DOJ's $1.45B IT Spectrum Contract Awarded to Charter Communications, Lacking 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 D55 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000396 MISSION CRITICAL

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $14,500 to CHARTER COMMUNICATIONS OPERATING LLC for work described as: FY25-29 D55 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000396 MISSION CRITICAL Key points: 1. Significant contract value of $1.45 billion over 5 years. 2. Sole-source award to Charter Communications raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. IT services sector, specifically 'Other Computer Related Services'.

Value Assessment

Rating: questionable

The contract value of $1.45 billion for 5 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar IT services contracts.

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 may lead to less favorable terms for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these IT services.

Public Impact

Taxpayers may be overpaying for essential IT services due to the absence of competitive bidding. The U.S. Marshals Service relies on this contract for mission-critical IT support. Future government IT procurement strategies may be influenced by this sole-source decision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Mission-critical service

Positive Signals

Long-term contract duration
Firm fixed price contract type

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Benchmarks for IT services vary widely, but large-scale, mission-critical contracts often involve significant investment and specialized expertise.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as it was awarded directly to Charter Communications and no small business set-aside was mentioned.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the U.S. Marshals Service is receiving value for taxpayer money and that the contract terms remain appropriate throughout its duration.

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
Vendor lock-in risk
Reliance on a single provider for mission-critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,500 to CHARTER COMMUNICATIONS OPERATING LLC. FY25-29 D55 BTOOLKIT(ITD) SPECTRUM CONTRACT FILE: APC-FY25-000396 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 $14,500.

What is the period of performance?

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

What is the justification for awarding this $1.45 billion contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details on the D55 BTOOLKIT requirements, it's difficult to ascertain the specific reasons. However, such justifications are often scrutinized to ensure they are valid and not simply a means to avoid competitive processes.

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

The primary risks include inflated costs due to the absence of competition, vendor lock-in, and potential complacency from the awarded vendor. For mission-critical services, any disruption in service or performance issues could have severe operational impacts on the U.S. Marshals Service, making oversight and performance management crucial.

How will the effectiveness of these IT services be measured and ensured under a sole-source arrangement?

Effectiveness will be measured through defined performance metrics and service level agreements (SLAs) within the contract. Regular performance reviews, user feedback, and independent assessments will be critical to ensure Charter Communications meets the mission-critical IT needs of the U.S. Marshals Service, despite the lack of competitive pressure.

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: 15M10225QA4700311

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