DOJ's $43.3M DOMEX Services contract awarded to Solutions Through Innovative Technologies Inc. shows potential value concerns

Contract Overview

Contract Amount: $43,346,422 ($43.3M)

Contractor: Solutions Through Innovative Technologies Inc

Awarding Agency: Department of Justice

Start Date: 2017-09-25

End Date: 2022-09-29

Contract Duration: 1,830 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF DOCUMENT AND MEDIA EXPLOITATION (DOMEX) SERVICES.

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $43.3 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC for work described as: IGF::CL::IGF DOCUMENT AND MEDIA EXPLOITATION (DOMEX) SERVICES. Key points: 1. The contract's value appears high relative to its duration and the number of bids received. 2. Limited competition may have impacted pricing and overall value for money. 3. The use of Time and Materials pricing introduces inherent risk for cost overruns. 4. Performance context is limited, making it difficult to assess the effectiveness of services delivered. 5. This contract falls within the broader Engineering Services sector, supporting DEA operations. 6. The contractor has a significant contract value, indicating a substantial role in supporting agency missions.

Value Assessment

Rating: fair

The total contract value of $43.3 million over 1830 days (approximately 5 years) averages to about $23.7 million per year. While specific benchmarks for DOMEX services are not readily available, the number of bids (5) suggests a moderate level of interest. The Time and Materials (T&M) pricing structure, however, can lead to higher costs compared to fixed-price contracts if not managed diligently. Without detailed performance metrics or cost breakdowns, a definitive value-for-money assessment is challenging, but the pricing model warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' with 5 bids received. This indicates that while the competition was not entirely restricted, there were specific reasons for excluding certain sources. The limited number of bidders (5) suggests that the market for these specialized services might not be as broad as initially assumed, potentially leading to less aggressive pricing than a fully open and unrestricted competition might yield.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a scenario with a greater number of interested and capable bidders vying for the contract.

Public Impact

The primary beneficiaries are the Drug Enforcement Administration (DEA) and potentially other Department of Justice (DOJ) components requiring document and media exploitation services. The services delivered likely involve the analysis and processing of seized documents and digital media to support investigations. The geographic impact is primarily within the United States, supporting domestic law enforcement operations. Workforce implications include the potential need for specialized analysts and technicians, both within the contractor's organization and potentially within the agency to manage the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored and managed.
The limited number of bidders (5) may indicate a lack of robust competition, potentially inflating costs.
The specific nature of 'DOMEX' services suggests a need for stringent data security and handling protocols, which could be a risk area if not adequately addressed.
The contract duration of 5 years is substantial, increasing the risk of scope creep or evolving requirements not being adequately captured in the initial award.

Positive Signals

The award to a single contractor suggests a potentially streamlined relationship for service delivery.
The contract was awarded under a competitive process, even if limited, indicating some level of market vetting.
The existence of a contract for these services implies a recognized need and a structured approach to fulfilling it.

Sector Analysis

This contract falls under the Engineering Services (NAICS 541330) sector, which encompasses firms providing engineering consulting and services. However, the specific nature of Document and Media Exploitation (DOMEX) services suggests a specialized niche within this broader category, likely involving digital forensics, data analysis, and intelligence gathering. Comparable spending benchmarks for highly specialized intelligence support services can vary significantly, but large contracts like this often indicate critical agency needs. The market for such services is typically characterized by a smaller number of highly specialized firms.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, and large businesses likely dominated the bidding and performance. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided summary. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and the Drug Enforcement Administration's program managers. The Inspector General of the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns may not be publicly accessible.

Related Government Programs

Intelligence Support Services
Forensic Analysis Contracts
Information Technology Services
Law Enforcement Support Contracts
Data Analysis Services

Risk Flags

Potential for cost overruns due to T&M pricing
Limited competition may impact price discovery
Lack of detailed performance metrics for benchmarking
Potential data security risks inherent in DOMEX services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $43.3 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC. IGF::CL::IGF DOCUMENT AND MEDIA EXPLOITATION (DOMEX) SERVICES.

Who is the contractor on this award?

The obligated recipient is SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $43.3 million.

What is the period of performance?

Start: 2017-09-25. End: 2022-09-29.

What is the typical cost structure for DOMEX services, and how does this contract's Time and Materials (T&M) pricing compare?

