State Department's $3.27M internal controls IT services contract awarded to The Mil Corporation

Contract Overview

Contract Amount: $3,270,590 ($3.3M)

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: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK 011- A 123 INTERNAL CONTROLS (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 $3.3 million to THE MIL CORPORATION for work described as: TASK 011- A 123 INTERNAL CONTROLS (FOLLOW ON) Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Time and Materials pricing structure may pose cost escalation risks. 3. Limited public data on specific performance metrics for this follow-on task. 4. Contract duration of nearly 3 years suggests ongoing need for these services. 5. Geographic focus on Washington D.C. aligns with agency headquarters operations. 6. No small business set-aside, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of $3.27 million over approximately 3 years (912 days) for internal controls IT services appears moderate for a federal IT contract. Benchmarking against similar 'Other Computer Related Services' (NAICS 541519) contracts is challenging without more specific service details. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed closely. Without detailed performance data or comparison to specific benchmarks for internal controls IT services, a definitive value-for-money assessment is difficult, but the moderate value and follow-on nature suggest a potentially established, albeit not necessarily optimal, price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition' via a Blanket Purchase Agreement (BPA) Call. This indicates that the underlying BPA was competed broadly, and this specific call was also open to all eligible parties under that BPA. While the exact number of bidders for this specific BPA Call is not provided, the 'Full and Open Competition' designation suggests a competitive process was intended. The use of a BPA framework generally implies that multiple vendors were vetted and awarded spots on the BPA, allowing for competition at the call order level.

Taxpayer Impact: A full and open competition process, even within a BPA framework, is generally favorable for taxpayers as it aims to secure the best possible pricing and service through market forces. This approach helps prevent price gouging and encourages vendors to offer competitive rates.

Public Impact

The Department of State benefits from enhanced internal controls and IT support, crucial for its global operations. Services delivered likely include IT system maintenance, security, and potentially audit support related to internal controls. The primary geographic impact is within Washington D.C., where the Department of State's headquarters are located. The contract supports IT professionals, potentially including system administrators, cybersecurity analysts, and compliance specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data makes it hard to gauge efficiency.
Follow-on nature of the contract might indicate a lack of competitive re-evaluation if not managed properly.

Positive Signals

Awarded under Full and Open Competition, suggesting a competitive process.
BPA Call award mechanism implies a pre-vetted vendor pool, potentially streamlining acquisition.
Contract duration suggests a stable, ongoing need for critical internal control IT services.

Sector Analysis

This contract falls within the IT services sector, specifically under NAICS code 541519 (Other Computer Related Services). This broad category encompasses a wide range of IT support, consulting, and integration services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their systems, particularly for critical functions like internal controls and cybersecurity. The Department of State's spending on such services is typical for a large federal agency managing complex global operations and sensitive data. Benchmarks for similar IT support contracts vary widely based on scope, duration, and specific services, but this contract's value appears moderate.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all eligible large and small businesses. While the primary awardee, The Mil Corporation, is not specified as small or large, the absence of a set-aside suggests that small businesses may not have been specifically targeted for this particular procurement. There is no information provided on subcontracting plans or performance, so the impact on the small business ecosystem is unclear, but opportunities for small business subcontractors may exist if The Mil Corporation engages them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a Time and Materials contract, rigorous oversight of labor hours and material costs is crucial to ensure value for money and prevent overspending. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. However, detailed performance reports and specific oversight mechanisms are not publicly available through this data alone. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Internal Controls and Compliance IT Support
Blanket Purchase Agreements (BPAs) for IT Services
IT Services for Government Agencies
Cybersecurity and Information Assurance Contracts

Risk Flags

Time and Materials Pricing
Follow-on Contract
Lack of Specific Performance Metrics
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.3 million to THE MIL CORPORATION. TASK 011- A 123 INTERNAL CONTROLS (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 $3.3 million.

What is the period of performance?

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

What is the track record of The Mil Corporation with the Department of State and other federal agencies?

