DoD's $539M Translation Services Contract Awarded to Mission Essential Group Amidst Full and Open Competition
Contract Overview
Contract Amount: $538,914,429 ($538.9M)
Contractor: THE Mission Essential Group, LLC
Awarding Agency: Department of Defense
Start Date: 2010-03-18
End Date: 2011-03-18
Contract Duration: 365 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TRANSLATION AND INTERPRETATION SERVICES
Place of Performance
Location: NEW ALBANY, FRANKLIN County, OHIO, 43054
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $538.9 million to THE MISSION ESSENTIAL GROUP, LLC for work described as: TRANSLATION AND INTERPRETATION SERVICES Key points: 1. Significant contract value of $539 million for translation and interpretation services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. Services are essential for military operations, particularly in diverse linguistic environments.
Value Assessment
Rating: good
The contract value of $539 million for translation services appears substantial. Benchmarking against similar large-scale language support contracts would be necessary for a precise assessment, but the scale suggests a significant investment in critical capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for selecting the best value provider. This method generally leads to more competitive pricing and a wider pool of potential contractors.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures critical communication capabilities for military personnel operating in foreign countries. Supports intelligence gathering and operational effectiveness through accurate language translation. Facilitates smoother interactions with local populations, potentially improving mission outcomes. Provides employment opportunities within the translation and interpretation sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require diligent monitoring to ensure costs remain reasonable and award fees are justified.
- Potential for scope creep or unmanaged cost overruns in long-term service contracts.
- Reliance on a single contractor for such a critical service could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, suggesting a competitive price discovery process.
- Contract duration and delivery orders allow for flexibility in meeting evolving mission needs.
- The scale of the contract indicates a significant commitment to essential operational support.
Sector Analysis
The IT and Professional Services sector, particularly for specialized linguistic support, is crucial for government operations. Spending benchmarks for translation and interpretation services can vary widely based on complexity, volume, and security requirements.
Small Business Impact
While this contract was awarded to a large prime contractor, opportunities for small businesses may exist through subcontracting. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from the Department of Defense to ensure contractor performance aligns with objectives and that award fees are appropriately earned and justified.
Related Government Programs
- Translation and Interpretation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns under Cost Plus Award Fee structure.
- Reliance on a single prime contractor for critical services.
- Need for continuous monitoring of performance and cost justification.
- Ensuring quality and accuracy of translation and interpretation services.
Tags
translation-and-interpretation-services, department-of-defense, oh, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $538.9 million to THE MISSION ESSENTIAL GROUP, LLC. TRANSLATION AND INTERPRETATION SERVICES
Who is the contractor on this award?
The obligated recipient is THE MISSION ESSENTIAL GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $538.9 million.
What is the period of performance?
Start: 2010-03-18. End: 2011-03-18.
What was the competitive landscape like during the full and open competition for this contract, and how did it influence the final price?
The full and open competition likely involved multiple bidders vying for the contract. This competitive pressure typically drives down prices as contractors seek to offer the most attractive terms. The specific number of bidders and their proposals would determine the extent of price discovery and the final negotiated cost, ensuring taxpayer value.
What are the primary risks associated with a Cost Plus Award Fee contract for translation services, and how are they mitigated?
Risks include potential cost overruns if expenses are not closely managed and the possibility of inflated award fees if performance metrics are not rigorously assessed. Mitigation involves strong government oversight, clear performance standards, and thorough auditing of costs and earned fees to ensure accountability and value for money.
How effectively does this contract support the Department of Defense's mission-critical communication needs in diverse operational environments?
The substantial value and full and open competition suggest a strategic investment in essential communication capabilities. The contract's effectiveness hinges on the contractor's ability to provide accurate, timely, and culturally appropriate translation and interpretation services across various demanding scenarios, directly impacting operational success and safety.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911W405R0006
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 4249 EASTON WAY, COLUMBUS, OH, 43219
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $538,914,429
Exercised Options: $538,914,429
Current Obligation: $538,914,429
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911W407D0010
IDV Type: IDC
Timeline
Start Date: 2010-03-18
Current End Date: 2011-03-18
Potential End Date: 2011-03-18 00:00:00
Last Modified: 2016-09-09
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