State Department awards $27.6M for passport support, raising value-for-money questions

Contract Overview

Contract Amount: $27,621,740 ($27.6M)

Contractor: Stanley Associates, Inc.

Awarding Agency: Department of State

Start Date: 2012-03-20

End Date: 2013-03-19

Contract Duration: 364 days

Daily Burn Rate: $75.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PASSPORT SUPPORT SERVICES FOR TASK 3

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 $27.6 million to STANLEY ASSOCIATES, INC. for work described as: PASSPORT SUPPORT SERVICES FOR TASK 3 Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract falls within the IT services sector, specifically computer facilities management. 5. The single award for a one-year period indicates a focused need for specific support. 6. The relatively small contract size suggests it may not be a major driver of market dynamics.

Value Assessment

Rating: fair

The contract's value of approximately $27.6 million over one year for IT support services seems within a reasonable range for the scope of work. However, without detailed performance metrics or comparisons to similar contracts for passport systems, a definitive value assessment is challenging. The fixed-price nature of the contract is a positive indicator for cost control, but the absence of specific benchmarks makes it difficult to ascertain if the pricing is truly competitive or represents excellent value. Further analysis of the contractor's historical performance and the specific services rendered would be needed for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The limited number of bidders could suggest specific technical requirements or a niche market.

Taxpayer Impact: The full and open competition, despite only two bidders, likely provided some level of price competition, benefiting taxpayers by avoiding a sole-source situation. However, the limited number of bids might mean taxpayers did not achieve the absolute lowest possible price.

Public Impact

Citizens requiring passport services benefit indirectly through the efficient operation of the passport system. The contract supports the Department of State's mission to provide essential travel documentation. Services are delivered within the District of Columbia, impacting the local IT workforce. The contract ensures the continuity of IT infrastructure supporting passport processing operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could indicate potential market concentration or barriers to entry.
The fixed-price contract, while shifting risk, could incentivize cost-cutting that might impact service quality if not closely monitored.
Lack of detailed performance data makes it difficult to assess the true value for money beyond the initial price.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Fixed-price contract type aligns incentives for contractor efficiency.
Contract duration of one year allows for periodic re-evaluation of needs and performance.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management Services (NAICS 541513). This sector is characterized by a wide range of companies, from large system integrators to specialized IT support firms. The market size for government IT services is substantial, with agencies increasingly relying on contractors for specialized expertise. This contract appears to be a standard service delivery agreement within a mature IT support market, likely comparable to other government contracts for similar facilities management and IT support functions.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary contractor, Stanley Associates, Inc., is likely a larger entity capable of performing the services independently. The lack of small business involvement in this specific award means no direct benefit to the small business ecosystem through set-asides or mandated subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability is established through the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of State IT Modernization Efforts
Passport Services IT Support
Federal Civilian Agency IT Contracts
Computer Facilities Management Services Contracts

Risk Flags

Limited competition (2 bidders)
Potential for vendor lock-in with single award
Need for detailed performance metric analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.6 million to STANLEY ASSOCIATES, INC.. PASSPORT SUPPORT SERVICES FOR TASK 3

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 $27.6 million.

What is the period of performance?

Start: 2012-03-20. End: 2013-03-19.

What is the track record of Stanley Associates, Inc. with the Department of State and other federal agencies?

Stanley Associates, Inc. has a history of contracting with the Department of State and other federal agencies. Reviewing their past performance on similar IT support and facilities management contracts is crucial for assessing their reliability and capability. Data on past performance, including any awards, past performance evaluations (like Past Performance Information Retrieval System - PPIRS), and any disputes or terminations, would provide insight into their track record. A strong history with the agency or similar complex IT environments would be a positive indicator, while a history of performance issues or contract disputes would raise concerns about their ability to successfully execute this current contract.

How does the awarded price compare to market rates for similar IT facilities management services?

Benchmarking the $27.6 million contract value against market rates for similar IT facilities management services is essential for assessing value for money. This would involve comparing the contract's scope, duration (one year), and specific deliverables against industry pricing standards and rates for comparable government or commercial contracts. Factors such as the level of technical expertise required, geographic location (District of Columbia), and the specific IT infrastructure supported would influence these comparisons. Without access to detailed service level agreements and specific cost breakdowns, a precise comparison is difficult, but general market data for IT support services can provide a baseline. If the awarded price is significantly higher than comparable contracts, it suggests potential overpayment or a lack of competitive pressure.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The effectiveness and value of this contract are heavily dependent on the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) established. These metrics define the expected quality, availability, and responsiveness of the IT facilities management services. Examples could include system uptime percentages, response times for issue resolution, data security compliance, and successful implementation of system updates. The Department of State's oversight would involve monitoring the contractor's performance against these KPIs/SLAs. A lack of clearly defined and rigorously monitored KPIs/SLAs could lead to subpar service delivery and a failure to achieve the intended benefits of the contract, even if the price appears reasonable on the surface.

What is the historical spending pattern for passport support services at the Department of State?

Analyzing historical spending patterns for passport support services at the Department of State provides crucial context for evaluating the current $27.6 million award. Understanding how much has been spent on similar services in previous years, whether through this contractor or others, and whether spending has increased or decreased, can reveal trends. This historical data helps determine if the current contract represents a significant deviation, an increase due to expanded scope, or a stable investment. It also informs whether the agency has consistently relied on external support for these functions and the typical contract vehicles used. Significant year-over-year increases without clear justification might warrant further investigation into efficiency and necessity.

What are the potential risks associated with relying on a single vendor for this critical IT support function?

While this contract had two bidders, the award went to a single vendor, Stanley Associates, Inc. Relying on a single vendor for critical IT support functions, such as those underpinning passport services, introduces several risks. These include vendor lock-in, where switching providers becomes difficult and costly; potential complacency from the vendor due to a lack of ongoing competitive pressure; and increased vulnerability if the vendor experiences financial instability, operational issues, or security breaches. Furthermore, a single vendor may have less incentive to innovate or offer cost-saving improvements over time. The Department of State must have robust contract management and contingency plans in place to mitigate these risks.

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

Offers Received: 2

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: $27,621,740

Exercised Options: $27,621,740

Current Obligation: $27,621,740

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA08D0051

IDV Type: IDC

Timeline