Sunstone Technical Solutions awarded $2.26M for Coast Guard administrative support, facing limited competition

Contract Overview

Contract Amount: $2,266,099 ($2.3M)

Contractor: Sunstone Technical Solutions, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-16

End Date: 2026-09-27

Contract Duration: 1,837 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TO 0003 - OPC SETA SUPPORT

Place of Performance

Location: CURTIS BAY, BALTIMORE CITY County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.3 million to SUNSTONE TECHNICAL SOLUTIONS, LLC for work described as: TO 0003 - OPC SETA SUPPORT Key points: 1. Contract value appears moderate for administrative and management consulting services. 2. The contract was awarded under full and open competition after exclusion of sources, suggesting a potentially complex procurement history. 3. Performance period extends over 1837 days, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541611 points to a focus on general management consulting. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The awardee, Sunstone Technical Solutions, LLC, is a relatively new entity based on the contract start date. 7. The contract is not set aside for small businesses, suggesting it was competed broadly.

Value Assessment

Rating: fair

Benchmarking the value of this $2.26 million contract for administrative management and general management consulting services is challenging without more context on the specific tasks and deliverables. However, the duration of over 1800 days suggests a sustained need. Comparing it to similar SETA (Systems Engineering and Technical Assistance) support contracts within DHS or the Coast Guard would provide better insight into whether the pricing is competitive for the scope of work. The contract type (labor hours) allows for flexibility but can also lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method is unusual and suggests that while initially intended for broad competition, certain sources may have been excluded prior to the final award. This could be due to specific requirements, past performance issues, or other factors. The limited nature of the competition, even if it started as full and open, might impact the final price and the range of innovative solutions considered.

Taxpayer Impact: Taxpayers may not have benefited from the full spectrum of competitive pricing and innovation that a truly open competition would typically yield. The exclusion of sources, even if justified, can lead to a less competitive environment and potentially higher costs.

Public Impact

The U.S. Coast Guard benefits from specialized administrative and management consulting services to support its operations. These services likely contribute to the efficiency and effectiveness of Coast Guard programs and administrative functions. The contract's impact is primarily internal to the Department of Homeland Security, specifically within the U.S. Coast Guard. Workforce implications are likely related to the contractor's personnel supporting government staff, rather than direct government hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on fairness.
The long performance period (over 1800 days) increases the risk of scope creep or changing requirements not being adequately addressed in the contract.
Lack of small business set-aside may limit opportunities for smaller, specialized firms in this contracting space.

Positive Signals

The contract is awarded to a specific company, indicating a clear recipient for the funds and services.
The use of a delivery order suggests it's part of a potentially established IDIQ vehicle, which can streamline future procurements.
The contract specifies administrative management and general management consulting, indicating a defined service area.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services, often using them for program management, strategic planning, and operational efficiency improvements. The market for administrative and management consulting is vast, with numerous large and small businesses competing for federal contracts. Benchmarking against similar contracts within the Department of Homeland Security or other defense and civilian agencies would be necessary for a precise value assessment.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This means the competition was open to all eligible sources, including large businesses. While this maximizes the pool of potential offerors, it may reduce direct opportunities for small businesses unless they are prime contractors on larger vehicles or are involved as subcontractors. The impact on the small business ecosystem is neutral to slightly negative in terms of direct prime contract awards for this specific requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officer and program managers. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Accountability measures are typically embedded in the contract's performance work statement (PWS) and require the contractor to meet specific deliverables and service levels. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

SETA Support Contracts
DHS Administrative Support
Coast Guard IT and Management Services
Management and Consulting Services
Federal Administrative Services

Risk Flags

Competition Level: 'Limited' due to 'Exclusion of Sources'
Contract Duration: Long-term performance period increases risk of obsolescence or scope creep.
Contractor Experience: Potentially limited track record for this specific contract vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.3 million to SUNSTONE TECHNICAL SOLUTIONS, LLC. TO 0003 - OPC SETA SUPPORT

Who is the contractor on this award?

The obligated recipient is SUNSTONE TECHNICAL SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-09-27.

