DOJ's $14.5M IT Toolkit Contract Awarded to Charter Communications Without Competition

Contract Overview

Contract Amount: $14,500 ($14.5K)

Contractor: Charter Communications Operating LLC

Awarding Agency: Department of Justice

Start Date: 2025-09-02

End Date: 2027-03-01

Contract Duration: 545 days

Daily Burn Rate: $27/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY25-29 D52 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000410 MISSION CRITICAL

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $14,499.56 to CHARTER COMMUNICATIONS OPERATING LLC for work described as: FY25-29 D52 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000410 MISSION CRITICAL Key points: 1. The contract's value of $14.5 million over its period of performance raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and potentially increases the risk of overpayment. 3. Performance risk is moderate, as the contract is a firm-fixed-price purchase order, but the absence of competition could mask underlying inefficiencies. 4. This IT services contract for the U.S. Marshals Service falls within the broader category of 'Other Computer Related Services'. 5. The contract's duration of approximately 18 months suggests a need for ongoing IT support rather than a one-time procurement. 6. The lack of small business set-aside or subcontracting goals warrants scrutiny regarding broader economic impact.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.5 million IT toolkit contract is challenging without competitive data. The firm-fixed-price structure offers some cost certainty, but the absence of competition means there's no direct comparison to market rates or alternative providers. This lack of a competitive process raises concerns about whether the government secured the best possible value for these 'Other Computer Related Services'. Without a bidding process, it's difficult to assess if Charter Communications' pricing is aligned with industry standards for similar IT support.

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. The U.S. Marshals Service did not solicit bids from other potential providers, which significantly limits the opportunity for price negotiation and innovation. This approach bypasses the standard competitive procurement process, suggesting either a unique capability requirement or a potential lack of market research to identify alternative solutions. The absence of bidders means taxpayers do not benefit from the downward pressure on prices that competition typically provides.

Taxpayer Impact: The sole-source award means taxpayers may not have received the most cost-effective solution. Without competition, there is an increased risk that the price paid is higher than it would have been in a competitive environment.

Public Impact

The primary beneficiary is the U.S. Marshals Service, which will receive IT toolkit services to support its mission. The services delivered are categorized under 'Other Computer Related Services', indicating a broad range of IT support. The geographic impact is focused on Missouri, where the contract is being administered. Workforce implications are likely internal to Charter Communications, with potential for specialized IT personnel to be assigned to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
The sole-source nature limits transparency and accountability in the procurement process.
Absence of small business participation or subcontracting goals may limit economic opportunities for smaller firms.
The broad 'Other Computer Related Services' category could mask specific needs that might be better met by specialized vendors.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract is for mission-critical IT support, indicating its importance to the agency's operations.
The award is to an established provider, Charter Communications, which may imply a degree of reliability.

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. The U.S. Marshals Service's spending on IT support is part of a larger government-wide trend of increasing reliance on technology. Comparable spending benchmarks for similar IT toolkit services can vary widely based on scope, duration, and vendor, but the absence of competition here makes direct comparison difficult.

Small Business Impact

This contract does not appear to include any specific provisions for small business set-asides or subcontracting goals. The award to Charter Communications, a large telecommunications company, suggests that the focus was not on engaging the small business ecosystem for this particular procurement. This could mean missed opportunities for small businesses to contribute their specialized IT services and potentially limit their ability to gain experience with federal contracts.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Marshals Service contracting officers and program managers. As a purchase order, it may have less formal oversight than a larger, more complex contract. Transparency is limited due to the sole-source nature of the award. There is no explicit mention of an Inspector General's jurisdiction for this specific award, though the DOJ OIG generally oversees departmental spending.

Related Government Programs

IT Services
Computer Related Services
Mission Critical IT Support
U.S. Marshals Service IT Procurement
Department of Justice IT Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,499.56 to CHARTER COMMUNICATIONS OPERATING LLC. FY25-29 D52 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000410 MISSION CRITICAL

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 $14,499.56.

What is the period of performance?

Start: 2025-09-02. End: 2027-03-01.

What is the specific nature of the 'IT Toolkit' services being procured under this contract?

The data provided categorizes this contract under 'Other Computer Related Services' (NAICS code 541519) and describes it as an 'IT Toolkit' for mission-critical use by the U.S. Marshals Service. While the exact deliverables are not detailed in the provided summary, this category typically encompasses a wide range of IT support functions. These could include software development, IT consulting, systems integration, network management, data processing, or IT support services. Given the 'mission critical' designation, it likely involves essential IT infrastructure or applications that are vital for the daily operations and law enforcement activities of the Marshals Service. Further details would be found in the contract's statement of work.

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

The provided data indicates this contract was 'NOT COMPETED' and awarded on a 'sole-source' basis. Specific justifications for sole-source awards are typically documented in the contract file, often citing reasons such as only one responsible source being available, urgent and compelling needs, or specific capabilities possessed by a single vendor. Without access to the contract's justification for other than full and open competition (JOFOC), it is impossible to definitively state why it was not competed. However, common reasons include unique proprietary technology, a critical need that cannot be met by other vendors in the timeframe required, or a follow-on to a previous sole-source award where the original justification still holds.

How does the $14.5 million value compare to similar IT toolkit contracts awarded by the government?

Direct comparison of the $14.5 million value for this specific 'IT Toolkit' contract is difficult without knowing the precise scope of services and duration, especially given its sole-source nature. However, government spending on IT services is substantial. For example, agencies frequently award multi-year, multi-million dollar contracts for IT support, software licenses, and system maintenance. The U.S. Marshals Service itself likely procures various IT services. The key concern here is not necessarily the dollar amount in isolation, but the lack of competition, which prevents a benchmark against market rates or other potential providers to ascertain if this represents good value for money.

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

Sole-source IT contracts of this magnitude carry several risks. Firstly, there's the risk of paying a premium price due to the absence of competitive pressure, potentially leading to inefficient use of taxpayer funds. Secondly, without competition, there's less incentive for the contractor to innovate or provide exceptional service, as there are no alternative providers to switch to. Thirdly, the government may become overly reliant on a single vendor, creating vendor lock-in and making future transitions more difficult and costly. Finally, the lack of transparency inherent in sole-source awards can obscure potential conflicts of interest or suboptimal performance.

What is Charter Communications' track record with federal IT contracts, particularly sole-source awards?

Charter Communications is a major telecommunications provider primarily known for its residential internet, cable TV, and phone services. While they do engage in business services, their federal IT contract history, especially for sole-source awards of this nature, is not as widely publicized as that of dedicated IT service firms. Their track record would need to be assessed by reviewing their past performance on government contracts, including any sole-source awards, to understand their reliability, quality of service, and pricing history within the federal space. This information is typically available through federal procurement databases.

What are the implications of this contract for small businesses in the IT sector?

The implications for small businesses are likely minimal, as this contract was awarded on a sole-source basis to a large corporation, Charter Communications, and does not indicate any small business set-aside or subcontracting requirements. This means that opportunities for small businesses to participate in delivering these specific IT toolkit services are likely non-existent for this contract. Federal contracting goals aim to ensure a certain percentage of government spending goes to small businesses, including those in the IT sector. A sole-source award of this size, without small business provisions, represents a missed opportunity for the small business IT ecosystem to benefit from federal dollars and gain valuable experience.

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: 15M10225QA4700315

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: $46,400

Exercised Options: $15,800

Current Obligation: $14,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline