The MIL Corporation awarded $10.8M for IT services, with a 912-day duration, by the Department of State

Contract Overview

Contract Amount: $10,835,792 ($10.8M)

Contractor: THE MIL Corporation

Awarding Agency: Department of State

Start Date: 2024-04-01

End Date: 2026-09-30

Contract Duration: 912 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FOLLOW ON TASK 002- GFSS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $10.8 million to THE MIL CORPORATION for work described as: FOLLOW ON TASK 002- GFSS Key points: 1. Value for money appears fair given the Time and Materials contract type and duration. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators are moderate, with no specific flags raised in the provided data. 4. Performance context is limited without details on specific deliverables or outcomes. 5. Sector positioning is within IT services, a common area for federal contracting. 6. The contract is a follow-on task, indicating potential for established performance. 7. The contract is a BPA Call, suggesting it's part of a larger framework agreement.

Value Assessment

Rating: fair

The contract's value of $10.8 million over 912 days suggests a daily rate of approximately $11,881. This rate needs to be benchmarked against similar IT services contracts, particularly those for 'Other Computer Related Services' (NAICS 541519) with the Department of State. Without specific task details or performance metrics, a definitive value assessment is challenging. However, the Time and Materials (T&M) pricing structure can sometimes lead to higher costs if not closely managed, but it also offers flexibility for evolving requirements.

Cost Per Unit: Approximately $11,881 per day, based on total value and duration. This figure requires comparison with market rates for similar IT services.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the method of competition suggests a robust process aimed at achieving fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives competitive offers, potentially leading to cost savings.

Public Impact

The Department of State benefits from IT services to support its operations. Services delivered likely include computer systems design, integration, and related IT support. The geographic impact is primarily within the District of Columbia, where the contract is registered. Workforce implications may involve IT professionals employed by The MIL Corporation and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
The 'Other Computer Related Services' NAICS code is broad and could encompass a wide range of activities, requiring further detail for precise understanding.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract is a follow-on task, potentially indicating a successful prior relationship and performance.
The MIL Corporation is an established entity in federal contracting.
The contract is a BPA Call, which can streamline procurement for recurring needs.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide array of services from software development to cybersecurity and infrastructure management. Federal agencies rely heavily on IT contractors to maintain and modernize their systems. Comparable spending benchmarks for IT services within the Department of State or similar agencies would provide context for the $10.8 million award. The NAICS code 541519, 'Other Computer Related Services,' is broad, but IT services generally represent a substantial portion of the federal IT budget.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, The MIL Corporation may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all responsible sources, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and terms and conditions. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Department of State IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
Other Computer Related Services Contracts
Follow-on IT Service Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of detailed performance metrics requires careful monitoring.
Broad NAICS code necessitates clear definition of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.8 million to THE MIL CORPORATION. FOLLOW ON TASK 002- GFSS

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-09-30.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data identifies the NAICS code as 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support functions beyond traditional software development or hardware installation. Examples could include IT consulting, data processing services, disaster recovery services, IT support for specific applications, or specialized technical assistance. Without a detailed statement of work or task order description, the precise services rendered remain unspecified. Further investigation into the specific BPA Call or task order associated with this award would be necessary to ascertain the exact nature of the services.

How does the daily rate of approximately $11,881 compare to market benchmarks for similar IT services provided to federal agencies?

The calculated daily rate of approximately $11,881 is a crucial metric for assessing value. To benchmark this effectively, it needs to be compared against industry standards and government databases for similar IT services, particularly those under NAICS 541519 and for the Department of State. Factors influencing this rate include the skill sets required, the complexity of the tasks, the geographic location of service delivery, and the specific terms of the Time and Materials contract. If this rate is significantly higher than comparable contracts awarded through full and open competition, it could indicate potential overpricing or a need for closer cost management. Conversely, if it aligns with or is below market rates for highly specialized services, it may represent good value.

What is The MIL Corporation's track record with the Department of State and for similar IT services contracts?

The fact that this is a 'FOLLOW ON TASK' suggests a pre-existing relationship and potentially satisfactory past performance between The MIL Corporation and the Department of State. To fully assess their track record, one would need to examine historical contract data for The MIL Corporation with the Department of State, looking at contract values, durations, types of services rendered, and any performance reviews or award decisions. A review of their performance on previous, similar IT services contracts would provide insight into their reliability, technical capabilities, and ability to deliver within budget and schedule. A positive history on follow-on tasks generally indicates a contractor that has met or exceeded expectations.

What are the potential risks associated with a Time and Materials (T&M) contract of this duration?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, especially for longer durations like 912 days (approximately 2.5 years). The primary risk for the government is cost control. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, which can escalate if labor hours or material costs are not meticulously managed and justified. For this $10.8 million contract, the government relies heavily on the contractor's accurate reporting of hours and materials, and the contracting officer's vigilance in overseeing the work and ensuring efficiency. Without strong oversight and clear task definitions, there's a risk of inefficiency or scope creep driving up costs beyond what might be achieved with a more defined contract type.

How does the BPA Call mechanism impact the efficiency and cost-effectiveness of this award?

A Blanket Purchase Agreement (BPA) Call is a task order issued under a pre-existing BPA. BPAs are established to streamline the procurement of recurring or anticipated needs for supplies or services. Using a BPA Call for this $10.8 million contract suggests that the Department of State had already established a BPA with The MIL Corporation, likely after a competitive process for the BPA itself. This mechanism can enhance efficiency by reducing the administrative burden and lead time associated with awarding individual contracts. It allows for quicker access to services and potentially better pricing due to pre-negotiated terms and volume commitments within the BPA. The cost-effectiveness is realized through reduced acquisition lead times and potentially leveraged pricing.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SAQMMA16Q0210

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4000 MITCHELLVILLE RD A21, BOWIE, MD, 20716

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,766,224

Exercised Options: $13,766,224

Current Obligation: $10,835,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA17A0120

IDV Type: BPA

Timeline