DOJ's ATF Spends $73.9M on Cloud Disaster Recovery Services with 1901 Group, LLC

Contract Overview

Contract Amount: $73,890,981 ($73.9M)

Contractor: 1901 Group, LLC

Awarding Agency: Department of Justice

Start Date: 2015-12-16

End Date: 2021-06-21

Contract Duration: 2,014 days

Daily Burn Rate: $36.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - CLOUD SERVICES - APPLICATION DISASTER RECOVERY SERVICES SEE SCHEDULE FOR DETAILS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $73.9 million to 1901 GROUP, LLC for work described as: IGF::OT::IGF - CLOUD SERVICES - APPLICATION DISASTER RECOVERY SERVICES SEE SCHEDULE FOR DETAILS Key points: 1. Spending on cloud-based application disaster recovery services totals $73.9 million. 2. The contract was awarded to 1901 Group, LLC, a single vendor. 3. The contract duration spans from December 2015 to June 2021. 4. The primary sector for this spending is Information Technology. 5. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

The contract's total value of $73.9 million over approximately 5.5 years suggests a significant investment in disaster recovery. Benchmarking against similar cloud service contracts would be necessary to assess if this pricing is competitive, as specific per-unit cost data is not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method aims to ensure the government receives the best possible pricing and services by allowing all eligible vendors to bid. The impact on price discovery is generally positive, fostering competition.

Taxpayer Impact: The use of a competitive process is intended to maximize taxpayer value by securing services at a reasonable cost.

Public Impact

Ensures continuity of critical ATF operations in case of system failures or disasters. Supports the Department of Justice's overall mission by safeguarding sensitive data. Leverages cloud technology for potentially more scalable and resilient disaster recovery solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for detailed value assessment.
No indication of small business participation.
Contract duration is relatively long, potentially limiting flexibility for newer technologies.

Positive Signals

Awarded under full and open competition, promoting market fairness.
Focus on critical disaster recovery services enhances operational resilience.
Utilizes cloud services, a modern approach to IT infrastructure.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cloud-based disaster recovery. Spending benchmarks for similar government cloud services contracts vary widely based on scope and service level agreements, but $73.9 million over 5.5 years indicates a substantial commitment.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded by the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division. Oversight would typically involve contract performance monitoring, adherence to service level agreements, and financial accountability by the agency.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division Programs

Risk Flags

Sole awardee raises questions about sustained competition.
Lack of detailed cost breakdown hinders granular value analysis.
Long contract duration may not reflect evolving cloud technologies.
No explicit mention of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $73.9 million to 1901 GROUP, LLC. IGF::OT::IGF - CLOUD SERVICES - APPLICATION DISASTER RECOVERY SERVICES SEE SCHEDULE FOR DETAILS

Who is the contractor on this award?

The obligated recipient is 1901 GROUP, 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 $73.9 million.

What is the period of performance?

Start: 2015-12-16. End: 2021-06-21.

What was the specific scope of services provided under this cloud disaster recovery contract, and how did it compare to market offerings at the time of award?

The provided data identifies the contract as 'CLOUD SERVICES - APPLICATION DISASTER RECOVERY SERVICES' under NAICS code 541519 (Other Computer Related Services). Without the full contract details or schedule, the precise scope remains undefined. A comparison to market offerings would require analyzing the specific service level agreements (SLAs), uptime guarantees, data recovery point objectives (RPOs), and recovery time objectives (RTOs) against contemporary commercial cloud DR solutions to assess value.

Given the sole awardee, what mechanisms were in place to ensure competitive pricing and prevent potential cost overruns throughout the contract's lifecycle?

Although awarded under 'FULL AND OPEN COMPETITION', the data indicates a single awardee, 1901 GROUP, LLC. To ensure competitive pricing, the government likely relied on a robust initial bid evaluation process, potentially including price analysis against independent government cost estimates or market research. Ongoing oversight would involve monitoring performance and potentially exercising contract clauses for price adjustments if market conditions changed significantly or if performance issues arose.

How effectively did these cloud disaster recovery services contribute to the ATF's operational resilience and data protection during the contract period?

The effectiveness of the disaster recovery services is not directly quantifiable from the provided data. Success would be measured by the system's ability to meet defined recovery time and point objectives during actual or simulated disaster events, ensuring minimal data loss and operational downtime for the ATF. Post-contract reviews or incident reports would be the primary source for assessing this effectiveness.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 2003 EDMUND HALLEY DR STE 102, RESTON, VA, 20191

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,059,816

Exercised Options: $75,059,816

Current Obligation: $73,890,981

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $821,446

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0617W

IDV Type: FSS

Timeline