State Department awards $18.7M for passport IT support, raising value-for-money questions
Contract Overview
Contract Amount: $18,726,210 ($18.7M)
Contractor: Stanley Associates, Inc.
Awarding Agency: Department of State
Start Date: 2011-07-18
End Date: 2012-03-19
Contract Duration: 245 days
Daily Burn Rate: $76.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PPT SUPPORT SERVICES FOR TASK 2, NATIONAL PASSPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $18.7 million to STANLEY ASSOCIATES, INC. for work described as: PPT SUPPORT SERVICES FOR TASK 2, NATIONAL PASSPORT SERVICES Key points: 1. Contract value appears high relative to duration, suggesting potential for cost efficiencies. 2. Limited competition data available, making it difficult to assess true market pricing. 3. Performance period is relatively short, potentially limiting long-term value realization. 4. The fixed-price contract type shifts risk to the contractor, but oversight is key. 5. This contract falls within IT services, a sector with significant government spending. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.
Value Assessment
Rating: fair
The contract's total value of $18.7 million over approximately 8 months results in a monthly burn rate of roughly $2.3 million. This rate is substantial for IT support services. Benchmarking against similar contracts for IT facilities management is challenging without more granular data on the specific services provided. However, the fixed-price nature suggests the government aimed to cap costs, but the overall value proposition depends heavily on the scope and quality of services delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the widest possible participation and the best pricing. However, the number of bidders is not specified, which is crucial for understanding the actual level of competition. A high number of bidders typically drives down prices and encourages innovation, while a low number might indicate barriers to entry or a lack of market interest, potentially leading to less competitive pricing.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, without knowing the number of bids received, it's difficult to definitively state if taxpayers received optimal pricing in this instance.
Public Impact
Benefits the Department of State by ensuring the operational continuity of its National Passport Services IT infrastructure. Delivers essential IT support and facilities management services critical for passport processing. Primarily impacts operations within the District of Columbia, where the services are likely concentrated. Supports a workforce involved in IT management and support roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract scope is not tightly managed.
- Risk of vendor lock-in if transition to a new vendor is complex or costly.
- Dependence on a single contractor for critical IT infrastructure could pose operational risks.
Positive Signals
- Fixed-price contract structure shifts cost risk to the contractor.
- Full and open competition process theoretically maximizes market efficiency.
- Short performance period allows for periodic reassessment of needs and vendor performance.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. The IT services market for the federal government is vast, with agencies consistently seeking support for their complex technological infrastructures. Comparable spending benchmarks for similar IT support contracts can vary widely based on the specific services, security requirements, and geographic locations. The $18.7 million award is a moderate-sized contract within this broad sector.
Small Business Impact
The contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses in the provided data. This suggests that the primary focus was on securing services from larger, potentially more experienced prime contractors capable of handling the full scope of IT support. The impact on the small business ecosystem is likely minimal for this specific award, as it does not appear to have been designed to foster small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and delivery terms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- National Passport Services IT Modernization
- Department of State IT Infrastructure Support
- Federal IT Services Contracts
- Computer Facilities Management Services
Risk Flags
- High monthly burn rate relative to contract duration.
- Lack of detailed competition metrics (number of bidders) for 'full and open' award.
- Limited public information on specific performance metrics or KPIs.
Tags
it-services, department-of-state, national-passport-services, computer-facilities-management, full-and-open-competition, firm-fixed-price, delivery-order, district-of-columbia, it-support, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $18.7 million to STANLEY ASSOCIATES, INC.. PPT SUPPORT SERVICES FOR TASK 2, NATIONAL PASSPORT SERVICES
Who is the contractor on this award?
The obligated recipient is STANLEY ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $18.7 million.
What is the period of performance?
Start: 2011-07-18. End: 2012-03-19.
What specific IT facilities management services were included in this contract?
The provided data indicates the contract was for 'PPT SUPPORT SERVICES FOR TASK 2, NATIONAL PASSPORT SERVICES' under the NAICS code 541513 (Computer Facilities Management Services). While the specific services are not detailed in the summary data, typical services under this NAICS code include operating and providing technical support for data centers and other computer facilities. This can encompass activities such as managing computer systems, maintaining hardware and software, ensuring network connectivity, providing help desk support, and implementing security measures for IT infrastructure.
How does the $18.7 million award compare to historical spending on similar passport IT support?
Without access to historical spending data specifically for National Passport Services IT support, a direct comparison is difficult. However, the $18.7 million award over approximately 8 months represents a significant monthly expenditure rate. To assess historical trends, one would need to analyze past contracts for similar services within the State Department or specifically for passport operations. Factors such as contract duration, scope of services, and inflation would need to be considered for a meaningful comparison. The relatively short duration of this contract might suggest a need for interim support or a re-evaluation of long-term IT strategies for passport services.
What were the key performance indicators (KPIs) for this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, KPIs for IT facilities management contracts would focus on aspects such as system uptime, response times for technical support, incident resolution rates, security compliance, and adherence to service level agreements (SLAs). The effectiveness of the contractor would be measured against these predefined metrics, which are usually detailed in the Performance Work Statement (PWS) of the contract. The Department of State would monitor these KPIs to ensure satisfactory performance and value for money.
Were there any identified risks associated with this contractor or contract type?
The summary data does not explicitly list risks associated with Stanley Associates, Inc. or this specific contract. However, general risks for a fixed-price contract of this nature include potential scope creep if not managed tightly, which could lead to cost overruns if change orders are not handled properly. For the contractor, the risk lies in underestimating the effort required, leading to reduced profit margins. Operational risks could include dependence on the contractor for critical IT functions, potential service disruptions if the contractor underperforms, and challenges in transitioning services if the contract is not renewed or is awarded to a different entity.
What is the typical duration for IT support contracts of this magnitude at the Department of State?
The typical duration for IT support contracts at the Department of State can vary significantly depending on the nature of the services, the agency's strategic IT plans, and funding availability. Contracts can range from short-term, project-specific engagements to multi-year indefinite-delivery/indefinite-quantity (IDIQ) vehicles. This particular contract, with a duration of approximately 8 months (245 days), is relatively short for a comprehensive IT facilities management role. Shorter durations might indicate a need for bridging support, a pilot program, or a strategy to re-compete services frequently to ensure competitive pricing and adapt to evolving technological needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
Address: 3101 WILSON BLVD STE 700, ARLINGTON, VA, 22201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,726,210
Exercised Options: $18,726,210
Current Obligation: $18,726,210
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMMA08D0051
IDV Type: IDC
Timeline
Start Date: 2011-07-18
Current End Date: 2012-03-19
Potential End Date: 2012-03-19 00:00:00
Last Modified: 2018-04-25
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