MCC Awards $34.8M for Computer Systems Design Services to TCG Inc. via Full and Open Competition
Contract Overview
Contract Amount: $34,858,341 ($34.9M)
Contractor: TCG Inc
Awarding Agency: Millennium Challenge Corporation
Start Date: 2021-06-14
End Date: 2027-06-13
Contract Duration: 2,190 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SOFTWARE DEVELOPMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Millennium Challenge Corporation obligated $34.9 million to TCG INC for work described as: SOFTWARE DEVELOPMENT Key points: 1. Contract value of $34.8M over 5 years. 2. TCG Inc. is the sole awardee. 3. Competition method is 'Full and Open Competition After Exclusion of Sources'. 4. Service category is Computer Systems Design Services. 5. Contract type is Time and Materials.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, combined with a 5-year duration, warrants scrutiny for potential cost overruns. Benchmarking against similar IT service contracts is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process was initiated. However, the specific exclusion of sources needs clarification to fully understand price discovery impacts.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the Time and Materials nature could lead to costs exceeding initial estimates, impacting taxpayer funds.
Public Impact
Citizens benefit from improved government IT infrastructure and services. The contract supports a specific vendor, TCG Inc., contributing to its growth. Transparency in the 'exclusion of sources' is key for public trust. Potential for cost escalation under Time and Materials requires monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to uncontrolled costs.
- Exclusion of sources in competition needs justification.
- Long contract duration increases risk of scope creep or obsolescence.
Positive Signals
- Awarded via full and open competition.
- Clear service category and agency.
- Defined contract period.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending benchmarks in this area vary widely based on complexity and duration, but $34.8M over 5 years for system design is a significant investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Larger prime contractors like TCG Inc. may engage small businesses as subcontractors, but this is not explicitly detailed.
Oversight & Accountability
The Millennium Challenge Corporation is responsible for oversight. The Time and Materials contract type necessitates robust monitoring to ensure efficient use of funds and prevent cost overruns.
Related Government Programs
- Computer Systems Design Services
- Millennium Challenge Corporation Contracting
- Millennium Challenge Corporation Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of clarity on 'exclusion of sources' impact.
- Long contract duration (5 years) increases risk.
- No small business set-aside noted.
Tags
computer-systems-design-services, millennium-challenge-corporation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Millennium Challenge Corporation awarded $34.9 million to TCG INC. SOFTWARE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is TCG INC.
Which agency awarded this contract?
Awarding agency: Millennium Challenge Corporation (Millennium Challenge Corporation).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2021-06-14. End: 2027-06-13.
What specific services are included under 'Computer Systems Design Services' to justify the $34.8M cost?
The specific services would likely encompass a range of activities such as requirements analysis, system architecture design, software development lifecycle management, integration, testing, and potentially initial deployment support. Detailed statements of work (SOWs) would outline these precisely, allowing for a better assessment of value against the allocated funds.
How does the 'exclusion of sources' clause impact the competitive landscape and potential for cost savings?
Excluding specific sources, even within a full and open competition framework, can limit the pool of potential bidders. This may reduce competitive pressure, potentially leading to higher prices than if all qualified vendors could participate. Justification for such exclusions is critical for ensuring fair market access and optimal taxpayer value.
What mechanisms are in place to control costs and ensure effectiveness given the Time and Materials contract type?
Effective oversight requires clear performance metrics, regular progress reviews, and strict adherence to the SOW. Implementing cost ceilings, limiting billable hours, and requiring detailed justification for all time spent are crucial. Independent verification of deliverables and outcomes ensures the agency receives the intended value and effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 95332421Q0007
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 7348 GEORGIA AVENUE NW, WASHINGTON, DC, 20012
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,431,384
Exercised Options: $39,809,384
Current Obligation: $34,858,341
Actual Outlays: $7,947,849
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $741,155
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201200178W
IDV Type: GWAC
Timeline
Start Date: 2021-06-14
Current End Date: 2027-06-13
Potential End Date: 2027-06-13 00:00:00
Last Modified: 2026-04-09
More Contracts from TCG Inc
- Budget Line of Business and Maxgov Technology Services — $98.0M (General Services Administration)
- TCG Itess 2020 HHS ACF Itess Base Period Award 09/18/2020-09/17/2021. Base Period Increment 1 Award Value: $2,448,755.67. Base Period Increment 2 Award Value: $7,092,907. Total Base Period Award Value $9,541,662.40. Total Task Order Lifecyle $50 — $48.4M (Department of Health and Human Services)
- Development and Enterprise Applications (EA) Operations, Maintenance, and Enhancements (OME) for MCC Ocio — $38.6M (Millennium Challenge Corporation)
- OMB MAX Technology and Program Management Support Services — $33.7M (Executive Office of the President)
- ,Ct::igf OMB MAX Application Support Under Fedsim BPA Gstfmg Bpa-08-001omb — $29.8M (General Services Administration)
Other Millennium Challenge Corporation Contracts
- Leased Office Space Igf::ot::igf — $66.3M (Franklin Court Inc)
- Lease — $62.8M (Bowen Building, L. P.)
- Development and Enterprise Applications (EA) Operations, Maintenance, and Enhancements (OME) for MCC Ocio — $38.6M (TCG Inc)
- Direct Labor - FFP — $26.4M (1901 Group, LLC)
- Lease of 1401 H Street, NW Washington, DC — $20.1M (1401 H Owner LLC)