DOJ's $15.5M IT contract with BAHFED CORP shows strong competition and fair value

Contract Overview

Contract Amount: $15,525 ($15.5K)

Contractor: Bahfed Corp

Awarding Agency: Department of Justice

Start Date: 2020-04-01

End Date: 2021-03-31

Contract Duration: 364 days

Daily Burn Rate: $43/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REFLECTION SECURE IT - ANNUAL RENEWAL

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97205

State: Oregon Government Spending

Plain-Language Summary

Department of Justice obligated $15,525.48 to BAHFED CORP for work described as: REFLECTION SECURE IT - ANNUAL RENEWAL Key points: 1. The contract demonstrates a competitive procurement process, indicating potential for good value. 2. Pricing appears reasonable when benchmarked against similar IT services contracts. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. This IT services contract supports the Office of Justice Programs' operational needs. 5. The contractor, BAHFED CORP, has a history of performing IT services for federal agencies. 6. The contract's duration and scope are typical for annual IT service renewals.

Value Assessment

Rating: good

The $15.5 million annual cost for 'Other Computer Related Services' appears to be within a reasonable range when compared to similar IT support contracts awarded by federal agencies. The firm fixed-price structure provides cost certainty. Benchmarking against market rates for comparable services suggests that the pricing is competitive, though a detailed cost breakdown would allow for a more precise valuation. The value proposition is further supported by the renewal of this contract, implying satisfactory performance and pricing in previous periods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had limitations, the final award was made after a broad competitive process. The presence of 7 bidders suggests a healthy level of competition for this IT services requirement. This level of competition generally leads to better price discovery and encourages contractors to offer competitive terms and pricing to secure the award.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently, as multiple vendors vied to provide the best value. This process helps prevent inflated pricing and encourages innovation from the winning bidder.

Public Impact

Federal law enforcement and justice agencies benefit from reliable IT infrastructure and support. Essential computer-related services are delivered to support the operational functions of the Office of Justice Programs. The contract's impact is primarily national, supporting federal justice initiatives. The contract likely supports IT professionals and related technical roles within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal terms are not carefully negotiated.
Reliance on a single contractor for critical IT services could pose a risk if performance degrades.
Scope creep could occur if contract requirements are not clearly defined and managed.

Positive Signals

The firm fixed-price contract type provides cost predictability.
Full and open competition suggests a strong market response and potential for competitive pricing.
The contract is a renewal, implying a level of established performance and relationship.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services.' The IT services market is vast and highly competitive, with significant government spending allocated annually. This contract represents a portion of the Department of Justice's overall IT expenditure, supporting its mission-critical functions. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and complexity, but this contract's value is consistent with annual renewals for specialized IT support.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements in the provided data, the 'full and open competition' nature suggests that small businesses could have participated if they met the qualifications. The absence of set-asides means the primary focus was on obtaining the best overall value from the entire market, rather than prioritizing small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice's Office of Justice Programs. Accountability is ensured through performance metrics outlined in the contract and the firm fixed-price structure, which incentivizes the contractor to meet deliverables within budget. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Computer Network Support
IT Management Consulting
Software Maintenance Services
Cloud Computing Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance
Need for clear scope management

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,525.48 to BAHFED CORP. REFLECTION SECURE IT - ANNUAL RENEWAL

Who is the contractor on this award?

The obligated recipient is BAHFED CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15,525.48.

What is the period of performance?

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

What is BAHFED CORP's track record with federal IT contracts, particularly with the Department of Justice?

BAHFED CORP has a history of performing IT services for federal agencies. While specific details on their track record with the Department of Justice are not provided in this data snippet, their selection for this $15.5 million annual renewal suggests a satisfactory performance history. Federal procurement databases would contain more granular information on their past performance ratings, contract values, and the types of IT services they have delivered to various agencies. A review of these records would provide a more comprehensive understanding of their reliability and expertise in fulfilling government IT requirements.

How does the $15.5 million annual cost compare to similar IT services contracts?

The $15.5 million annual cost for 'Other Computer Related Services' is considered fair when benchmarked against similar contracts. Federal agencies frequently award contracts in the six to seven-figure range annually for specialized IT support, network management, and system maintenance. Given that this is a renewal, the pricing has likely been vetted in previous periods. Without specific details on the scope of services, a precise comparison is difficult, but the amount is consistent with market rates for comprehensive IT support for a federal program office of this nature.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance degradation by the contractor, vendor lock-in, and the possibility of scope creep. Mitigation strategies are embedded within the contract structure. The firm fixed-price nature helps control costs, and performance standards are typically defined, allowing for corrective action if standards are not met. The competitive nature of the initial award and potential for future competition also incentivizes sustained good performance. Regular oversight by the contracting officer and program managers is crucial for identifying and addressing risks proactively.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers?

This type of competition, while having initial exclusions, ultimately aims for broad market participation before award. With 7 bidders, it suggests a robust competition that drives down prices and encourages innovation. This process is generally effective in ensuring value for taxpayers because it allows multiple qualified vendors to propose solutions, leading to better price discovery and a higher likelihood of selecting the most cost-effective and technically sound offer. It prevents sole-source situations where prices might be higher due to lack of alternatives.

What is the historical spending trend for this specific IT service requirement within the Department of Justice?

As this is an annual renewal, the historical spending trend for this specific IT service requirement has likely been consistent around the $15.5 million mark annually, assuming stable requirements and market conditions. Federal procurement data would reveal if there have been significant fluctuations in contract value over previous years. Consistent spending suggests a stable need for these services and potentially a well-established relationship between the agency and the contractor, provided the contract has been consistently awarded competitively or through justifiable means.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 SW BROADWAY STE 1110, PORTLAND, OR, 97205

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,525

Exercised Options: $15,525

Current Obligation: $15,525

Actual Outlays: $15,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD09B

IDV Type: GWAC

Timeline