Transportation's $10.5M contract for content delivery software support awarded to Stanley Associates, Inc

Contract Overview

Contract Amount: $10,498,253 ($10.5M)

Contractor: Stanley Associates, Inc.

Awarding Agency: Department of Transportation

Start Date: 2005-05-13

End Date: 2008-09-30

Contract Duration: 1,236 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ONGOING SUPPORT FOR CONTENT DELIVERY SOFTWARE SYSTEMS - MTS, PMIS, EDSS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $10.5 million to STANLEY ASSOCIATES, INC. for work described as: ONGOING SUPPORT FOR CONTENT DELIVERY SOFTWARE SYSTEMS - MTS, PMIS, EDSS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1236 days indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The award was made by the Maritime Administration, a sub-agency of the Department of Transportation. 6. The contract was awarded in 2005 and completed in 2008, providing historical context.

Value Assessment

Rating: fair

The contract's total value of approximately $10.5 million over its duration suggests a moderate investment in IT support. Benchmarking this against similar contracts for custom computer programming services would require access to a broader dataset of government IT procurements. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed closely, as it bases payment on actual labor hours and material costs incurred. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit a bid. The presence of only one bid (no: 1) is unusual for a full and open competition and raises questions about the level of actual market interest or the effectiveness of the solicitation process. A single bid can limit price discovery and potentially lead to less competitive pricing than if multiple bidders had vied for the contract.

Taxpayer Impact: While a single bid in a full and open competition might suggest a lack of market interest or potential barriers to entry for other firms, it also means the government did not restrict the pool of potential offerors. Taxpayers benefit from the process being open, but the lack of multiple bids could mean a less competitive price was secured.

Public Impact

The primary beneficiaries are likely internal users within the Maritime Administration who rely on the content delivery software systems (MTS, PMIS, EDSS). The services delivered include ongoing support for these critical software systems, ensuring their functionality and availability. The geographic impact is primarily within the Department of Transportation, specifically the Maritime Administration, likely supporting its operational needs. Workforce implications may include the need for specialized IT personnel to maintain and support these systems, both within the government and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The low number of bids (1) for a full and open competition raises concerns about market engagement and potential price competitiveness.
The Time and Materials contract type can be susceptible to cost overruns if not rigorously managed and monitored.
Lack of detailed performance data makes it difficult to assess the effectiveness and efficiency of the support provided.

Positive Signals

The contract was awarded through a full and open competition, adhering to principles of broad market access.
The contract addressed a clear need for ongoing support of essential content delivery software systems.
The award was made to a specific company, Stanley Associates, Inc., indicating a selection based on perceived capability.

Sector Analysis

The contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services industry. This sector is characterized by firms that write, modify, test, and support software to meet specific client needs. Government spending in this area is substantial, supporting a wide range of functions from administrative systems to specialized operational platforms. Comparable spending benchmarks would typically involve analyzing the average cost per hour or per project for similar custom programming services procured by federal agencies, considering factors like complexity and duration.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). As the contract was awarded under full and open competition with only one bid, there is no explicit information on subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem is therefore not directly measurable from this data alone, but the lack of set-aside suggests it was not a primary focus for this particular procurement.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers and program managers within the Maritime Administration of the Department of Transportation. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial oversight of expenditures. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Custom Computer Programming Services
IT Support Services
Software Maintenance and Support
Department of Transportation IT Contracts
Maritime Administration IT Spending

Risk Flags

Low number of bids for full and open competition
Potential for cost overruns due to Time and Materials contract type
Lack of detailed performance metrics in available data

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.5 million to STANLEY ASSOCIATES, INC.. ONGOING SUPPORT FOR CONTENT DELIVERY SOFTWARE SYSTEMS - MTS, PMIS, EDSS

Who is the contractor on this award?

The obligated recipient is STANLEY ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2005-05-13. End: 2008-09-30.

What was the specific nature of the 'content delivery software systems' (MTS, PMIS, EDSS) supported under this contract?

The provided data does not specify the exact functions or purposes of the MTS, PMIS, and EDSS systems. However, given the context of 'content delivery software systems' and the agency (Maritime Administration), these likely relate to internal document management, information dissemination, or potentially systems supporting maritime operations or regulations. 'Content delivery' often implies systems designed to store, manage, and distribute digital information to users or other systems. Further investigation into Maritime Administration's IT infrastructure around 2005-2008 would be needed to identify the precise nature and criticality of these systems.

How did the single bid in a full and open competition impact the final negotiated price compared to a multi-bid scenario?

A single bid in a full and open competition typically limits the government's leverage in price negotiations. In a multi-bid scenario, competition naturally drives prices down as contractors vie for the award. With only one offeror, the government may have had to accept the offered price, assuming it was deemed fair and reasonable, or engage in extensive negotiation to bring it closer to market rates. Without the original solicitation details or the government's cost analysis, it's impossible to quantify the exact price impact, but it is generally understood that fewer bids lead to less competitive pricing, potentially resulting in a higher cost to taxpayers than if multiple firms had competed.

What were the key performance indicators (KPIs) used to evaluate Stanley Associates, Inc.'s performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics that were used to evaluate Stanley Associates, Inc. Government contracts, especially for IT services, typically include performance standards related to response times, system uptime, issue resolution rates, and adherence to project milestones. The effectiveness of the support provided would have been assessed against these (unspecified) metrics by the Maritime Administration's contracting officer's representative (COR) or technical point of contact. A review of the contract's statement of work (SOW) or performance work statement (PWS) would be necessary to identify the specific performance expectations.

Can the $10.5 million contract value be considered high or low for custom computer programming services of this duration?

The $10.5 million contract value over approximately 3.5 years (1236 days) averages to roughly $3 million per year. For custom computer programming services, this amount is within a reasonable range, particularly if the systems supported were complex or mission-critical. However, without knowing the scope of work, the number of systems supported, the level of effort required (e.g., number of personnel, skill sets), and the specific technical challenges involved, it's difficult to definitively label it as 'high' or 'low'. Benchmarking against similar-sized agencies or contracts for comparable services would provide better context for value assessment.

What is the typical cost structure for Time and Materials (T&M) contracts in custom computer programming, and how does this contract compare?

Time and Materials (T&M) contracts typically reimburse the contractor for the actual cost of labor (at fixed hourly rates for different labor categories) and the cost of materials used, plus a percentage for overhead and profit. This structure offers flexibility but requires careful monitoring to control costs. The $10.5 million total value for this contract implies a significant amount was spent on labor hours and potentially materials over its duration. Without the detailed breakdown of labor rates and material costs, a direct comparison to typical T&M structures is limited. However, the overall value suggests substantial effort was expended, and effective oversight would have been crucial to ensure the rates and hours billed were reasonable and necessary for the services rendered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Groupe CGI Inc (UEI: 246801237)

Address: 300 N WASHINGTON ST # 400, ALEXANDRIA, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,773,804

Exercised Options: $10,717,743

Current Obligation: $10,498,253

Parent Contract

Parent Award PIID: DTMA1D05005

IDV Type: IDC

Timeline