DOJ's $28.6M contract with SOTERA DEFENSE SOLUTIONS for custom programming services was not competed

Contract Overview

Contract Amount: $28,622,758 ($28.6M)

Contractor: Sotera Defense Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2014-04-09

End Date: 2015-03-09

Contract Duration: 334 days

Daily Burn Rate: $85.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF SOTERA SUPPORT.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22180, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $28.6 million to SOTERA DEFENSE SOLUTIONS, INC. for work described as: IGF::CT::IGF SOTERA SUPPORT. Key points: 1. The contract utilized a Time and Materials pricing structure, which can present cost control challenges. 2. A single bidder participated in this procurement, raising questions about the extent of competition. 3. The contract duration of 334 days suggests a focused scope of work. 4. The award was made to SOTERA DEFENSE SOLUTIONS, INC., a known entity in the federal contracting space. 5. The North American Industry Classification System (NAICS) code 541511 indicates a focus on custom computer programming. 6. The contract was awarded under the "NOT COMPETED" category, implying specific justifications for the lack of broader solicitation.

Value Assessment

Rating: questionable

Benchmarking the value of this Time and Materials contract is challenging without detailed task orders and labor rates. The lack of competition suggests potential overpricing or suboptimal value. Compared to similar custom programming services, the absence of multiple bids prevents a robust assessment of whether the government received a fair and reasonable price. The total award amount of $28.6 million for a single-year contract requires scrutiny to ensure efficiency and cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source can provide the required services. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract. This approach can limit the government's options and potentially lead to higher costs.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced likelihood of securing the most competitive pricing. It also limits the opportunity for new or smaller businesses to enter into contracts with this agency for these services.

Public Impact

The primary beneficiary of this contract is the Federal Bureau of Investigation (FBI), a component of the Department of Justice. The services delivered are custom computer programming, likely supporting specific FBI operational needs or internal systems. The geographic impact is centered around the FBI's operational areas, primarily within Virginia where the contract was administered. The contract supports specialized IT roles, potentially impacting the workforce of SOTERA DEFENSE SOLUTIONS, INC. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
Time and Materials contract type can lead to cost overruns if not closely managed.
Sole-source awards limit market exploration and potential for innovative solutions from a wider vendor pool.

Positive Signals

Contract awarded to an established entity, SOTERA DEFENSE SOLUTIONS, INC., potentially indicating reliability.
Specific NAICS code suggests a targeted need for specialized IT services.
Contract duration implies a defined project scope, aiding in management.

Sector Analysis

The federal IT services sector is a significant market, with custom computer programming being a core component. Agencies like the FBI rely heavily on specialized software development to maintain and enhance their operational capabilities. Spending in this area is driven by the need for secure, tailored solutions that off-the-shelf software cannot provide. Comparable contracts in this space often involve complex system integrations, cybersecurity enhancements, and data analytics platforms, with pricing varying based on complexity, labor rates, and contract type.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss' (small business subcontracting) field is also false, suggesting no specific requirements for subcontracting to small businesses were mandated for this award. This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were likely limited.

Oversight & Accountability

Oversight for this contract would fall under the Department of Justice's internal procurement and program management offices, as well as the Federal Bureau of Investigation. Given it was a sole-source award, the justification for this procurement method would be subject to review. The Inspector General of the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, although specific oversight mechanisms beyond standard contract management are not detailed in the provided data.

Related Government Programs

Department of Justice IT Services
Federal Bureau of Investigation Technology Modernization
Custom Software Development Contracts
Sole-Source IT Procurements
Time and Materials IT Contracts

Risk Flags

Lack of Competition
Time and Materials Pricing
Sole-Source Award Justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.6 million to SOTERA DEFENSE SOLUTIONS, INC.. IGF::CT::IGF SOTERA SUPPORT.

Who is the contractor on this award?

The obligated recipient is SOTERA DEFENSE SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2014-04-09. End: 2015-03-09.

What specific custom computer programming services were provided under this contract?

The provided data indicates the contract (NAICS 541511) was for 'Custom Computer Programming Services.' However, the specific nature of these services is not detailed. Typically, such contracts involve the design, development, modification, and testing of software tailored to a client's unique requirements. For the FBI, this could range from developing new case management systems, enhancing data analysis tools, creating secure communication platforms, or integrating disparate software applications to improve operational efficiency and information sharing.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' implying a sole-source or limited competition award. Agencies typically justify sole-source awards under specific circumstances outlined in federal acquisition regulations (FAR), such as when only one vendor possesses the unique capability, technology, or intellectual property required, or in cases of urgent need where competition is not feasible. Without the specific justification documentation, it's impossible to determine the precise reason the FBI determined SOTERA DEFENSE SOLUTIONS, INC. was the only viable source for these custom programming services.

How does the Time and Materials (T&M) pricing structure compare to other contract types for custom programming?

Time and Materials (T&M) contracts are used when the extent or urgency of the work cannot be reasonably predicted. They reimburse the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. While flexible, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the final cost is not predetermined. For custom programming, agencies often prefer fixed-price contracts for well-defined scopes to ensure cost certainty. However, T&M can be suitable for research, development, or projects with evolving requirements where the scope is difficult to define upfront.

What is SOTERA DEFENSE SOLUTIONS, INC.'s track record with the Department of Justice or FBI?

The provided data indicates SOTERA DEFENSE SOLUTIONS, INC. was awarded this $28.6 million contract by the Department of Justice's Federal Bureau of Investigation. While this specific award is detailed, the broader track record of the company with these agencies is not. A comprehensive assessment would require reviewing historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes the company has had in fulfilling federal contracts, particularly within the law enforcement and intelligence sectors.

Are there comparable custom programming contracts awarded by the FBI or other agencies that can provide a benchmark for this contract's value?

Benchmarking this contract's value is difficult without more specific details on the services rendered and the labor categories involved. However, the FBI and other federal agencies frequently award contracts for custom software development, IT modernization, and system integration. These contracts can range from a few million to hundreds of millions of dollars, depending on complexity, duration, and the specific technologies employed. A thorough benchmark would involve comparing the hourly rates, labor mix, and overall project scope against similar, competitively awarded contracts for custom programming services within the federal government.

What are the potential risks associated with a sole-source Time and Materials contract for custom programming?

Sole-source Time and Materials (T&M) contracts for custom programming present several risks. Firstly, the lack of competition can lead to inflated pricing, as the contractor faces no pressure to offer competitive rates. Secondly, the T&M structure itself can incentivize longer project durations and higher labor hours, as the contractor is paid for time and materials, rather than a fixed outcome. This combination requires robust government oversight to manage scope, control costs, and ensure efficient delivery of services. Without strong oversight, there's a risk of cost overruns and suboptimal value for taxpayer money.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sentinel Acquisition Holdings Inc. (UEI: 968002589)

Address: 2121 COOPERATIVE WAY STE 400, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,622,758

Exercised Options: $28,622,758

Current Obligation: $28,622,758

Contract Characteristics

Cost or Pricing Data: NO

Timeline