What specific administrative and management consulting services are being provided under this contract?

The contract details indicate the North American Industry Classification System (NAICS) code 541611, which covers Administrative Management and General Management Consulting Services. While the specific tasks are not detailed in the provided data, these services typically encompass areas such as organizational structure analysis, process improvement, strategic planning support, policy development assistance, and general administrative management functions. For the U.S. Coast Guard, this could involve supporting various operational or administrative departments with efficiency studies, resource management advice, or program support functions that do not require specialized technical engineering or IT expertise. The contract type, 'LABOR HOURS', suggests that the contractor will be paid based on the hours worked by their personnel, implying a focus on personnel-based services rather than fixed-price deliverables.

How does the contract value of $2.26 million compare to similar administrative support contracts within DHS?

Comparing the $2.26 million contract value for Sunstone Technical Solutions requires context regarding the contract's duration and scope. The contract has a substantial performance period of 1837 days (approximately 5 years). For administrative and general management consulting services within the Department of Homeland Security (DHS), this value is moderate. Larger, more complex contracts for similar services can range from tens to hundreds of millions of dollars over similar or longer periods, often involving broader strategic initiatives or support across multiple agencies. Conversely, smaller, task-specific contracts might be in the hundreds of thousands. Without knowing the specific deliverables and the number of personnel assigned, it's difficult to definitively benchmark. However, the value appears reasonable for sustained, long-term administrative support services provided by a single contractor over a five-year period.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) award type presents unique risks. While it aims to leverage the benefits of full and open competition, the 'exclusion of sources' component implies that certain potential bidders were disqualified or chose not to bid due to specific pre-award actions or requirements. This could stem from stringent pre-qualification criteria, specific past performance requirements, or even proprietary technology needs. The risk for the government is that this exclusion might inadvertently limit the competitive pool, potentially leading to higher prices or fewer innovative solutions than a truly unrestricted competition. For the excluded sources, the risk is losing out on potential business. For the awarded contractor, the risk is that the exclusion might be challenged, although this is less common post-award.

What is the track record of Sunstone Technical Solutions, LLC, in performing federal contracts?

Based on the provided data, Sunstone Technical Solutions, LLC, was awarded this contract with a start date of September 16, 2021, and an end date of September 27, 2026. This suggests the company is relatively new to performing federal contracts of this magnitude, or at least this specific contract vehicle. Without access to broader contract databases or performance reviews (like Contractor Performance Assessment Reporting System - CPARS), it's difficult to assess their overall track record. However, the award itself indicates they met the requirements for this particular solicitation. Further investigation into their past performance on other contracts, if any, would be necessary for a comprehensive assessment of their capabilities and reliability.

How does the duration of the contract (1837 days) impact its overall value and risk profile?

The contract duration of 1837 days (approximately five years) significantly impacts its value and risk profile. From a value perspective, a longer duration allows for sustained support, potentially leading to greater efficiencies and institutional knowledge gained by the contractor. It can also provide budget predictability for the agency. However, it increases the risk of the contract becoming outdated if requirements evolve significantly over time. Risks include potential cost growth due to inflation or unforeseen changes, scope creep if not managed tightly, and the possibility that the contractor's solutions may become less relevant by the end of the period. For the government, managing a long-term contract requires continuous oversight to ensure continued value and alignment with agency goals.

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

The designation 'DELIVERY ORDER' signifies that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions, including pricing structures and performance standards, under which multiple delivery or task orders can be issued over a specified period. This approach allows agencies to procure goods or services as needed, providing flexibility and streamlining the acquisition process compared to issuing separate contracts for each requirement. The significance here is that Sunstone Technical Solutions likely secured a position on a broader IDIQ vehicle, and this $2.26 million award represents one specific call against that vehicle for the U.S. Coast Guard's administrative support needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2389 CAPE ARBOR DR, VIRGINIA BEACH, VA, 23451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $3,818,246

Exercised Options: $2,266,099

Current Obligation: $2,266,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02321DPAP02500

IDV Type: IDC

Timeline