State Department awards $22.3M IT contract for computer systems design services to TJFACT, LLC

Contract Overview

Contract Amount: $22,258,205 ($22.3M)

Contractor: Totally Joined for Achieving Collaborative Techniques (tjfact), LLC

Awarding Agency: Department of State

Start Date: 2024-09-28

End Date: 2029-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DIPLOMATIC TECHNOLOGY INFORMATION TECHNOLOGY DT IT

Plain-Language Summary

Department of State obligated $22.3 million to TOTALLY JOINED FOR ACHIEVING COLLABORATIVE TECHNIQUES (TJFACT), LLC for work described as: DIPLOMATIC TECHNOLOGY INFORMATION TECHNOLOGY DT IT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of five years indicates a long-term need for these services. 3. The award amount of $22.3 million over five years suggests a significant investment in IT infrastructure. 4. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 5. The contract type is Time and Materials, which can carry cost risks if not managed closely. 6. The award was made by the Department of State, highlighting its IT support needs.

Value Assessment

Rating: fair

The contract's value of $22.3 million over five years averages to approximately $4.46 million annually. Benchmarking this against similar IT services contracts within the federal government is challenging without more specific service details. However, the Time and Materials pricing structure warrants close monitoring to ensure costs remain within reasonable bounds and reflect efficient service delivery. The absence of a specific ceiling price or detailed performance metrics in the provided data makes a definitive value-for-money assessment difficult at this stage.

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 the solicitation was broadly advertised and multiple bids were likely considered. The presence of three bids (no) suggests a moderate level of competition for this requirement. While three bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: The full and open competition, despite having three bidders, aims to ensure that taxpayer funds are used efficiently by encouraging competitive pricing. This process helps prevent inflated costs that might arise from a less competitive environment.

Public Impact

The primary beneficiaries are likely the Department of State's internal operations, which will receive enhanced IT support. The services delivered will focus on computer systems design, potentially improving the efficiency and effectiveness of the Department's technological infrastructure. The geographic impact is primarily within the United States, supporting the Department of State's domestic IT needs. Workforce implications may include the creation or sustainment of jobs for IT professionals involved in systems design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored for efficiency.
Limited competition (3 bidders) may not have driven the most aggressive pricing, potentially impacting value for money.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance potential.
The long duration of the contract (5 years) could lead to vendor lock-in if not structured with clear exit clauses or performance review triggers.

Positive Signals

Awarded under full and open competition, indicating an effort to maximize the pool of potential offerors.
The contract addresses a clear need for computer systems design services within a major federal agency.
The five-year duration suggests a stable, long-term partnership that can foster expertise and efficiency.
The award to a single contractor (TJFACT, LLC) can streamline management and communication for the Department of State.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. Computer Systems Design Services (NAICS 541512) represent a critical segment focused on planning and designing computer systems that integrate hardware, software, and communication technologies. Federal spending in this area is consistently high, driven by the need to modernize aging infrastructure, enhance cybersecurity, and support complex agency missions. This contract fits within the broader IT services procurement landscape, where agencies often seek specialized expertise for system architecture and integration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, TJFACT, LLC, is not explicitly identified as a small business in the provided data, suggesting it may be a larger entity or that its size status is not relevant to this specific award.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Department of State. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and material costs will be crucial to ensure accountability and prevent cost overruns. Transparency will depend on the Department's internal reporting practices and any public disclosures made regarding contract performance. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Procurement
Computer Systems Design and Integration Contracts
Information Technology Support Services

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Moderate competition (3 bidders) may limit price discovery.
Lack of specific performance metrics in summary data.
Contract duration of 5 years requires ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.3 million to TOTALLY JOINED FOR ACHIEVING COLLABORATIVE TECHNIQUES (TJFACT), LLC. DIPLOMATIC TECHNOLOGY INFORMATION TECHNOLOGY DT IT

Who is the contractor on this award?

The obligated recipient is TOTALLY JOINED FOR ACHIEVING COLLABORATIVE TECHNIQUES (TJFACT), LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2024-09-28. End: 2029-09-27.

What is the track record of TJFACT, LLC in performing similar computer systems design services for the federal government?

Assessing TJFACT, LLC's track record requires a review of their past performance on federal contracts, particularly those involving computer systems design and IT services. Information on contract databases like SAM.gov or FPDS can reveal details about previous awards, performance evaluations, and any past issues. A strong history of successful project completion, positive past performance reviews, and adherence to timelines and budgets would indicate a reliable contractor. Conversely, a history of performance issues, contract disputes, or significant cost overruns would raise concerns about their capability to deliver on this new $22.3 million award. Without specific past performance data, it is difficult to definitively assess their reliability for this particular contract.

How does the average annual cost of this contract compare to similar IT services contracts awarded by the Department of State or other federal agencies?

The average annual cost for this contract is approximately $4.46 million ($22.3 million / 5 years). To benchmark this value, one would need to compare it against contracts for similar computer systems design services (NAICS 541512) awarded by the Department of State and other agencies of comparable size and mission. Factors such as contract duration, scope of work, labor categories, and geographic location influence pricing. A comprehensive comparison would involve analyzing data from contract databases to identify trends in pricing for similar services. If this contract's average annual cost is significantly higher than comparable contracts without a clear justification (e.g., unique technical requirements, higher complexity), it could indicate a potential issue with value for money.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials contracts, while offering flexibility, carry inherent risks, especially for a contract valued at $22.3 million over five years. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. Without a firm ceiling price or robust oversight, costs can exceed initial estimates. This necessitates stringent monitoring of labor rates, hours worked, and material expenditures. Another risk is the potential for inefficient performance, as the contractor may have less incentive to complete tasks quickly compared to a fixed-price contract. For a long-duration T&M contract, ensuring that the labor rates remain competitive and that the scope of work is well-defined and managed is critical to mitigating these risks and achieving good value.

What specific IT systems or infrastructure will TJFACT, LLC be designing or improving under this contract?

The provided data specifies that the contract is for 'Computer Systems Design Services' under NAICS code 541512. However, it does not detail the specific IT systems or infrastructure that TJFACT, LLC will be designing or improving. This could range from network architecture, software integration, database design, cybersecurity infrastructure, or cloud computing solutions, among others. To understand the precise impact and scope, one would need to consult the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents outline the detailed requirements, deliverables, and technical specifications that the contractor must meet, providing clarity on the specific systems being addressed.

How does the level of competition (3 bidders) for this contract potentially impact the pricing and overall value for the taxpayer?

A competition involving three bidders is generally considered moderate. While it indicates that the opportunity was not a sole-source award, it may not have generated the most competitive pricing possible. Typically, a larger number of bidders (e.g., five or more) intensifies competition, driving down prices as contractors vie for the award. With only three bidders, there is a greater possibility that the winning bid reflects a price that is acceptable rather than the absolute lowest achievable. This could mean that taxpayers are paying a slightly higher price than they might have in a more robustly competitive environment. However, the 'full and open' nature of the competition ensures a broad search for qualified contractors, which is a positive step.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM24R0247

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 235 PEACHTREE ST NE STE 2400, ATLANTA, GA, 30303

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $66,809,530

Exercised Options: $22,258,205

Current Obligation: $22,258,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0360

IDV Type: GWAC

Timeline