DoD's $16.7M MCRC Network Support Contract Awarded to Stanley Associates, Inc. for 5 Years
Contract Overview
Contract Amount: $16,676,893 ($16.7M)
Contractor: Stanley Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-08-22
End Date: 2012-08-22
Contract Duration: 1,827 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MCRC NETWORK SUPPORT CONTRACT
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to STANLEY ASSOCIATES, INC. for work described as: MCRC NETWORK SUPPORT CONTRACT Key points: 1. Contract value appears reasonable given the 5-year duration and scope of IT network support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Fixed-price contract type shifts performance risk to the contractor, Stanley Associates, Inc. 4. The contract's duration of 1827 days (5 years) indicates a long-term need for these services. 5. This contract falls under 'Other Computer Related Services', a broad category within IT. 6. The award was a delivery order under a larger contract vehicle, common for IT services.
Value Assessment
Rating: good
The contract value of approximately $16.7 million over five years averages to about $3.3 million annually. Without specific benchmarks for 'MCRC Network Support', it's difficult to definitively assess value. However, for a large-scale IT network support contract with a duration of five years, this pricing appears within a reasonable range. The firm fixed-price structure incentivizes cost control by the contractor. Further analysis would require comparing this to similar network support contracts awarded by the Department of Defense or other agencies for comparable services and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process. The data does not specify the number of bidders, but full and open competition generally implies multiple interested parties, which is a positive sign for price discovery and market responsiveness. The Department of the Navy utilized this approach, likely seeking the best value through a competitive process.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it promotes a competitive environment, which can drive down prices and encourage innovation from multiple vendors, ultimately leading to better use of public funds.
Public Impact
The Department of Defense (specifically the Department of the Navy) benefits from enhanced and sustained network support services. This contract ensures the operational readiness and efficiency of critical military network infrastructure. The services provided are essential for secure and reliable communication within the Navy's operations. The geographic impact is likely focused on Navy installations where MCRC network support is required, potentially across various bases. Workforce implications include employment opportunities for IT professionals and support staff employed by Stanley Associates, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specialized knowledge is developed exclusively by Stanley Associates.
- Reliance on a single contractor for critical network infrastructure could pose a risk if performance degrades.
- Scope creep could occur if the definition of 'MCRC Network Support' is not tightly managed.
- The long duration might lead to less frequent opportunities for competitive re-evaluation of pricing and service levels.
Positive Signals
- Firm fixed-price contract shifts cost overrun risk to the contractor.
- Full and open competition suggests a competitive market was engaged.
- The contract duration indicates a stable, long-term requirement, allowing for focused service delivery.
- Awarded by the Department of the Navy, a major defense agency with established procurement processes.
- The NAICS code 541519 covers a broad range of IT services, suggesting flexibility in the contractor's capabilities.
Sector Analysis
The IT services sector, particularly network support, is a significant area of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide array of IT support functions beyond basic hardware/software. Federal spending in this area is driven by the need to maintain and upgrade complex IT infrastructures across all agencies. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to firms of similar size and capability within the defense sector.
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 a set-aside program for this particular award. However, as a large contract awarded through full and open competition, the prime contractor, Stanley Associates, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader subcontracting goals, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger contract vehicle, oversight mechanisms are likely integrated into the parent contract's framework. Accountability measures are typically enforced through performance metrics, service level agreements (SLAs), and regular progress reviews stipulated in the contract terms. Transparency is generally maintained through contract award databases and reporting requirements, although specific details of ongoing oversight activities are not publicly detailed.
Related Government Programs
- DoD IT Support Services
- Navy Network Infrastructure Contracts
- Information Technology Professional Services
- Computer Systems Design Services
- Federal IT Service Delivery Contracts
Risk Flags
- Long contract duration may reduce flexibility for technology upgrades.
- Potential for cost overruns if scope is not tightly managed.
- Reliance on a single vendor for critical infrastructure.
