MIRACLE SYSTEMS LLC awarded $40.5M for engineering services, with 8 delivery orders over 4 years

Contract Overview

Contract Amount: $40,459,888 ($40.5M)

Contractor: Miracle Systems LLC

Awarding Agency: Agency for International Development

Start Date: 2017-09-29

End Date: 2021-09-07

Contract Duration: 1,439 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF STRATEGIC PROGRAMS AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $40.5 million to MIRACLE SYSTEMS LLC for work described as: IGF::CL::IGF STRATEGIC PROGRAMS AWARD Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a long performance period. 4. Performance context shows a significant award for engineering services. 5. Sector positioning is within engineering services, a critical area for agency operations.

Value Assessment

Rating: fair

The total award of $40.5 million over approximately four years for engineering services represents a substantial investment. Benchmarking against similar large-scale engineering contracts is challenging without more specific service details. However, the contract's duration and the number of delivery orders (8) suggest a sustained need for these services. The time and materials pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, but the overall value seems reasonable for the period covered.

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 multiple vendors were likely solicited and evaluated. The fact that it was competed suggests that the agency sought the best value and pricing available in the market. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives competitive bids, leading to better value for public funds.

Public Impact

The primary beneficiaries are likely the Agency for International Development (USAID) and its various programs requiring engineering expertise. Services delivered include engineering support, crucial for project planning, execution, and oversight. The geographic impact is likely broad, given USAID's global mission, though specific project locations are not detailed. Workforce implications include the creation of engineering jobs, both directly with the contractor and potentially indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 4 years) could introduce risks related to evolving requirements and cost overruns if not managed proactively.
Time and Materials (T&M) contract type can be less predictable in final cost compared to fixed-price contracts.
The specific nature of 'Engineering Services' is broad and could encompass a wide range of activities, making precise performance evaluation difficult without further detail.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured favorable pricing.
Multiple delivery orders (8) suggest a sustained and potentially successful working relationship, indicating contractor performance met agency needs.
The significant award amount indicates a critical need for these engineering services by the agency.

Sector Analysis

The engineering services sector is a vital component of government contracting, supporting a wide array of agency missions from infrastructure development to technical consulting. This contract falls within the broader professional, scientific, and technical services industry. Comparable spending benchmarks for large-scale engineering support contracts can vary significantly based on specialization, duration, and geographic scope, but awards in the tens of millions are common for complex, multi-year engagements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, MIRACLE SYSTEMS LLC, is likely a larger entity. There is no direct information on subcontracting plans or performance. The lack of a small business set-aside means opportunities for small businesses would likely arise through subcontracting, if MIRACLE SYSTEMS LLC chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development's contracting officers and program managers. Given the award amount and duration, regular performance reviews, financial audits, and adherence to contract terms would be expected. Transparency is facilitated by public contract databases, but detailed internal oversight mechanisms and Inspector General (IG) jurisdiction specifics are not provided in this data.

Related Government Programs

USAID Engineering Services Contracts
Professional and Technical Services
Government Engineering Support
International Development Projects

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Scope creep risk given the long duration and broad service category.
Need for robust oversight to ensure efficient labor utilization.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.5 million to MIRACLE SYSTEMS LLC. IGF::CL::IGF STRATEGIC PROGRAMS AWARD

Who is the contractor on this award?

The obligated recipient is MIRACLE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $40.5 million.

What is the period of performance?

Start: 2017-09-29. End: 2021-09-07.

What is the track record of MIRACLE SYSTEMS LLC with the federal government, particularly in engineering services?

MIRACLE SYSTEMS LLC has received federal contracts, including this significant award from the Agency for International Development. Further analysis would require examining their complete federal contract history, including past performance on similar engineering services contracts, any reported issues or awards, and their overall performance ratings across different agencies. Understanding their experience with USAID specifically, and the types of engineering projects they have successfully completed, would provide a clearer picture of their capabilities and reliability as a contractor.

How does the $40.5 million award compare to typical engineering service contracts for USAID or similar agencies?

The $40.5 million award is a substantial sum, indicative of a significant, long-term need for engineering services. Comparing it requires understanding the specific nature of the services rendered. USAID often engages in large-scale international development projects that necessitate extensive engineering support for infrastructure, program design, and implementation oversight. Awards of this magnitude are not uncommon for such complex, multi-year engagements, especially those with a global reach. However, without detailed service descriptions, a precise benchmark against other contracts is difficult. It suggests a high level of trust and perceived capability placed in MIRACLE SYSTEMS LLC by the agency.

What are the primary risks associated with a Time and Materials (T&M) contract of this size and duration?

The primary risk with a T&M contract, especially one valued at $40.5 million and spanning nearly four years, is cost escalation. Unlike fixed-price contracts, T&M agreements allow the contractor to bill for direct labor hours at specified rates and for the cost of materials used. This can lead to higher-than-anticipated costs if project scopes are not tightly managed, labor hours are inefficiently used, or material costs increase unexpectedly. Effective oversight, clear task orders, and diligent monitoring of labor hours and material expenditures by the agency are crucial to mitigate these risks and ensure the government receives good value.

How effective has MIRACLE SYSTEMS LLC been in delivering engineering services under this contract, based on available performance data?

The provided data indicates the contract was awarded and completed, with 8 delivery orders issued over its duration. This suggests a level of sustained engagement and likely successful task completion to warrant multiple orders. However, specific performance metrics, quality assessments, or user feedback are not included. To gauge effectiveness thoroughly, one would need to review performance reports, contract close-out documentation, and any feedback from the program managers at USAID who received the engineering services. The absence of readily available negative performance indicators could be seen as a neutral to positive sign.

What has been the historical spending trend for engineering services by the Agency for International Development?

Analyzing historical spending trends for engineering services by USAID would require access to multi-year budget and contract award data. Generally, agencies like USAID, involved in global development and infrastructure, consistently allocate significant portions of their budget to engineering and technical services. Spending can fluctuate based on geopolitical needs, specific program initiatives, and the lifecycle of major projects. A trend analysis would reveal if this $40.5 million award represents a typical investment level, an increase, or a decrease compared to previous years' spending on similar services, providing context for the scale of this particular contract.

What is the significance of the contract being 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

This contract type signifies a competitive procurement process where the agency initially considered excluding certain sources but ultimately opened the competition to all responsible sources. This typically occurs when a specific technology or capability is required, but the agency wants to ensure broad market participation. It implies that while there might have been initial considerations for specific vendors, the final award was made after a comprehensive evaluation of offers from the wider market. This approach aims to balance specialized needs with the benefits of broad competition, potentially leading to better pricing and innovation.

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

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

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: $40,977,522

Exercised Options: $40,977,522

Current Obligation: $40,459,888

Actual Outlays: $21,773,006

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS128

IDV Type: IDC

Timeline