State Department awards $13.1M contract for quality assurance liaison support to Federal Miracle Tech LLC

Contract Overview

Contract Amount: $13,107,445 ($13.1M)

Contractor: Federal Miracle Tech LLC

Awarding Agency: Department of State

Start Date: 2022-02-14

End Date: 2027-03-31

Contract Duration: 1,871 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: QUALITY ASSURANCE LIAISON SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $13.1 million to FEDERAL MIRACLE TECH LLC for work described as: QUALITY ASSURANCE LIAISON SUPPORT SERVICES Key points: 1. Contract value of $13.1M over 5 years suggests a significant need for ongoing support. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The award was made under Full and Open Competition after Exclusion of Sources, indicating a competitive process. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting specialized technical expertise is required. 5. The contract duration of 1871 days (approx. 5 years) allows for sustained service delivery. 6. The contractor, Federal Miracle Tech LLC, is based in Virginia, potentially impacting local economic benefits.

Value Assessment

Rating: fair

The contract value of $13.1M over approximately five years averages to about $2.6M annually. Without specific benchmarks for 'Quality Assurance Liaison Support Services' within the Department of State, it's difficult to definitively assess value for money. However, the firm-fixed-price structure is generally favorable for the government in managing costs. Further analysis would require comparing this contract's scope and pricing to similar support services procured by other federal agencies or within different sectors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was open, certain sources may have been excluded prior to the solicitation, possibly due to specific requirements or prior relationships. The presence of two bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions.

Taxpayer Impact: The competitive nature of this award, even with exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The Department of State benefits from specialized quality assurance and liaison support, crucial for program oversight and execution. This contract ensures the continuity of essential services that contribute to the effective management of federal programs. The geographic impact is primarily within the Department of State's operational areas, likely supporting domestic and potentially international initiatives. The contract supports the workforce by providing employment opportunities for individuals with expertise in quality assurance and liaison roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'liaison support' is not clearly defined, leading to cost overruns.
Dependence on a single contractor for critical support functions could pose a risk if performance issues arise.
The exclusion of sources, even within a full and open competition, warrants scrutiny to ensure fairness and maximum competition.

Positive Signals

Firm-fixed-price contract structure transfers cost risk to the contractor.
The award was made through a competitive process, suggesting a degree of price reasonableness.
The multi-year duration allows for stable service provision and relationship building.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant part of the federal procurement landscape, encompassing a wide range of technical and consulting services. Contracts in this space often involve specialized expertise for complex projects. The Department of State's reliance on such services for quality assurance and liaison indicates the critical nature of these functions in managing its diverse operations. Benchmarking this contract would involve comparing its value and scope to similar engineering support services procured by agencies like the Department of Defense or other large civilian agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). Therefore, the primary contractor is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on obtaining the most qualified offeror based on the competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the Department of State. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Federal Acquisition Regulation (FAR)
Department of State Acquisition Regulations
Quality Assurance Services
Program Management Support

Risk Flags

Potential for limited competition due to source exclusion.
Contractor performance risk.
Scope definition and potential for creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $13.1 million to FEDERAL MIRACLE TECH LLC. QUALITY ASSURANCE LIAISON SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FEDERAL MIRACLE TECH LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2022-02-14. End: 2027-03-31.

What is the track record of Federal Miracle Tech LLC in performing similar quality assurance and liaison support services for the federal government?

A review of Federal Miracle Tech LLC's contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any awards or penalties received, and the types of services they have previously provided. Without access to specific past performance data, it is difficult to definitively state their capabilities in this specialized area. However, their selection for this significant contract suggests they met the Department of State's requirements at the time of award. Further investigation into their financial stability and operational capacity would also provide a more comprehensive understanding of their reliability.

How does the $13.1M contract value compare to similar quality assurance liaison support contracts awarded by the Department of State or other federal agencies?

Benchmarking this $13.1M contract requires identifying comparable contracts for 'Quality Assurance Liaison Support Services' within the Department of State and across other federal agencies. Factors such as the scope of work, duration, required expertise, and geographic location significantly influence contract value. If similar contracts for comparable services are valued significantly higher or lower, it could indicate potential overpricing or exceptional value. A detailed analysis would involve querying federal procurement databases for contracts with similar NAICS codes (541330) and service descriptions, adjusting for inflation and contract duration to establish a meaningful comparison.

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

Primary risks include potential performance deficiencies by the contractor, leading to gaps in quality assurance oversight. Another risk is the possibility of scope creep, where the services required expand beyond the initial contract definition, potentially leading to cost increases or disputes, although the firm-fixed-price structure aims to mitigate this. Contractor personnel turnover could also impact service continuity. Mitigation strategies likely involve robust performance monitoring by the Department of State, clear contract language defining deliverables and scope, and potentially requiring the contractor to maintain a qualified workforce. The competitive award process itself can be seen as a risk mitigation factor, selecting a contractor deemed capable.

How effective is the 'Full and Open Competition after Exclusion of Sources' approach in ensuring optimal value and competition for this type of service?

This contracting approach aims to balance the benefits of full and open competition with the need to potentially exclude sources that may not meet specific, stringent requirements. While it allows for a broad range of potential bidders, the exclusion of certain sources could limit the competitive pool and potentially impact price discovery. The effectiveness hinges on the justification for excluding sources; if exclusions are well-reasoned and based on essential qualifications, it can lead to a highly qualified pool of bidders. However, if exclusions are arbitrary, it could stifle competition and lead to suboptimal value. The fact that two bids were received suggests some level of competition was maintained.

What is the historical spending pattern for quality assurance liaison support services by the Department of State, and how does this contract fit within that trend?

Analyzing historical spending on similar services by the Department of State would reveal trends in procurement volume, contract types, and average values. This $13.1M contract, spanning over five years, represents a significant, sustained investment. If historical data shows a consistent need for such services, this contract aligns with established patterns. Conversely, a sudden increase in spending on this category might warrant further investigation into the underlying program changes or needs driving the procurement. Understanding these patterns helps contextualize the current award and assess its long-term implications for the agency's budget and operational strategy.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM22R0013

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7701 GREENBELT RD STE 501, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,357,832

Exercised Options: $17,357,832

Current Obligation: $13,107,445

Actual Outlays: $4,298,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1135

IDV Type: IDC

Timeline