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
- Time and Materials pricing can lead to cost uncertainty.
- Limited data on specific performance metrics and outcomes.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security infrastructure.
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
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials contract type.
- Lack of detailed performance metrics.
- No small business subcontracting data.
- Limited transparency on bid competition details.
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: 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
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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