DHS awards $4.2M engineering services contract to Federal Miracle Tech LLC, a sole-source recompete

Contract Overview

Contract Amount: $4,245,311 ($4.2M)

Contractor: Federal Miracle Tech LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-24

End Date: 2026-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 15HSHQDC-17-J-00258 RECOMPETE

Place of Performance

Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22040

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.2 million to FEDERAL MIRACLE TECH LLC for work described as: 15HSHQDC-17-J-00258 RECOMPETE Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The recompete nature suggests a continuation of services, potentially with established performance history. 3. Limited competition raises questions about optimal pricing and potential for cost efficiencies. 4. The contract duration of five years provides long-term service stability. 5. Engineering services are critical for supporting agency infrastructure and operational needs. 6. The award falls under the 'Engineering Services' NAICS code, aligning with specialized technical support.

Value Assessment

Rating: fair

Benchmarking the value of this $4.2 million contract is challenging without specific service details or comparable contract data. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government. The recompete nature implies a potential for established pricing, but also a risk of inertia if not properly re-evaluated against market rates. Further analysis would require understanding the scope of engineering services provided and comparing them to similar contracts within DHS or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a limited competition method. This typically means that while the solicitation was publicly available, specific conditions or prior relationships may have restricted the pool of eligible bidders. The fact that it's a recompete suggests that the incumbent contractor, Federal Miracle Tech LLC, was likely the primary or only bidder considered after initial exclusions. This limited competition may not have driven the most competitive pricing.

Taxpayer Impact: Limited competition can result in higher prices for taxpayers as it reduces the incentive for contractors to offer their lowest possible bids. It also limits opportunities for new or smaller businesses to enter the market and compete for government work.

Public Impact

The Department of Homeland Security (DHS) benefits from continued engineering support for its operations. Essential engineering services are delivered, likely supporting infrastructure, systems, or technical projects within DHS. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the employment of engineers and technical staff by Federal Miracle Tech LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing and reduced value for taxpayer dollars.
The 'after exclusion of sources' clause warrants scrutiny to ensure fair opportunity was considered.
Lack of transparency in the exclusion process could mask potential issues.
Recompetes can sometimes lack the innovation and cost-saving pressures of new competitions.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The recompete suggests a potentially stable and experienced contractor.
The contract duration ensures continuity of essential engineering services.

Sector Analysis

The engineering services sector is a vital component of government contracting, encompassing a wide range of technical expertise. This contract, under NAICS code 541330, falls within a market that supports critical infrastructure, defense, and operational needs across federal agencies. Spending in this sector can vary significantly based on agency priorities, infrastructure projects, and research and development initiatives. Comparable spending benchmarks would typically be found by analyzing other engineering services contracts awarded by DHS or similar large federal departments.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award, as the contractor is not identified as a small business, and there is no indication of a small business set-aside. This means opportunities for small businesses to directly perform this work are limited unless they are subcontractors. The impact on the small business ecosystem is neutral to negative, as larger, established firms are awarded the prime contract, potentially limiting subcontracting avenues for smaller entities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is moderate; while the award is public, the specifics of the 'exclusion of sources' and the detailed scope of work are not readily available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DHS Engineering Services Contracts
Federal IT and Engineering Support
Professional Services Contracts
Sole Source and Limited Competition Awards

Risk Flags

Limited Competition
Recompete
Exclusion of Sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.2 million to FEDERAL MIRACLE TECH LLC. 15HSHQDC-17-J-00258 RECOMPETE

Who is the contractor on this award?

The obligated recipient is FEDERAL MIRACLE TECH LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-09-23.

What specific engineering services are being provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 541330, which corresponds to 'Engineering Services.' This broad category can encompass a wide array of specialized technical support, including but not limited to, civil engineering, mechanical engineering, electrical engineering, aerospace engineering, environmental engineering, and systems engineering. Without further details from the contract's statement of work (SOW), it is impossible to ascertain the precise nature of the services. These services could range from designing and overseeing infrastructure projects, developing technical specifications for equipment, providing expert consultation on complex systems, conducting feasibility studies, or supporting research and development efforts within the Department of Homeland Security. The specific services are crucial for understanding the contract's true value and performance.

