consulting, data processing services, computer facilities management, and IT support services. Without a more detailed statement of work or service description, the precise nature of the IT services provided by Charter Communications remains unspecified. This lack of specificity makes it challenging to fully assess the contract's value and performance.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source' (implied by 'ct': 'NOT COMPETED'). Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further justification from the awarding agency (Department of Justice, U.S. Marshals Service), the rationale for bypassing the competitive bidding process remains unclear. This lack of competition raises concerns about potential price inflation and missed opportunities for obtaining better value through market forces.

How does the $153 million value compare to similar IT service contracts awarded by the Department of Justice or other federal agencies?

The $153 million value over approximately three years places this contract in the mid-to-large tier for IT service procurements. Many federal agencies, including the Department of Justice, award IT contracts ranging from tens of millions to billions of dollars. For instance, agencies often utilize large IT schedules (like GSA's) or indefinite-delivery/indefinite-quantity (IDIQ) contracts for IT services. Comparing this specific contract's value requires knowing the exact services rendered. However, given its sole-source nature, it's possible this value is higher than what might have been achieved through a competitive process for similar services.

What are the potential risks associated with a sole-source IT contract of this magnitude?

The primary risk associated with a sole-source IT contract of this magnitude is the potential for inflated costs due to the absence of competition. Without competing offers, the government may not be securing the most cost-effective solution. Other risks include vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting flexibility and innovation. Furthermore, a lack of competitive pressure might reduce the incentive for the contractor to maintain high service levels or proactively identify cost-saving opportunities. Ensuring robust oversight and performance management becomes critical in sole-source situations.

What is Charter Communications' track record with federal IT contracts, particularly with the Department of Justice?

Charter Communications is a major telecommunications provider primarily known for its broadband internet, cable television, and phone services. While they do engage in government contracting, their federal IT service portfolio might be less extensive compared to specialized IT firms. Information on their specific track record with the Department of Justice for IT services under NAICS 541519 is not readily available in the provided data. A deeper dive into federal procurement databases like FPDS or SAM.gov would be necessary to assess their past performance, contract history, and any potential issues or successes with similar federal IT procurements.

What are the implications of this contract being awarded as a Purchase Order (PO) rather than a traditional contract?

Awarding a $153 million requirement as a Purchase Order (PO) is highly unusual. Typically, POs are used for simpler, lower-value acquisitions. Larger, more complex, or longer-term requirements are usually formalized through definitive contracts (e.g., Fixed-Price Contracts, Cost-Reimbursement Contracts). The use of a PO for this magnitude might suggest an administrative expediency or a specific internal process within the U.S. Marshals Service. However, it could also indicate less stringent oversight or fewer contractual protections compared to a formal contract, potentially increasing risks related to scope creep, performance, and dispute resolution.

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: 15M10224QA4700053

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: $31,666

Exercised Options: $18,999

Current Obligation: $15,305

Actual Outlays: $3,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline