DHS awards $61.3M contract for temporary help services to STG INTERNATIONAL, INC

Contract Overview

Contract Amount: $61,352,703 ($61.4M)

Contractor: STG International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-11-20

End Date: 2009-11-17

Contract Duration: 362 days

Daily Burn Rate: $169.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: INCREASE THE LEVEL OF EFFORT FOR OPTION YEAR 3 BEGINNING 12/1/06 THROUGH 9/29/06 AND ALL OF OPTION YEAR 4.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $61.4 million to STG INTERNATIONAL, INC. for work described as: INCREASE THE LEVEL OF EFFORT FOR OPTION YEAR 3 BEGINNING 12/1/06 THROUGH 9/29/06 AND ALL OF OPTION YEAR 4. Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a competitive process. 2. The contract's duration of 362 days suggests a medium-term need for services. 3. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control by the contractor. 4. The award was made by the Department of Homeland Security (DHS) to STG INTERNATIONAL, INC. 5. The North American Industry Classification System (NAICS) code 561320 points to temporary help services. 6. The contract was awarded on November 20, 2008, with an end date of November 17, 2009.

Value Assessment

Rating: fair

The contract value of $61.3 million for a period of approximately one year for temporary help services appears to be within a reasonable range for large-scale government needs. However, without specific details on the scope of services and the number of personnel provided, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for temporary staffing at DHS or other agencies would provide a clearer picture of whether the pricing is competitive.

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.' This suggests that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The presence of 3 bids indicates a moderate level of competition. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, is generally beneficial for taxpayers as it allows for multiple companies to bid, fostering a more competitive pricing environment.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) within DHS, receiving essential temporary staffing support. The services delivered are temporary help services, crucial for maintaining operational capacity and flexibility within the agency. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include the provision of temporary personnel to supplement the existing federal workforce, potentially filling critical gaps.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause warrants further investigation to understand the rationale and impact on overall competition.
The Cost Plus Fixed Fee (CPFF) contract type, while common, can sometimes lead to higher costs if not managed diligently due to potential for cost overruns.
The specific nature and criticality of the temporary help services are not detailed, making it difficult to assess the true impact of any potential service disruptions or quality issues.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract has a defined duration, providing clarity on the period of service.
The fixed fee component in the CPFF structure provides a degree of cost certainty for the government.

Sector Analysis

The temporary help services sector is a significant component of the broader professional, scientific, and technical services industry. Government agencies frequently utilize temporary staffing to manage fluctuating workloads, special projects, or to fill vacancies without the long-term commitment of permanent hires. Spending in this category can vary widely based on agency needs and the economic climate. Comparable spending benchmarks would typically involve analyzing the average cost per temporary worker across similar federal contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless STG INTERNATIONAL, INC. voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within DHS. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, but detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DHS Temporary Staffing Contracts
Federal Workforce Augmentation Services
Immigration and Customs Enforcement Support Services
General Services Administration (GSA) Schedule Contracts for Staffing

Risk Flags

Potential for cost overruns due to CPFF contract type if not managed effectively.
Lack of detailed information on the 'exclusion of sources' could mask competitive limitations.
Performance metrics and quality assurance details are not publicly available, posing a risk in assessing service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.4 million to STG INTERNATIONAL, INC.. INCREASE THE LEVEL OF EFFORT FOR OPTION YEAR 3 BEGINNING 12/1/06 THROUGH 9/29/06 AND ALL OF OPTION YEAR 4.

Who is the contractor on this award?

The obligated recipient is STG INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $61.4 million.

What is the period of performance?

Start: 2008-11-20. End: 2009-11-17.

What specific types of temporary help services were procured under this contract, and what was the rationale for excluding certain sources?

The provided data indicates the contract is for 'Temporary Help Services' under NAICS code 561320. However, the specific types of roles (e.g., administrative, technical, specialized) and the rationale for excluding certain sources from the 'Full and Open Competition After Exclusion of Sources' are not detailed in the summary data. Typically, exclusions might be based on past performance, specific technical capabilities, or national security concerns. A deeper dive into the contract's Statement of Work (SOW) and any pre-award justifications would be necessary to understand the precise services and the reasons for source exclusion. This information is crucial for assessing the necessity of the procurement and the fairness of the competition.

How does the awarded amount of $61.3 million compare to the average cost of similar temporary help services contracts awarded by DHS or other federal agencies?

Benchmarking the $61.3 million award requires comparing it against contracts with similar scope, duration, and service types. Without access to the specific details of the services rendered (e.g., number of personnel, skill levels, hours worked), a direct comparison is difficult. However, for a contract spanning approximately one year and involving potentially numerous temporary staff, this figure could be considered substantial. Agencies like DHS often procure large volumes of temporary services to manage fluctuating operational demands. A comprehensive analysis would involve querying federal procurement databases for similar contracts awarded within the same fiscal year or preceding years, looking at metrics like average cost per person-hour or cost per full-time equivalent (FTE) to determine if this award represents a competitive price point.

What were the key performance indicators (KPIs) for STG INTERNATIONAL, INC. under this contract, and how was their performance measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement methods for STG INTERNATIONAL, INC. under this contract. In a Cost Plus Fixed Fee (CPFF) contract for temporary help services, KPIs commonly include metrics such as timeliness of staffing, quality of personnel (e.g., retention rates, client satisfaction), adherence to labor laws, and reporting accuracy. Performance would typically be assessed through regular progress reports, client feedback surveys, and potentially audits. The contracting officer's final determination of performance would influence future contract awards and contractor ratings in systems like the Contractor Performance Assessment Reporting System (CPARS).

What is the historical spending pattern for temporary help services by U.S. Immigration and Customs Enforcement (ICE) over the past five years?

The provided data focuses on a single contract award from 2008. To analyze historical spending patterns for temporary help services by ICE, one would need to access federal procurement databases (like FPDS or USASpending.gov) and filter for ICE as the procuring agency, NAICS code 561320 (Temporary Help Services), and potentially other relevant contract types or keywords over a five-year period. This analysis would reveal trends in spending, identify major contractors, and indicate whether the $61.3 million award represents a typical expenditure or an outlier. Such a pattern analysis is crucial for understanding the agency's reliance on temporary staffing and the associated budgetary implications.

What is the track record of STG INTERNATIONAL, INC. with federal contracts, particularly those involving temporary staffing services?

The provided data identifies STG INTERNATIONAL, INC. as the contractor for this specific $61.3 million DHS contract. To assess their track record, a review of their past federal contract awards, performance evaluations (e.g., CPARS data), and any documented disputes or terminations would be necessary. Information on their experience with similar temporary staffing contracts, their size and capacity to handle large-scale procurements, and their overall reputation within the federal contracting community would provide insight into their reliability and capability. A positive track record suggests a lower risk for future contract performance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4900 SEMINARY RD STE 1100, ALEXANDRIA, VA, 08

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $61,352,703

Exercised Options: $61,352,703

Current Obligation: $61,352,703

Timeline