DOJ's $30M Records Management Contract to ADRM, LLC Shows Long-Term Engagement

Contract Overview

Contract Amount: $29,884,268 ($29.9M)

Contractor: Adrm, LLC

Awarding Agency: Department of Justice

Start Date: 2007-11-01

End Date: 2013-09-30

Contract Duration: 2,160 days

Daily Burn Rate: $13.8K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RECORDS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28277

State: North Carolina Government Spending

Plain-Language Summary

Department of Justice obligated $29.9 million to ADRM, LLC for work described as: RECORDS MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded to ADRM, LLC for records management support, indicating a sustained need for these services. 2. The contract duration of approximately 6 years suggests a stable, long-term relationship for these services. 3. The award was a follow-on to a competed action, implying previous competition may have influenced pricing and performance. 4. The use of Time and Materials pricing could lead to cost overruns if not carefully managed. 5. The contract value of nearly $30 million over its life indicates a significant investment in records management. 6. The North Carolina location for service delivery may have implications for local workforce and economic impact.

Value Assessment

Rating: fair

The total contract value of $29.9 million over six years averages to approximately $5 million annually. Without specific benchmarks for records management support services of this scale and scope, a direct value-for-money assessment is challenging. However, the duration suggests the government found the previous performance satisfactory. The Time and Materials (T&M) contract type introduces inherent risk for cost control, as actual labor hours and material costs directly impact the final price. Further analysis would require benchmarking against similar T&M contracts for records management or comparing the loaded labor rates to market averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was a 'FOLLOW ON TO COMPETED ACTION,' indicating that the initial award was subject to full and open competition. While the specific details of the original competition are not provided, this suggests that multiple bidders likely participated, leading to a competitive pricing environment at the outset. The follow-on nature implies that ADRM, LLC was likely the incumbent or a strong performer from the original competition, and the current award was made based on that history. The level of competition for the initial award would have been crucial for ensuring optimal price discovery.

Taxpayer Impact: A competitive initial award helps ensure that taxpayers receive services at a fair market price. The follow-on nature suggests that the government may have had the opportunity to negotiate terms based on demonstrated performance, potentially leading to better value over time.

Public Impact

The Department of Justice benefits from efficient and organized management of its vast records, crucial for legal proceedings, investigations, and administrative functions. Services delivered include comprehensive records management support, ensuring compliance with federal regulations and retention policies. The geographic impact is centered in North Carolina, potentially creating or sustaining jobs within the local economy. The contract supports a workforce dedicated to the specialized field of records management, contributing to professional development in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type poses a risk of cost escalation if not closely monitored.
Long-term contract duration could indicate a lack of market dynamism or potential for vendor lock-in.
Limited information on specific performance metrics makes it difficult to assess the true effectiveness of the services.

Positive Signals

Awarded as a follow-on to a competed action, suggesting a foundation of competitive pricing and performance.
The sustained engagement indicates the contractor is meeting the DOJ's needs for records management.
The contract supports essential government functions related to information management and compliance.

Sector Analysis

The records management services sector is a critical component of government operations, ensuring compliance, accessibility, and security of information. This contract falls under Facilities Support Services (NAICS 561210), which encompasses a broad range of services. The federal government is a significant consumer of such services, with spending often driven by regulatory requirements and the sheer volume of data generated. Benchmarking this contract's value would require comparing it to other large-scale records management contracts across federal agencies, considering factors like scope, duration, and service complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, ADRM, LLC, is likely a larger entity, and opportunities for small businesses would typically arise through subcontracting opportunities offered by the prime contractor, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice contracting officers and program managers responsible for records management. As a Time and Materials contract, rigorous monitoring of labor hours, costs, and deliverables is essential to ensure accountability and prevent cost overruns. Transparency is facilitated through contract award databases, but detailed performance reports and specific oversight mechanisms are typically internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Records Centers Program
Information Governance Initiatives
Department of Justice Administrative Services
Contracting for Professional Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of technological obsolescence over the contract's long duration.
Need for robust government oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29.9 million to ADRM, LLC. RECORDS MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ADRM, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2007-11-01. End: 2013-09-30.

