DoD Awards $48.7M IT Services Contract to STG LLC for CONUS Network Operations
Contract Overview
Contract Amount: $48,745,249 ($48.7M)
Contractor: STG LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-27
End Date: 2014-06-30
Contract Duration: 550 days
Daily Burn Rate: $88.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NON-PERSONAL INFORMATION TECHNOLOGY (IT) SERVICES AND SUPPORT REQUIREMENTS FOR THE 2D SIGNAL CENTER, CONTINENTAL UNITED STATES (CONUS) THEATER NETWORK OPERATIONS AND SECURITY CENTER (C-TNOSC) FOR AWARD OF INTERIM/BRIDGE CONTRACT
Place of Performance
Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to STG LLC for work described as: NON-PERSONAL INFORMATION TECHNOLOGY (IT) SERVICES AND SUPPORT REQUIREMENTS FOR THE 2D SIGNAL CENTER, CONTINENTAL UNITED STATES (CONUS) THEATER NETWORK OPERATIONS AND SECURITY CENTER (C-TNOSC) FOR AWARD OF INTERIM/BRIDGE CONTRACT Key points: 1. The contract focuses on IT services and support for critical theater network operations. 2. STG LLC, the incumbent, secured this bridge contract. 3. The award was not competed, raising potential concerns about price discovery. 4. The IT services sector is a significant area of government spending.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.
Public Impact
Ensures continuity of essential IT services for military operations in CONUS. Supports the 2D Signal Center and C-TNOSC, critical for network security. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
Positive Signals
- Ensures continuity of essential services
- Supports critical military infrastructure
Sector Analysis
This contract falls within the IT services sector, specifically focusing on telecommunications and network operations. Government spending in this area is substantial, with a constant need for secure and reliable infrastructure.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management under the Cost Plus Fixed Fee structure is crucial.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- No small business participation noted
- Limited transparency on justification for sole-source award
Tags
wired-telecommunications-carriers, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.7 million to STG LLC. NON-PERSONAL INFORMATION TECHNOLOGY (IT) SERVICES AND SUPPORT REQUIREMENTS FOR THE 2D SIGNAL CENTER, CONTINENTAL UNITED STATES (CONUS) THEATER NETWORK OPERATIONS AND SECURITY CENTER (C-TNOSC) FOR AWARD OF INTERIM/BRIDGE CONTRACT
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 $48.7 million.
What is the period of performance?
Start: 2012-12-27. End: 2014-06-30.
What was the justification for not competing this essential IT services contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required services, or in urgent situations. Further investigation into the contract file would be needed to determine the specific rationale and assess its validity.
What is the risk associated with the Cost Plus Fixed Fee contract type in this scenario?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government pays the actual costs incurred by the contractor plus a fixed fee. If the contractor's costs are higher than anticipated, the total price paid by the government increases, potentially exceeding the value of a fixed-price contract. This necessitates robust government oversight to control costs.
How effective is STG LLC in delivering these IT services based on past performance?
Past performance information is not detailed in the provided data. While STG LLC is the incumbent, the effectiveness of their service delivery would typically be assessed through performance metrics, user feedback, and contract close-out reports. Without this information, it's difficult to definitively gauge their effectiveness beyond the fact that the contract was extended.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12011 SUNSET HILLS RD STE 1200, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,745,249
Exercised Options: $48,745,249
Current Obligation: $48,745,249
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-27
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2017-08-25
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