The provided data indicates The Mil Corporation has been awarded this contract (TASK 011- A 123 INTERNAL CONTROLS (FOLLOW ON)) by the Department of State. To assess their track record, a deeper dive into federal procurement databases like FPDS or SAM.gov would be necessary to identify all contracts awarded to The Mil Corporation, their values, performance ratings (if available), and agencies served. Examining past performance on similar IT services or internal controls contracts, especially follow-on work, would provide insight into their reliability, quality of service, and ability to manage costs. A review of any past disputes, contract terminations, or negative performance reviews would also be critical for a comprehensive assessment.

How does the $3.27 million value compare to similar internal controls IT service contracts?

Benchmarking this $3.27 million contract requires comparing it to similar 'Other Computer Related Services' (NAICS 541519) contracts, specifically those focused on internal controls, IT support, and compliance for federal agencies. Without more granular data on the specific tasks performed, duration, and pricing structure (beyond T&M), precise comparisons are difficult. However, for a contract spanning nearly three years (912 days), $3.27 million represents an average annual value of approximately $1.1 million. This figure is moderate within the federal IT services landscape. Contracts for similar services can range from hundreds of thousands to tens of millions of dollars, depending heavily on the scope, complexity, number of users supported, and security requirements. The 'follow-on' nature suggests this is a recurring need, potentially indicating a stable, but not necessarily the most cost-effective, pricing arrangement.

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

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost escalation and lack of cost certainty for the government. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time spent by labor and the cost of materials used. If not managed diligently through robust oversight, ceiling limitations, and clear task definitions, contractors may have less incentive to control costs or improve efficiency, potentially leading to expenditures exceeding initial estimates. For this $3.27 million contract with a duration of over two years, close monitoring of labor hours, rates, and material costs by the Department of State's contracting officer's representative (COR) is essential to mitigate the risk of overspending and ensure fair value is received.

How effective are BPA Call mechanisms in ensuring competitive pricing for IT services?

Blanket Purchase Agreement (BPA) Call mechanisms can be effective in ensuring competitive pricing, but their effectiveness depends on how the underlying BPA was established and how the calls are managed. A BPA itself is typically established through full and open competition, allowing multiple vendors to be awarded spots based on pre-negotiated terms and pricing. When a specific need arises, a BPA Call is issued, often allowing for further competition among the BPA holders or direct award if terms are favorable and within certain thresholds. This process can streamline acquisition and leverage pre-competed rates. However, if the initial BPA competition was limited, or if calls are consistently awarded to the same vendors without re-competition, the competitive advantage can diminish over time. For this contract, awarded via BPA Call under full and open competition, it suggests a competitive framework was in place.

What are the implications of this contract being a 'follow-on' task?

The 'follow-on' designation for this contract (TASK 011- A 123 INTERNAL CONTROLS (FOLLOW ON)) implies that it is a continuation or extension of previously performed work. This can have several implications. Positively, it suggests the services are necessary and that the previous contractor likely performed adequately to warrant continuation. It can also lead to efficiencies as the contractor is already familiar with the systems and requirements. However, it also carries risks. There's a potential for complacency or reduced competitive pressure if the follow-on is awarded without robust re-competition or if the incumbent has a significant advantage. For taxpayers, it means ensuring that the pricing remains competitive and that the need for the services is periodically re-evaluated to avoid unnecessary spending on services that could be brought in-house or procured differently.

What is the typical spending pattern for 'Other Computer Related Services' by the Department of State?

The Department of State, like other large federal agencies operating globally, relies heavily on IT services. Spending within the 'Other Computer Related Services' category (NAICS 541519) typically encompasses a wide array of support, including network management, cybersecurity, software development and maintenance, IT consulting, and help desk support. Historical spending patterns for the State Department in this area are likely substantial and have probably increased over time due to digitalization efforts and evolving security threats. Such spending is crucial for maintaining diplomatic communications, managing sensitive data, and supporting personnel worldwide. While specific historical figures for this exact task aren't provided, the agency's overall IT budget reflects a significant and consistent investment in these types of services to ensure operational continuity and security.

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: $4,781,546

Exercised Options: $4,781,546

Current Obligation: $3,270,590

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,739,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA17A0120

IDV Type: BPA

Timeline