State Department's $60.5M IT Contract for Consular Lookout Systems Awarded to STG LLC
Contract Overview
Contract Amount: $60,489,188 ($60.5M)
Contractor: STG LLC
Awarding Agency: Department of State
Start Date: 2012-09-28
End Date: 2020-07-06
Contract Duration: 2,838 days
Daily Burn Rate: $21.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT RELATED SERVICES FOR CONSULAR LOOKOUT NAMECHECK SYSTEMS (CLASS) IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $60.5 million to STG LLC for work described as: IT RELATED SERVICES FOR CONSULAR LOOKOUT NAMECHECK SYSTEMS (CLASS) IGF::OT::IGF Key points: 1. The contract, valued at $60.5 million, supported IT services for consular lookout systems. 2. Awarded under full and open competition, the contract aimed to ensure competitive pricing. 3. The use of a Time and Materials contract type may present cost control risks. 4. This spending falls within the broader IT services sector, which sees significant government investment.
Value Assessment
Rating: fair
The contract's value of $60.5 million over its duration is substantial. Without specific benchmarks for similar IT services for consular systems, a precise value assessment is difficult. The Time and Materials pricing structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which is generally positive for price discovery. This method allows all eligible contractors to bid, theoretically leading to the best value. However, the specific impact on price depends on the number and competitiveness of the bids received.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding environment.
Public Impact
Ensures the operational integrity of systems crucial for national security and border control. Supports the Department of State's mission in processing visa and passport applications. Provides essential IT infrastructure for diplomatic and consular services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation.
- Long contract duration (2012-2020) may indicate potential for scope creep or evolving needs.
- Lack of specific performance metrics in provided data makes effectiveness assessment challenging.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Supports critical national security functions.
- Contract managed by the Department of State, a primary user agency.
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Government spending in this sector is consistently high, driven by the need for modernizing and maintaining complex digital infrastructures across agencies.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Therefore, it is unclear what portion, if any, of this contract value benefited small businesses.
Oversight & Accountability
The contract was managed by the Department of State. Oversight effectiveness would depend on the agency's contract management practices, including monitoring performance, costs, and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may indicate potential inefficiencies or evolving requirements.
- Lack of specific performance metrics hinders effectiveness assessment.
- No clear indication of small business participation.
- Scope of 'Other Computer Related Services' is broad and requires detailed oversight.
Tags
other-computer-related-services, department-of-state, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $60.5 million to STG LLC. IT RELATED SERVICES FOR CONSULAR LOOKOUT NAMECHECK SYSTEMS (CLASS) IGF::OT::IGF
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 $60.5 million.
What is the period of performance?
Start: 2012-09-28. End: 2020-07-06.
What was the specific scope of 'Other Computer Related Services' for the Consular Lookout Namecheck Systems?
The 'Other Computer Related Services' likely encompassed a range of IT support activities essential for the Consular Lookout Namecheck Systems (CLASS). This could include software development, system maintenance, network administration, data management, cybersecurity, and potentially hardware integration or upgrades necessary for the system's operation and security.
How effectively did the Time and Materials contract type control costs given the $60.5M value?
The Time and Materials (T&M) contract type inherently carries a higher risk of cost escalation compared to fixed-price contracts. While it offers flexibility, effective cost control relies heavily on robust government oversight, detailed work breakdown structures, and vigilant monitoring of labor hours and material costs to prevent overruns and ensure value for money.
What was the impact of the full and open competition on the final contract price?
Full and open competition is designed to drive down prices by allowing multiple bidders to compete. The actual impact on the final price depends on the number of bids received and the competitiveness among them. A robust competition typically results in a price closer to the government's estimate and reflects market rates.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: STG Group, Inc.
Address: 11091 SUNSET HILLS RD STE 200, RESTON, VA, 20190
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $137,121,090
Exercised Options: $60,489,188
Current Obligation: $60,489,188
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-28
Current End Date: 2020-07-06
Potential End Date: 2020-07-06 00:00:00
Last Modified: 2022-10-05
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