DHS awards $37.2M for accounting services to Miracle Systems LLC under full and open competition

Contract Overview

Contract Amount: $37,228,561 ($37.2M)

Contractor: Miracle Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-15

End Date: 2024-09-14

Contract Duration: 1,826 days

Daily Burn Rate: $20.4K/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: FINANCIAL&ACCOUNTING SUPPORT SERVICES (OMNIBUS)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.2 million to MIRACLE SYSTEMS LLC for work described as: FINANCIAL&ACCOUNTING SUPPORT SERVICES (OMNIBUS) Key points: 1. Contract value represents a significant investment in financial and accounting support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period of five years indicates a long-term need for these services. 4. The contract type (Firm Fixed Price) aims to control costs and provide predictability. 5. This award falls within the broader category of professional services for federal agencies.

Value Assessment

Rating: good

The total award of $37.2 million over five years for accounting services appears reasonable given the scope and duration. Benchmarking against similar contracts for financial and accounting support services at the Department of Homeland Security (DHS) would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively. Without specific per-unit data, a direct comparison is challenging, but the overall contract value aligns with the typical scale of such support services for a large federal agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The current level of competition may have influenced the final negotiated price.

Taxpayer Impact: The full and open competition, even with exclusions, aims to ensure fair pricing for taxpayers. However, with only two bidders, there's a possibility that a more robust competition could have yielded even greater savings.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced financial and accounting support. Services delivered include essential accounting functions critical for agency operations. The geographic impact is primarily within DHS operations, likely supporting various components. Workforce implications include support for federal employees and potentially contractor personnel involved in financial management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to only two bidders.
Exclusion of sources might have reduced overall competitive pressure.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Long performance period allows for stable service delivery.
Awarded under a competitive process, suggesting some level of market vetting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting services. The federal government is a significant consumer of these services to manage its complex financial operations. Comparable spending benchmarks for accounting and financial support services across federal agencies often run into billions of dollars annually, reflecting the critical nature of these functions. This contract represents a portion of DHS's overall expenditure in this domain.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, Miracle Systems LLC, is likely not a small business, and the contract was not specifically targeted to encourage small business involvement. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Transportation Security Administration (TSA) or relevant DHS component. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Financial Management Services
Accounting and Auditing Services
Department of Homeland Security Financial Operations
Transportation Security Administration Support Services

Risk Flags

Moderate competition level may impact price optimization.
Potential for performance gaps if specialized accounting expertise is lacking.
Exclusion of sources could limit competitive breadth.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.2 million to MIRACLE SYSTEMS LLC. FINANCIAL&ACCOUNTING SUPPORT SERVICES (OMNIBUS)

Who is the contractor on this award?

The obligated recipient is MIRACLE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $37.2 million.

What is the period of performance?

Start: 2019-09-15. End: 2024-09-14.

What is the track record of Miracle Systems LLC in performing similar federal contracts?

Miracle Systems LLC has a history of performing federal contracts, primarily within the IT and professional services domains. Analysis of their past performance data, including contract values, agencies served, and performance ratings, is crucial for assessing their capability to fulfill this $37.2 million accounting services contract. While the provided data indicates they were awarded this contract, a deeper dive into their specific experience with financial and accounting support services, rather than just IT, would be necessary to fully gauge their suitability and past success in this particular area. Examining past performance reviews and any documented issues or successes would provide a more comprehensive picture of their reliability and expertise.

How does the per-unit cost of these accounting services compare to market rates or similar federal contracts?

The provided data does not include specific per-unit cost breakdowns for the accounting services rendered under this contract, making a direct per-unit cost comparison impossible. The total award of $37.2 million over five years is a significant sum, but without knowing the volume of services (e.g., hours, number of transactions processed, reports generated), it's difficult to benchmark. To assess value for money, one would need to compare the total contract value against the scope of work and compare this to similar accounting support contracts awarded by DHS or other federal agencies. If data on average hourly rates or cost per service were available, it could be benchmarked against industry standards or government-wide contract vehicles to determine if the pricing is competitive.

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

Key risks for this contract include potential performance issues if Miracle Systems LLC lacks sufficient specialized accounting expertise, despite potential IT strengths. Another risk is the moderate competition level (two bidders), which could imply less pressure on pricing and innovation. Mitigation strategies likely involve robust oversight from the TSA contracting officer, clear performance metrics defined in the contract, and regular performance reviews. The firm fixed-price nature of the contract also shifts some financial risk to the contractor. Ensuring the contract clearly defines deliverables and service level agreements is crucial for managing performance risks.

How effective has the 'Full and Open Competition After Exclusion of Sources' been in ensuring value for this contract?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value is nuanced. While it aims for broad competition, the exclusion of certain sources could limit the pool of potential bidders and potentially reduce competitive pressure. With only two bidders identified, the level of competition was moderate. This suggests that while the process was competitive, it may not have reached the optimal level where intense bidding drives down prices and spurs maximum innovation. The value realized will depend on the specific criteria for exclusion and the capabilities of the two competing firms. A more robust competition with more bidders might have yielded better value for taxpayers.

What is the historical spending pattern for accounting and financial support services at the TSA or DHS?

Historical spending on accounting and financial support services at the TSA and DHS is substantial, reflecting the agency's large operational footprint and complex financial management needs. While specific historical data for this particular contract vehicle isn't provided, agencies like DHS consistently allocate significant budgets to these functions. This often involves a mix of internal resources and contracted services. Analyzing past contract awards for similar services, their values, durations, and competition levels would reveal trends in spending, identify key contractors, and highlight any fluctuations in demand or pricing over time. Such analysis is vital for understanding the context of this $37.2 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1621 N KENT STREET SUITE 1000, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $40,267,022

Exercised Options: $38,139,799

Current Obligation: $37,228,561

Actual Outlays: $15,527,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS207

IDV Type: IDC

Timeline