Department of State awards $11.4M contract for financial audit support to The Mil Corporation

Contract Overview

Contract Amount: $11,427,007 ($11.4M)

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: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK 010 - FINANCIAL AUDIT SUPPORT (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 $11.4 million to THE MIL CORPORATION for work described as: TASK 010 - FINANCIAL AUDIT SUPPORT (FOLLOW ON) Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework for services. 2. The contract utilizes a Time and Materials pricing structure, which can pose cost control challenges. 3. Awarded through full and open competition, indicating a broad market solicitation. 4. The Mil Corporation is the sole awardee for this specific BPA Call. 5. The contract duration is over two years, suggesting a need for sustained support. 6. The North American Industry Classification System (NAICS) code 541519 points to IT-related services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $11.4 million over approximately 2.5 years averages to about $4.5 million annually. Without specific benchmarks for financial audit support services within the Department of State or comparable agencies, a precise value-for-money assessment is difficult. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not closely managed compared to fixed-price contracts. Benchmarking against similar IT-related audit support contracts would be necessary for a more definitive value assessment.

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 mechanism used was a BPA Call, which implies that a broader BPA was previously established through competition, and this call represents a specific order against that agreement. The number of bidders for this specific BPA Call is not provided, but the 'full and open' designation suggests a potentially competitive environment at the BPA establishment level.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to offer their services, which can lead to more competitive pricing and better value. However, the ultimate benefit depends on the actual number of bids received for this specific call and the pricing proposed.

Public Impact

The Department of State will receive financial audit support services, crucial for maintaining financial integrity and compliance. The services are expected to be delivered within the District of Columbia, the primary operating location for the State Department. The contract supports the agency's internal financial management and reporting functions. The workforce implications are likely to involve specialized auditors and IT professionals employed by The Mil Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not diligently managed and monitored.
Lack of specific details on the number of bidders for this BPA Call limits a full assessment of competitive pressure.
The NAICS code 'Other Computer Related Services' is broad; the specific nature of the audit support needs further clarification to assess suitability.

Positive Signals

Awarded through full and open competition, suggesting a robust initial vetting of potential providers.
The use of a BPA Call indicates a potentially streamlined procurement process for established needs.
The contract duration of over two years allows for continuity of essential audit support services.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. NAICS code 541519 covers a wide array of IT services beyond traditional software development, including IT consulting, system integration, and, in this case, IT-related support for financial audits. Government spending on IT services remains substantial, driven by the need for modernization, cybersecurity, and efficient operations. This contract fits within the broader category of professional services supporting federal agency operations.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) noted for this contract. This suggests that the primary award was not directed towards small businesses. There is no information provided regarding subcontracting plans or goals for small businesses on this particular BPA Call. Therefore, the direct impact on the small business ecosystem for this specific award appears limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officer and program managers. As a BPA Call, the underlying BPA likely has established oversight mechanisms. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Department of State Financial Management Systems
Federal Financial Audit Support Services
IT Consulting Services for Government Agencies
Blanket Purchase Agreements (BPAs)

Risk Flags

Time and Materials Pricing
Limited Competition Data
Broad NAICS Code

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.4 million to THE MIL CORPORATION. TASK 010 - FINANCIAL AUDIT SUPPORT (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 $11.4 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 providing financial audit support services to the federal government?

Assessing The Mil Corporation's track record requires a review of their past performance on similar federal contracts. This would involve examining contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. Specific experience with the Department of State's financial systems and audit requirements would be particularly relevant. Without direct access to detailed performance data for The Mil Corporation, it's difficult to provide a comprehensive assessment of their capabilities and reliability for this specific financial audit support task.

How does the estimated annual value of this contract compare to similar financial audit support contracts within the Department of State or other federal agencies?

The estimated annual value of this contract is approximately $4.5 million ($11.4M / ~2.5 years). To benchmark this, one would need to identify comparable contracts for financial audit support services, particularly those involving IT components, awarded by the Department of State or agencies of similar size and complexity (e.g., other large cabinet-level departments). Factors such as the scope of work, duration, and specific services (e.g., IT system audits vs. broader financial statement audits) would need to be considered. A preliminary comparison suggests this value is within a reasonable range for specialized IT-enabled audit support, but a detailed analysis of similar contract vehicles is necessary for a definitive conclusion.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for 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 labor hours and materials used. If the scope of work is not well-defined, or if project management is weak on either the government or contractor side, the hours and costs can escalate beyond initial estimates. This necessitates robust government oversight, including detailed monitoring of labor hours, rates, and material costs, as well as clear task orders and efficient project execution by the contractor to ensure value for money and prevent budget breaches.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for this BPA Call?

The 'full and open competition' designation indicates that the initial Blanket Purchase Agreement (BPA) was likely established through a broad solicitation, aiming to attract a wide range of qualified vendors. However, the effectiveness of competition for this specific BPA Call depends on how many vendors were invited to bid on this particular task order and the number of bids actually received. If the underlying BPA has a limited number of pre-qualified vendors, or if this specific call has low bidder participation, the competitive pressure might be less intense than a standalone, full-and-open solicitation. The Department of State's procurement process and the specific market for these services will influence the ultimate pricing outcomes.

What is the historical spending pattern for financial audit support services at the Department of State?

Analyzing historical spending patterns for financial audit support at the Department of State would involve examining contract data over several fiscal years. This would reveal the total amount spent on such services, the primary contractors utilized, the types of contracts awarded (e.g., T&M, fixed-price), and the average duration and value of these contracts. Understanding these patterns can help identify trends, potential over-reliance on specific vendors or contract types, and provide a baseline for evaluating the current $11.4 million award. Without access to historical spending data, it's challenging to place this contract within a broader fiscal context.

What are the potential implications of awarding this contract via a BPA Call versus a new standalone solicitation?

Awarding this contract via a BPA Call leverages an existing, pre-competed agreement, which can streamline the procurement process and potentially reduce administrative burden and lead time compared to a new standalone solicitation. BPAs are typically established for anticipated needs over a period, allowing agencies to place orders more efficiently. However, the competitiveness of the BPA Call depends on the number of vendors on the BPA and the specific competition conducted for this call. If the BPA has many vendors and the call is competed among them, it can still yield competitive pricing. Conversely, if the BPA has few vendors or the call is less competitive, it might not achieve the same level of price discovery as a fresh, full-and-open solicitation.

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: $18,413,180

Exercised Options: $18,413,180

Current Obligation: $11,427,007

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $10,110,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA17A0120

IDV Type: BPA

Timeline