What is the typical cost range for similar records management support services contracts within the federal government?

Determining a precise cost range for similar federal records management support services is complex due to variations in scope, duration, service level agreements, and contract types. However, contracts can range from a few million dollars annually for smaller, specialized tasks to tens or even hundreds of millions for comprehensive, agency-wide solutions. Factors influencing cost include the volume of records managed (physical and digital), the required retention periods, security protocols, digitization efforts, and the level of expertise needed. Time and Materials contracts, like this one, can be more variable in cost compared to Firm-Fixed-Price contracts. Benchmarking requires comparing contracts with similar NAICS codes (e.g., 561210 for Facilities Support Services, or potentially 518210 for Data Processing, Hosting, and Related Services if digitization is a major component) and similar contract durations and total values, while accounting for inflation and market rate adjustments over time.

How does the Time and Materials (T&M) contract type affect cost control and value for money in this specific contract?

The Time and Materials (T&M) contract type, used in this DOJ records management contract, allows the government to pay the contractor for the actual cost of direct labor (at specified hourly rates) and indirect costs, plus a fee or profit. While T&M contracts offer flexibility and can be advantageous when the scope of work is not clearly defined or is expected to change, they carry a higher risk of cost overruns compared to fixed-price contracts. Effective cost control hinges on robust government oversight, including diligent monitoring of labor hours, verification of materials used, and regular reviews of invoices. For this contract, the government must ensure that the labor rates are fair and reasonable and that the hours billed are directly related to the work performed. Without strong oversight, the total cost can exceed initial estimates, potentially diminishing the overall value for money achieved.

What is ADRM, LLC's track record with federal contracts, particularly within the Department of Justice?

ADRM, LLC has a history of securing federal contracts, including those with the Department of Justice. This specific contract, valued at nearly $30 million and spanning from 2007 to 2013, indicates a long-standing relationship. Examining past performance evaluations, if publicly available, would provide deeper insight into their reliability, quality of service, and adherence to contract terms. Federal procurement data often includes award history, which can reveal the types and values of contracts awarded to a vendor. A consistent award history, especially for follow-on actions or renewals, generally suggests satisfactory performance, though detailed qualitative assessments are crucial for a complete picture of their track record.

What are the potential risks associated with a long-term (6-year) contract for records management services?

Long-term contracts for services like records management, such as this 6-year agreement, present several potential risks. Firstly, technology and best practices in records management evolve rapidly; a long-term commitment might lock the government into outdated systems or methods, reducing efficiency and potentially increasing long-term costs if upgrades are needed. Secondly, vendor performance can degrade over time, or the contractor's business circumstances might change, impacting service delivery. Thirdly, a prolonged relationship can sometimes lead to complacency on both sides, potentially reducing the incentive for continuous improvement or aggressive cost management. Finally, market conditions and pricing can shift significantly over six years, meaning the initial pricing might become uncompetitive over the contract's lifespan, impacting the overall value for money.

How does the 'FOLLOW ON TO COMPETED ACTION' designation influence the assessment of this contract's competition level?

The designation 'FOLLOW ON TO COMPETED ACTION' indicates that the original contract award that this action succeeded was subject to full and open competition. This implies that multiple vendors had the opportunity to bid, and the award was made based on factors such as price, technical approach, and past performance. While this specific follow-on action might have been awarded non-competitively to the incumbent (ADRM, LLC, in this case) based on performance or other criteria outlined in the original solicitation or regulations, the initial competition is a positive indicator. It suggests that the government likely achieved fair market pricing and identified a capable vendor through a competitive process at the outset. However, the lack of a new competition for the follow-on action means that current market prices and alternative vendor capabilities were not directly assessed in this instance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DJJK-06-RFP-0432

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13777 BALLANTYNE CORP PL STE 400, CHARLOTTE, NC, 12

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,884,268

Exercised Options: $29,884,268

Current Obligation: $29,884,268

Contract Characteristics

Cost or Pricing Data: NO

Timeline