Department of State awards $17.5M contract for consular namecheck system support to STG LLC

Contract Overview

Contract Amount: $17,474,292 ($17.5M)

Contractor: STG LLC

Awarding Agency: Department of State

Start Date: 2010-01-01

End Date: 2011-06-30

Contract Duration: 545 days

Daily Burn Rate: $32.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FULL LIFECYCLE SOFTWARE DEVELOPMENT, 24X7 MONITORING, AND MAINTENANCE OF ITS CONSULAR NAMECHECK SYSTEMS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $17.5 million to STG LLC for work described as: FULL LIFECYCLE SOFTWARE DEVELOPMENT, 24X7 MONITORING, AND MAINTENANCE OF ITS CONSULAR NAMECHECK SYSTEMS. Key points: 1. Contract focuses on critical software development, monitoring, and maintenance for consular namecheck systems. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 545 days indicates a medium-term engagement for essential services. 4. The award was made under a Time and Materials pricing structure. 5. STG LLC is the sole contractor for this specific service. 6. The contract is geographically located in the District of Columbia.

Value Assessment

Rating: fair

The total contract value of $17.5 million over approximately 1.5 years for full lifecycle software development, monitoring, and maintenance of critical consular namecheck systems appears to be within a reasonable range for such specialized services. However, without specific benchmarks for similar systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while common for development and maintenance, can sometimes lead to cost overruns if not closely managed. Further analysis of the labor rates and hours billed would be necessary to confirm cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of State sought bids from all responsible sources. The number of bidders is not specified in the provided data, but the use of full and open competition generally promotes a wider range of offers and can lead to better price discovery. This approach is intended to ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages contractors to offer their best value propositions to win the contract.

Public Impact

The primary beneficiaries are the Department of State's consular operations, ensuring the integrity and efficiency of namecheck processes for visa and passport applications. Services delivered include full lifecycle software development, 24x7 monitoring, and ongoing maintenance of the consular namecheck systems. The geographic impact is primarily within the District of Columbia, where the contract is managed and likely where some services are performed. This contract supports the operational workforce within the Department of State by providing reliable and secure systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can present cost control challenges if not meticulously monitored, potentially leading to expenditures exceeding initial estimates.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to gauge the contractor's performance objectively.
The reliance on a single contractor (STG LLC) for this critical function, even if awarded competitively, could pose a risk if the contractor faces significant operational issues.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust process to select the most capable and cost-effective provider.
The focus on 24x7 monitoring and maintenance indicates a commitment to ensuring the continuous availability and reliability of essential systems.
The contract addresses a critical function within the Department of State's operations, highlighting its importance to national security and diplomatic functions.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software development, maintenance, and support for government systems. The market for such services is highly competitive, with numerous companies offering specialized expertise. The Department of State's spending on IT infrastructure and software is substantial, reflecting the growing need for secure and efficient digital operations. Comparable spending benchmarks would typically involve analyzing other government contracts for similar IT support services, considering factors like system complexity, security requirements, and contract duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, STG LLC, would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would be defined in the contract's terms and conditions, including performance expectations and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State IT Modernization Programs
Consular Affairs Systems Support
Federal Software Development Contracts
Government IT Maintenance and Operations

Risk Flags

Potential for cost overruns due to T&M pricing
Cybersecurity risks to sensitive data
Contractor performance variability
Dependency on a single vendor for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17.5 million to STG LLC. FULL LIFECYCLE SOFTWARE DEVELOPMENT, 24X7 MONITORING, AND MAINTENANCE OF ITS CONSULAR NAMECHECK SYSTEMS.

Who is the contractor on this award?

The obligated recipient is STG LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2010-01-01. End: 2011-06-30.

What is the track record of STG LLC in performing similar IT services for federal agencies, particularly in software development and system maintenance?

STG LLC has a history of performing IT services for various federal agencies. For this specific contract, their track record would be assessed based on their past performance evaluations, any prior experience with consular systems or similar critical infrastructure, and their ability to meet the technical and security requirements outlined by the Department of State. A review of their past performance on similar contracts, including any awards or penalties, would provide insight into their reliability and capability. The fact that they were awarded this contract through full and open competition suggests they met the pre-qualification criteria and were deemed a responsible source with a satisfactory performance record.

How does the awarded value of $17.5 million compare to similar contracts for consular namecheck system support or equivalent critical IT infrastructure maintenance?

Benchmarking the $17.5 million contract value requires comparing it against similar government contracts for IT lifecycle development, 24x7 monitoring, and maintenance of critical systems. Factors such as system complexity, security requirements, user base, and contract duration significantly influence pricing. Without access to a comprehensive database of comparable contracts with detailed scope and pricing, a precise comparison is difficult. However, for a contract spanning approximately 1.5 years and involving specialized software development and continuous operational support for a sensitive government function, the value appears to be within a plausible range. A more detailed analysis would involve examining the labor rates, overhead, and profit margins proposed by STG LLC against industry standards and historical government contract data.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns due to the Time and Materials (T&M) pricing model, performance failures that could impact consular operations, cybersecurity threats to sensitive data, and contractor dependency. Mitigation strategies would typically involve robust contract oversight by the Department of State, including detailed review of invoices and labor hours, performance monitoring against defined metrics (if any), strict adherence to security protocols, and contingency planning. The use of full and open competition aims to mitigate risks by selecting a capable contractor. However, ongoing vigilance and proactive management are crucial throughout the contract lifecycle to address emerging risks.

How effective is the Time and Materials (T&M) pricing model for ensuring value for money in this context?

The Time and Materials (T&M) pricing model can be effective for software development and maintenance where the scope of work is not precisely defined at the outset or is expected to evolve. It allows for flexibility in addressing unforeseen issues and adapting to changing requirements. However, T&M contracts carry a higher risk of cost escalation if not managed diligently. For the Department of State, ensuring value for money with this model requires stringent oversight, including detailed tracking of labor hours, validation of rates, and clear justification for all work performed. Establishing not-to-exceed (NTE) limits and closely monitoring progress against milestones are essential to control costs and ensure the government pays only for necessary and efficient work.

What is the historical spending pattern for consular namecheck system support by the Department of State, and how does this contract fit within that trend?

Analyzing historical spending patterns for consular namecheck systems would involve examining previous contracts awarded for similar services, including their duration, value, and the contractors involved. This $17.5 million contract, awarded for a period of approximately 1.5 years, represents a significant investment in maintaining and developing these critical systems. If historical data shows a consistent need for such support over extended periods, this contract aligns with an ongoing operational requirement. Understanding the trend would involve looking at whether spending has increased, decreased, or remained stable, and whether the nature of the services required has evolved, necessitating new or updated contracts like this one.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Solicitation ID: SAQMMA10Q0030

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 11710 PLAZA AMERICA DR STE 1200, RESTON, VA, 11

Business Categories: Asian Pacific American Owned Business, Category Business, Federally Funded Research and Development Corp, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $17,474,292

Exercised Options: $17,474,292

Current Obligation: $17,474,292

Parent Contract

Parent Award PIID: V797049A3GP067

IDV Type: IDC

Timeline