DOJ's $23M contract with ROLLING BAY, LLC for computing services awarded without competition in 2011

Contract Overview

Contract Amount: $22,962,412 ($23.0M)

Contractor: Rolling BAY, LLC

Awarding Agency: Department of Justice

Start Date: 2011-01-01

End Date: 2011-12-31

Contract Duration: 364 days

Daily Burn Rate: $63.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ROLLING BAY, LLC "SUBJECT TO AVAIABLITY OF FY11 FUNDS" START 10-1-10 END 9-30-11

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25401

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $23.0 million to ROLLING BAY, LLC for work described as: ROLLING BAY, LLC "SUBJECT TO AVAIABLITY OF FY11 FUNDS" START 10-1-10 END 9-30-11 Key points: 1. The contract's value of $22.96 million represents a significant investment in computing infrastructure. 2. Awarded on a firm-fixed-price basis, indicating a defined scope and cost structure. 3. The sole-source nature raises questions about potential overpayment and lack of market-driven pricing. 4. The contract duration of one year suggests a need for ongoing or recurring services. 5. The specific NAICS code (518210) points to services related to data processing and web hosting. 6. The contract was awarded in West Virginia, potentially impacting local economic development.

Value Assessment

Rating: questionable

Benchmarking the value of this 2011 contract is challenging due to the lack of competitive bids and the passage of time. Without comparable contract data or a clear understanding of the specific services rendered, it's difficult to definitively assess value for money. The firm-fixed-price structure suggests an attempt to control costs, but the absence of competition means there was no market pressure to ensure the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition limits the government's ability to explore alternative solutions or negotiate the best possible price through a bidding process. It also suggests a potential lack of market research or a pre-existing relationship with the contractor.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive bidding. Without a competitive process, there's less assurance that the government secured the most cost-effective solution available in the market.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the primary beneficiary, receiving essential computing infrastructure and data processing services. The contract supports the operational needs of the ATF, likely including data storage, management, and web hosting for critical functions. The geographic impact is centered in West Virginia, where the contractor ROLLING BAY, LLC is located. The contract likely supported a workforce within ROLLING BAY, LLC, contributing to employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for inflated costs.
Limited transparency into the justification for a sole-source award.
Difficulty in assessing performance and value without comparative benchmarks.
The contract's age (2011) makes current performance and value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract was awarded to a specific entity, ROLLING BAY, LLC, indicating a clear vendor relationship.
The contract duration was defined, allowing for planned resource allocation.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure providers, data processing, and web hosting. The market for these services is highly dynamic, with numerous providers offering a wide range of solutions. In 2011, the federal government was increasingly reliant on outsourced IT services to manage its vast data needs. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar IT infrastructure and data processing services, ideally those awarded competitively to gauge market rates.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made directly to ROLLING BAY, LLC. Without specific set-aside provisions, the direct award to a single entity limits the potential for small businesses to participate in this particular contract's execution.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Accountability measures would typically involve contract performance monitoring and adherence to the firm-fixed-price terms. Transparency is limited due to the sole-source nature of the award and the age of the contract, making detailed public scrutiny challenging.

Related Government Programs

Federal IT Infrastructure Services
Data Processing and Hosting Contracts
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) IT Spending
Sole-Source IT Contracts
West Virginia Federal Contracts

Risk Flags

Sole-source award without clear justification.
Lack of competitive bidding limits price discovery.
Difficulty in assessing value for money due to age and lack of competition.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.0 million to ROLLING BAY, LLC. ROLLING BAY, LLC "SUBJECT TO AVAIABLITY OF FY11 FUNDS" START 10-1-10 END 9-30-11

Who is the contractor on this award?

The obligated recipient is ROLLING BAY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2011-01-01. End: 2011-12-31.

What was the specific justification provided for awarding this contract on a sole-source basis to ROLLING BAY, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as: only one responsible source exists to provide the required service, an urgent and compelling need exists that the government would be seriously injured without the service, or the services are specialized and only one contractor possesses the necessary expertise. Without the official justification documentation, it is impossible to determine the precise rationale behind this award. This lack of transparency is a common concern with sole-source procurements, as it can obscure potential reasons for not competing the requirement.

How does the $22.96 million contract value compare to similar computing infrastructure contracts awarded by the ATF or other DOJ components around 2011?

Directly comparing the $22.96 million value of this 2011 contract to similar computing infrastructure contracts is challenging without access to a comprehensive database of federal procurements from that specific period, including detailed service scopes and competitive outcomes. However, for 2011, a contract of this magnitude for computing infrastructure and data processing services was substantial. Federal IT spending was significant, and contracts for data centers, hosting, and related services often ran into tens of millions of dollars. The key differentiator here is the sole-source nature; competitively awarded contracts of similar value would likely have undergone rigorous price analysis and offered a broader range of technical solutions, providing a stronger benchmark for value.

What were the primary services or deliverables expected under this contract with ROLLING BAY, LLC?

The contract's NAICS code, 518210, indicates that the services provided by ROLLING BAY, LLC were related to 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' This suggests that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was procuring services such as server hosting, data storage, data processing, network infrastructure management, and potentially web application hosting. The firm-fixed-price nature implies that the scope of these services was defined upfront. However, without the specific contract statement of work (SOW), the precise nature and extent of these computing services remain unspecified in the provided data.

What is the track record of ROLLING BAY, LLC in performing federal contracts, particularly for the Department of Justice?

Information regarding the specific track record of ROLLING BAY, LLC in performing federal contracts, especially for the Department of Justice, is not detailed in the provided data. This contract, awarded in 2011, is the primary data point available. To assess their track record, one would need to examine past performance reviews, any contract modifications, and other awards made to ROLLING BAY, LLC across various federal agencies. A comprehensive review would look for consistent performance, adherence to contract terms, and any history of disputes or contract terminations. The sole-source nature of this award might suggest a specific capability or prior relationship, but it doesn't inherently speak to a broad track record of successful federal contracting.

Given the sole-source award, what risks might the ATF have faced regarding vendor lock-in or future pricing negotiations?

Awarding a contract on a sole-source basis inherently carries risks of vendor lock-in and potentially unfavorable future pricing. For the ATF, this means they may have become dependent on ROLLING BAY, LLC for critical computing services, making it difficult and costly to switch providers later. Without competition, the ATF had less leverage to negotiate prices down, potentially leading to higher costs over time compared to what could have been achieved through a competitive bidding process. Future contract renewals or extensions would likely be negotiated directly with ROLLING BAY, LLC, where the vendor might have significant pricing power due to the established relationship and the ATF's reliance on their services.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10440 BALLS FORD RD STE 200, MANASSAS, VA, 10

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,962,412

Exercised Options: $22,962,412

Current Obligation: $22,962,412

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJA11ICO0001

IDV Type: IDC

Timeline