DoD's $22.8M IT services contract with Stanley Associates, Inc. awarded in 2011, ran for 5 years

Contract Overview

Contract Amount: $22,841,723 ($22.8M)

Contractor: Stanley Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-01-01

End Date: 2015-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PLANS&DATA SUPPORT SERVICES

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to STANLEY ASSOCIATES, INC. for work described as: PLANS&DATA SUPPORT SERVICES Key points: 1. Contract value of $22.8M over 5 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The 'Other Computer Related Services' NAICS code points to a general IT support function. 4. A Cost Plus Fixed Fee (CPFF) contract type can introduce cost overrun risks if not managed closely. 5. The duration of 1825 days (5 years) is typical for IT support services. 6. The contract was awarded to a single vendor, Stanley Associates, Inc.

Value Assessment

Rating: fair

The total award of $22.8M over five years averages to approximately $4.56M annually. Benchmarking this against similar IT support contracts is difficult without more specific service details. However, the CPFF pricing structure warrants scrutiny to ensure costs remained controlled and represented good value. The fixed fee component should have provided some incentive for efficiency, but the cost-plus nature means the government bears the risk of actual costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Navy actively sought bids from all responsible sources. The fact that it resulted in a definitive contract awarded to a single entity, Stanley Associates, Inc., implies that after the competitive process, this vendor was selected. The level of competition is not explicitly detailed (e.g., number of bids received), but the 'full and open' designation generally promotes price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through market forces. It reduces the likelihood of inflated costs that can occur with less competitive solicitations.

Public Impact

The Department of Defense, specifically the Department of the Navy, is the primary beneficiary, receiving IT support services. Services delivered likely include IT infrastructure maintenance, software support, and potentially system administration. The geographic impact is centered in Florida, where the contract was managed or performed. Workforce implications include employment opportunities for IT professionals within Stanley Associates, Inc. and potentially government oversight roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to higher costs if the contractor's expenses exceed estimates.
Lack of specific performance metrics or outcomes makes it difficult to assess the true value delivered.
The contract duration of 5 years might have limited opportunities for adopting newer technologies or more cost-effective solutions if the market evolved rapidly.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process.
The definitive contract award indicates a clear scope and agreement.
A fixed fee component within the CPFF structure provides some cost predictability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services. The market for IT support services is vast and highly competitive, encompassing a wide range of activities from basic helpdesk support to complex system integration. The annual spend of approximately $4.56M is moderate within the context of large federal IT procurements, but significant for a single service contract. Comparable spending benchmarks would depend heavily on the specific services rendered, such as network management, cybersecurity, or software development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary contractor, Stanley Associates, Inc., would have had the discretion to subcontract, but without a set-aside requirement, the focus would likely be on fulfilling the contract's needs rather than specifically engaging small businesses.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight would be crucial to monitor the contractor's actual costs against the estimated costs and ensure the fixed fee remained appropriate. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
Information Technology Professional Services
Department of the Navy IT Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns if not managed effectively.
Contract duration of 5 years could result in outdated technology or services if not actively managed.
Lack of specific performance metrics in abbreviated data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to STANLEY ASSOCIATES, INC.. PLANS&DATA SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STANLEY ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2011-01-01. End: 2015-12-31.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' While the specific details are not provided in the abbreviated data, this classification typically encompasses a broad range of IT support functions. These could include IT help desk support, network administration, system maintenance, IT infrastructure management, cybersecurity support, and potentially IT consulting or project management. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that the government reimbursed the contractor for allowable costs plus a predetermined fixed fee for profit. This structure is often used when the scope of work is not precisely defined at the outset or involves inherent uncertainties, requiring flexibility in service delivery.

How does the $22.8M total award compare to similar IT support contracts for the Department of the Navy?

The total award of $22.8 million over five years, averaging approximately $4.56 million annually, represents a moderate-sized IT support contract. Without granular data on the specific services rendered and the performance period, direct comparisons are challenging. However, the Department of the Navy procures a vast array of IT services, ranging from small, specialized support tasks to large-scale enterprise-wide solutions. Contracts for enterprise resource planning (ERP) systems or major cybersecurity overhauls can easily reach hundreds of millions or billions of dollars. Conversely, smaller, localized IT support contracts might be in the hundreds of thousands or low millions. This $22.8M contract likely supported a specific set of IT functions for a particular command or facility within the Navy, fitting within the typical spectrum of federal IT spending.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for IT services?

The primary risk with a CPFF contract is that the government bears the financial burden of the contractor's actual costs incurred. While the fixed fee provides a predictable profit margin for the contractor, it does not cap the total cost to the government. If the contractor's costs escalate due to inefficiencies, poor planning, or unforeseen circumstances, the total expenditure for the government can significantly exceed initial estimates. Effective oversight is critical to scrutinize allowable costs, ensure the contractor operates efficiently, and manage scope creep. For IT services, where requirements can evolve, managing the 'cost plus' aspect requires diligent monitoring to prevent uncontrolled spending while ensuring the necessary services are delivered.

What does the 'full and open competition' designation imply for the procurement process and taxpayer value?

The designation 'full and open competition' signifies that the Department of the Navy solicited bids from all responsible sources, without restrictions. This is the preferred method of government procurement as it maximizes the pool of potential offerors, fostering a competitive environment. This competition ideally drives down prices, encourages innovation, and ensures that the government receives the best value for its money. For taxpayers, this means that the contract award was likely the result of a rigorous evaluation process where multiple vendors competed, theoretically leading to a more cost-effective outcome compared to sole-source or limited competition scenarios. It suggests a transparent process aimed at achieving optimal market-driven pricing.

How has Stanley Associates, Inc. performed on other federal contracts, particularly within the Department of Defense?

To assess Stanley Associates, Inc.'s performance, a review of their contract history within the Department of Defense and other federal agencies would be necessary. Publicly available data, such as through the Federal Procurement Data System (FPDS) or specialized contract databases, could reveal past performance ratings, any contract disputes, modifications, or terminations for cause. Analyzing their track record on similar IT services contracts, especially those with CPFF structures or significant dollar values, would provide insights into their reliability, cost control capabilities, and overall effectiveness in delivering government services. Without access to this detailed performance history, it's difficult to definitively evaluate their past performance on this specific contract.

What is the significance of the contract duration (1825 days) in the context of IT services?

A contract duration of 1825 days, equivalent to exactly five years, is a substantial period for an IT services contract. This length suggests a need for stable, ongoing support rather than a short-term project. For the government, a longer-term contract can provide continuity of services and potentially lead to better pricing through economies of scale or multi-year commitments. However, in the rapidly evolving IT landscape, a five-year term also carries risks. Technology can become obsolete, and market solutions may change significantly within that timeframe. The contractor must remain agile to adapt to new requirements and technologies, and the government should have mechanisms to ensure the services remain relevant and cost-effective throughout the contract's life.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6700410R0033

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,069,420

Exercised Options: $25,814,414

Current Obligation: $22,841,723

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline