DHS awards $4.68M for multi-functional devices, but not to small businesses despite set-aside

Contract Overview

Contract Amount: $4,678,363 ($4.7M)

Contractor: JTF Business Systems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MULTI-FUNCTIONAL DEVICES LEASING AND MAINTENANCE SERVICES - 100% SMALL BUSINESS SET ASIDE

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.7 million to JTF BUSINESS SYSTEMS CORPORATION for work described as: MULTI-FUNCTIONAL DEVICES LEASING AND MAINTENANCE SERVICES - 100% SMALL BUSINESS SET ASIDE Key points: 1. Contract awarded for multi-functional devices and maintenance. 2. Total value of $4.68 million over approximately 3 years. 3. Competition method was 'Full and Open', contradicting the '100% Small Business Set Aside' noted. 4. Primary sector appears to be IT/Office Equipment, though PSC is blank. 5. Risk of non-compliance with small business set-aside policies.

Value Assessment

Rating: fair

The contract value of $4.68M for device leasing and maintenance over three years appears within a reasonable range for government services. However, without specific unit counts or device types, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition'. This is a significant discrepancy given the data indicates a '100% Small Business Set Aside'. This suggests a potential procedural error or misclassification, impacting fair opportunity for small businesses.

Taxpayer Impact: Taxpayer funds are being spent on device leasing and maintenance. The discrepancy in competition type raises concerns about whether the best value was achieved and if small business participation goals were met.

Public Impact

Potential exclusion of qualified small businesses from a contract intended for them. Concerns about the integrity of the contracting process and adherence to small business program goals. Ensuring fair competition and maximizing opportunities for small businesses is crucial for economic impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contradiction between stated set-aside and actual competition type.
Potential violation of small business contracting regulations.
Lack of clarity on the Product Service Code (PSC).

Positive Signals

Contract awarded for essential office equipment and maintenance.
Fixed-price contract type can provide cost certainty.

Sector Analysis

The contract falls under general office equipment and services, likely IT or administrative support. Benchmarks for multi-functional device leasing and maintenance vary widely based on volume, device type, and service levels, but $4.68M over three years suggests a substantial deployment.

Small Business Impact

The data explicitly states '100% SMALL BUSINESS SET ASIDE', yet the contract was awarded under 'FULL AND OPEN COMPETITION'. This is a major red flag, indicating that small businesses may have been improperly excluded from competing for this contract, undermining the intent of the set-aside.

Oversight & Accountability

The discrepancy between the stated small business set-aside and the actual award method warrants further investigation by oversight bodies. Accountability is needed to ensure contracting officers follow established procedures and regulations, particularly concerning small business programs.

Related Government Programs

Commercial Screen Printing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Non-compliance with small business set-aside policy.
Potential misrepresentation of competition type.
Lack of transparency in the contracting process.
Risk of protest from small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.7 million to JTF BUSINESS SYSTEMS CORPORATION. MULTI-FUNCTIONAL DEVICES LEASING AND MAINTENANCE SERVICES - 100% SMALL BUSINESS SET ASIDE

Who is the contractor on this award?

The obligated recipient is JTF BUSINESS SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the specific reason for the discrepancy between the '100% Small Business Set Aside' designation and the 'Full and Open Competition' award method?

The discrepancy requires clarification from the contracting agency. Potential reasons include a clerical error in the contract documentation, a change in acquisition strategy after the initial designation, or a misinterpretation of the set-aside requirements. Understanding the root cause is crucial for ensuring compliance and fair competition.

What is the potential financial impact on small businesses that were eligible for this set-aside contract?

Small businesses that met the criteria for this 100% set-aside contract were likely denied a significant business opportunity. This could result in lost revenue, reduced growth potential, and a missed chance to build a relationship with the Department of Homeland Security, impacting their ability to secure future government contracts.

How will the Department of Homeland Security ensure future adherence to small business set-aside requirements to prevent similar occurrences?

The DHS should implement enhanced review processes for contract set-aside designations and award methods. This could involve mandatory cross-checks, training for contracting officers on small business regulations, and post-award audits specifically focused on set-aside compliance. Clearer internal communication channels are also vital.

Industry Classification

NAICS: Manufacturing › Printing and Related Support Activities › Commercial Screen Printing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T03023Q7667N054

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7370 STEEL MILL DR, SPRINGFIELD, VA, 22150

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

Financial Breakdown

Contract Ceiling: $9,707,711

Exercised Options: $5,196,870

Current Obligation: $4,678,363

Actual Outlays: $1,868,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F0182V

IDV Type: FSS

Timeline