Dod's Mynavy Career Center Labor Support Contract Awarded to Strategic Data Systems, Inc. for $29.3M

Contract Overview

Contract Amount: $29,270,004 ($29.3M)

Contractor: Strategic Data Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-15

End Date: 2025-12-14

Contract Duration: 364 days

Daily Burn Rate: $80.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MYNAVY CAREER CENTER LABOR SUPPORT

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38055

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to STRATEGIC DATA SYSTEMS, INC. for work described as: MYNAVY CAREER CENTER LABOR SUPPORT Key points: 1. The contract value of $29.3M for a 1-year period suggests a significant investment in career center support services. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific exclusions. 3. The 'COST PLUS FIXED FEE' contract type carries inherent risk of cost overruns, requiring close monitoring. 4. The North American Industry Classification System (NAICS) code 561422 points to telemarketing and contact center services. 5. The contract's duration of 364 days aligns with typical service contract lengths. 6. The award to STRATEGIC DATA SYSTEMS, INC. warrants a review of their past performance and capacity for this scale of work.

Value Assessment

Rating: fair

Benchmarking the value of this $29.3M contract requires more granular data on the specific labor support services provided. However, for a 1-year contract of this nature, the total value appears substantial. Without comparable contract data for similar 'MYNAVY CAREER CENTER LABOR SUPPORT' functions, it is difficult to definitively assess value for money. The 'COST PLUS FIXED FEE' structure necessitates careful oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, certain sources were excluded from the outset. The number of bidders is not specified, but the exclusion of sources implies a potentially narrower competitive field than a truly 'full and open' competition. This could impact price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the exclusion of certain sources, potentially increasing the overall cost of the services.

Public Impact

Sailors and potential recruits will benefit from enhanced career support services, aiding in recruitment, retention, and career development. The services delivered likely include telemarketing, information dissemination, and potentially counseling related to naval careers. The geographic impact is likely focused on supporting Navy personnel and recruitment efforts nationwide, with potential call center operations in Tennessee. Workforce implications include the creation or maintenance of jobs within the contact center and telemarketing sector, both for the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS FIXED FEE' contract type can incentivize contractors to increase costs to maximize their fee, requiring robust cost controls.
The 'EXCLUSION OF SOURCES' in the competition raises questions about whether the most innovative or cost-effective solutions were considered.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the labor support.
The contractor's track record and past performance on similar large-scale support contracts need thorough vetting to mitigate execution risks.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple entities were considered.
The fixed fee component of the contract type provides some level of cost predictability for the government.
The award to STRATEGIC DATA SYSTEMS, INC. suggests they possess the capabilities to meet the government's requirements for this service.
The contract duration of one year allows for flexibility and reassessment of needs at its conclusion.

Sector Analysis

This contract falls within the Business Support Services sector, specifically focusing on contact centers and telemarketing. The market for these services is competitive, with numerous providers offering solutions to government and commercial clients. The Department of Defense is a significant consumer of such services to support its vast personnel and recruitment operations. Comparable spending benchmarks would typically be found within other large federal agencies utilizing similar call center and labor support functions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract award. This suggests that the primary focus was on full and open competition, potentially favoring larger, established contractors. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this critical function.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's Performance Work Statement (PWS), including service level agreements and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Recruiting Command Services
Defense Human Resources Activity Support
Department of Labor Career Services
Veteran Affairs Call Center Operations
General Services Administration Contact Center Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Exclusion of sources in competition may limit price discovery.
Contract performance metrics not detailed, making effectiveness assessment difficult.
Contractor's past performance and capacity for this scale of work require verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to STRATEGIC DATA SYSTEMS, INC.. MYNAVY CAREER CENTER LABOR SUPPORT

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 $29.3 million.

What is the period of performance?

Start: 2024-12-15. End: 2025-12-14.

What is the specific nature of the 'labor support' provided under this contract, and how does it align with the MYNAVY CAREER CENTER's mission?

The 'MYNAVY CAREER CENTER LABOR SUPPORT' contract, valued at approximately $29.3 million, is associated with NAICS code 561422, which covers Telemarketing Bureaus and Other Contact Centers. This suggests the labor support likely involves functions such as inbound/outbound calling, information dissemination, appointment scheduling, and potentially lead generation or follow-up related to Navy recruitment and career services. The MYNAVY CAREER CENTER's mission is to provide resources and guidance to active-duty personnel, reservists, veterans, and their families regarding career progression, education, training, and transition assistance. Therefore, the labor support likely entails personnel dedicated to operating call centers, managing communication platforms, and executing outreach campaigns to fulfill these mission objectives.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other contract types for similar labor support services, and what are the associated risks?

The 'COST PLUS FIXED FEE' (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved. In this case, it means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to 'Fixed-Price' contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns, as the contractor has less incentive to control costs beyond what is necessary to achieve the fixed fee. The primary risk for the government is that the final cost could significantly exceed initial estimates if costs are not meticulously monitored and controlled. This necessitates robust oversight from the contracting officer and program managers to ensure costs are reasonable and allocable to the contract.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the competitive landscape for this contract?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a nuanced approach to competition. Initially, the solicitation was intended for full and open competition, meaning all responsible sources were encouraged to submit offers. However, specific sources were subsequently excluded from this particular award action. This exclusion could be due to various reasons, such as prior performance issues, inability to meet specific technical requirements, or strategic decisions to focus on a particular segment of the market. While it still represents a competitive process, the exclusion of certain potential bidders might limit the breadth of competition and potentially impact the final price and innovation achieved compared to a truly unrestricted full and open competition.

What is the historical spending pattern for MYNAVY CAREER CENTER LABOR SUPPORT or similar services within the Department of the Navy?

Analyzing historical spending patterns for 'MYNAVY CAREER CENTER LABOR SUPPORT' or analogous services within the Department of the Navy is crucial for context. While specific historical data for this exact contract line item isn't provided, the $29.3 million award for a one-year period suggests a substantial and ongoing need for these services. Typically, such labor support contracts, especially those involving contact centers and telemarketing for large organizations like the Navy, can represent significant annual expenditures. Trends in defense spending, recruitment needs, and the outsourcing of support functions would influence these patterns. A deeper dive into previous contract awards for similar functions, potentially under different contract names or for different Navy bureaus, would reveal whether this $29.3 million figure represents an increase, decrease, or stable level of investment over time.

What are the potential risks associated with STRATEGIC DATA SYSTEMS, INC. as the awardee, considering their track record and the contract's nature?

Assessing the potential risks associated with STRATEGIC DATA SYSTEMS, INC. requires a review of their past performance, financial stability, and experience with similar government contracts, particularly those of this magnitude and complexity. Given the 'COST PLUS FIXED FEE' structure, risks include potential cost overruns if the contractor's cost management is inadequate. Furthermore, the 'EXCLUSION OF SOURCES' in the competition might suggest that other bidders were deemed more suitable or that STRATEGIC DATA SYSTEMS, INC. was selected from a narrowed pool. Without specific details on their track record, potential risks could encompass delivery delays, quality issues, or challenges in meeting performance metrics. A thorough pre-award assessment and ongoing contract management are essential to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018919RZ014

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: $29,270,004

Exercised Options: $29,270,004

Current Obligation: $29,270,004

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018920DZ003

IDV Type: IDC

Timeline