MetroStar Systems awarded $22M for Marine Corps IT services, highlighting a need for specialized business information systems support

Contract Overview

Contract Amount: $22,045,394 ($22.0M)

Contractor: Metrostar Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-21

End Date: 2026-09-20

Contract Duration: 1,460 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD - TASK ORDER TO PROVIDE THE U.S. MARINE CORPS' TECHNOLOGY SERVICES ORGANIZATION WITH BUSINESS INFORMATION SYSTEMS SUPPORT SERVICES.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to METROSTAR SYSTEMS, LLC for work described as: BASE PERIOD - TASK ORDER TO PROVIDE THE U.S. MARINE CORPS' TECHNOLOGY SERVICES ORGANIZATION WITH BUSINESS INFORMATION SYSTEMS SUPPORT SERVICES. Key points: 1. Contract value appears reasonable for specialized IT support services over a four-year period. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include vendor lock-in if not managed carefully and the need for continuous adaptation to evolving Marine Corps technology needs. 4. Performance context is critical, as the success of these business information systems directly impacts operational efficiency. 5. This contract positions MetroStar Systems as a key provider within the defense IT sector, specifically for the Marine Corps. 6. The firm-fixed-price structure shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $22 million over four years for business information systems support for the U.S. Marine Corps appears to be within a reasonable range for specialized IT services. Benchmarking against similar contracts for enterprise resource planning (ERP) or business intelligence (BI) support within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if the contractor manages performance effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and better service offerings for the government. The open competition suggests that the market has sufficient capacity and interest in providing these types of specialized IT services to the Department of the Navy.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages innovation among bidders, leading to a better overall value for the government's investment.

Public Impact

The U.S. Marine Corps' Technology Services Organization is the primary beneficiary, receiving essential business information systems support. Services delivered include the maintenance, enhancement, and potential development of critical business information systems. The geographic impact is likely concentrated within Marine Corps installations where these systems are utilized, primarily in Indiana. Workforce implications may include the need for specialized IT personnel within MetroStar Systems and potential impacts on government IT staff roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor becomes indispensable to system operations.
Ensuring continuous alignment with evolving Marine Corps technological requirements and cybersecurity standards.
Measuring the effectiveness and efficiency gains derived from the supported business information systems.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm-fixed-price contract shifts cost risk to the contractor.
MetroStar Systems has a track record in providing IT services to government agencies.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on business information systems support. The market for such services within the federal government is substantial, with agencies constantly seeking to modernize and optimize their operational systems. Comparable spending benchmarks would involve looking at other large IT support contracts awarded to manage enterprise resource planning (ERP), financial management systems, or other critical business applications within defense or civilian agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, MetroStar Systems, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this task order. The absence of a small business set-aside suggests that the scope or nature of the services required may have been deemed more suitable for larger, established prime contractors, or that the competition yielded a large business award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Marine Corps Enterprise Resource Planning (ERP) Systems
Department of Defense IT Modernization Initiatives
Federal Civilian Business Information Systems Support
Navy Enterprise IT Services Contracts

Risk Flags

Potential for vendor lock-in
Cybersecurity vulnerabilities
Alignment with evolving technology
Performance measurement challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to METROSTAR SYSTEMS, LLC. BASE PERIOD - TASK ORDER TO PROVIDE THE U.S. MARINE CORPS' TECHNOLOGY SERVICES ORGANIZATION WITH BUSINESS INFORMATION SYSTEMS SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is METROSTAR SYSTEMS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2022-09-21. End: 2026-09-20.

What is MetroStar Systems' track record with the Department of Defense and similar IT support contracts?

MetroStar Systems has a history of providing IT services to various U.S. government agencies, including the Department of Defense. Their contract portfolio often includes support for enterprise resource planning (ERP), cloud migration, cybersecurity, and data analytics. For instance, they have held contracts with agencies like the General Services Administration (GSA) and the Department of Homeland Security. Their experience with large-scale IT projects and complex government systems suggests a capability to handle the business information systems support required by the Marine Corps. A deeper dive into their past performance ratings on similar contracts would offer further insight into their reliability and effectiveness.

How does the $22 million contract value compare to similar business information systems support contracts within the DoD?

The $22 million contract value for four years of business information systems support for the U.S. Marine Corps is a significant but not extraordinary amount within the context of large federal IT procurements. Similar contracts for enterprise-level IT support, including ERP maintenance and modernization, often range from tens to hundreds of millions of dollars over comparable periods. For example, other branches of the military or large civilian agencies frequently award contracts in this range for comprehensive IT infrastructure and application support. The specific nature of the 'business information systems' and the scope of services (e.g., maintenance, development, integration) will influence the precise benchmarking. However, the value appears aligned with the complexity and duration typical for such specialized support.

What are the primary risks associated with this contract for the U.S. Marine Corps?

Several risks are associated with this contract. A primary concern is vendor lock-in, where the Marine Corps could become overly reliant on MetroStar Systems' specific expertise and systems, making future transitions difficult and potentially costly. Another risk involves ensuring the contractor's ability to keep pace with the rapidly evolving technological landscape and the specific, often unique, requirements of military operations; failure to adapt could lead to outdated or inefficient systems. Performance risk is also present, as the effectiveness of the business information systems directly impacts operational efficiency and decision-making. Finally, cybersecurity risks are inherent in any IT support contract, requiring robust security protocols and continuous vigilance to protect sensitive data.

How effective are firm-fixed-price contracts in ensuring value for money in IT support services?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring value for money for IT support services when the scope of work is well-defined and unlikely to change significantly. In an FFP arrangement, the contractor assumes the primary risk for cost overruns, incentivizing them to manage resources efficiently and control expenses. This structure provides budget certainty for the government. However, for IT services that may involve unforeseen technical challenges or evolving requirements, an FFP contract could potentially lead to the contractor cutting corners on quality or innovation to maintain profitability, or conversely, lead to disputes if scope creep occurs. For well-defined maintenance and support tasks, FFP is often advantageous for cost control.

What is the significance of the NAICS code 541519 (Other Computer Related Services) for this contract?

The NAICS code 541519, 'Other Computer Related Services,' indicates that this contract encompasses a broad range of IT services that do not fit into more specific categories like software development (541511) or computer systems design (541512). This suggests the contract likely involves a combination of services such as IT consulting, IT support, network management, data processing, disaster recovery, and potentially specialized system integration or maintenance. For the Marine Corps' business information systems, this code implies a need for comprehensive support that may span multiple IT disciplines, requiring a vendor with diverse capabilities beyond a single, narrowly defined service.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M9549422R0013

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1856 OLD RESTON AVE, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $28,858,301

Exercised Options: $22,045,394

Current Obligation: $22,045,394

Actual Outlays: $5,320,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M9549422D0013

IDV Type: IDC

Timeline