DoD's $8.46M IT support contract awarded to Stellar Innovations & Solutions Inc. for enterprise database infrastructure

Contract Overview

Contract Amount: $8,462,657 ($8.5M)

Contractor: Stellar Innovations & Solutions Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-11-30

Contract Duration: 698 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATABASE INFRASTRUCTURE SERVICES SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to STELLAR INNOVATIONS & SOLUTIONS INC. for work described as: ENTERPRISE DATABASE INFRASTRUCTURE SERVICES SUPPORT Key points: 1. Contract value appears reasonable given the scope of enterprise database infrastructure support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of nearly two years indicates a need for sustained support. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. This contract falls within the 'Other Computer Related Services' NAICS code, a common area for IT support. 6. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's total value of $8.46 million over approximately two years suggests a moderate annual spend for enterprise database infrastructure support. Benchmarking against similar contracts for large-scale IT infrastructure services indicates that this pricing is within a competitive range, especially considering the specialized nature of database support. The firm fixed-price structure further enhances value by capping government liability and incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 117 bids indicates a highly competitive environment. Such a large number of bidders typically drives down prices and encourages innovation as contractors vie for the award, suggesting a strong price discovery mechanism was in play.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable offeror.

Public Impact

The Department of Defense benefits from enhanced enterprise database infrastructure, crucial for operational efficiency and data management. Services delivered include essential support for maintaining and optimizing critical database systems. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its various commands and agencies. Workforce implications include the employment of skilled IT professionals specializing in database administration and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical database infrastructure could pose a risk if performance degrades.
Ensuring continued alignment with evolving DoD cybersecurity requirements will be crucial.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a strong market offering and competitive pricing.
The contractor, Stellar Innovations & Solutions Inc., has experience in IT services, as indicated by the award.

Sector Analysis

The IT services sector, particularly focusing on database infrastructure and support, is a significant component of federal spending. This contract fits within the broader category of IT support services, which includes a wide range of activities from software development to network management. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Comparable spending benchmarks for enterprise-level IT support often run into millions of dollars annually, making this $8.46 million award for a two-year period appear aligned with industry norms for substantial government IT needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Stellar Innovations & Solutions Inc., a single entity, suggests that the primary focus was on securing the best overall offer through full and open competition rather than prioritizing small business participation through set-asides. This may limit direct opportunities for small businesses on this specific contract, though they may participate as subcontractors if the prime contractor chooses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Enterprise IT Services
Defense Information Systems Agency (DISA) Contracts
IT Infrastructure Modernization Programs
Database Management Services
Federal IT Support Contracts

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Reliance on contractor expertise could lead to knowledge gaps if not managed.
Ensuring continuous compliance with evolving cybersecurity mandates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to STELLAR INNOVATIONS & SOLUTIONS INC.. ENTERPRISE DATABASE INFRASTRUCTURE SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is STELLAR INNOVATIONS & SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $8.5 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-11-30.

What is the track record of Stellar Innovations & Solutions Inc. in performing similar large-scale database infrastructure support contracts for the federal government?

Stellar Innovations & Solutions Inc. has been awarded federal contracts primarily within the IT services domain. While specific details on past performance for contracts of this exact scale and complexity are not fully elaborated in the provided data, the award itself suggests they possess the necessary qualifications and experience to undertake enterprise database infrastructure support. Further analysis would involve reviewing their contract history in FPDS for similar projects, including contract values, durations, and performance ratings, to ascertain their demonstrated capability in managing large, critical IT infrastructure.

How does the awarded price of $8.46 million compare to market rates for similar enterprise database infrastructure support services?

The awarded price of $8.46 million over approximately 23 months (January 2025 - November 2026) equates to an average annual cost of roughly $4.4 million. This figure appears competitive within the federal IT services market for supporting enterprise-level database infrastructure. Factors such as the specific technologies supported, the level of service required (e.g., 24/7 support, specialized administration), and the geographic location of services influence market rates. Given the full and open competition with 117 bids, it is reasonable to assume this price reflects a competitive market assessment.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance issues, cybersecurity vulnerabilities, and contractor dependency. Performance risks are mitigated by the firm fixed-price contract type, which incentivizes timely and quality delivery. Cybersecurity risks require adherence to stringent DoD security protocols, likely detailed in the contract's performance work statement (PWS). Contractor dependency can be managed through knowledge transfer clauses and ensuring clear documentation, though the long-term nature of infrastructure support necessitates ongoing vigilance. The competitive award process itself helps mitigate risks by selecting a capable vendor.

How effective is the firm fixed-price contract type in ensuring value for money for this specific database support service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for well-defined services like database infrastructure support, as it shifts the risk of cost overruns to the contractor. This encourages the contractor to manage costs efficiently and deliver the required services within the agreed budget. For the DoD, this provides budget certainty and predictability. The effectiveness hinges on a clearly defined scope of work in the PWS; any ambiguities could lead to disputes or scope creep, potentially undermining the FFP's value proposition.

What are the historical spending patterns for enterprise database infrastructure support within the Department of Defense?

The Department of Defense is a significant spender on IT services, including enterprise database infrastructure support. Historical data indicates consistent and substantial investment in maintaining and modernizing its vast IT systems. Spending in this category often fluctuates based on modernization initiatives, cybersecurity upgrades, and the lifecycle of existing systems. The total annual spend can range from hundreds of millions to billions of dollars across various agencies and contracts, reflecting the critical nature of data management and IT infrastructure to national security operations.

What is the significance of the 'Other Computer Related Services' NAICS code (541519) in the context of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide array of IT services not classified under more specific codes. For this contract, it signifies that the services provided likely involve a combination of IT support, potentially including database administration, system integration, IT consulting, and infrastructure management that doesn't fit neatly into categories like software publishing or computer systems design. This code is frequently used for complex IT support contracts where the scope is diverse and involves multiple facets of IT service delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470924Q0022

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3131 ELBEE RD, MORAINE, OH, 45439

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,588,841

Exercised Options: $8,462,657

Current Obligation: $8,462,657

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0006

IDV Type: IDC

Timeline