DoD awards $8.2M for Dive Locker & Maritime services to STS Government Solutions, LLC

Contract Overview

Contract Amount: $8,242,736 ($8.2M)

Contractor: STS Government Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-22

End Date: 2026-12-31

Contract Duration: 1,470 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT PROVIDES DIVE LOCKER AND MARITIME (DL&M) SERVICES (MAINTENANCE, REPAIR, & TRAINING) IAW WITH USN/AF MAJCOM STANDARDS TO SELECTED RESCUE SQUADRONS & 350TH SPECIAL WARFARE TRAINING SQUADRON, DET 1

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to STS GOVERNMENT SOLUTIONS, LLC for work described as: CONTRACT PROVIDES DIVE LOCKER AND MARITIME (DL&M) SERVICES (MAINTENANCE, REPAIR, & TRAINING) IAW WITH USN/AF MAJCOM STANDARDS TO SELECTED RESCUE SQUADRONS & 350TH SPECIAL WARFARE TRAINING SQUADRON, DET 1 Key points: 1. Contract focuses on specialized maintenance, repair, and training for rescue and special warfare squadrons. 2. The award is a definitive contract with a firm-fixed-price structure. 3. STS Government Solutions, LLC is the sole awardee for these critical support services. 4. Services are aligned with USN/AF MAJCOM standards, indicating adherence to established military protocols. 5. The contract duration extends through December 2026, ensuring continuity of essential operations. 6. Virginia is the state associated with the contractor's location.

Value Assessment

Rating: fair

The contract value of $8.2 million for a period of approximately four years appears reasonable for specialized maritime support services. Benchmarking against similar contracts for dive locker maintenance and training is challenging due to the niche nature of the services. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if costs remain within expectations. Further analysis would require comparing the scope of services and deliverables to other contracts of a similar nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgent needs preclude a competitive process. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids were solicited. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can reduce the government's ability to secure the best possible pricing through competitive bidding.

Public Impact

Specialized dive locker and maritime services will be provided to selected rescue squadrons and the 350th Special Warfare Training Squadron. This ensures critical training and maintenance support for personnel involved in high-risk rescue and special operations. The services are essential for maintaining the operational readiness of Air Force units. The contract supports specialized technical skills and training within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can limit market access for other qualified small businesses.
Dependence on a single contractor for critical services poses a risk if performance issues arise.

Positive Signals

Contract ensures continuity of essential specialized training and maintenance.
Firm-fixed-price structure shifts cost risk to the contractor.
Services are aligned with established USN/AF MAJCOM standards, indicating quality assurance.

Sector Analysis

The contract falls within the broader "Other Support Services" category, specifically focusing on specialized maritime and dive operations. This is a niche sector within government contracting, often requiring unique expertise and certifications. The market size for such highly specialized services is relatively small, typically dominated by a few experienced providers. This contract represents a direct investment in maintaining the operational capabilities of elite military units, ensuring they have the necessary equipment and training support.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award, it bypasses the typical competitive processes where small business set-asides are often implemented. The impact on the small business ecosystem is minimal in this specific instance, as the award was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by capping the government's financial liability. Transparency would be enhanced by reviewing the justification for the sole-source award and any performance metrics or reporting requirements outlined in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Warfare Training Programs
Search and Rescue Operations Support
Military Dive Training and Equipment Maintenance
Air Force Special Operations Command Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for contractor performance issues on critical specialized services.
Limited transparency into the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to STS GOVERNMENT SOLUTIONS, LLC. CONTRACT PROVIDES DIVE LOCKER AND MARITIME (DL&M) SERVICES (MAINTENANCE, REPAIR, & TRAINING) IAW WITH USN/AF MAJCOM STANDARDS TO SELECTED RESCUE SQUADRONS & 350TH SPECIAL WARFARE TRAINING SQUADRON, DET 1

Who is the contractor on this award?

The obligated recipient is STS GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2022-12-22. End: 2026-12-31.

What is the historical spending pattern for Dive Locker and Maritime (DL&M) services by the Department of the Air Force?

Analyzing historical spending for DL&M services by the Department of the Air Force requires access to detailed federal procurement databases. Without specific historical data for this niche service category, it's difficult to provide precise figures. However, spending in this area is generally tied to the operational tempo and training requirements of specialized units like rescue squadrons and special warfare training units. Fluctuations in budget allocations for training and readiness, as well as changes in the number of active squadrons requiring these services, would influence historical spending. The current $8.2 million award over approximately four years suggests a consistent, albeit specialized, need for these services.

What are the specific qualifications and certifications required for STS Government Solutions, LLC to perform these DL&M services?

The contract specifies that the DL&M services must be performed "IAW with USN/AF MAJCOM standards." This implies that STS Government Solutions, LLC must possess certifications and qualifications that meet or exceed the stringent requirements set by the U.S. Navy and Air Force Major Commands for dive operations, equipment maintenance, and training. These likely include certifications for dive supervisors, instructors, and technicians, as well as adherence to specific safety protocols (e.g., OSHA standards for commercial diving, military-specific dive safety regulations). The company's personnel would need to be proficient in maintaining and repairing specialized dive equipment, and delivering training that aligns with military operational needs and tactical scenarios. Verification of these qualifications would typically be part of the sole-source justification process.

How does the firm-fixed-price (FFP) contract type mitigate risks for the government in this sole-source award?

The firm-fixed-price (FFP) contract type is a key risk mitigation tool for the government, especially in a sole-source scenario. Under an FFP contract, the contractor (STS Government Solutions, LLC) is obligated to complete the work for a predetermined price, regardless of their actual costs. This means that any cost overruns incurred by the contractor are absorbed by them, not the government. This structure incentivizes the contractor to manage their costs efficiently and perform the work within the agreed-upon budget. For the government, it provides cost certainty and predictability, which is particularly valuable when competition is absent, as it helps to control the overall expenditure for these specialized DL&M services.

What is the potential impact of this contract on the readiness and effectiveness of the supported Air Force squadrons?

This contract is directly linked to the readiness and effectiveness of the supported Air Force squadrons, particularly those involved in rescue operations and special warfare training. By ensuring the availability of expert maintenance, repair, and training for dive locker and maritime equipment, the contract guarantees that critical gear is operational and that personnel are proficient in its use. This directly supports the ability of these squadrons to conduct their missions, whether it involves personnel recovery, special operations support, or advanced training scenarios. The continuity of these services, provided by a specialized contractor, helps maintain a high level of operational capability and reduces the risk of mission degradation due to equipment failure or lack of trained personnel.

Are there any alternative contractors capable of providing similar DL&M services, and why was this contract awarded solely to STS Government Solutions, LLC?

The determination that STS Government Solutions, LLC was the sole capable provider would stem from the justification for other than full and open competition (JOFOC). This justification typically outlines why only one source is reasonably capable of meeting the requirement. Reasons could include unique technical expertise, proprietary processes or equipment, existing infrastructure already in place with the government, or a critical need for immediate service continuity that only the incumbent or a highly specialized firm can fulfill. Without the specific JOFOC documentation, it's impossible to detail the exact reasons. However, for specialized services like DL&M, it's plausible that few companies possess the specific certifications, experience, and established relationships with the USN/AF MAJCOM standards required.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1826 N LOOP 1604 W STE 337G, SAN ANTONIO, TX, 78248

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,614,272

Exercised Options: $8,252,186

Current Obligation: $8,242,736

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline