Interior's $37.1M contract for BIA caseload file preparation awarded to CNI/DATACOM LLC without competition

Contract Overview

Contract Amount: $37,103,335 ($37.1M)

Contractor: Cni/Datacom LLC

Awarding Agency: Department of the Interior

Start Date: 2004-03-01

End Date: 2008-02-29

Contract Duration: 1,460 days

Daily Burn Rate: $25.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PERFORM PROBATE CASELOAD FILE PREPARATION AND CLOSING FOR BIA NATIONWIDE

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $37.1 million to CNI/DATACOM LLC for work described as: PERFORM PROBATE CASELOAD FILE PREPARATION AND CLOSING FOR BIA NATIONWIDE Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of 4 years suggests a long-term need for these services. 3. Services provided are essential for the administrative functioning of the Bureau of Indian Affairs and Bureau of Indian Education. 4. The contract was awarded under the 'All Other Professional, Scientific, and Technical Services' NAICS code. 5. The firm fixed-price contract type aims to control costs, but the lack of competition is a concern. 6. The contract was awarded to a single vendor, CNI/DATACOM LLC, indicating no other bidders were considered.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific nature of probate caseload file preparation. Without competitive bids, it's difficult to ascertain if the $37.1 million price represents a fair market value. The lack of comparison to similar contracts or market rates for these specialized services makes a definitive value assessment difficult. However, the absence of competition inherently raises questions about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. The Department of the Interior determined that CNI/DATACOM LLC was the only responsible source capable of fulfilling the requirement. This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the cost savings that often arise from a competitive bidding environment. The government may have paid a higher price than if multiple firms had vied for the contract.

Public Impact

Beneficiaries include the Bureau of Indian Affairs and Bureau of Indian Education, ensuring efficient administrative processes. Services delivered include the preparation and closing of probate caseload files nationwide. The geographic impact is nationwide, supporting federal trust responsibilities across various tribal lands. Workforce implications are primarily related to the contractor's staff performing these specialized administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the selection process due to no-bid award.
Potential for cost overruns if pricing was not adequately scrutinized without competition.
Dependence on a single contractor for critical administrative functions.

Positive Signals

Contract awarded to a single entity suggests specialized capability or existing relationship.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract indicates a sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the 'All Other Professional, Scientific, and Technical Services' sector. This broad category encompasses a wide range of specialized services. The market for such services can be fragmented, with varying degrees of competition depending on the specific niche. Benchmarking is difficult without knowing the exact nature of the probate caseload file preparation services and comparing them to similar government or private sector contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to CNI/DATACOM LLC, which may or may not be a small business. Further investigation into the contractor's size status would be needed to fully assess subcontracting implications.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers responsible for the Bureau of Indian Affairs and Bureau of Indian Education. Transparency is limited due to the sole-source award. Accountability measures would be defined in the contract's terms and conditions, focusing on performance metrics and delivery schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Indian Affairs Administrative Services
Bureau of Indian Education Support Services
Federal Trust Responsibility Services
Legal Case File Management
Government Contract Administration

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of transparency in the procurement process.
Potential for vendor lock-in due to single-source provider.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37.1 million to CNI/DATACOM LLC. PERFORM PROBATE CASELOAD FILE PREPARATION AND CLOSING FOR BIA NATIONWIDE

Who is the contractor on this award?

The obligated recipient is CNI/DATACOM LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2004-03-01. End: 2008-02-29.

What is the specific nature of the 'probate caseload file preparation and closing' services provided under this contract?

The 'probate caseload file preparation and closing' services are critical administrative functions supporting the federal government's trust responsibilities towards Native American tribes and individuals. This involves managing and processing legal documents related to the estates of deceased Native Americans, particularly concerning trust or restricted lands. The process includes gathering necessary documentation, ensuring legal compliance, preparing files for administrative or judicial review, and ultimately closing out cases. These services are essential for the orderly administration of Indian probate law and ensuring that heirs and beneficiaries receive their rightful inheritance in a timely manner. The complexity can vary significantly based on the number of heirs, the nature of the assets, and the specific legal requirements of each case.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded on a sole-source basis because the Department of the Interior likely determined that CNI/DATACOM LLC was the only responsible source capable of meeting the government's needs. This determination could be based on factors such as unique capabilities, specialized expertise, proprietary technology, or a critical need for continuity of services where switching contractors would be detrimental. Sole-source awards are exceptions to the general rule of full and open competition and require a documented justification, often citing reasons like urgency, lack of other qualified sources, or specific government property or rights involved. Without access to the specific justification document, the precise reasons remain unconfirmed, but it implies a belief that competition was not feasible or advantageous.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts, especially those of significant value like $37.1 million, carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved in a competitive bidding process. This can result in less value for taxpayer money. Another risk is contractor complacency; without the threat of losing future business to competitors, the contractor might be less motivated to innovate or maintain the highest levels of efficiency and service quality. Furthermore, there's a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to transition to a new vendor if performance issues arise or market conditions change. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process.

How does the firm fixed-price contract type mitigate risks for the government?

A firm fixed-price (FFP) contract type is generally considered advantageous for the government, especially when the scope of work is well-defined. Under an FFP contract, the contractor agrees to a total price for a well-defined effort, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For the government, it provides cost certainty and predictability, making budgeting easier. If the contractor can perform the work for less than the agreed-upon price, they realize a higher profit; conversely, if costs exceed the fixed price, the contractor absorbs the loss. This structure incentivizes the contractor to manage their costs efficiently and complete the work within the agreed budget.

What is the historical spending pattern for similar probate caseload file preparation services?

Analyzing historical spending patterns for 'probate caseload file preparation and closing' services is challenging without more specific data or contract identifiers. This is a niche service, often integrated into broader administrative or legal support functions for agencies like the Bureau of Indian Affairs (BIA). If this contract represents a consolidation or continuation of previously fragmented services, direct historical comparisons might be difficult. However, one could investigate prior contracts awarded by the BIA or other Interior Department bureaus for similar administrative, legal support, or case management services. Examining the duration, value, and competition levels of those past awards could provide context. If this $37.1 million contract is a significant increase or decrease compared to previous spending on similar functions, it would warrant further investigation into the reasons, such as changes in caseload, service scope, or market rates.

What is the track record of CNI/DATACOM LLC with federal contracts, particularly with the Department of the Interior?

CNI/DATACOM LLC has a history of receiving federal contracts, primarily with the Department of the Interior. Publicly available data indicates they have been awarded contracts related to administrative support, IT services, and other professional services. Their performance history with the government, including this specific contract, would be detailed in contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS). A review of these reports would reveal client agency feedback on their timeliness, quality of work, cost control, and overall management. Given this is a sole-source award, understanding their prior performance and relationship with the BIA or Interior is crucial to assessing the justification for awarding this significant contract without competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7100 N CLASSEN BLVD STE 400, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Tribally Owned Firm

Financial Breakdown

Contract Ceiling: $37,103,335

Exercised Options: $37,103,335

Current Obligation: $37,103,335

Contract Characteristics

Multi-Year Contract: Yes

Timeline