State Department's $11.67M contract with Stanley Associates, Inc. for IT services awarded in 2006, extended through 2018

Contract Overview

Contract Amount: $11,674,000 ($11.7M)

Contractor: Stanley Associates, Inc.

Awarding Agency: Department of State

Start Date: 2006-01-11

End Date: 2018-07-18

Contract Duration: 4,571 days

Daily Burn Rate: $2.6K/day

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INCREMENTAL FUNDING

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22301

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $11.7 million to STANLEY ASSOCIATES, INC. for work described as: INCREMENTAL FUNDING Key points: 1. Contract value of $11.67 million over its lifespan indicates a significant investment in IT support. 2. The contract was awarded as a Delivery Order, suggesting it was part of a larger existing agreement. 3. A duration of over 12 years (4571 days) points to a long-term need for the services provided. 4. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not carefully managed. 5. The contract was not set aside for small businesses, potentially limiting opportunities for smaller IT firms. 6. The 'VA' (Veterans Affairs) in the 'st' field might indicate a specific program or service area, but requires further clarification. 7. The absence of a Product Service Code (PSC) makes it difficult to precisely categorize the IT services rendered.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific IT services rendered and their market rates. The CPFF structure inherently carries a higher risk of cost escalation compared to fixed-price contracts. However, the extended duration suggests the services were deemed necessary and valuable by the Department of State over a long period. Comparing it to similar long-term IT support contracts would provide better context on its value-for-money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as a 'Delivery Order,' which implies it was likely issued under a pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract or a similar master agreement. The level of competition for the original IDIQ contract is unknown, and the specific competition for this delivery order is also not detailed. Without this information, it's difficult to assess how effectively price discovery was achieved.

Taxpayer Impact: The lack of transparency regarding the competition level for this delivery order makes it difficult to ascertain the direct impact on taxpayer funds. A more competitive process could have potentially led to lower prices.

Public Impact

The Department of State likely benefited from consistent and sustained IT support, crucial for its operations. The services provided would have supported various internal IT functions, potentially including infrastructure, software, or user support. The geographic impact is primarily within the Department of State's operational areas, likely domestic and potentially international. The contract supported the workforce by providing necessary IT tools and infrastructure for their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor overspending if not rigorously monitored.
The extended contract duration of over 12 years raises questions about the initial scope and potential for scope creep.
Lack of specific Product Service Code (PSC) hinders precise understanding of services and market comparisons.
The 'VA' designation in the 'st' field is ambiguous and requires clarification regarding its specific meaning and relevance.

Positive Signals

The long duration suggests a sustained need and satisfaction with the services provided by Stanley Associates, Inc.
Awarding a delivery order indicates a structured procurement process, likely within an established framework.
The contract was awarded to a specific entity, Stanley Associates, Inc., implying a selection based on some criteria.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically IT professional services. The market for IT support services to government agencies is substantial and highly competitive. Long-term contracts like this are common for agencies requiring specialized or continuous IT support. Benchmarking would involve comparing the total contract value and duration against similar IT support service contracts awarded by federal agencies of comparable size and mission.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('ss': false, 'sb': false). This means larger businesses were eligible to compete, and there's no explicit requirement for subcontracting to small businesses within this specific award. The impact on the small business ecosystem is neutral to potentially negative, as opportunities may have been directed towards larger prime contractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) at the Department of State, responsible for monitoring performance and ensuring compliance. Transparency is limited by the available data; details on performance reviews, audits, or specific oversight activities are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Services Contracts
Federal IT Professional Services
Cost Plus Fixed Fee Contracts
Long-Term Government Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Lack of specific service details (PSC)
Ambiguous 'VA' designation
Limited competition transparency for Delivery Order

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.7 million to STANLEY ASSOCIATES, INC.. INCREMENTAL FUNDING

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 $11.7 million.

What is the period of performance?

Start: 2006-01-11. End: 2018-07-18.

What specific IT services were provided under this contract?

The provided data does not specify the exact IT services rendered under this contract. The absence of a Product Service Code (PSC) further complicates this determination. However, given the duration and the nature of IT support contracts for federal agencies, services could have ranged from network management, system administration, software development and maintenance, cybersecurity, to help desk support and IT consulting. Further investigation into the original contract vehicle or task orders would be necessary to ascertain the precise scope of work.

How does the Cost Plus Fixed Fee (CPFF) structure impact value for money in this contract?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it can be beneficial for projects with uncertain scopes, it carries a risk of cost overruns if costs exceed projections, as the contractor is incentivized to incur costs to achieve the fixed fee. For the Department of State, this means diligent oversight is crucial to manage costs effectively and ensure the fixed fee remains reasonable for the services delivered. Without detailed cost breakdowns and performance metrics, it's difficult to definitively assess the value for money achieved under this CPFF arrangement over its extended lifespan.

What does the contract's duration of over 12 years imply about the services and contractor performance?

A contract duration exceeding 12 years strongly suggests that the IT services provided by Stanley Associates, Inc. were critical and consistently met the Department of State's needs. Such longevity typically indicates a high level of satisfaction with the contractor's performance, reliability, and ability to adapt to evolving technological requirements. It also implies a stable, long-term requirement within the agency for the specific IT functions supported. However, it also raises questions about the initial contract's flexibility and whether opportunities for re-competition or modernization were adequately explored over such an extended period.

What is the significance of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' signifies that it was likely issued under a pre-existing master contract, such as an Indefinite Delivery Indefinite Quantity (IDIQ) contract. This procurement method allows agencies to establish broad agreements with vendors and then issue specific orders for services or supplies as needed. For the Department of State, this approach offers flexibility and potentially faster acquisition of IT services compared to initiating a new full and open competition for each requirement. The competition level for the original master contract would be a key factor in assessing the overall value and fairness of this delivery order.

What does the absence of small business set-aside information mean for small businesses?

The data explicitly states 'ss': false and 'sb': false, indicating that this contract was not specifically set aside for small businesses, nor does it appear to have a mandatory small business subcontracting plan associated with it. This means that large businesses were eligible to compete for and win this award. Consequently, opportunities for small businesses to directly participate as prime contractors on this specific award were limited. While large prime contractors may still subcontract portions of the work to small businesses, the absence of a set-aside or specific subcontracting goals means there's no guarantee of such participation, potentially reducing the direct benefit to the small business IT ecosystem for this particular contract.

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 300 N WASHINGTON ST # 400, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,674,000

Exercised Options: $11,674,000

Current Obligation: $11,674,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTTS5999D00465

IDV Type: GWAC

Timeline