Navy's $11.3M Career Center Support Contract Awarded to Strategic Data Systems, Inc

Contract Overview

Contract Amount: $11,329,648 ($11.3M)

Contractor: Strategic Data Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-10-31

Contract Duration: 578 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MY NAVY CAREER CENTER (MNCC) TIER 1 SUPPORT SERVICES

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38055

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to STRATEGIC DATA SYSTEMS, INC. for work described as: MY NAVY CAREER CENTER (MNCC) TIER 1 SUPPORT SERVICES Key points: 1. Contract aims to enhance Tier 1 support services for the My Navy Career Center. 2. Strategic Data Systems, Inc. secured the award, indicating a focus on established providers. 3. The contract duration of 578 days suggests a medium-term operational need. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 5. This award falls under Engineering Services, highlighting the technical nature of the support. 6. The contract was awarded via full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $11.3 million over approximately 1.5 years for Tier 1 support services appears reasonable when benchmarked against similar IT support contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while offering flexibility, necessitates diligent oversight to ensure costs remain within expected parameters. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bids suggests a healthy level of interest and competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from a wide range of potential solutions and competitive pricing, as multiple companies vied for the contract.

Public Impact

Sailors and Navy personnel will benefit from improved Tier 1 support services for career-related inquiries. Services delivered include technical assistance and information dissemination for the My Navy Career Center. The geographic impact is likely nationwide, supporting the Navy's distributed workforce. Workforce implications include the potential for employment opportunities within Strategic Data Systems, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single contractor for critical support services can create vendor lock-in.
The effectiveness of Tier 1 support is highly dependent on the contractor's personnel quality and training.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Strategic Data Systems, Inc., likely has relevant experience in government IT support.
A defined contract period allows for performance evaluation and potential re-competition.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on customer support and help desk operations. The market for government IT support services is substantial, with agencies increasingly outsourcing these functions to specialized contractors. Benchmarks for similar contracts often vary based on scope, complexity, and service level agreements, but the $11.3 million value for a 1.5-year duration is within a typical range for comprehensive Tier 1 support.

Small Business Impact

The contract does not indicate a small business set-aside, and the awardee, Strategic Data Systems, Inc., is not explicitly identified as a small business. This suggests that the primary focus was on securing the best technical solution and price through open competition. There may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Performance will be monitored against the contract's statement of work and service level agreements. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

My Navy Career Center (MNCC) Operations
Navy IT Support Services
Tier 1 Help Desk Contracts
Department of Defense IT Services

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost escalations.
Performance quality is highly dependent on the contractor's personnel and adherence to service level agreements.
Potential for vendor lock-in if not managed with future re-competition in mind.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to STRATEGIC DATA SYSTEMS, INC.. MY NAVY CAREER CENTER (MNCC) TIER 1 SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STRATEGIC DATA SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-10-31.

What is the track record of Strategic Data Systems, Inc. in providing similar IT support services to the federal government?

Strategic Data Systems, Inc. has a history of performing IT support and engineering services for various government agencies. While specific details on past performance for My Navy Career Center (MNCC) Tier 1 support are not provided in this data, their contract history suggests experience in areas relevant to this award. A deeper dive into their past performance evaluations, contract closeouts, and any reported issues would provide a more comprehensive understanding of their capabilities and reliability in delivering similar services. This would include examining their performance on cost, schedule, technical execution, and customer satisfaction in previous engagements.

How does the awarded value of $11.3 million compare to similar Tier 1 support contracts for other military branches or federal agencies?

The awarded value of $11.3 million for approximately 1.5 years of Tier 1 support services for the My Navy Career Center (MNCC) appears to be within a reasonable range when compared to similar contracts. For instance, other branches like the Army or Air Force often award contracts for help desk and IT support services that can range from a few million to tens of millions of dollars annually, depending on the scope, number of users supported, and complexity of the systems. The cost-plus-fixed-fee (CPFF) structure allows for some variability, but the competitive nature of the award suggests that the pricing was deemed fair and reasonable by the Department of the Navy at the time of award. Benchmarking against contracts with similar service level agreements and user bases would provide a more precise comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government may end up paying more than anticipated. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clear definition of allowable costs in the contract, and strong program management to ensure efficient service delivery. The fixed fee incentivizes the contractor to control costs to some extent, as their profit is capped. Regular performance reviews and adherence to the statement of work are crucial for managing risks.

What is the expected impact of this contract on the efficiency and effectiveness of Navy personnel accessing career services?

This contract is expected to significantly improve the efficiency and effectiveness of Navy personnel accessing career services by ensuring robust Tier 1 support. This means that sailors and other personnel seeking assistance with career-related matters, such as pay, benefits, training, or administrative processes, should receive timely and accurate responses to their initial inquiries. Improved support can reduce frustration, save personnel valuable time that would otherwise be spent navigating complex systems or waiting for assistance, and ultimately contribute to higher morale and better retention. The success will depend on the contractor's ability to meet defined service level agreements for response times and resolution rates.

How does the competition level (4 bidders) for this contract influence the potential value and innovation received by the Navy?

A competition level with four bidders generally indicates a healthy market response and provides a solid basis for price discovery. This level of competition suggests that multiple firms found the opportunity attractive and believed they could offer a competitive solution. It increases the likelihood that the Navy received proposals that are both cost-effective and technically sound. While more bidders could potentially drive prices lower or foster greater innovation, four bidders often strike a good balance between ensuring competition and managing the source selection process efficiently. The Navy can leverage this competition to negotiate favorable terms and potentially encourage innovative approaches within the defined scope of work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018924R3088

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1854 KELLER PKWY STE A, KELLER, TX, 76248

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

Financial Breakdown

Contract Ceiling: $250,335,587

Exercised Options: $45,318,593

Current Obligation: $11,329,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8581

IDV Type: IDC

Timeline