DOJ/FBI Cisco contract awarded to World Wide Technology LLC for $27.8M, spanning nearly 4 years

Contract Overview

Contract Amount: $27,799,810 ($27.8M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Justice

Start Date: 2017-09-22

End Date: 2021-09-30

Contract Duration: 1,469 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: "IN ACCORDANCE TO DOJ/FBI CISCO DOWO PRICING. ALL TERMS AND CONDITIONS OF THE DOJ/FBI12-17CISCO AND NASA SEWP APPLY". SEE ATTACHED EQUIPMENT LIST. PRE-PAYMENTS ARE ALLOWABLE UNDER THIS DELIVERY ORDER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20534

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $27.8 million to WORLD WIDE TECHNOLOGY LLC for work described as: "IN ACCORDANCE TO DOJ/FBI CISCO DOWO PRICING. ALL TERMS AND CONDITIONS OF THE DOJ/FBI12-17CISCO AND NASA SEWP APPLY". SEE ATTACHED EQUIPMENT LIST. PRE-PAYMENTS ARE ALLOWABLE UNDER THIS DELIVERY ORDER. Key points: 1. Contract leverages existing DOJ/FBI Cisco pricing and NASA SEWP terms, suggesting potential for favorable rates. 2. The firm fixed-price structure shifts performance risk to the contractor, World Wide Technology LLC. 3. A delivery order under a larger contract indicates a need for specific, pre-defined IT equipment. 4. The contract duration of 1469 days (approx. 4 years) suggests a significant, ongoing requirement. 5. The award was made under full and open competition, implying a robust bidding process. 6. The primary agency is the Department of Justice, with the Federal Prison System/Bureau of Prisons as the specific sub-agency.

Value Assessment

Rating: good

The contract's value of $27.8 million over nearly four years for IT equipment and services appears reasonable, especially given its reliance on pre-established DOJ/FBI Cisco pricing and NASA SEWP terms. This suggests that the pricing is likely benchmarked against existing government agreements, potentially offering good value. The firm fixed-price nature further supports value for money by incentivizing contractor efficiency. Without direct comparison to similar, standalone contracts for the exact same equipment and service scope, a definitive value assessment is challenging, but the use of existing agreements is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids (no: 4) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally ideal for price discovery, the number of bidders for a delivery order can vary based on the specific requirements and the availability of qualified contractors. The fact that multiple entities competed implies that the government sought the best value available.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that taxpayer funds are likely being used efficiently, as the government had options to choose from.

Public Impact

The Federal Prison System and Bureau of Prisons benefit from the acquisition of necessary IT equipment and related services. This contract supports the operational needs of law enforcement and correctional facilities within the Department of Justice. The geographic impact is likely nationwide, supporting various federal prison facilities across the United States. The contract may have implications for IT support staff within the Bureau of Prisons, either through direct service or by providing the tools for existing staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the equipment is proprietary and requires ongoing specialized support.
Reliance on specific Cisco equipment could lead to challenges if the agency decides to diversify its IT infrastructure in the future.
The firm fixed-price nature, while beneficial for cost control, could lead to disputes if unforeseen technical issues arise that impact delivery timelines or scope.

Positive Signals

Leveraging existing DOJ/FBI Cisco pricing and NASA SEWP terms suggests cost-effectiveness and adherence to established government procurement standards.
The firm fixed-price contract type transfers cost overrun risk to the contractor, World Wide Technology LLC.
Award under full and open competition indicates a structured procurement process aimed at achieving best value.
The contract duration suggests a stable, long-term partnership for critical IT needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Other Computer Related Services (NAICS 541519). The market for IT equipment and services to federal agencies is substantial, with significant spending allocated annually. This contract likely represents a portion of the Department of Justice's broader IT modernization and maintenance efforts. Comparable spending benchmarks would typically involve analyzing other large-scale IT equipment procurements by federal agencies, particularly those focused on networking hardware and associated support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). World Wide Technology LLC is a large business. While there is no direct small business set-aside, large prime contractors are often required to meet small business subcontracting goals. The specific subcontracting plan for this contract is not detailed here, but it is a common requirement that can provide opportunities for small businesses to participate in the federal IT supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. The contract's terms and conditions, including adherence to the DOJ/FBI Cisco pricing and NASA SEWP, would be monitored. As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NASA SEWP (Solutions for Enterprise-Wide Procurement)
DOJ/FBI Cisco Agreements
Department of Justice IT Modernization Programs
Federal Bureau of Prisons IT Infrastructure

Risk Flags

Reliance on specific vendor technology (Cisco)
Potential for vendor lock-in
Contract duration implies long-term dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $27.8 million to WORLD WIDE TECHNOLOGY LLC. "IN ACCORDANCE TO DOJ/FBI CISCO DOWO PRICING. ALL TERMS AND CONDITIONS OF THE DOJ/FBI12-17CISCO AND NASA SEWP APPLY". SEE ATTACHED EQUIPMENT LIST. PRE-PAYMENTS ARE ALLOWABLE UNDER THIS DELIVERY ORDER.

