Army's $25M contract for ID card services awarded to Magellan Federal, Inc. shows fair value

Contract Overview

Contract Amount: $24,996,773 ($25.0M)

Contractor: Magellan Federal, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-07

End Date: 2014-10-24

Contract Duration: 1,205 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEERS/RAPIDS MILITARY ID COMMON ACCESS CARDS/PKI, U.S. ARMY HRC

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121, UNITED STATES OF AMERICA

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to MAGELLAN FEDERAL, INC. for work described as: DEERS/RAPIDS MILITARY ID COMMON ACCESS CARDS/PKI, U.S. ARMY HRC Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. Magellan Federal, Inc. has a track record of performance with the Department of Defense. 3. The contract duration of 1205 days suggests a need for sustained service delivery. 4. The services provided are critical for military personnel identification and access control. 5. The contract was competed fully and openly, suggesting a competitive pricing environment. 6. The geographic location of the contract performance in Kentucky is noted.

Value Assessment

Rating: fair

The contract's value of approximately $25 million over its term appears reasonable given the scope of providing identification card services for military personnel. Benchmarking against similar contracts for identity management and access control systems is challenging without more specific service details. However, the firm-fixed-price structure suggests that the contractor assumed the risk of cost overruns, which can be advantageous for the government. The number of bids received (16) indicates a degree of market interest, but further analysis would be needed to confirm if this resulted in optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Sixteen bids were received, indicating a healthy level of interest from the market for these services. The competitive process is expected to have driven prices towards a market-clearing level, benefiting the government through potentially lower costs and a wider selection of qualified vendors.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more cost-effective outcome for taxpayers by fostering a competitive environment that incentivized competitive pricing.

Public Impact

Military personnel across various branches will benefit from secure and reliable identification. The contract ensures the continued operation of DEERS/RAPIDS systems for ID card issuance. Services are primarily delivered in Kentucky, impacting the local workforce and economy. The contract supports the Department of the Army's human resources and security infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical identification services could pose a risk if performance falters.
The firm-fixed-price nature might disincentivize cost-saving innovations by the contractor.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, Magellan Federal, Inc., has experience in government contracting.
The contract duration indicates a stable and predictable service provision.

Sector Analysis

The contract falls within the Human Resources Consulting Services sector, specifically supporting the issuance and management of military identification cards. This is a critical function within the defense sector, underpinning personnel security and access to facilities and benefits. The market for such services is often characterized by a mix of large defense contractors and specialized IT and HR service providers. The total value of this contract, approximately $25 million, is moderate within the broader context of defense IT and personnel support spending.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, larger prime contractors often engage small businesses for specialized support, so indirect opportunities may have existed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DEERS/RAPIDS System Support
Military ID Card Issuance Services
DoD Personnel Identification Systems
Human Resources Information Technology Support
Access Control Systems

Risk Flags

Contract Duration
Sole Source Potential
Performance Risk
Budgetary Constraints

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to MAGELLAN FEDERAL, INC.. DEERS/RAPIDS MILITARY ID COMMON ACCESS CARDS/PKI, U.S. ARMY HRC

Who is the contractor on this award?

The obligated recipient is MAGELLAN FEDERAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2011-07-07. End: 2014-10-24.

What is the track record of Magellan Federal, Inc. with government contracts, particularly within the Department of Defense?

Magellan Federal, Inc. has a history of performing contracts for the U.S. government, including within the Department of Defense. While specific details on past performance metrics for this particular contract are not provided in the summary data, their ability to secure this award suggests they met the necessary qualifications and demonstrated capability. A deeper dive into their contract history, including any past performance reviews or awards/debarments, would provide a more comprehensive understanding of their reliability and expertise in delivering similar services.

How does the awarded price of approximately $25 million compare to similar contracts for military ID card services?

Directly comparing the $25 million total contract value to similar military ID card services is difficult without access to a broader dataset of comparable contracts, including their scope, duration, and specific service requirements. However, the fact that it was awarded under full and open competition with 16 bids suggests that the market found the pricing to be competitive. The firm-fixed-price nature also implies that the government secured a defined cost for the services, mitigating risk. Further analysis would involve benchmarking against contracts for identity management solutions and personnel support services within the federal government.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures by the contractor, leading to disruptions in ID card issuance and access control, and the possibility of cost overruns if the firm-fixed-price contract was not structured effectively. Mitigation strategies likely involve robust performance monitoring by the Army, clear service level agreements, and the contractor's own quality control processes. The competitive award process also mitigates the risk of selecting an unqualified vendor. The duration of the contract (over 3 years) also presents a risk of evolving technological needs not being met.

How effective has this contract been in ensuring the secure and efficient issuance of military identification cards?

The provided data focuses on the award and basic details of the contract, not its operational effectiveness or outcomes. Effectiveness would be measured by metrics such as the accuracy and speed of ID card issuance, system uptime, security compliance, and user satisfaction among military personnel. Without post-award performance reports or audits, it's impossible to definitively assess the contract's effectiveness. However, the continued operation of DEERS/RAPIDS and the renewal or awarding of such contracts generally imply a level of satisfactory performance.

What are the historical spending patterns for DEERS/RAPIDS Military ID Card Common Access Cards/PKI services by the U.S. Army?

The data provided is for a single contract award totaling $24,996,773.12 from 2011 to 2014. To understand historical spending patterns, one would need to analyze spending data for similar contracts over multiple fiscal years. This would involve identifying all contracts related to DEERS/RAPIDS, PKI, and military ID card services awarded by the Army and other branches, summing their values annually, and observing trends. This single contract represents a snapshot, and a broader analysis is required to identify patterns, fluctuations, or growth in spending for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2800 S SHIRLINGTON RD STE 350, ARLINGTON, VA, 22206

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $24,996,773

Exercised Options: $24,996,773

Current Obligation: $24,996,773

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91WAW11D0031

IDV Type: IDC

Timeline