DoD's $29M translation contract awarded to Mission Essential Group, LLC, with 6 bidders

Contract Overview

Contract Amount: $29,067,739 ($29.1M)

Contractor: THE Mission Essential Group, LLC

Awarding Agency: Department of Defense

Start Date: 2010-08-30

End Date: 2011-09-16

Contract Duration: 382 days

Daily Burn Rate: $76.1K/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: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to THE MISSION ESSENTIAL GROUP, LLC for work described as: TRANSLATION AND INTERPRETATION SERVICES Key points: 1. The contract value of approximately $29 million represents a significant investment in language services. 2. Competition dynamics indicate a healthy market for translation and interpretation services, with six bidders participating. 3. The Cost Plus Award Fee (CPAF) contract type suggests a focus on performance incentives. 4. This contract falls within the broader professional services sector, specifically supporting intelligence and operational needs. 5. The duration of the contract (382 days) points to a medium-term requirement for these services. 6. The award to a single entity, The Mission Essential Group, LLC, highlights their capability in this specialized field.

Value Assessment

Rating: good

The total award amount of $29,067,738.78 for translation and interpretation services over approximately one year appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale language support contracts is challenging without more granular data on service hours and complexity. However, the presence of six bidders suggests a competitive environment that likely helped to moderate pricing. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, which can be a value-driver in complex service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The participation of six bidders suggests a robust competitive landscape for these specialized language services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award. The competition level here is a positive indicator for value for money.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price for taxpayers. This approach ensures that the government is not locked into a single provider and can leverage market forces to achieve better value.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring real-time translation and interpretation for missions. Services delivered include critical language support, enabling effective communication in diverse operational environments. The geographic impact is likely global, supporting military operations and diplomatic engagements worldwide. Workforce implications include the employment of skilled linguists and translators, both domestically and potentially in deployed locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee (CPAF) contracts if not closely monitored.
Dependence on a single contractor for critical language services could pose a risk if performance degrades or capacity is stretched.
Ensuring consistent quality and accuracy across all translation and interpretation tasks is a perpetual challenge.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The presence of six bidders suggests a healthy market and contractor capability.
The Cost Plus Award Fee structure incentivizes contractor performance and quality, aligning contractor goals with government objectives.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on translation and interpretation. The market for these services is substantial, driven by government needs for intelligence, diplomacy, and operational support, as well as commercial demand for global business. Comparable spending benchmarks would typically be found within broader categories of "language services" or "linguistic support" across various federal agencies, with significant spending also seen in intelligence community contracts.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, The Mission Essential Group, LLC, is likely a mid-to-large-sized business given the contract value. However, large prime contracts often involve subcontracting opportunities for small businesses, particularly those with specialized linguistic skills. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor performance meets requirements. The Cost Plus Award Fee structure itself includes an oversight component where the 'award fee' is determined based on performance evaluations, providing a direct accountability measure.

Related Government Programs

Defense Language Institute Foreign Language Center
Intelligence Community Language Support Contracts
Department of State Language Services
Federal Bureau of Investigation Language Services

Risk Flags

Potential for cost growth under CPAF structure.
Contractor performance variability.
Dependence on specialized linguistic skills.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 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 $29.1 million.

What is the period of performance?

Start: 2010-08-30. End: 2011-09-16.

What is the historical spending trend for translation and interpretation services by the Department of the Army?

Analyzing historical spending trends for translation and interpretation services by the Department of the Army requires access to detailed federal procurement data over multiple fiscal years. Generally, demand for these services fluctuates based on global geopolitical events, deployment levels, and specific mission requirements. Agencies like the Army often have multi-year contracts with significant values, reflecting the ongoing need for linguistic support in various theaters of operation and intelligence gathering. Without specific data for this contract's predecessors or comparable contracts, it's difficult to establish a precise trend, but the consistent need suggests a stable, albeit potentially variable, spending pattern.

How does the performance of The Mission Essential Group, LLC on this contract compare to industry benchmarks?

Assessing the performance of The Mission Essential Group, LLC on this specific contract against industry benchmarks requires access to performance metrics, award fee determinations, and any past performance evaluations. Since this data is often proprietary or not publicly disclosed in detail, a direct comparison is challenging. However, the fact that the contract was awarded and presumably completed suggests a baseline level of acceptable performance. Factors like on-time delivery, accuracy of translations, and responsiveness to task orders would be key performance indicators. If the contractor consistently met or exceeded requirements, particularly in achieving award fee targets under the CPAF structure, it would indicate strong performance relative to expectations.

What are the primary risks associated with relying on a single contractor for critical translation and interpretation services?

The primary risks associated with relying on a single contractor for critical translation and interpretation services include potential disruptions to service delivery if the contractor faces financial instability, labor shortages, or management issues. There's also a risk of reduced innovation and potentially escalating costs over time due to a lack of ongoing competitive pressure. Furthermore, if the contractor's personnel security or clearance issues arise, it could severely impact the ability to provide services in sensitive environments. Mitigating these risks often involves robust contract oversight, clear performance standards, and contingency planning by the government.

What is the typical profit margin for companies providing translation and interpretation services to the federal government?

Typical profit margins for companies providing translation and interpretation services to the federal government can vary significantly based on contract type, service complexity, competition level, and the contractor's overhead structure. Cost-plus contracts, like the CPAF used here, allow for profit to be calculated on top of allowable costs, often with an incentive fee component. While specific margins are rarely disclosed publicly, industry estimates for professional services can range from 5% to 15% net profit, with award fees potentially pushing this higher for exceptional performance. Factors such as the need for highly specialized linguists, security clearances, and 24/7 availability can influence pricing and, consequently, profit margins.

How does the contract type (Cost Plus Award Fee) influence the government's cost and the contractor's incentive?

The Cost Plus Award Fee (CPAF) contract type is designed to provide flexibility in scope and incentivize contractor performance. For the government, it means that the final cost is not fixed upfront but is based on allowable costs plus a negotiated fee, a portion of which is an 'award fee' earned based on performance against defined criteria. This can lead to higher costs than a firm-fixed-price contract if costs are not well-managed or if performance targets are consistently met or exceeded. For the contractor, the CPAF structure offers the potential for a higher overall fee (profit) by achieving superior performance, thereby aligning their incentives with the government's desire for quality service delivery and mission success.

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) › ADMINISTRATIVE SUPPORT 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: $29,067,739

Exercised Options: $29,067,739

Current Obligation: $29,067,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W407D0010

IDV Type: IDC

Timeline