Commerce Dept. Spends $9.88M on Mission Support Services via Competitive Delivery Order

Contract Overview

Contract Amount: $9,884,599 ($9.9M)

Contractor: STG LLC

Awarding Agency: Department of Commerce

Start Date: 2006-03-01

End Date: 2007-02-28

Contract Duration: 364 days

Daily Burn Rate: $27.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MISSION SUPPORT SERVICES

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $9.9 million to STG LLC for work described as: MISSION SUPPORT SERVICES Key points: 1. The contract for Mission Support Services was awarded to STG LLC for $9.88 million. 2. This was a competitive delivery order, indicating some level of market engagement. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The sector is IT services, specifically Custom Computer Programming.

Value Assessment

Rating: fair

The $9.88 million total award for custom computer programming services appears to be within a reasonable range for a one-year contract of this nature, though specific benchmarks are unavailable without more granular data on the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded as a competitive delivery order, suggesting multiple vendors were considered. The Time and Materials pricing structure, however, may limit price discovery and potentially lead to higher costs if not closely managed.

Taxpayer Impact: Taxpayer funds were used for IT services. The competitive nature is positive, but the T&M contract type warrants careful monitoring to ensure cost-effectiveness.

Public Impact

Citizens receive IT support services crucial for NOAA's operations. The use of competitive bidding aims to ensure fair pricing for taxpayers. The contract duration of one year allows for flexibility and reassessment of needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is substantial across government, with significant variation based on complexity and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit mention of small business participation, suggesting it may have been awarded to a large business.

Oversight & Accountability

The award was a delivery order under a larger contract, implying some level of pre-existing oversight. However, the Time and Materials nature requires diligent oversight to control costs and ensure deliverables.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-commerce, nc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $9.9 million to STG LLC. MISSION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STG LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2006-03-01. End: 2007-02-28.

What specific custom computer programming services were rendered under this contract, and how did they align with NOAA's mission objectives?

The contract data specifies 'Custom Computer Programming Services' (NAICS 541511) for 'MISSION SUPPORT SERVICES'. While essential for NOAA's operations, the exact nature of these services (e.g., software development, system integration, database management) and their direct contribution to specific mission objectives are not detailed. Further analysis would require reviewing the statement of work and performance reports to understand the value delivered.

What were the key risk factors associated with the Time and Materials (T&M) pricing structure for this $9.88 million contract?

The primary risk with T&M contracts is the potential for cost escalation, as the government pays for actual labor hours and material costs incurred. Without strong oversight, defined ceilings, and clear deliverables, there's a risk of inefficiency and overspending. For a nearly $10 million contract over one year, this structure necessitates rigorous monitoring of hours, rates, and scope to ensure value for money and prevent budget overruns.

How effective was the competitive delivery order process in achieving a fair and reasonable price for these custom programming services?

The 'COMPETITIVE DELIVERY ORDER' designation suggests that multiple vendors likely competed, which is a positive indicator for price discovery. However, the effectiveness is tempered by the T&M pricing. While competition helps set a baseline, the ultimate price realization depends heavily on the contractor's efficiency and the government's ability to manage the T&M aspects. Without a fixed price or detailed cost analysis, definitively assessing price reasonableness is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,884,599

Exercised Options: $9,884,599

Current Obligation: $9,884,599

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4951H

IDV Type: FSS

Timeline

Start Date: 2006-03-01

Current End Date: 2007-02-28

Potential End Date: 2011-02-28 00:00:00

Last Modified: 2021-12-02

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