State Department awards $3.8M for global compensation support, with The MIL Corporation as prime
Contract Overview
Contract Amount: $3,802,710 ($3.8M)
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: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TASK 007 - GLOBAL COMPENSATION SUPPORT SERVICES CHS (FOLLOW-ON)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $3.8 million to THE MIL CORPORATION for work described as: TASK 007 - GLOBAL COMPENSATION SUPPORT SERVICES CHS (FOLLOW-ON) Key points: 1. Contract value appears reasonable for the scope of global compensation support services. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low, with a clear follow-on nature and established contractor. 4. Performance context is established through a prior contract, indicating continuity. 5. This contract fits within the broader IT services sector, specifically focusing on specialized support.
Value Assessment
Rating: good
The contract value of $3.8 million over approximately 2.5 years for global compensation support services seems aligned with industry standards for specialized IT and administrative functions. Benchmarking against similar contracts for international HR and IT support reveals a comparable price range. The time and materials pricing structure, while requiring careful monitoring, is common for services where the exact effort can fluctuate. Without specific performance metrics from the prior contract, a definitive value-for-money assessment is challenging, but the pricing appears fair.
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 a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This approach is generally expected to yield competitive pricing and ensure the government receives the best value by allowing multiple qualified companies to vie for the work.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of contractors to offer their services, potentially leading to innovation and better service delivery.
Public Impact
The primary beneficiaries are Department of State personnel requiring compensation support services globally. Services delivered include support for compensation systems and related administrative functions. The geographic impact is global, supporting State Department operations worldwide. Workforce implications include the potential for continued employment for individuals with expertise in compensation and HR systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in time and materials contracts if not closely managed.
- Reliance on a single contractor for a critical follow-on service requires diligent performance monitoring.
Positive Signals
- Follow-on nature suggests successful past performance by The MIL Corporation.
- Full and open competition indicates a healthy market and potential for competitive pricing.
- Clear contract duration provides a defined period for service delivery and budget planning.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically IT and administrative support for human resources functions. The market for such specialized services is competitive, with numerous firms offering global HR and IT solutions. The contract's value of $3.8 million is moderate within this sector, and it represents a specific niche focused on supporting government compensation systems abroad. Comparable spending benchmarks for similar government IT support contracts often range from a few million to tens of millions of dollars annually, depending on scope and duration.
Small Business Impact
The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. This suggests that small businesses may not be directly involved as prime contractors on this specific award, though they could potentially participate as subcontractors if The MIL Corporation opts to engage them.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement and terms, with regular reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of State HR IT Support
- Global Compensation Systems
- Federal HR Technology Contracts
- IT Professional Services
Risk Flags
- Time and Materials Pricing
- Follow-on Contract
- Global Operations Support
Tags
it-services, department-of-state, professional-services, compensation-support, full-and-open-competition, time-and-materials, follow-on-contract, global, district-of-columbia, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $3.8 million to THE MIL CORPORATION. TASK 007 - GLOBAL COMPENSATION SUPPORT SERVICES CHS (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 $3.8 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-09-30.
What is the track record of The MIL Corporation in delivering similar compensation support services to the federal government?
The MIL Corporation has a history of providing IT and professional services to various federal agencies. For this specific contract, it is identified as a follow-on award, implying prior successful performance in delivering global compensation support services to the Department of State. While detailed performance metrics from the previous contract are not publicly available, the follow-on nature strongly suggests satisfactory performance and a positive working relationship. Further investigation into past performance reviews and contract close-out reports, if accessible, would provide a more granular understanding of their track record in this specific domain.
How does the $3.8 million contract value compare to similar federal contracts for global compensation support?
The $3.8 million contract value over approximately 2.5 years for global compensation support services appears to be within a reasonable range when compared to similar federal procurements. Contracts for specialized IT and HR support services, especially those with a global reach and requiring specific system expertise, can vary significantly. However, for a follow-on contract of this nature, the indicated value suggests a moderate scope. Benchmarking against contracts for HRIS implementation, maintenance, and support for agencies operating internationally indicates that this figure is neither exceptionally high nor low, suggesting fair market pricing, assuming the scope of work is adequately defined and executed.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential scope creep due to the time and materials (T&M) pricing structure, reliance on a single contractor for a critical follow-on service, and the inherent complexities of supporting global compensation systems. Scope creep is typically mitigated through robust contract management, clearly defined task orders, and vigilant oversight by the contracting officer's representative (COR). The risk of contractor performance issues is addressed by the follow-on nature, which implies prior satisfactory performance, and by the Department of State's ongoing performance monitoring. The complexities of global compensation are managed through the contractor's specialized expertise, which is presumably why they were selected.
How effective is the Department of State's oversight of this type of IT support contract?
The effectiveness of the Department of State's oversight for this IT support contract depends heavily on the resources and diligence applied by the assigned Contracting Officer's Representative (COR) and program managers. Standard oversight mechanisms include regular progress reports, performance reviews, and adherence to the contract's terms and conditions. The Department of State generally has established procedures for contract oversight, but the actual effectiveness can vary based on personnel expertise, workload, and the specific complexities of the service. The follow-on nature of this contract suggests a degree of established oversight and successful management of the prior iteration.
What are the historical spending patterns for global compensation support services at the Department of State?
Historical spending patterns for global compensation support services at the Department of State would likely show a consistent need for such services, given its worldwide operations and large employee base. This $3.8 million award represents a continuation or evolution of previous support, indicating that the Department has allocated significant resources to this area over time. Analyzing past contract awards for similar services, including the predecessor contract to this one, would reveal trends in spending levels, contractor choices, and contract durations. Such analysis would help determine if current spending aligns with historical investments or represents a significant shift.
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: $6,330,668
Exercised Options: $6,330,668
Current Obligation: $3,802,710
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $110,847
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: SAQMMA17A0120
IDV Type: BPA
Timeline
Start Date: 2024-04-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-31
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