DoD's $75M Contract for SATCOM, RF, Video, Networking Tech Engineering Services Awarded to The MIL Corporation

Contract Overview

Contract Amount: $75,002,646 ($75.0M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Defense

Start Date: 2014-10-15

End Date: 2021-04-15

Contract Duration: 2,374 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TECHNICAL ENGINEERING SERVICES IN SUPPORT OF SATCOM, RF, VIDEO, AND NETWORKING TECHNOLOGIES.

Place of Performance

Location: BOWIE, PRINCE GEORGES County, MARYLAND, 20716

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $75.0 million to THE MIL CORPORATION for work described as: TECHNICAL ENGINEERING SERVICES IN SUPPORT OF SATCOM, RF, VIDEO, AND NETWORKING TECHNOLOGIES. Key points: 1. The contract, valued at $75M, supports critical communication technologies for the Department of the Navy. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The duration of the contract (2374 days) suggests a long-term need for these specialized engineering services. 4. The use of Cost Plus Fixed Fee (CPFF) pricing could lead to cost overruns if not managed carefully.

Value Assessment

Rating: good

The contract's value of $75M over approximately 6.5 years is substantial for specialized engineering services. Benchmarking against similar large-scale defense engineering contracts would be necessary for a precise assessment, but the competitive award suggests a reasonable price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The multiple delivery orders indicate ongoing needs and potentially varied tasking within the scope.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring efficient use of funds for critical defense infrastructure.

Public Impact

Ensures continued operational capability for vital SATCOM, RF, video, and networking systems. Supports advanced communication infrastructure essential for national security operations. Provides specialized engineering expertise to the Department of the Navy. Potential for technological advancements through ongoing engineering support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can incentivize cost overruns.
Long contract duration may not adapt quickly to evolving technologies.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Supports critical defense communication infrastructure.
Experienced contractor with a significant contract value.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced communication technologies. Defense contracts of this magnitude often involve complex systems integration and long-term support, with spending benchmarks varying widely based on technological sophistication and scope.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were pursued or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The contract's structure with multiple delivery orders allows for phased oversight and performance monitoring throughout its duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee pricing structure.
Long contract duration potentially leading to obsolescence.
No explicit mention of small business participation.
Reliance on specialized, potentially niche, engineering expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.0 million to THE MIL CORPORATION. TECHNICAL ENGINEERING SERVICES IN SUPPORT OF SATCOM, RF, VIDEO, AND NETWORKING TECHNOLOGIES.

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $75.0 million.

What is the period of performance?

Start: 2014-10-15. End: 2021-04-15.

What is the specific breakdown of services provided under the Cost Plus Fixed Fee structure, and how are cost ceilings managed to prevent excessive spending?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Effective oversight involves rigorous auditing of costs, clear definition of allowable expenses, and strict adherence to negotiated cost ceilings. Regular performance reviews and milestone tracking are crucial to ensure the fixed fee remains justified by the delivered value and to mitigate the risk of uncontrolled cost escalation.

Given the long duration, how is the contract ensuring that the engineering services remain relevant and incorporate the latest technological advancements in SATCOM, RF, and networking?

Ensuring relevance over a long duration requires proactive contract management. This includes incorporating clauses for technical refresh, regular reviews of technological advancements, and potentially mechanisms for scope adjustments or competitive re-competition of specific task orders. The government's technical representatives play a key role in guiding the contractor towards incorporating state-of-the-art solutions and ensuring the services align with evolving mission requirements and technological landscapes.

What was the competitive landscape like for this 'full and open' solicitation, and were there specific technical requirements that may have limited the number of bidders?

While 'full and open' competition implies broad solicitation, specific technical requirements in advanced fields like SATCOM, RF, and networking can naturally limit the pool of qualified bidders. The government likely issued a detailed Statement of Work (SOW) outlining necessary expertise, certifications, and past performance. Analyzing the number of proposals received and the technical qualifications of the awardee versus other potential bidders would provide deeper insight into the actual level of competition achieved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3094

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4000 MITCHELLVILLE RD STE A210, BOWIE, MD, 20716

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,747,921

Exercised Options: $78,747,921

Current Obligation: $75,002,646

Subaward Activity

Number of Subawards: 58

Total Subaward Amount: $25,000,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7835

IDV Type: IDC

Timeline