Department of State awards $4.6M IT audit support contract to The Mil Corporation via full and open competition

Contract Overview

Contract Amount: $4,627,918 ($4.6M)

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: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK 012 - IT AUDIT ISSO 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 $4.6 million to THE MIL CORPORATION for work described as: TASK 012 - IT AUDIT ISSO SUPPORT (FOLLOW ON) Key points: 1. Contract provides essential IT audit and ISSO support, crucial for maintaining cybersecurity posture. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The Mil Corporation has a track record with federal contracts, indicating some level of established performance. 4. Time and Materials contract type introduces cost uncertainty if not managed closely. 5. The contract duration of over two years allows for sustained support. 6. Geographic concentration in Washington D.C. may indicate a focus on headquarters-related functions.

Value Assessment

Rating: good

The contract value of $4.6 million over approximately 2.5 years appears reasonable for specialized IT audit and ISSO support services. Benchmarking against similar contracts for IT security and audit support within the federal government, particularly for agencies like the Department of State, suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, warrants close monitoring to ensure efficient resource utilization and prevent cost overruns. Without specific per-unit labor rates or detailed task breakdowns, a precise value-for-money assessment is challenging, but the overall award value seems aligned with industry standards for such services.

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 offers. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this requirement. This competitive process is generally expected to drive more favorable pricing and encourage the selection of a contractor offering the best value. The agency's decision to use full and open competition implies confidence in the market's ability to meet the stated requirements effectively.

Taxpayer Impact: Taxpayers benefit from a process that aims to secure the best possible price and quality for essential IT audit and cybersecurity support services, reducing the risk of overpayment.

Public Impact

The Department of State benefits from enhanced IT audit capabilities and improved information security oversight. Services delivered will support the agency's compliance with federal cybersecurity mandates and risk management frameworks. The primary geographic impact is within Washington D.C., likely supporting the agency's headquarters operations. The contract supports specialized IT audit and cybersecurity professionals, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently managed and monitored.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The contract's follow-on nature might suggest limited innovation if the incumbent is not pushed by competition.
Dependence on a single contractor for critical IT audit functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Mil Corporation's existing relationship with the government suggests familiarity with federal contracting procedures.
The contract duration allows for continuity of essential IT audit and ISSO support.
The services provided are critical for maintaining the security and integrity of the Department of State's IT systems.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT audit, cybersecurity, and information assurance. The market for these services is substantial and growing, driven by increasing cyber threats and stringent federal regulations like FISMA. Comparable spending benchmarks for IT audit and ISSO support services within federal agencies often range from hundreds of thousands to millions of dollars annually, depending on the scope and complexity. The Department of State's IT spending is significant, and this contract represents a focused investment in a critical support function.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided details. This suggests that the primary awardee, The Mil Corporation, is likely a large business, and the contract may not be structured to prioritize or significantly involve small businesses in its execution. Further analysis would be needed to determine if subcontracting opportunities exist or are mandated.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. The Time and Materials (T&M) nature of the award necessitates robust monitoring of labor hours and costs to ensure efficiency and prevent overspending. Transparency is generally maintained through contract reporting requirements and the Federal Procurement Data System (FPDS). While specific Inspector General (IG) jurisdiction for this particular task order isn't detailed, the Department of State's Office of Inspector General (OIG) typically oversees agency spending and performance to ensure accountability and identify potential fraud, waste, or abuse.

Related Government Programs

Department of State IT Modernization Programs
Federal Information Security Management Act (FISMA) Compliance
Cybersecurity Support Services
IT Audit and Compliance Services
Information System Security Officer (ISSO) Support

Risk Flags

Potential for cost overruns due to T&M contract type.
Reliance on incumbent contractor for critical functions.
Limited visibility into specific performance metrics and bidder numbers.
Geographic concentration may limit broader applicability or impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.6 million to THE MIL CORPORATION. TASK 012 - IT AUDIT ISSO 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 $4.6 million.

What is the period of performance?

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

What is The Mil Corporation's past performance record with the Department of State and other federal agencies, particularly on similar IT audit and ISSO support contracts?

The provided data indicates The Mil Corporation is the awardee, suggesting they have a track record with federal contracts. To fully assess their performance, a review of their contract history within the Federal Procurement Data System (FPDS) would be necessary. This would reveal details on previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or commendations. For IT audit and ISSO support, it's crucial to examine if they have successfully managed similar scopes of work, met deadlines, adhered to security protocols, and satisfied client requirements in previous engagements. A history of positive performance on comparable contracts would increase confidence in their ability to deliver on this new award.

How does the awarded value of $4.6 million compare to the estimated cost or benchmark for similar IT audit and ISSO support services at the Department of State or other large federal agencies?

The $4.6 million award value for approximately 2.5 years of service (912 days) translates to roughly $1.6 million per year. This figure needs to be benchmarked against similar contracts. For instance, contracts providing IT audit, cybersecurity consulting, and ISSO support to agencies of the Department of State's size and complexity often fall within this range. Factors influencing cost include the number of systems supported, the level of security required, the specific audit frameworks mandated (e.g., NIST, CMMC), and the required skill sets. If The Mil Corporation was awarded this contract through full and open competition, it suggests the price was deemed competitive. However, a detailed comparison would require access to specific labor rates, hours, and the scope of work for comparable contracts.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT audit and ISSO support requirement, and how are they being mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can be exacerbated if work is inefficiently performed or if the scope is not clearly defined and managed. For IT audit and ISSO support, this means the cost could escalate if tasks take longer than anticipated or if unforeseen complexities arise. Mitigation strategies typically involve robust oversight by the government, including detailed monitoring of timesheets, regular progress reviews, clear task definitions, and potentially establishing ceiling prices or CLINs (Contract Line Item Numbers) with not-to-exceed (NTE) limitations. The Department of State's program managers and contracting officers must actively manage the contractor's effort to ensure value and control costs.

What specific IT audit and ISSO support services will be delivered under this contract, and how do these align with the Department of State's overall cybersecurity strategy?

While the specific deliverables are not detailed in the provided summary, 'IT Audit ISSO Support' typically encompasses a range of critical functions. This includes conducting regular audits of IT systems and controls to ensure compliance with federal regulations (like FISMA) and internal policies, identifying vulnerabilities and recommending remediation, assisting in the development and implementation of security plans, managing security authorizations (e.g., ATOs), and providing ongoing information security oversight. These services directly align with the Department of State's cybersecurity strategy by helping to protect sensitive information, maintain the integrity of its IT infrastructure, and ensure operational resilience against evolving cyber threats. The 'follow-on' nature suggests continuity of these essential functions.

How has the Department of State's spending on IT audit and ISSO support services evolved over the past five years, and does this contract represent an increase, decrease, or stable level of investment

To determine the spending trend, one would need to analyze historical contract data for the Department of State related to IT audit and ISSO support over the last five fiscal years. This involves querying databases like FPDS using relevant Product Service Codes (PSCs) and keywords. If this $4.6 million contract is a direct follow-on to a previous award of similar scope, it might indicate a stable investment level. However, if previous contracts were significantly smaller or larger, it could signal a shift in the agency's priorities or resource allocation towards these critical security functions. An increase might reflect heightened security concerns or new regulatory requirements, while a decrease could suggest consolidation or internalizing some functions.

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: $6,216,545

Exercised Options: $6,216,545

Current Obligation: $4,627,918

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,745,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA17A0120

IDV Type: BPA

Timeline