DoD Awards $33.3M for Wired Telecommunications Carriers to STG LLC Under Full and Open Competition
Contract Overview
Contract Amount: $33,258,083 ($33.3M)
Contractor: STG LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-24
End Date: 2009-12-31
Contract Duration: 7 days
Daily Burn Rate: $4.8M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Official Description: LABOR
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $33.3 million to STG LLC for work described as: LABOR Key points: 1. Significant contract value of $33.3 million awarded. 2. STG LLC secured the contract, indicating specific capabilities in wired telecommunications. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector involves essential telecommunications infrastructure for the Department of the Army.
Value Assessment
Rating: good
The award amount of $33.3 million for a 7-day duration seems high for a short-term service, but without specific deliverables, a direct comparison is difficult. It's crucial to understand the scope of services provided during this period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, implying a robust process to ensure fair pricing and selection. This method generally leads to better price discovery.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures continued wired telecommunications services for Department of the Army operations. Supports critical communication infrastructure, vital for national security and military readiness. The competitive award process suggests efficient use of taxpayer funds for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (7 days) for a substantial award amount warrants scrutiny of the scope and necessity.
- Lack of specific details on deliverables makes it hard to assess true value for money.
Positive Signals
- Awarded under full and open competition, indicating a fair and transparent process.
- Contract supports essential Department of Defense operations.
Sector Analysis
This contract falls within the IT and telecommunications sector, which is critical for modern military operations. Spending benchmarks in this area vary widely based on service type and duration, but $33.3M for a week of service is notable.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for contract awards. The 'full and open competition' method itself is a form of accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High award amount for a very short duration.
- Lack of detailed service description.
- Potential for overpayment given the short timeframe.
- Need to verify the necessity of such a high expenditure for a 7-day period.
Tags
wired-telecommunications-carriers, department-of-defense, az, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.3 million to STG LLC. LABOR
Who is the contractor on this award?
The obligated recipient is STG LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $33.3 million.
What is the period of performance?
Start: 2009-12-24. End: 2009-12-31.
What specific wired telecommunications services were provided for the $33.3 million award over just seven days?
The provided data lacks specific details on the services rendered. Given the substantial amount for a short period, it likely involved emergency provisioning, critical infrastructure support, or specialized high-demand services. Further investigation into the contract's statement of work is necessary to understand the exact nature and necessity of these services.
What risks are associated with awarding a large sum for a short-term telecommunications service contract?
A primary risk is potential overpayment if the services were not fully utilized or if the pricing was inflated due to the urgency or limited scope. Another risk is the lack of long-term strategic planning if this was a stop-gap measure. Ensuring the necessity and competitive pricing for such short-term, high-value awards is crucial for fiscal responsibility.
How effective is the 'full and open competition after exclusion of sources' method in ensuring value for this type of contract?
This method is generally effective in promoting competition and achieving fair market prices. However, for very short-term or highly specialized needs, the pool of eligible bidders might be limited, potentially impacting the breadth of competition. The key is whether the exclusion of sources was justified and if the remaining competition still yielded competitive pricing for the specific services required.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91RUS06R0120
Offers Received: 14
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 11710 PLAZA AMERICA DR STE 1200, RESTON, VA, 11
Business Categories: Asian Pacific American Owned Business, Category Business, Federally Funded Research and Development Corp, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $33,258,083
Exercised Options: $33,258,083
Current Obligation: $33,258,083
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91RUS07D0003
IDV Type: IDC
Timeline
Start Date: 2009-12-24
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2014-09-25
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