Tags
it-services, network-support, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, delivery-order, computer-related-services, long-term-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to STANLEY ASSOCIATES, INC.. MCRC NETWORK SUPPORT CONTRACT
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 $16.7 million.
What is the period of performance?
Start: 2007-08-22. End: 2012-08-22.
What is the track record of Stanley Associates, Inc. in performing similar large-scale IT network support contracts for the Department of Defense?
Assessing Stanley Associates, Inc.'s track record requires a deeper dive into their contract history beyond this single award. Information on past performance, including successful completion of similar network support services, client satisfaction ratings, and any history of contract disputes or terminations, would be crucial. Federal procurement data systems (like SAM.gov or FPDS) often contain past performance information, though it may not always be publicly detailed. A review of their financial stability and capacity to handle a contract of this magnitude over five years is also important. Without specific data on their prior performance on comparable contracts, it's difficult to definitively gauge their reliability for this MCRC Network Support role.
How does the pricing of this contract compare to other similar network support contracts awarded by the Department of the Navy or other federal agencies?
Benchmarking the pricing of this $16.7 million, 5-year contract requires access to a database of comparable federal IT network support contracts. Key comparison points would include the scope of services (e.g., network design, maintenance, security, help desk), the duration, the contract type (firm fixed-price), and the specific technologies supported. For instance, comparing the average annual cost (approx. $3.3 million) against contracts for similar network infrastructure support at other large military installations or federal agencies could reveal if this contract represents a fair market value. Factors like geographic location, labor rates, and the complexity of the network environment also influence pricing, making direct comparisons challenging without detailed service descriptions.
What are the primary risks associated with a 5-year firm fixed-price contract for IT network support, and how are they mitigated?
A significant risk with a 5-year firm fixed-price contract for IT network support is the potential for the contractor to face unforeseen cost increases (e.g., due to technology obsolescence, increased labor costs, or scope creep) that erode their profit margin, potentially leading to reduced service quality or contractor default. Conversely, the government risks paying above-market rates if costs decrease significantly over the contract period. Mitigation strategies include robust contract language defining scope, clear performance metrics and SLAs, regular performance reviews, and contingency planning by both parties. The firm fixed-price nature, however, places the primary burden of cost management on Stanley Associates, Inc., incentivizing them to control expenses.
How effective is the 'full and open competition' process in ensuring the Department of the Navy receives optimal value for network support services?
The 'full and open competition' process is generally considered the most effective method for the Department of the Navy to ensure optimal value for network support services. By allowing all responsible sources to compete, it fosters a competitive environment that typically drives down prices, encourages innovation, and increases the likelihood of selecting a contractor with the best technical capabilities and value proposition. The success of this process hinges on the clarity of the solicitation requirements and the fairness of the evaluation criteria. While the data doesn't specify the number of bidders, the principle of full and open competition itself is a strong indicator of an effort to achieve best value for taxpayer dollars.
What is the historical spending trend for 'Other Computer Related Services' (NAICS 541519) within the Department of the Navy over the past decade?
Analyzing the historical spending trend for NAICS code 541519 ('Other Computer Related Services') within the Department of the Navy over the past decade would require accessing detailed federal procurement databases (e.g., FPDS). This analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable. Such trends can indicate shifts in technology adoption, outsourcing strategies, or the overall IT needs of the Navy. For example, a consistent increase might suggest a growing reliance on external IT support services, while a decrease could indicate insourcing or consolidation of IT functions. Understanding these trends provides context for the significance and potential future trajectory of contracts like the MCRC Network Support Contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
Address: 3101 WILSON BLVD STE 700, ARLINGTON, VA, 22201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,398,095
Exercised Options: $16,676,893
Current Obligation: $16,676,893
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F5900H
IDV Type: FSS
Timeline
Start Date: 2007-08-22
Current End Date: 2012-08-22
Potential End Date: 2012-10-22 00:00:00
Last Modified: 2015-10-26
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