DOMEX services, which involve the exploitation of documents and digital media for intelligence and law enforcement purposes, can be procured under various pricing structures. Fixed-price contracts are often preferred for well-defined scopes of work to ensure cost certainty for the government. However, the complex and often unpredictable nature of forensic analysis and data exploitation can make T&M contracts more suitable in certain scenarios, allowing for flexibility as investigative needs evolve. The primary risk with T&M is the potential for cost escalation if labor hours and material usage are not rigorously tracked and managed. Without specific benchmarks for DOMEX T&M contracts, it's difficult to definitively state how this $43.3 million contract compares. However, agencies typically implement strict controls, such as ceiling prices and detailed reporting requirements, to mitigate T&M risks. The number of bids (5) and the contract's duration suggest that the DEA likely determined T&M was appropriate for the anticipated scope, but ongoing monitoring is crucial to ensure value.

How does the competition level of 5 bidders impact the value for money for this $43.3M contract?

A competition level of 5 bidders for a contract valued at $43.3 million suggests a moderately competitive environment. While more than a sole-source or limited solicitation, it is not indicative of a wide-open market where numerous firms are vying for the opportunity. In a market with fewer bidders, there is a higher likelihood that the government may not achieve the most aggressive pricing. Each bidder may have a stronger position to negotiate terms, and the government's leverage to drive down costs could be diminished compared to a scenario with, for example, 10 or more bids. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies that while the field was open, certain entities were deliberately excluded, further narrowing the competitive landscape. Therefore, the value for money could be impacted, potentially leading to higher costs for taxpayers than if a broader range of competitors had participated.

What are the potential risks associated with the Time and Materials (T&M) pricing model for this contract?

The primary risk associated with the Time and Materials (T&M) pricing model for this $43.3 million contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials used. This structure can incentivize contractors to extend the time spent on tasks or use more resources than strictly necessary, as their profit is directly tied to the costs incurred. For the government, this necessitates robust oversight, including detailed tracking of labor hours, verification of material costs, and strict adherence to contract ceilings. Without diligent management and clear performance metrics, T&M contracts can become significantly more expensive than initially projected, potentially diminishing the overall value for money. The long duration of this contract (1830 days) amplifies this risk, as there are more opportunities for costs to escalate over time.

Can the performance of Solutions Through Innovative Technologies Inc. (SITTINC) on this contract be benchmarked against similar DOMEX service contracts?

Benchmarking the performance of Solutions Through Innovative Technologies Inc. (SITTINC) on this specific DOMEX services contract against similar contracts is challenging without access to detailed performance metrics, quality assurance reviews, and cost-performance data. The provided data indicates a significant contract value ($43.3 million) awarded to SITTINC by the DEA. To conduct a thorough benchmark, one would need to compare key performance indicators (KPIs) such as turnaround times for analysis, accuracy rates, data security compliance, and overall client satisfaction (DEA) against industry standards or other government contracts for comparable services. Furthermore, a cost-performance benchmark would involve analyzing the cost per unit of service delivered (e.g., cost per document analyzed, cost per media device processed) relative to similar contracts. The limited competition (5 bidders) and T&M pricing structure also complicate direct performance comparisons, as these factors can influence both cost and delivery.

What is the historical spending pattern for DOMEX services within the Department of Justice or DEA?

Analyzing the historical spending patterns for Document and Media Exploitation (DOMEX) services within the Department of Justice (DOJ) or the Drug Enforcement Administration (DEA) is crucial for contextualizing the $43.3 million award to Solutions Through Innovative Technologies Inc. Without specific historical data, it's difficult to provide precise figures. However, it is reasonable to assume that agencies like the DEA, heavily involved in combating drug trafficking and related criminal activities, would require substantial resources for forensic analysis of seized evidence. Spending on such services can fluctuate based on investigative priorities, the volume of seizures, and technological advancements in data exploitation. Contracts for these specialized services are often awarded through competitive processes, but the market may be limited to a few key providers. Understanding past contract values, durations, and the number of bidders for similar DOMEX or forensic services would help determine if this current contract represents an increase, decrease, or stable level of investment in these capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3152 PRESIDENTIAL DR, FAIRBORN, OH, 45324

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,610,158

Exercised Options: $59,610,158

Current Obligation: $43,346,422

Actual Outlays: $10,907,739

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,823,154

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS139

IDV Type: IDC

Timeline