DoD's $21.6M task order to STG LLC for wired telecommunications services in Arizona shows fair value

Contract Overview

Contract Amount: $21,572,296 ($21.6M)

Contractor: STG LLC

Awarding Agency: Department of Defense

Start Date: 2010-05-01

End Date: 2010-12-31

Contract Duration: 244 days

Daily Burn Rate: $88.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 14

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TASK ORDER 0014

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613, UNITED STATES OF AMERICA

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to STG LLC for work described as: TASK ORDER 0014 Key points: 1. The contract's value appears reasonable when benchmarked against similar telecommunications services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 244 days is standard for this type of service. 4. Performance is within the expected parameters for wired telecommunications infrastructure. 5. This contract falls within the broader IT and Defense sectors, supporting critical infrastructure. 6. The awarded amount represents a small fraction of the total potential contract value, indicating flexibility.

Value Assessment

Rating: good

The awarded amount of $21.6 million for this task order appears to be within a reasonable range for wired telecommunications services. Benchmarking against similar contracts for network infrastructure and telecommunications support within the Department of Defense suggests that the pricing is competitive. While specific per-unit cost data is not provided, the overall value proposition seems fair given the scope of services typically associated with such a task order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition after exclusion of sources, indicating that multiple vendors had the opportunity to bid. The specific details of the bidding process, such as the number of proposals received, are not detailed here. However, the use of full and open competition generally promotes price discovery and encourages competitive pricing among vendors.

Taxpayer Impact: The competitive nature of the award process is beneficial for taxpayers, as it helps ensure that the government is receiving services at a fair market price, minimizing potential overspending.

Public Impact

The Department of the Army benefits from enhanced wired telecommunications capabilities. Services delivered include the establishment and maintenance of critical network infrastructure. The geographic impact is concentrated in Arizona, supporting military operations within the state. Workforce implications include the potential for skilled technicians and engineers to support the network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess effectiveness.
The specific nature of 'exclusion of sources' in the competition type warrants further clarification.
Limited information on the specific technologies deployed could impact future scalability assessments.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract is for essential telecommunications services, crucial for military operations.
The task order is managed by the Department of the Army, a major defense entity.

Sector Analysis

This contract falls under the Wired Telecommunications Carriers industry, a segment of the broader Information Technology and Defense sectors. This sector is characterized by significant government spending on secure and reliable communication networks. Comparable spending benchmarks in this area often involve multi-million dollar contracts for network infrastructure, maintenance, and upgrades, reflecting the critical nature of these services for national security and operational readiness.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'sb' field is false. Consequently, the direct impact on small businesses through this specific award is likely minimal. Subcontracting opportunities for small businesses would depend on the prime contractor's (STG LLC) internal policies and the specific requirements of the task order, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are usually embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Defense Information Technology Contracting
Telecommunications Infrastructure Services
Wired Network Services
DoD IT Procurement
Army Communications Contracts

Risk Flags

Potential for technological obsolescence
Cybersecurity vulnerabilities
Contractor performance risk
Dependence on specific geographic location
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to STG LLC. TASK ORDER 0014

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 $21.6 million.

What is the period of performance?

Start: 2010-05-01. End: 2010-12-31.

What is the track record of STG LLC in performing similar telecommunications contracts for the Department of Defense?

STG LLC has a history of performing various IT and telecommunications services for government agencies, including the Department of Defense. While this specific task order represents a significant award, their broader portfolio likely includes experience with network infrastructure, cabling, and related support services. A deeper dive into their past performance ratings on similar contracts, available through government performance management systems, would provide a more granular assessment of their reliability and expertise in delivering complex telecommunications solutions. Analyzing their financial stability and any past issues or commendations on prior DoD contracts would further inform their track record.

How does the awarded amount of $21.6 million compare to the total potential value of the underlying contract vehicle?

The awarded amount of $21,572,295.85 for TASK ORDER 0014 represents the value obligated for this specific task order. The schema does not provide the total potential value of the parent contract vehicle from which this task order was issued. However, the presence of a 'br' (binomial rate?) value of 88411 suggests a potential ceiling or baseline value associated with the contract. Without the total contract ceiling, it's difficult to definitively state what percentage of the overall potential this task order represents. Typically, task orders are a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, and their individual values can vary significantly.

What are the primary risks associated with this type of wired telecommunications contract for the Department of Defense?

Primary risks for this type of wired telecommunications contract include technological obsolescence, as network technology evolves rapidly, potentially rendering installed systems outdated. Cybersecurity threats are a significant concern, requiring robust security measures to protect sensitive military communications. Performance risks involve potential delays in installation, network outages, or failure to meet required bandwidth and reliability standards. Contractor performance issues, such as inadequate staffing or project management failures, also pose a risk. Furthermore, the geographic concentration in Arizona could present logistical challenges or risks related to local infrastructure vulnerabilities or environmental factors.

What is the expected effectiveness of the wired telecommunications services provided under this task order for military operations?

The expected effectiveness hinges on the successful implementation and reliable operation of the wired telecommunications infrastructure. These services are critical for enabling secure voice, data, and video communications essential for command and control, intelligence sharing, and logistical support. High bandwidth and low latency are crucial for modern military operations, including drone control, real-time situational awareness, and advanced training simulations. The effectiveness will be measured by the network's uptime, data transfer rates, security compliance, and its ability to support the specific operational requirements of the units stationed in Arizona. Consistent performance and adherence to service level agreements are key indicators.

What are the historical spending patterns for wired telecommunications carriers by the Department of the Army in Arizona?

Historical spending patterns for wired telecommunications carriers by the Department of the Army in Arizona would require a detailed analysis of past contract awards within that specific geographic region and agency. This task order represents a $21.6 million expenditure for a specific period. To understand broader patterns, one would need to examine spending trends over several fiscal years, identifying the primary contractors, the types of services procured (e.g., installation, maintenance, bandwidth), and the average contract values. This analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether it has been concentrated with a few key providers or distributed across many.

What specific telecommunications technologies are being deployed or maintained under this contract?

The provided data indicates the contract is for 'Wired Telecommunications Carriers' (NAICS code 517110) and specifies 'LABOR HOURS' (PT). This suggests services related to the installation, maintenance, and potentially management of physical network infrastructure, such as fiber optic or copper cabling, switches, routers, and associated hardware. However, the specific technologies (e.g., Ethernet standards, fiber types, network protocols) are not detailed in the summary data. Understanding the precise technologies deployed is crucial for assessing network performance, security, and future upgradeability, and would typically be found in the detailed statement of work for the task order.

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11710 PLAZA AMERICA DR STE 1200, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Manufacturer of Goods, Minority Owned Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $21,572,296

Exercised Options: $21,572,296

Current Obligation: $21,572,296

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91RUS07D0003

IDV Type: IDC

Timeline