How does the $4.2 million contract value compare to similar engineering services contracts awarded by DHS?

Comparing the $4.2 million value of this contract to similar engineering services contracts awarded by the Department of Homeland Security (DHS) requires access to a broader dataset of DHS procurements. However, as a general benchmark, $4.2 million for a five-year contract (1825 days) represents an average annual value of approximately $840,000. This figure falls within a moderate range for specialized engineering support services. Larger, more complex projects or agency-wide support contracts could easily exceed tens or hundreds of millions of dollars, while smaller, task-specific engagements might be in the hundreds of thousands. To provide a precise comparison, one would need to analyze the scope, duration, and specific engineering disciplines of other DHS contracts within the 541330 NAICS code over a similar timeframe.

What are the potential risks associated with a 'full and open competition after exclusion of sources' award?

The 'full and open competition after exclusion of sources' award method, as indicated in the data, presents several potential risks. Primarily, it suggests that the competition was intentionally narrowed, which can limit the number of qualified bidders and potentially lead to less competitive pricing. The 'exclusion of sources' implies that certain potential offerors were deliberately prevented from bidding, raising questions about the justification for such exclusions and whether they were fully compliant with procurement regulations. This method can reduce the government's ability to secure the best possible value by limiting the range of innovative solutions and cost proposals. Furthermore, it can create a perception of favoritism or a lack of true market engagement, potentially undermining confidence in the procurement process and leading to higher costs for taxpayers.

What is the track record of Federal Miracle Tech LLC in performing government contracts?

Information regarding the specific track record of Federal Miracle Tech LLC in performing government contracts is not detailed in the provided data snippet. However, the fact that this is a 'RECOMPETE' suggests that Federal Miracle Tech LLC has likely performed services under a previous contract with the Department of Homeland Security. To assess their track record thoroughly, one would need to examine past performance evaluations, contract completion history, any documented disputes or terminations, and the overall quality and timeliness of their previous deliverables. A review of the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to gather this information and evaluate their reliability, expertise, and past performance metrics.

How does the duration of this contract (5 years) impact its overall value and risk?

The five-year duration (1825 days) of this contract offers both advantages and potential risks. On the positive side, it provides stability and continuity of essential engineering services for the Department of Homeland Security, reducing the administrative burden and potential disruption associated with frequent re-competitions. This long-term engagement can also allow the contractor to develop deeper expertise and familiarity with DHS's specific needs, potentially leading to more efficient and effective service delivery over time. However, a longer duration also increases the risk of price escalation if market conditions change significantly, and it locks the government into a specific provider for an extended period. If the contractor's performance degrades or if more competitive pricing becomes available elsewhere, the government has limited flexibility to change course without incurring costs or facing contractual hurdles.

What is the significance of the 'st': 'VA' and 'sn': 'VIRGINIA' fields in the context of this contract?

The fields 'st': 'VA' and 'sn': 'VIRGINIA' indicate that the contractor, Federal Miracle Tech LLC, is registered or primarily located in the state of Virginia. This has several implications. Geographically, it suggests that the contract's performance may be centered in or managed from Virginia, potentially impacting local employment and economic activity within that state. For federal contracting purposes, a contractor's location can sometimes influence bid preferences or set-aside opportunities, although this contract was not a small business set-aside. It also means that any on-site work or coordination required by DHS personnel might be facilitated if they also have a presence in Virginia. Furthermore, state registration is a basic requirement for doing business within the U.S. and signifies the company's formal establishment.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RDAD21Q00000133

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7701 GREENBELT RD STE 501, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,737,591

Exercised Options: $4,737,591

Current Obligation: $4,245,311

Actual Outlays: $2,837,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D8156

IDV Type: IDC

Timeline