State Department awards $24M IT support contract to The Mil Corporation for project management

Contract Overview

Contract Amount: $24,003,744 ($24.0M)

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: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK 001- GFAA PROJECT MANAGEMENT & ADMINISTRATION FOLLOW ON

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 $24.0 million to THE MIL CORPORATION for work described as: TASK 001- GFAA PROJECT MANAGEMENT & ADMINISTRATION FOLLOW ON Key points: 1. Contract focuses on IT project management and administration, a critical function for agency operations. 2. The award utilizes a Time and Materials pricing structure, which can pose cost control challenges. 3. The duration of the contract (912 days) suggests a need for sustained support. 4. The contractor, The Mil Corporation, is a new awardee for this specific service category. 5. The contract is a BPA Call, indicating it's part of a larger pre-negotiated agreement. 6. The geographic location is Washington D.C., a hub for federal contracting.

Value Assessment

Rating: fair

The contract value of $24 million over approximately 2.5 years for IT project management and administration services appears within a reasonable range for federal contracts of this nature. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. Without specific benchmarks for similar 'Other Computer Related Services' (NAICS 541519) contracts with comparable scope and duration, a definitive value-for-money assessment is challenging. The absence of detailed performance metrics in the provided data makes it difficult to gauge the effectiveness of the services rendered against the cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process is a positive indicator for price discovery and potentially better value for the government. Full and open competition generally leads to a wider pool of qualified contractors and encourages market-driven pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Department of State benefits from enhanced project management and administration for its IT initiatives. Improved IT project execution can lead to more efficient and effective delivery of State Department services. The contract supports IT infrastructure and operations within the federal government. The primary workforce impact is within the IT services sector, potentially creating or sustaining jobs for The Mil Corporation's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed and monitored.
The contractor is a new awardee for this specific service, raising questions about their established track record with the agency for this particular function.
Limited information on performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The contract is a BPA Call, which implies it's part of a larger framework; understanding the overall BPA's performance is crucial.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration suggests a stable, long-term need for these services, providing continuity.
The contract supports critical IT project management functions for a major federal agency.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT project management and administration. The IT services market is vast and highly competitive, with numerous companies offering specialized support. The NAICS code 541519 (Other Computer Related Services) encompasses a broad range of IT services. Federal spending in this area is substantial, driven by the continuous need for agencies to modernize systems, manage complex projects, and ensure cybersecurity. Benchmarks for similar IT support contracts can vary significantly based on scope, duration, and specific services required.

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. The award to a prime contractor that is not specifically a small business means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. The contract's Time and Materials (T&M) nature necessitates rigorous oversight to track labor hours and material costs, ensuring they align with the Statement of Work and do not exceed the contract ceiling. Transparency is facilitated through contract reporting mechanisms, and the agency's Inspector General may conduct audits or investigations if performance or cost concerns arise.

Related Government Programs

IT Project Management Services
IT Support Contracts
Department of State IT Modernization
Other Computer Related Services Contracts
Time and Materials Contracts

Risk Flags

Time and Materials pricing requires close monitoring to prevent cost overruns.
Contractor's track record for this specific service with the agency is not detailed.
Performance metrics are not explicitly provided, making effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $24.0 million to THE MIL CORPORATION. TASK 001- GFAA PROJECT MANAGEMENT & ADMINISTRATION FOLLOW ON

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 $24.0 million.

What is the period of performance?

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

What is The Mil Corporation's track record with the Department of State for IT project management services?

Based on the provided data, this contract represents a new award to The Mil Corporation for TASK 001- GFAA PROJECT MANAGEMENT & ADMINISTRATION FOLLOW ON. Without access to historical contract databases or agency performance reviews, it is difficult to ascertain The Mil Corporation's specific track record with the Department of State for IT project management services prior to this award. Further investigation into past performance evaluations and other contracts awarded to this vendor by the Department of State would be necessary to fully assess their established performance and reliability in this domain. The 'follow on' nature of the task suggests a prior incumbent, but it's unclear if that was also The Mil Corporation.

How does the $24 million contract value compare to similar IT project management contracts awarded by the Department of State or other federal agencies?

The $24 million contract value for approximately 2.5 years of IT project management and administration services is within a common range for federal IT support contracts. However, a precise comparison requires detailed analysis of contracts with similar scope, duration, and service requirements (NAICS 541519). Factors such as the complexity of the projects managed, the level of administration required, and the specific technologies involved significantly influence pricing. Without access to a comprehensive database of comparable federal IT contracts, including their specific deliverables and pricing structures, it is challenging to definitively benchmark this contract's value. The Time and Materials (T&M) pricing model also introduces variability that makes direct comparisons more complex than fixed-price contracts.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time spent and materials used. If not managed diligently, this can lead to higher-than-anticipated costs for the government, as the contractor has less financial incentive to control labor hours or material expenses. Effective risk mitigation requires robust oversight, detailed tracking of hours and materials, clear definition of work, and strong negotiation of labor rates and material markups. The Department of State must implement stringent monitoring and reporting protocols to ensure that costs remain within the contract's ceiling and that the services provided represent good value for the expenditure.

What is the expected impact of this contract on the Department of State's IT project execution and efficiency?

This contract is expected to enhance the Department of State's IT project execution and efficiency by providing dedicated project management and administration support. Effective project management is crucial for ensuring that IT initiatives are completed on time, within budget, and meet their intended objectives. By outsourcing these functions to The Mil Corporation, the Department of State can leverage specialized expertise, potentially leading to smoother project lifecycles, better resource allocation, and improved communication among stakeholders. This support is vital for the successful implementation of IT strategies, modernization efforts, and the overall operational effectiveness of the agency's technological infrastructure.

How does this contract fit into the broader landscape of federal IT spending for project management and administration?

This $24 million contract for IT project management and administration fits within the substantial federal IT spending allocated annually for services that support agency operations and modernization. Federal agencies consistently invest in IT to maintain and upgrade their systems, manage complex projects, and ensure cybersecurity. Contracts like this, particularly those awarded under full and open competition, reflect the government's strategy to procure specialized IT support services from the private sector. The spending on project management and administration is a critical component of overall IT expenditure, ensuring that investments in technology are effectively planned, executed, and managed to achieve desired outcomes and strategic goals.

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: $36,806,459

Exercised Options: $36,806,459

Current Obligation: $24,003,744

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $791,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA17A0120

IDV Type: BPA

Timeline