DoD's $13.9M TISS Contract with Strategic Technology Institute Inc. Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $13,911,337 ($13.9M)

Contractor: Strategic Technology Institute Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-13

End Date: 2026-09-12

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL AND INDUSTRIAL SUPPORT SERVICES (TISS)

Place of Performance

Location: KEYPORT, KITSAP County, WASHINGTON, 98345

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to STRATEGIC TECHNOLOGY INSTITUTE INC for work described as: TECHNICAL AND INDUSTRIAL SUPPORT SERVICES (TISS) Key points: 1. The contract's value of $13.9 million over five years warrants a closer look at its cost-effectiveness. 2. While awarded under full and open competition, the specific impact of this method on price discovery needs evaluation. 3. Potential risks include ensuring the services provided align with evolving technical and industrial support needs. 4. The IT sector context suggests a need for agile and adaptable service providers.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial projections. Benchmarking against similar engineering services contracts is crucial for validating the overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the effectiveness of this competition in achieving the best value for the government depends on the number and quality of bids received.

Taxpayer Impact: Taxpayer funds are being utilized for essential technical and industrial support services. Ensuring competitive pricing and efficient service delivery is key to maximizing the value of this expenditure.

Public Impact

Ensures critical technical and industrial support for Department of the Navy operations. Supports technological advancement and maintenance within defense infrastructure. Potential for job creation within the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Cost control in CPFF contracts
Ensuring competitive pricing effectiveness

Positive Signals

Full and open competition awarded
Long-term support contract

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for supporting complex government operations, particularly in defense. Benchmarks for similar contracts often vary widely based on scope and duration, making direct comparisons challenging without detailed service breakdowns.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses, suggesting that the primary focus was on securing specialized technical and industrial support services from larger, potentially more capable entities.

Oversight & Accountability

Oversight will be critical to ensure that the Cost Plus Fixed Fee structure does not lead to cost overruns and that the services delivered meet the Department of the Navy's evolving requirements throughout the contract period.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost control in CPFF contracts
Ensuring competitive pricing effectiveness
Potential for scope creep
Long-term contract management complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to STRATEGIC TECHNOLOGY INSTITUTE INC. TECHNICAL AND INDUSTRIAL SUPPORT SERVICES (TISS)

Who is the contractor on this award?

The obligated recipient is STRATEGIC TECHNOLOGY INSTITUTE 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 $13.9 million.

What is the period of performance?

Start: 2021-09-13. End: 2026-09-12.

How effectively does the current pricing structure ensure value for money given the Cost Plus Fixed Fee (CPFF) arrangement?

The CPFF structure inherently carries a risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. Effective value for money hinges on robust government oversight, stringent cost auditing, and clear performance metrics to ensure the contractor remains incentivized to control expenses while delivering quality services. Regular benchmarking against industry standards is essential to validate the reasonableness of incurred costs and the fixed fee.

What are the primary risks associated with the 'full and open competition' award method for this specific contract?

While 'full and open competition' is generally preferred, risks can include a lack of highly specialized bidders if the requirements are niche, potentially leading to fewer competitive offers than anticipated. There's also a risk that the lowest bidder may not offer the best long-term value if technical capabilities or past performance are not adequately weighted. Ensuring the solicitation clearly defines essential requirements and evaluation criteria is key to mitigating these risks.

How will the effectiveness of the technical and industrial support services be measured and ensured over the contract's duration?

Effectiveness will be measured through key performance indicators (KPIs) tied to service delivery, technical performance, and adherence to project milestones. Regular performance reviews, user feedback mechanisms, and quality assurance checks will be implemented. The government will monitor the contractor's ability to adapt to changing technological landscapes and operational needs, ensuring the support remains relevant and impactful throughout the contract's five-year term.

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: N0025321R3000

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6000 EXECUTIVE BLVD SUITE 205, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,723,307

Exercised Options: $36,376,311

Current Obligation: $13,911,337

Actual Outlays: $935,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8586

IDV Type: IDC

Timeline