DOJ's $18M BAE Systems contract for network operations and tech support shows fair value with limited competition

Contract Overview

Contract Amount: $18,025,842 ($18.0M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Justice

Start Date: 2006-03-01

End Date: 2010-12-31

Contract Duration: 1,766 days

Daily Burn Rate: $10.2K/day

Pricing Type: NOT REPORTED

Sector: IT

Official Description: NAC NETWORK OPERATION CENTER AND TECHONE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $18.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: NAC NETWORK OPERATION CENTER AND TECHONE SERVICES Key points: 1. The contract provided essential IT infrastructure support, ensuring operational continuity for the Department of Justice. 2. BAE Systems, a large defense contractor, was awarded this contract, indicating a reliance on established players for critical services. 3. The duration of the contract (nearly 5 years) suggests a need for stable, long-term support for network operations. 4. While specific performance metrics are not detailed, the contract's value relative to its scope appears reasonable. 5. The limited competition raises questions about potential price efficiencies that might have been achieved with broader outreach. 6. The contract falls within the 'Other Computer Related Services' NAICS code, a broad category encompassing diverse IT functions.

Value Assessment

Rating: fair

The contract value of approximately $18 million over nearly five years suggests a moderate annual spend for IT network operations and technical support. Benchmarking this against similar government contracts for comparable services is challenging without more granular detail on the specific tasks performed. However, the pricing appears to be within a reasonable range for the scope of services, considering the contractor's established presence and the duration of the agreement. The absence of detailed performance data makes a definitive value-for-money assessment difficult, but the contract was not flagged for significant overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a Blanket Purchase Agreement (BPA), which often implies a pre-negotiated framework. The specific competition details for this particular task order under the BPA are not fully elaborated, but the 'limited' competition designation suggests that it was not a full and open solicitation. This could mean that only a select number of pre-qualified vendors were invited to bid, or that the scope was tailored in a way that naturally restricted the pool of potential offerors. The limited nature of the competition may have impacted the government's ability to secure the most competitive pricing.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers as the potential for robust price discovery through a wider bidding process is reduced. This contract's limited competition suggests that taxpayers may not have benefited from the full range of cost savings achievable in a more open market.

Public Impact

Federal employees within the Department of Justice, particularly those reliant on stable network operations and IT support, are the primary beneficiaries. The contract delivered essential IT services, including network operations and technical support, crucial for the functioning of DOJ's internal systems. The geographic impact is concentrated in the District of Columbia, where the Department of Justice's main operations are located. The contract supported a workforce of IT professionals employed by BAE Systems, contributing to specialized technical employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery and potentially led to suboptimal value for taxpayers.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and efficiency of the services provided.
The contract's duration and scope could indicate a reliance on a single vendor, potentially limiting future flexibility or innovation.

Positive Signals

The contract provided critical IT infrastructure support, ensuring the operational continuity of a major federal agency.
BAE Systems is a large, established contractor with a significant track record in government IT services, suggesting a level of reliability.
The contract was awarded under a BPA, which can streamline procurement for recurring needs, potentially offering some administrative efficiencies.

Sector Analysis

This contract falls under the broad category of IT services, specifically 'Other Computer Related Services' (NAICS 541519). This sector is characterized by a wide range of providers, from large defense contractors like BAE Systems to specialized IT firms. Government spending in this area is substantial, supporting everything from network management and cybersecurity to software development and cloud services. Comparable spending benchmarks are difficult to establish precisely due to the varied nature of services within this NAICS code, but the $18 million over nearly five years represents a moderate investment for essential IT operations support.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to BAE Systems, a large prime contractor, suggests that small businesses were likely involved as subcontractors rather than direct awardees. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities, which is crucial for fostering the small business ecosystem within the federal IT contracting landscape.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Justice's contracting and program management offices. Accountability measures would be defined by the terms and conditions of the Blanket Purchase Agreement and the specific task order. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified during the contract's performance or closeout.

Related Government Programs

Department of Justice IT Modernization Initiatives
Federal Network Infrastructure Support Contracts
IT Services for Law Enforcement Agencies
BAE Systems Government IT Contracts

Risk Flags

Limited competition may impact price competitiveness.
Lack of detailed performance data hinders full value assessment.
Contract duration could indicate potential vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.0 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. NAC NETWORK OPERATION CENTER AND TECHONE SERVICES

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2006-03-01. End: 2010-12-31.

What specific IT services were included under the 'NAC NETWORK OPERATION CENTER AND TECHONE SERVICES' contract?

The provided data indicates the contract was for 'NAC NETWORK OPERATION CENTER AND TECHONE SERVICES' awarded to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. by the Department of Justice. While the specific breakdown of services is not detailed in the summary data, the title suggests core functions related to network operations, including monitoring, maintenance, and potentially help desk or technical support ('TechOne Services'). This likely encompassed ensuring the availability, performance, and security of the Department's computer networks and related technologies. The NAICS code 541519 ('Other Computer Related Services') further supports a broad range of IT support functions beyond basic network infrastructure.

How does the $18 million contract value compare to similar IT support contracts within the federal government?

The $18 million contract value over a period of approximately 4.7 years (from March 2006 to December 2010) translates to an average annual spend of roughly $3.8 million. This figure is moderate within the context of federal IT spending. Large agencies like the Department of Justice often have substantial IT budgets, and contracts for comprehensive network operations and technical support can range from a few million to tens or even hundreds of millions of dollars annually, depending on the scope, complexity, and number of users supported. Without knowing the exact scale of DOJ's network and the specific service level agreements, a precise comparison is difficult. However, this contract appears to be a significant but not exceptionally large award for essential IT infrastructure support.

What are the potential risks associated with a limited competition award for IT services?

Limited competition for IT services, as indicated for this DOJ contract, carries several potential risks. Firstly, it can lead to higher costs for taxpayers because the government may not benefit from the full range of price reductions that would occur in a robustly competitive environment. Secondly, it might result in less innovation, as contractors may have less incentive to offer cutting-edge solutions when faced with fewer competitors. Thirdly, there's a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making it difficult and costly to switch vendors in the future. Finally, limited competition can sometimes mask inefficiencies or a lack of proactive performance management if the incumbent contractor is not consistently challenged on price and quality.

What was BAE Systems' track record with the federal government prior to and during this contract?

BAE Systems is a major global defense, aerospace, and security company with a substantial and long-standing presence as a contractor to the U.S. federal government, including the Department of Defense and various civilian agencies. Prior to and during the period of this DOJ contract (2006-2010), BAE Systems held numerous other federal contracts across a wide spectrum of services, including IT, engineering, logistics, and defense systems. Their extensive portfolio indicates a deep familiarity with federal procurement processes and requirements. While specific performance details for this particular contract are limited in the provided data, BAE Systems' overall profile suggests they are a capable, large-scale provider accustomed to handling complex government IT requirements.

How did the 'Other Computer Related Services' (NAICS 541519) category evolve during the contract period?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide array of IT services not classified elsewhere. During the contract period (2006-2010), the IT landscape was rapidly evolving, with increasing adoption of cloud computing, virtualization, and mobile technologies. Services under this code could include IT consulting, systems integration, disaster recovery, data processing, and IT support. The evolution of these services meant that contracts within this category needed to adapt to new technological advancements and changing user demands. For the DOJ contract, this likely meant that the scope of network operations and technical support may have implicitly or explicitly incorporated newer methods and technologies as they became available and relevant to the agency's needs.

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

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PLACE, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: 03F0802

IDV Type: BPA

Timeline