DOJ awards $45.8M IT support contract to STG LLC for DEA, utilizing full and open competition
Contract Overview
Contract Amount: $45,777,641 ($45.8M)
Contractor: STG LLC
Awarding Agency: Department of Justice
Start Date: 2010-02-04
End Date: 2011-06-02
Contract Duration: 483 days
Daily Burn Rate: $94.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE ON-SITE INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES TO DEA HQ AND FIELD OFFICES WORLD WIDE.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $45.8 million to STG LLC for work described as: THE CONTRACTOR SHALL PROVIDE ON-SITE INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES TO DEA HQ AND FIELD OFFICES WORLD WIDE. Key points: 1. Contract value of $45.8M for IT support services. 2. STG LLC is the contractor, with the Drug Enforcement Administration as the agency. 3. The contract type is Time and Materials. 4. Competition was conducted via full and open competition after exclusion of sources. 5. The North American Industry Classification System (NAICS) code is 541512 (Computer Systems Design Services).
Value Assessment
Rating: good
The contract value of $45.8M for IT support services appears reasonable given the scope and duration. Benchmarking against similar IT support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the IT support services provided.
Public Impact
Ensures critical IT infrastructure support for the DEA's nationwide operations. Supports law enforcement activities by maintaining essential technology systems. The contract duration of 483 days (approx. 1.3 years) indicates a medium-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract type is Time and Materials, which can lead to cost overruns if not closely managed.
- Small business participation is not indicated (ss: false, sb: false).
Positive Signals
- Awarded under full and open competition.
- Clear scope of work for IT support services.
Sector Analysis
This contract falls under the Computer Systems Design Services sector (NAICS 541512). Spending in this sector is substantial across government agencies for maintaining and upgrading IT infrastructure.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses had an opportunity to participate or subcontract.
Oversight & Accountability
The contract was awarded by the Department of Justice to the Drug Enforcement Administration. Standard government oversight processes would apply to ensure performance and financial accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Contract type is Time and Materials.
- No indication of small business participation.
- Potential for cost overruns with T&M contracts.
- Limited detail on the 'exclusion of sources' justification.
Tags
computer-systems-design-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $45.8 million to STG LLC. THE CONTRACTOR SHALL PROVIDE ON-SITE INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES TO DEA HQ AND FIELD OFFICES WORLD WIDE.
Who is the contractor on this award?
The obligated recipient is STG LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $45.8 million.
What is the period of performance?
Start: 2010-02-04. End: 2011-06-02.
What was the specific justification for excluding sources in the 'full and open competition after exclusion of sources' method?
The specific justification for excluding sources under this procurement method is not detailed in the provided data. Typically, this approach is used when specific capabilities or existing infrastructure necessitate limiting the pool of potential offerors, often for reasons of standardization, interoperability, or specialized technical requirements. A thorough review of the solicitation documents would be necessary to understand the precise rationale.
What are the potential risks associated with a Time and Materials contract for IT support?
Time and Materials (T&M) contracts carry inherent risks of cost escalation if not managed diligently. The contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. Without strict oversight, labor hours can be inflated, or less efficient work practices may be employed, leading to higher overall costs for the government compared to fixed-price contracts. Clear performance metrics and vigilant monitoring are crucial.
How does the $45.8M contract value compare to typical IT support spending for an agency like the DEA?
The $45.8M contract value for approximately 1.3 years of IT support for the DEA appears substantial, reflecting the critical nature and broad scope of IT services required by a federal law enforcement agency. Benchmarking against similar-sized agencies or contracts for comparable services would provide a more definitive assessment of its relative cost-effectiveness and alignment with industry standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: STG Group, Inc. (UEI: 079257316)
Address: 11710 PLAZA AMERICA DR STE 1200, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $47,463,305
Exercised Options: $45,821,441
Current Obligation: $45,777,641
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0569Z
IDV Type: GWAC
Timeline
Start Date: 2010-02-04
Current End Date: 2011-06-02
Potential End Date: 2011-06-02 00:00:00
Last Modified: 2019-12-17
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