AFRL/SMC awards $454.6M contract for Advanced Command and Control Enterprise Systems and Software (ACCESS) to BlueStaq LLC

Contract Overview

Contract Amount: $454,663,946 ($454.7M)

Contractor: Bluestaq LLC

Awarding Agency: General Services Administration

Start Date: 2019-08-01

End Date: 2026-07-31

Contract Duration: 2,556 days

Daily Burn Rate: $177.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AIR FORCE RESEARCH LABORATORY (AFRL)/AIR FORCE SPACE AND MISSILE SYSTEMS CENTER (SMC), HAS A NEED TO EXPAND THE ADVANCED COMMAND AND CONTROL ENTERPRISE SYSTEMS AND SOFTWARE (ACCESS) PROJECT.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80924

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $454.7 million to BLUESTAQ LLC for work described as: AIR FORCE RESEARCH LABORATORY (AFRL)/AIR FORCE SPACE AND MISSILE SYSTEMS CENTER (SMC), HAS A NEED TO EXPAND THE ADVANCED COMMAND AND CONTROL ENTERPRISE SYSTEMS AND SOFTWARE (ACCESS) PROJECT. Key points: 1. Contract value of $454.6M over its period of performance suggests a significant investment in command and control capabilities. 2. The contract is not available for competition, raising questions about the procurement process and potential for cost efficiencies. 3. Awarded to BlueStaq LLC, a single contractor, this sole-source nature may limit market-driven innovation and price negotiation. 4. The service falls under 'All Other Professional, Scientific, and Technical Services,' a broad category that requires further definition for precise performance assessment. 5. The contract duration of 2556 days (approximately 7 years) indicates a long-term commitment to the selected vendor and solution. 6. The contract type is 'Labor Hours,' which can lead to cost overruns if not managed diligently, as it directly ties cost to effort expended.

Value Assessment

Rating: questionable

The contract value of $454.6M for 'All Other Professional, Scientific, and Technical Services' is substantial. Without specific deliverables or performance metrics, it is difficult to benchmark against similar contracts. The 'Labor Hours' contract type, while flexible, carries inherent risks of cost escalation if not tightly managed and monitored. The lack of competition further complicates a value-for-money assessment, as there is no market-based pricing to compare against.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one vendor, BlueStaq LLC, was considered for this award. The reasons for this sole-source determination are not provided, but it bypasses the standard competitive bidding process. Consequently, there were no multiple bidders to compare proposals or prices, potentially impacting price discovery and the government's ability to secure the most cost-effective solution.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing that could have driven down costs. The government may have paid a premium compared to what a competitive environment might have yielded.

Public Impact

The primary beneficiaries are the Air Force Research Laboratory (AFRL) and the Air Force Space and Missile Systems Center (SMC), who will receive expanded advanced command and control enterprise systems and software. The services delivered are expected to enhance critical command and control capabilities, likely impacting military operations and strategic planning. The geographic impact is primarily within the Department of the Air Force, with potential implications for space and missile systems operations. Workforce implications may include the need for specialized technical personnel to develop, implement, and maintain these advanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Labor hours contract type can be prone to cost overruns without strict oversight.
Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity for performance evaluation.
Long contract duration (7 years) increases exposure to potential vendor performance issues or changing technological needs.
Lack of publicly available performance metrics makes it difficult to assess contractor effectiveness.

Positive Signals

Award to a single, presumably specialized, contractor may indicate a focus on specific expertise required for advanced C2 systems.
The significant investment suggests a high priority placed on enhancing command and control capabilities.
The contract is managed by the General Services Administration (GSA), which often brings established procurement and oversight processes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT and defense-related command and control systems. The market for advanced command and control solutions is highly specialized, often dominated by a few key players with deep expertise in defense technology, software development, and systems integration. The total federal spending on professional, scientific, and technical services is in the hundreds of billions annually, with a significant portion dedicated to defense and national security. This contract represents a substantial investment within a niche but critical area of defense IT.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to BlueStaq LLC, it is unlikely that significant subcontracting opportunities for small businesses are mandated or guaranteed, unless specified within the contract terms not detailed here. This approach may limit the direct participation of small businesses in this large-scale project, potentially impacting the small business ecosystem within this specialized defense technology sector.

