DOJ's $954K contract for computer manufacturing services awarded to Sirius Federal LLC

Contract Overview

Contract Amount: $95,400 ($95.4K)

Contractor: Sirius Federal LLC

Awarding Agency: Department of Justice

Start Date: 2020-04-01

End Date: 2021-03-31

Contract Duration: 364 days

Daily Burn Rate: $262/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PALO ALTO RENEWAL

Place of Performance

Location: CROFTON, ANNE ARUNDEL County, MARYLAND, 21114

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $95,400 to SIRIUS FEDERAL LLC for work described as: PALO ALTO RENEWAL Key points: 1. The contract value appears reasonable given the duration and service type. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order, indicating it's part of a larger agreement. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The North American Industry Classification System (NAICS) code 334111 points to computer manufacturing. 6. The contract duration of 364 days is standard for this type of award.

Value Assessment

Rating: good

The contract value of $954,000 for a 364-day period for computer manufacturing services seems within a reasonable range. Without specific details on the exact hardware or services provided, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. Benchmarking against similar contracts for electronic computer manufacturing would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection of offers and potentially better pricing due to market forces. The presence of two bids suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation.

Public Impact

The Department of Justice benefits from the acquisition of necessary computer manufacturing services. This contract supports the operational needs of the Office of Justice Programs. The services delivered are crucial for the functioning of federal law enforcement and justice initiatives. The contract likely supports jobs within the computer manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware/software is mandated.
Reliance on a single vendor for critical computer manufacturing needs.
Risk of obsolescence if technology rapidly advances during the contract period.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition promotes market-driven pricing.
Delivery order structure allows for flexibility within a broader framework.

Sector Analysis

The computer manufacturing sector is a significant part of the technology industry, encompassing the design, production, and assembly of computers and related electronic components. This contract falls under the NAICS code 334111, which is dedicated to Electronic Computer Manufacturing. Spending in this sector by government agencies is crucial for maintaining technological infrastructure. Comparable spending benchmarks would involve analyzing other federal contracts for similar computer hardware and manufacturing services across various agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to Sirius Federal LLC does not provide insight into its size category or its utilization of small business subcontractors. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement and contract management processes. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods or services. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Procurement
Department of Justice IT Services
Computer Hardware Acquisition
Electronic Manufacturing Services

Risk Flags

Lack of detailed performance history for Sirius Federal LLC.
Limited information on specific goods/services procured.
Potential for quality compromises in fixed-price contracts if not well-monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $95,400 to SIRIUS FEDERAL LLC. PALO ALTO RENEWAL

Who is the contractor on this award?

The obligated recipient is SIRIUS FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $95,400.

What is the period of performance?

Start: 2020-04-01. End: 2021-03-31.

What specific types of computer hardware or manufacturing services were procured under this contract?

The provided data indicates the contract is for 'Electronic Computer Manufacturing' under NAICS code 334111. However, it does not specify the exact nature of the computer hardware or manufacturing services. This could range from the assembly of custom computer systems to the manufacturing of specific components. Without more detailed contract line item descriptions or statements of work, it is impossible to determine the precise nature of the goods or services. Further investigation into the contract's statement of work or associated documentation would be necessary to clarify the specifics of the procurement.

How does the $954,000 contract value compare to similar computer manufacturing contracts awarded by the federal government?

Benchmarking the $954,000 contract value requires comparing it to similar contracts for electronic computer manufacturing (NAICS 334111) awarded over a comparable period (approximately one year). Factors such as the quantity, specifications, and complexity of the manufactured items significantly influence pricing. Given the limited information, a precise comparison is challenging. However, for a single delivery order valued under $1 million for manufacturing services, it appears to be within a typical range for specific component production or small-scale system assembly. Larger, more complex procurements for entire computer systems or large production runs would naturally command higher values.

What is the track record of Sirius Federal LLC in performing government contracts, particularly in computer manufacturing?

The provided data does not include information on the track record of Sirius Federal LLC. To assess their performance history, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review past awards, contract performance evaluations (e.g., CPARS reports), and any reported issues or disputes. A thorough review would reveal their experience with similar contracts, their on-time delivery rates, quality of work, and overall customer satisfaction with government agencies. Without this external data, their specific performance history remains unknown.

What are the potential risks associated with this firm fixed-price contract for computer manufacturing?

The primary risk with a firm fixed-price (FFP) contract for computer manufacturing lies with the contractor, Sirius Federal LLC. If manufacturing costs exceed the agreed-upon price due to material price increases, labor issues, or production inefficiencies, the contractor absorbs the loss. Conversely, the government's risk is that the contractor may cut corners on quality or materials to protect their profit margin, especially if oversight is lax. Additionally, if the specifications are not perfectly defined, there could be disputes over whether the delivered product meets the contract requirements. The government also faces the risk of the contractor failing to deliver on time or at all, though FFP contracts typically include remedies for such breaches.

How does the 'full and open competition' award mechanism impact the value received by the government?

Awarding a contract under 'full and open competition' generally enhances the value received by the government. This mechanism ensures that all responsible sources are allowed to compete, fostering a competitive environment that typically drives down prices and encourages innovation. The presence of multiple bidders increases the likelihood that the government will receive offers that are both technically acceptable and cost-effective. In this case, with two bids received, the competition, while not extensive, still provides a basis for price discovery and ensures that the selected contractor, Sirius Federal LLC, was chosen from a pool of potential providers, theoretically leading to a better deal for taxpayers compared to a sole-source or limited competition scenario.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15PTDE20Q00000012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 N MILWAUKEE AVE, VERNON HILLS, IL, 60061

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

Financial Breakdown

Contract Ceiling: $95,400

Exercised Options: $95,400

Current Obligation: $95,400

Actual Outlays: $95,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC11B

IDV Type: GWAC

Timeline