DoD Awards $22.5M for SIPRNET Support Services to STG LLC

Contract Overview

Contract Amount: $22,548,110 ($22.5M)

Contractor: STG LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2010-12-31

Contract Duration: 826 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SIPRNET SUPPORT SERVICES AT VARIOUS LOCATIONS.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to STG LLC for work described as: SIPRNET SUPPORT SERVICES AT VARIOUS LOCATIONS. Key points: 1. Contract awarded to STG LLC for SIPRNET support services. 2. Total contract value is $22.5 million. 3. Services provided across various locations. 4. Contract duration spans from 2008 to 2010.

Value Assessment

Rating: fair

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The awarded value of $22.5 million for two years of support needs to be benchmarked against similar contracts for SIPRNET services to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and the number of bids received are not detailed, impacting the assessment of price discovery.

Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently, but the Time and Materials pricing structure warrants close monitoring to prevent excessive spending.

Public Impact

Ensures continued operation of secure military communication networks (SIPRNET). Supports Department of Defense operations across various locations. Provides essential telecommunications infrastructure for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Wired Telecommunications Carriers sector, specifically supporting secure government networks. Spending in this area is crucial for defense operations, and benchmarks would typically compare per-user or per-site support costs for similar secure communication systems.

Small Business Impact

The data indicates that STG LLC, the awardee, is not a small business. There is no information provided on subcontracting opportunities for small businesses within this contract.

Oversight & Accountability

Oversight would involve monitoring the contractor's performance against contract requirements and ensuring adherence to Time and Materials guidelines to control costs. The Department of the Army is the specific agency overseeing this contract.

Related Government Programs

Risk Flags

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 $22.5 million to STG LLC. SIPRNET SUPPORT SERVICES AT VARIOUS LOCATIONS.

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 $22.5 million.

What is the period of performance?

Start: 2008-09-26. End: 2010-12-31.

What was the average number of bids received for this full and open competition, and how did the winning bid compare to the government estimate?

The provided data does not specify the number of bids received or the government estimate for this contract. To assess value, understanding the competitive landscape and the relationship between the winning bid and the estimate is crucial. This information would help determine if the full and open competition effectively drove down costs or if there was potential for better pricing.

What are the key performance indicators (KPIs) for SIPRNET support services, and how did STG LLC perform against them?

The data does not include specific Key Performance Indicators (KPIs) for this SIPRNET support services contract. Assessing risk and effectiveness requires understanding the defined service levels, uptime requirements, and response times. Without this, it's difficult to evaluate the contractor's performance beyond basic delivery and the potential impact of any service failures on military operations.

How does the per-unit cost of this SIPRNET support compare to similar contracts awarded by other DoD branches or federal agencies?

A direct per-unit cost benchmark is not available without further data on the specific services rendered (e.g., per user, per site, per device). However, the total contract value of $22.5 million over approximately two years suggests a significant investment. Comparing this to other secure network support contracts would reveal if the pricing is competitive or potentially inflated, impacting overall taxpayer value.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9128Z05R0003

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11710 PLAZA AMERICA DR, RESTON, VA, 11

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $36,652,477

Exercised Options: $36,652,477

Current Obligation: $22,548,110

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9128Z06D0003

IDV Type: IDC

Timeline

Start Date: 2008-09-26

Current End Date: 2010-12-31

Potential End Date: 2010-12-31 00:00:00

Last Modified: 2014-09-22

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