US Coast Guard awards $10.8M for helpdesk support, raising questions on value and competition

Contract Overview

Contract Amount: $10,782,329 ($10.8M)

Contractor: STG LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-08-15

End Date: 2013-02-28

Contract Duration: 2,024 days

Daily Burn Rate: $5.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE TO PROVIDE HELPDESK SUPPORT SERVICES TO THE US COAST GUARD'S OPERATIONS SYSTEMS CENTER LOCATED IN KEARNEYSVILLE, WV.

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.8 million to STG LLC for work described as: SERVICE TO PROVIDE HELPDESK SUPPORT SERVICES TO THE US COAST GUARD'S OPERATIONS SYSTEMS CENTER LOCATED IN KEARNEYSVILLE, WV. Key points: 1. The contract awarded to STG LLC for helpdesk support services for the US Coast Guard's Operations Systems Center appears to be a competitive delivery order. 2. The total award value is $10,782,328.64, with a reported obligated amount of $5,327. 3. The North American Industry Classification System (NAICS) code is 517110 (Wired Telecommunications Carriers), which may not directly align with helpdesk support services. 4. The contract duration spans from August 15, 2007, to February 28, 2013.

Value Assessment

Rating: questionable

The obligated amount of $5,327 against a total award of over $10.7 million suggests significant unexercised contract value. Without more data on task orders and actual spending, assessing the value for money is difficult. The discrepancy between the total award and obligated amount warrants further investigation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was awarded as a 'COMPETITIVE DELIVERY ORDER'. While the award type indicates competition, the specific details of the competition, such as the number of bids received and the evaluation process, are not provided. The impact on price discovery is therefore unclear.

Taxpayer Impact: The total award value of $10.8 million represents taxpayer funds. The effectiveness of the competition and the value achieved will determine the ultimate impact on taxpayers.

Public Impact

Ensures critical IT support for US Coast Guard operations. Potential for inefficient spending if the full award value is not utilized effectively. The NAICS code mismatch could indicate a misclassification, potentially affecting future procurement strategies. Long contract duration (over 5 years) may limit flexibility for adopting newer technologies or service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NAICS code mismatch
Low obligated amount vs. total award
Lack of detailed competition information

Positive Signals

Awarded via competitive process
Provides essential operational support

Sector Analysis

The IT services sector, particularly helpdesk support, is a common area of government spending. Benchmarks for such services vary widely based on scope, complexity, and service level agreements. This contract falls within the broader IT services category, but the specific nature of Coast Guard operations systems may require specialized support.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The data provided does not offer insights into the specific oversight mechanisms employed for this contract. Standard government oversight practices would typically involve contract performance reviews, financial audits, and compliance checks to ensure accountability.

Related Government Programs

Wired Telecommunications Carriers
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential misclassification of services under NAICS code.
Significant gap between total award and obligated amount.
Lack of detailed information on the competitive process.
Long contract duration may not reflect current technological needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.8 million to STG LLC. SERVICE TO PROVIDE HELPDESK SUPPORT SERVICES TO THE US COAST GUARD'S OPERATIONS SYSTEMS CENTER LOCATED IN KEARNEYSVILLE, WV.

Who is the contractor on this award?

The obligated recipient is STG 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 $10.8 million.

What is the period of performance?

Start: 2007-08-15. End: 2013-02-28.

What was the actual utilized value of the contract, given the significant difference between the total award and the obligated amount?

The provided data shows a total award of $10,782,328.64 and an obligated amount of $5,327. This substantial discrepancy suggests that either the contract was significantly underutilized, or the obligated amount represents only an initial funding allocation. Without further details on task orders and actual expenditures, the precise utilized value remains unknown, making a definitive value assessment challenging.

How did the competitive delivery order process ensure optimal pricing and service quality for helpdesk support?

While designated as 'COMPETITIVE DELIVERY ORDER', the provided data lacks specifics on the bidding process, number of competitors, and evaluation criteria. Effective competition typically drives down prices and improves service quality through market forces. The absence of these details prevents a thorough assessment of whether this process achieved optimal outcomes for the US Coast Guard and taxpayers.

Is the NAICS code 517110 (Wired Telecommunications Carriers) an appropriate classification for helpdesk support services, and what are the implications?

The NAICS code 517110 is primarily associated with telecommunications infrastructure and services, not typically with IT helpdesk support. This potential misclassification could affect data aggregation, market analysis, and future procurement planning. It raises questions about the accuracy of the procurement data and whether the contract was appropriately categorized for its intended services.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCGG3-07-R-TWV342

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11710 PLAZA AMERICA DR, RESTON, VA, 11

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $16,310,241

Exercised Options: $10,782,329

Current Obligation: $10,782,329

Parent Contract

Parent Award PIID: HSHQDC06D00051

IDV Type: IDC

Timeline