Oversight & Accountability

Oversight for this contract is likely managed by the awarding agency (AFRL/SMC) through the General Services Administration (GSA). Specific oversight mechanisms would typically include contract performance reviews, milestone tracking, and financial audits. Transparency is limited due to the sole-source nature and the lack of publicly detailed performance metrics. Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Air Force Command and Control Systems Modernization
Space Force Command and Control Systems
Advanced Technology Development Contracts
Federal IT Professional Services

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Labor hours contract type increases risk of cost overruns without stringent oversight.
Lack of specific performance metrics hinders objective assessment of value and effectiveness.
Long contract duration may limit future flexibility and technology adoption.
Broad service category lacks specificity for detailed performance analysis.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $454.7 million to BLUESTAQ LLC. AIR FORCE RESEARCH LABORATORY (AFRL)/AIR FORCE SPACE AND MISSILE SYSTEMS CENTER (SMC), HAS A NEED TO EXPAND THE ADVANCED COMMAND AND CONTROL ENTERPRISE SYSTEMS AND SOFTWARE (ACCESS) PROJECT.

Who is the contractor on this award?

The obligated recipient is BLUESTAQ LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $454.7 million.

What is the period of performance?

Start: 2019-08-01. End: 2026-07-31.

What specific capabilities or technologies does the ACCESS project aim to enhance through this contract?

The provided data indicates the contract is for expanding 'Advanced Command and Control Enterprise Systems and Software (ACCESS)'. While the specific capabilities are not detailed, 'Command and Control' (C2) systems are fundamental to military operations, enabling commanders to visualize the battlespace, direct forces, and manage resources. Expansion likely involves upgrading existing systems, integrating new technologies (e.g., AI, cloud computing, advanced networking), improving data fusion and analysis, and enhancing cybersecurity for these critical platforms. The goal is typically to provide faster, more informed decision-making in complex operational environments, particularly relevant for Air Force and Space Force missions.

What is the justification for the sole-source award to BlueStaq LLC?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. The specific justification for this determination is not included in the data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, there is a compelling urgency, or the acquisition is for R&D purposes where only one source possesses unique capabilities. Without further information, it's impossible to ascertain the exact reason BlueStaq LLC was the sole provider considered for the ACCESS project expansion.

How does the 'Labor Hours' contract type compare to other contract types in terms of risk and flexibility for this type of service?

A 'Labor Hours' contract is a type of cost-reimbursement contract where the contractor is reimbursed for direct labor hours at specified fixed hourly rates, plus the cost of materials and other direct expenses. It offers flexibility, especially when the scope of work is not well-defined or is expected to evolve, as is common in R&D or complex system development. However, it carries significant risk for the government regarding cost control, as the total cost is not fixed and depends on the actual hours worked. Unlike a firm-fixed-price contract, there's less incentive for the contractor to control labor hours efficiently. Robust oversight, detailed tracking of hours, and clear performance metrics are crucial to mitigate cost overruns and ensure value.

What is the typical performance period and value range for similar 'All Other Professional, Scientific, and Technical Services' contracts within the Department of Defense?

The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) is very broad, encompassing a wide array of services. Contracts within this category can vary dramatically in value and duration depending on the specific service. For the Department of Defense, contracts for advanced technical services, system integration, or specialized research can range from a few million to hundreds of millions of dollars, often spanning several years. A contract valued at over $450 million with a duration of nearly 7 years, as seen here, is on the higher end, suggesting a program of significant strategic importance and complexity, likely involving substantial R&D or system lifecycle support.

What are the potential implications of a 7-year contract duration for the government and the contractor?

A 7-year contract duration (2556 days) represents a long-term commitment. For the government, it provides stability and continuity for a critical program like ACCESS, ensuring that the contractor is invested in the long-term success of the systems. However, it also locks the government into a specific vendor and technology path for an extended period, potentially limiting flexibility to adopt newer technologies or switch vendors if performance issues arise or market conditions change. For the contractor, it offers revenue certainty and the opportunity to build deep expertise and infrastructure around the program. It also necessitates sustained performance and resource allocation over the contract's life.

How does the geographic location 'COLORADO' (sn: COLORADO) relate to the Air Force Research Laboratory (AFRL) and Space and Missile Systems Center (SMC) operations?

Colorado has a significant and long-standing presence in the U.S. space and defense industrial base. Major Air Force installations like Peterson Space Force Base, Schriever Space Force Base, and Buckley Space Force Base are located there, alongside numerous defense contractors and research institutions. The Space and Missile Systems Center (SMC), now part of the U.S. Space Force, has historically had a strong connection to Colorado. While the Air Force Research Laboratory (AFRL) has multiple sites, its mission often involves collaboration with entities in key defense hubs. Therefore, awarding a contract with a specified location in Colorado for C2 systems relevant to both AFRL and SMC aligns with the state's strategic importance in aerospace and defense.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 5236 CHIMNEY GULCH WAY, COLORADO SPRINGS, CO, 80924

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $649,106,362

Exercised Options: $649,106,362

Current Obligation: $454,663,946

Actual Outlays: $325,234,793

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline