1901 GROUP, LLC awarded $26.4M IT services contract by Millennium Challenge Corporation

Contract Overview

Contract Amount: $26,395,653 ($26.4M)

Contractor: 1901 Group, LLC

Awarding Agency: Millennium Challenge Corporation

Start Date: 2019-02-27

End Date: 2026-08-26

Contract Duration: 2,737 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIRECT LABOR - FFP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Millennium Challenge Corporation obligated $26.4 million to 1901 GROUP, LLC for work described as: DIRECT LABOR - FFP Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 2737 days (over 7 years) indicates a long-term need. 4. No small business set-aside, suggesting a focus on larger prime contractors. 5. Services fall under 'Other Computer Related Services', a broad IT category. 6. Contractor 1901 GROUP, LLC is the sole awardee under this specific BPA Call. 7. Geographic location is Washington D.C.

Value Assessment

Rating: fair

The total contract value of $26.4 million over approximately 7.5 years averages to about $3.5 million annually. Benchmarking this against similar IT services contracts requires detailed analysis of the specific services rendered, but the duration suggests a significant, ongoing need. The firm-fixed-price structure provides cost predictability, which is a positive value indicator. However, without more granular data on the scope of work and deliverables, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Blanket Purchase Agreement (BPA) Call, which implies that the underlying BPA was established through full and open competition. However, the specific call order to 1901 GROUP, LLC may have had limited visibility depending on the BPA's terms. As a BPA Call, it's likely that multiple vendors could have potentially bid on the BPA itself, but this specific call order was awarded to one entity.

Taxpayer Impact: Full and open competition for the underlying BPA ensures a broad base of potential offerors, which generally leads to better pricing and value for taxpayers. The specific call order award mechanism needs further scrutiny to confirm if it maximized competitive pressure.

Public Impact

The Millennium Challenge Corporation benefits from IT services supporting its mission. The contract delivers 'Other Computer Related Services', likely encompassing IT support, maintenance, and potentially development. The primary geographic impact is Washington D.C., where the agency is located. The contract supports the IT infrastructure and operational needs of the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for a significant IT services BPA Call may limit future flexibility.
The broad 'Other Computer Related Services' category could mask potential scope creep or undefined requirements.

Positive Signals

Firm Fixed Price contract type offers cost certainty.
Award through a BPA Call suggests a pre-vetted contractor and potentially streamlined acquisition.
The contractor, 1901 GROUP, LLC, has experience in government IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. This broad category encompasses a wide range of IT support functions. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common as agencies outsource specialized IT functions or seek to leverage established IT service providers through existing contract vehicles like BPAs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all responsible sources, including large businesses. While this specific award may not directly benefit small businesses as prime contractors, it's possible that 1901 GROUP, LLC may engage small businesses as subcontractors to fulfill parts of the contract requirements, depending on their subcontracting plans and the nature of the services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Millennium Challenge Corporation. The firm-fixed-price nature of the contract provides a degree of oversight through adherence to the defined scope and deliverables. Transparency is generally facilitated through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on the agency's IG mandate and any potential investigations into contract performance or compliance.

Related Government Programs

IT Professional Services
IT Support Services
Managed IT Services
Blanket Purchase Agreements (BPAs)
IT Services for Government Agencies

Risk Flags

Long contract duration may limit flexibility.
Potential for scope creep in broad service category.
Reliance on a single awardee under BPA Call.

Frequently Asked Questions

What is this federal contract paying for?

Millennium Challenge Corporation awarded $26.4 million to 1901 GROUP, LLC. DIRECT LABOR - FFP

Who is the contractor on this award?

The obligated recipient is 1901 GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2019-02-27. End: 2026-08-26.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services'. This is a broad category that can include services such as computer facilities management, IT support services, network management, disaster recovery services, and IT consulting that is not ancillary to the sale of computer hardware or software. Without access to the contract's Statement of Work (SOW), the precise services are not detailed. However, given the duration and value, it likely encompasses a comprehensive suite of IT support and maintenance for the Millennium Challenge Corporation's infrastructure and operations.

How does the $26.4 million value compare to similar IT services contracts awarded by the Millennium Challenge Corporation or other agencies of similar size?

Comparing the $26.4 million value requires context regarding the specific services and duration. Over its 7.5-year term, this contract represents an average annual spend of approximately $3.5 million. This figure is moderate for a federal agency's IT services contract, especially considering the long duration. Agencies like the Millennium Challenge Corporation often have significant IT needs for managing international development programs. Benchmarking against contracts for similar services (e.g., IT support, network management) from agencies like USAID or the State Department would provide a more accurate comparison. However, the value itself does not immediately suggest over or under-spending without a detailed scope analysis.

What is the track record of 1901 GROUP, LLC in performing federal IT contracts?

1901 GROUP, LLC has a history of performing IT services for the federal government. While specific performance metrics for this contract are not detailed in the provided data, the company has been awarded other federal contracts. A thorough assessment would involve reviewing past performance evaluations, any reported contract disputes, and the successful completion of previous IT service agreements. Their presence in the government contracting space suggests they have met basic eligibility and capability requirements. Further investigation into their specific past performance ratings and client feedback would be necessary for a comprehensive understanding of their track record.

What are the potential risks associated with a 7.5-year IT services contract awarded via a BPA Call?

Several risks are associated with long-term IT contracts awarded via BPA Calls. Firstly, the extended duration (2737 days) can lead to vendor lock-in, making it difficult and costly to switch providers if performance declines or technology evolves. Secondly, if the underlying BPA was not recently competed or if the specific call order lacked broad visibility, there's a risk that the government may not be receiving the most competitive pricing or innovative solutions available in the market. Thirdly, the broad nature of 'Other Computer Related Services' could lead to scope creep if not meticulously managed, potentially increasing costs beyond the initial $26.4 million estimate. Finally, over-reliance on a single vendor for critical IT functions can pose a risk if the vendor experiences financial instability or operational disruptions.

How does the Firm Fixed Price (FFP) contract type contribute to value for money in this scenario?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, 1901 GROUP, LLC. This means the government knows the total cost upfront, facilitating budget planning and preventing unexpected increases in expenditure. For value for money, FFP encourages the contractor to be efficient and manage costs effectively to maximize their profit margin. This structure is particularly suitable for IT services where requirements can be clearly articulated, such as maintenance, support, or established operational tasks, contributing positively to price discovery and cost certainty.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 95332418Q0164

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $28,010,048

Exercised Options: $28,010,048

Current Obligation: $26,395,653

Actual Outlays: $567,785

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $276,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 95332419A0001

IDV Type: BPA

Timeline