DOJ's $153M IT support contract awarded to BA-ZAI JV, LLC for critical data functions

Contract Overview

Contract Amount: $152,961,661 ($153.0M)

Contractor: Ba-Zai JV, LLC

Awarding Agency: Department of Justice

Start Date: 2017-01-16

End Date: 2022-01-15

Contract Duration: 1,825 days

Daily Burn Rate: $83.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $153.0 million to BA-ZAI JV, LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY Key points: 1. Contract provides essential IT support, data entry, and imaging services, crucial for agency operations. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of five years indicates a long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. Services are categorized under Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The total award amount of $152,961,660.69 over five years suggests a significant investment in IT infrastructure and support. Benchmarking this against similar large-scale IT support contracts across federal agencies would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control, but the specific unit costs or service rates are not detailed here, making a precise value assessment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources may have been excluded prior to the final award. This suggests a potentially robust competition, but the specifics of the exclusion could impact the breadth of bidders. The number of bidders is not provided, which is crucial for fully assessing the competitive landscape and its impact on pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality. However, the exclusion of sources warrants further investigation to ensure no potentially competitive entities were unfairly barred.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) benefits directly from enhanced IT support and data processing capabilities. Services include data entry, imaging, indexing, and IT support, improving operational efficiency. The contract is geographically focused on Maryland, where the services are likely performed or managed. Workforce implications include potential job creation or retention within the IT support and data services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' in the competition process.
Absence of detailed performance metrics or service level agreements in the provided data.
Potential for cost overruns if the fixed-price contract does not adequately account for all service requirements.

Positive Signals

Awarded through a full and open competition, indicating a commitment to broad market engagement.
Firm fixed-price contract type provides cost predictability for the government.
Long contract duration suggests a stable and ongoing need, potentially leading to economies of scale.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data processing, infrastructure, and support. The market for federal IT services is substantial, with agencies increasingly relying on external vendors for specialized capabilities. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by agencies like the Department of Justice or similar law enforcement bodies, considering factors like contract size, duration, and service scope.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. This suggests that the prime contractor, BA-ZAI JV, LLC, is likely not a small business, or if it is, the contract was not set aside for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the ATF, who monitors performance and ensures compliance with contract terms. The firm fixed-price nature provides some cost oversight. Transparency is facilitated by contract databases like FPDS, but detailed performance reports or IG audits are not publicly available in this summary.

Related Government Programs

IT Support Services
Data Processing and Hosting
Information Technology Professional Services
Contracting for Specialized IT Functions

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance metrics in provided data.
Cybersecurity risks associated with handling sensitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $153.0 million to BA-ZAI JV, LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS DATA ENTRY, IMAGING, INDEXING, IT SUPPORT SERVICES AND RELATED SUPPORT SERVICES AND INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is BA-ZAI JV, 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 $153.0 million.

What is the period of performance?

Start: 2017-01-16. End: 2022-01-15.

What is the track record of BA-ZAI JV, LLC in performing similar federal IT support contracts?

Information regarding the specific track record of BA-ZAI JV, LLC in performing federal IT support contracts of this magnitude is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including client feedback, any past performance issues, and their experience with data entry, imaging, indexing, and IT support services. Examining their contract history with the Department of Justice or other agencies would offer insights into their capabilities and reliability in delivering complex IT solutions.

How does the total contract value of approximately $153 million compare to similar IT support contracts awarded by the Department of Justice or other law enforcement agencies?

The $153 million contract value over five years represents a significant investment in IT support services. To benchmark this, one would compare it to other large IT support and data processing contracts awarded by agencies like the FBI, DEA, or other components within the Department of Justice, as well as similar agencies such as the Department of Homeland Security. Factors such as the scope of services (data entry, imaging, indexing, IT support), contract duration, and the specific IT infrastructure supported would be crucial for a meaningful comparison. Without access to a broader dataset of comparable contracts, it's difficult to definitively state whether this represents a high, low, or average investment.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks could include vendor performance issues (failure to meet service levels), cybersecurity threats to sensitive data, potential cost overruns if the fixed-price scope is not well-defined, and challenges in adapting to evolving IT needs. Mitigation strategies likely involve robust contract oversight by the COR, adherence to strict cybersecurity protocols mandated by the government, clear performance metrics and service level agreements (SLAs) within the contract, and regular communication channels between the ATF and BA-ZAI JV, LLC. The firm fixed-price nature itself acts as a cost mitigation tool, shifting some financial risk to the contractor.

How effective are the 'exclusion of sources' clauses in ensuring fair competition while meeting specific agency needs?

The 'exclusion of sources' clause in federal contracting allows agencies to exclude specific vendors from a competition under certain circumstances, such as national security concerns, past performance issues, or when a specific capability is required that only a limited number of vendors possess. While intended to ensure that the most suitable vendors are considered and to meet unique agency requirements, these clauses can also limit the breadth of competition. The effectiveness hinges on the justification for exclusion; if used appropriately and transparently, it can lead to better-suited solutions. However, if used without clear justification, it could stifle competition and potentially lead to higher costs for taxpayers.

What are the historical spending patterns for IT support services within the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)?

Analyzing historical spending patterns for IT support services within the ATF would involve examining past contracts for similar services, including data entry, imaging, indexing, and general IT support. This would reveal trends in contract values, durations, types of services procured, and the contractors utilized. Understanding these patterns helps in assessing whether the current $153 million contract represents an increase, decrease, or consistent level of spending for these critical functions. It also informs budgeting and forecasting for future IT needs within the agency.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 ROCKVILLE PIKE STE 400, ROCKVILLE, MD, 20852

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $153,337,299

Exercised Options: $153,337,299

Current Obligation: $152,961,661

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJA16AHDQV0429

IDV Type: IDC

Timeline