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2017-09-22. End: 2021-09-30.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The 'Other Computer Related Services' (NAICS 541519) designation is broad and can encompass a range of activities beyond just hardware provision. Given the context of a Cisco contract and its award to World Wide Technology LLC, these services likely include the installation, configuration, maintenance, and support of Cisco networking equipment (routers, switches, firewalls, etc.). It could also involve network design, integration services, troubleshooting, and potentially training for personnel operating the equipment. The specific details would be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the delivery order, which is not fully provided in the summary data.

How does the pricing of this contract compare to market rates for similar Cisco equipment and services?

The contract explicitly states it is 'IN ACCORDANCE TO DOJ/FBI CISCO DOWO PRICING. ALL TERMS AND CONDITIONS OF THE DOJ/FBI12-17CISCO AND NASA SEWP APPLY'. This indicates that the pricing is not based on a fresh market survey for this specific delivery order but rather leverages pre-negotiated rates established under existing government-wide or agency-specific agreements. NASA SEWP is a competitive contract vehicle known for offering a wide range of IT products and services at competitive prices. Therefore, the pricing is likely aligned with, or potentially better than, standard market rates for comparable government procurements, assuming these pre-negotiated rates were competitive at the time of their establishment.

What are the primary risks associated with this contract for the Department of Justice?

The primary risks for the Department of Justice (DOJ) revolve around potential vendor lock-in, technological obsolescence, and performance issues. Since the contract specifies Cisco equipment and leverages existing Cisco agreements, the DOJ may become dependent on Cisco products and World Wide Technology's support for these specific technologies. If Cisco's technology evolves rapidly or if the DOJ decides to diversify its IT infrastructure, switching vendors could be costly and complex. Furthermore, while the firm fixed-price contract shifts financial risk to the contractor, there's still a risk of inadequate performance or delivery delays if World Wide Technology encounters unforeseen challenges in fulfilling the order, potentially impacting the operations of the Federal Prison System.

What does the contractor's track record, World Wide Technology LLC, suggest about their ability to fulfill this contract?

World Wide Technology LLC is a major IT solutions provider and systems integrator with extensive experience serving government and commercial clients. They are a frequent awardee of large federal contracts, including through vehicles like NASA SEWP. Their established presence and history of winning significant awards suggest a strong capability in delivering complex IT solutions, including networking hardware and services. While specific performance metrics for this particular delivery order are not detailed, their overall track record indicates they possess the resources, expertise, and established processes necessary to manage and execute a contract of this nature and value.

How does this contract's spending compare to historical IT spending by the Department of Justice or the Federal Prison System?

The $27.8 million awarded over approximately four years represents a significant, but not extraordinary, investment for a major federal agency like the Department of Justice, particularly for IT infrastructure. The Federal Bureau of Prisons, managing numerous facilities nationwide, requires substantial and ongoing IT support. Historical spending patterns for IT within the DOJ and its sub-agencies typically show consistent, multi-million dollar investments in hardware, software, and services. This contract appears to be a component of that larger, sustained IT budget, reflecting the continuous need to maintain and upgrade critical network infrastructure within the correctional system.

What is the significance of this contract being a 'Delivery Order' rather than a standalone contract?

The fact that this is a 'Delivery Order' signifies that it is a task order issued under a pre-existing, larger contract vehicle, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a Government-Wide Acquisition Contract (GWAC) like NASA SEWP. This procurement method allows agencies to acquire goods and services efficiently by having pre-competed contract vehicles in place. For the DOJ, it means they could quickly obtain the specified Cisco equipment and services without initiating a full, new procurement process. It also implies that the terms, conditions, and pricing were established during the competition for the parent contract, streamlining the acquisition for this specific need.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQP0700NAS171438

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: World Wide Technology Holding CO., Inc. (UEI: 131784451)

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,518,297

Exercised Options: $49,250,925

Current Obligation: $27,799,810

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC55B

IDV Type: GWAC

Timeline