DOJ's $24.1M IT support contract awarded to ARLLUK TECHNOLOGY SOLUTIONS LLC raises questions about competition and value

Contract Overview

Contract Amount: $24,112,930 ($24.1M)

Contractor: Arlluk Technology Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2019-04-15

End Date: 2022-08-31

Contract Duration: 1,234 days

Daily Burn Rate: $19.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20531

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $24.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC for work described as: PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES. Key points: 1. Contract awarded via other than full and open competition, limiting potential for competitive pricing. 2. Significant contract value for IT support services, requiring close scrutiny of performance and cost-effectiveness. 3. Lack of detailed competition information suggests potential risks in price discovery and market-based rates. 4. Contract duration and type (Time and Materials) can lead to cost overruns if not managed tightly. 5. Performance period concluded in August 2022, necessitating review of outcomes and lessons learned. 6. Small business participation is not explicitly detailed, warranting further investigation into subcontracting.

Value Assessment

Rating: questionable

The contract's value of $24.1 million over its period of performance is substantial for IT support services. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not rigorously managed and monitored for efficiency. The absence of a clear per-unit cost comparison makes a definitive value assessment challenging, leaning towards a questionable rating due to the lack of transparency in pricing justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition procurement. This approach bypasses the standard full and open competition process, which typically involves multiple bidders vying for the contract. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less competitive pricing and reduced opportunities for innovation from a broader market. The limited competition here means taxpayers may not have received the best possible price or value.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to drive down costs. This can result in higher overall spending for taxpayers compared to contracts that undergo a robust bidding process.

Public Impact

The Department of Justice, specifically the Office of Justice Programs, likely benefited from the IT support services provided. These services were crucial for maintaining and enhancing the technological infrastructure supporting DOJ's mission. The contract's impact is primarily within the federal government's IT operations, with indirect benefits to public safety and justice initiatives. Workforce implications include the employment of IT professionals by ARLLUK TECHNOLOGY SOLUTIONS LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may have led to suboptimal pricing.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Limited transparency on how the sole-source justification was determined.
Performance data and outcomes are not readily available for assessment.
Potential for contractor lock-in due to sole-source award.

Positive Signals

Contract supported critical IT functions within the Department of Justice.
ARLLUK TECHNOLOGY SOLUTIONS LLC provided services over a defined period.
The contract was awarded by a major federal agency, suggesting a level of vetting.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT services market is vast, with agencies consistently investing in software development, system integration, and technical support. Contracts of this magnitude are common, but the procurement method (sole-source) is a key factor in assessing value. Benchmarking would typically involve comparing pricing and service levels against other IT support contracts awarded through competitive means within the federal government or to similar commercial entities.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was false, meaning this contract was not set aside for small businesses, nor does it explicitly state any small business subcontracting goals or achievements. This suggests that the primary contractor, ARLLUK TECHNOLOGY SOLUTIONS LLC, likely handled the majority of the work internally. Further investigation would be needed to determine if any small businesses were involved as subcontractors, which could impact the broader small business ecosystem and the government's small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement and program management offices, as well as potentially the Office of the Inspector General (OIG) if specific concerns or irregularities were flagged. The Time and Materials nature of the contract necessitates robust monitoring of labor hours, rates, and direct costs to ensure compliance and prevent overcharging. Transparency regarding performance metrics, deliverables, and any audits conducted would be key indicators of effective oversight.

Related Government Programs

Department of Justice IT Modernization Programs
Federal Civilian IT Services Contracts
Custom Computer Programming Services
Office of Justice Programs Support Contracts

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials contract type increases risk of cost overruns.
Lack of performance metrics makes value assessment difficult.
No explicit small business subcontracting information provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24.1 million to ARLLUK TECHNOLOGY SOLUTIONS LLC. PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is ARLLUK TECHNOLOGY SOLUTIONS 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 $24.1 million.

What is the period of performance?

Start: 2019-04-15. End: 2022-08-31.

What specific IT services did ARLLUK TECHNOLOGY SOLUTIONS LLC provide under this contract?

The contract description indicates 'PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES' within the realm of custom computer programming. This likely encompassed a range of activities such as software development, system maintenance, IT project planning and execution, technical consulting, and potentially support for existing DOJ IT systems. Given the 'Custom Computer Programming Services' NAICS code (541511), the focus was likely on developing or modifying software tailored to the specific needs of the Office of Justice Programs, rather than off-the-shelf solutions. Detailed statements of work (SOWs) within the contract would provide a precise breakdown of deliverables and service requirements.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. Federal procurement regulations allow for sole-source awards under specific conditions, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without access to the official justification documentation (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to determine the precise reasons. Common justifications include unique technical expertise, proprietary technology, or a critical, time-sensitive requirement that precludes a competitive process. The lack of readily available justification raises concerns about transparency and potential missed opportunities for better value through competition.

How does the Time and Materials (T&M) contract type compare to other contract types for IT support services in terms of risk and value?

Time and Materials (T&M) contracts are characterized by payment based on the actual labor hours expended and the cost of materials used. While offering flexibility, especially for projects with evolving scopes, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts. This is because the contractor is reimbursed for all hours worked and materials consumed, making cost control heavily reliant on diligent government oversight and monitoring of effort. For IT support services, where the scope can sometimes be ill-defined initially, T&M can be appropriate. However, it requires robust mechanisms to track labor, verify necessity, and ensure rates are fair. Fixed-price contracts, conversely, offer greater cost certainty but may be less adaptable to changing requirements and could lead to contractor scope-creep if not carefully managed.

What was the historical spending pattern for similar IT support services within the Office of Justice Programs or the DOJ?

Analyzing historical spending patterns for similar IT support services within the Office of Justice Programs (OJP) or the broader Department of Justice (DOJ) is crucial for context. Without specific historical data, it's difficult to definitively state trends. However, federal agencies, particularly large ones like the DOJ, consistently allocate significant portions of their budgets to IT infrastructure, software development, and support services. Spending in this area often increases with modernization efforts, cybersecurity enhancements, and the need to support evolving digital services. A review of past DOJ IT contracts, especially those for program management and custom programming, would reveal whether this $24.1 million award represents a typical investment, an increase, or a decrease in spending for such services, and whether previous awards were competitively sourced.

What performance metrics or outcomes were associated with this contract, and how were they measured?

The provided data does not include specific performance metrics or outcomes for this contract. Typically, contracts include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines measurable performance standards, deliverables, and evaluation criteria. For IT support and program management services, metrics might include system uptime, response times for technical issues, successful project completion rates, adherence to deadlines, and user satisfaction. The effectiveness of the contract hinges on whether these metrics were established, tracked, and met. Without this information, assessing the actual value delivered and the contractor's performance is speculative. Post-contract reviews or agency performance reports would be the primary sources for this data.

Were there any known issues or concerns regarding ARLLUK TECHNOLOGY SOLUTIONS LLC's past performance on federal contracts?

Information regarding ARLLUK TECHNOLOGY SOLUTIONS LLC's past performance on federal contracts is not provided in the data. A comprehensive assessment of this contract's value and risk would typically involve reviewing the contractor's performance history, including any past performance evaluations, contract awards, and any documented issues or disputes. Agencies often maintain internal databases or utilize the Federal Awardee Performance and Integrity Information System (FAPIIS) to track contractor performance. The absence of this information here means we cannot assess whether ARLLUK TECHNOLOGY SOLUTIONS LLC has a track record that supports or detracts from the success of this particular DOJ contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15PTDP19Q00000001

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,000,000

Exercised Options: $25,000,000

Current Obligation: $24,112,930

Actual Outlays: $14,287,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline