DoD's Army IT Services Contract with STG LLC Totaled $48.6M Over 4 Years

Contract Overview

Contract Amount: $48,628,840 ($48.6M)

Contractor: STG LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2012-06-30

Contract Duration: 1,551 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ARL IT SERVICES

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $48.6 million to STG LLC for work described as: ARL IT SERVICES Key points: 1. The contract for custom computer programming services was awarded under full and open competition. 2. STG LLC was the primary contractor, with the award being a delivery order. 3. The contract duration was 1551 days, indicating a significant, long-term engagement. 4. The total value of $48.6 million suggests substantial IT service requirements for the Department of the Army.

Value Assessment

Rating: fair

The contract's value of $48.6 million over four years is substantial. Benchmarking against similar custom computer programming services contracts would be necessary to definitively assess its value for money, as specific performance metrics and deliverables are not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential contractors to bid. The use of a delivery order under a larger contract structure implies a structured procurement process.

Taxpayer Impact: Full and open competition is intended to ensure taxpayers receive the best value by fostering a competitive environment, though the ultimate impact depends on the specific bids received and the negotiation process.

Public Impact

This contract supported the Department of the Army's IT infrastructure and services. The duration of the contract suggests a sustained need for custom computer programming. Awarding under full and open competition aims to maximize taxpayer value. The specific IT services provided are not detailed, limiting public understanding of the exact impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
No specific information on the nature of 'custom computer programming services'.

Positive Signals

Awarded under full and open competition.
Significant contract value indicates important services were rendered.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for government modernization and operational efficiency. Benchmarks for similar contracts would typically consider the complexity of the programming, the duration, and the specific agency's needs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Full and open competition theoretically allows for small business participation, but specific outreach and set-aside considerations are not evident from this record.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program managers and contracting officers within the Army to ensure STG LLC met the terms and conditions of the delivery order.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed scope of work.
Absence of specific performance metrics.
Potential for cost overruns with Time and Materials pricing.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 million to STG LLC. ARL IT SERVICES

Who is the contractor on this award?

The obligated recipient is STG LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $48.6 million.

What is the period of performance?

Start: 2008-04-01. End: 2012-06-30.

What was the specific nature of the custom computer programming services provided, and how did they contribute to the Department of the Army's mission?

The provided data lacks specifics on the custom computer programming services. To assess value, understanding the scope of work, deliverables, and their alignment with Army objectives is crucial. Without this, it's difficult to determine if the $48.6 million investment yielded optimal mission support or if alternative solutions might have been more effective or cost-efficient.

Given the 4-year duration and significant value, what were the key performance indicators (KPIs) used to measure STG LLC's success and ensure accountability?

The data does not specify the KPIs or performance metrics associated with this contract. Effective oversight requires clearly defined KPIs to track contractor performance, ensure quality, and hold the vendor accountable for meeting contract requirements. The absence of this information raises questions about the robustness of the performance management framework.

How did the pricing structure (Time and Materials) compare to other potential contract types for custom programming services, and did it ensure cost-effectiveness for the government?

A Time and Materials (T&M) contract, like the one indicated, can be flexible but also carries a higher risk of cost overruns if not closely managed. While it allows for adaptation to evolving requirements, it may not always be the most cost-effective option compared to fixed-price contracts for well-defined scopes. The government's ability to control costs would depend heavily on diligent oversight and task order management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11091 SUNSET HILLS RD STE 200, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,015,509

Exercised Options: $52,015,509

Current Obligation: $48,628,840

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4951H

IDV Type: FSS

Timeline