DOJ's $23.5M engineering services contract with MIRACLE SYSTEMS LLC awarded via full and open competition

Contract Overview

Contract Amount: $23,515,397 ($23.5M)

Contractor: Miracle Systems LLC

Awarding Agency: Department of Justice

Start Date: 2015-11-30

End Date: 2021-02-28

Contract Duration: 1,917 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $23.5 million to MIRACLE SYSTEMS LLC for work described as: IGF::OT::IGF Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a robust bidding process, potentially driving competitive pricing. 3. Risk indicators are moderate, with a long performance period requiring ongoing monitoring. 4. Performance context suggests a need for consistent delivery of engineering services. 5. Sector positioning places this contract within the broader engineering services market for government agencies.

Value Assessment

Rating: fair

The total award amount of $23.5 million over approximately 1917 days (roughly 5.25 years) suggests a moderate annual spend. Benchmarking against similar engineering services contracts is difficult without more specific service details. However, the contract type (LABOR HOURS) can sometimes lead to cost overruns if not managed tightly. The price appears reasonable for the duration, but detailed cost analysis would require a breakdown of labor rates and hours.

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,' which implies an initial exclusion of certain sources followed by a full and open competition. The presence of 3 bidders suggests a reasonable level of competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

The Department of Justice benefits from specialized engineering services to support its various offices, boards, and divisions. Services delivered likely include technical analysis, design, and consulting related to engineering projects. The geographic impact is centered in the District of Columbia, where the agency is headquartered. Workforce implications may involve the utilization of skilled engineers and technical personnel, both from the contractor and potentially government oversight staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour contracts if not meticulously managed.
Long contract duration necessitates sustained performance monitoring and quality assurance.
Reliance on a single awardee for a significant period could pose continuity risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Multiple bidders participated, suggesting a healthy market for these services.
The contract has a defined period of performance, allowing for periodic re-evaluation of needs and vendor performance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant market for government agencies requiring specialized technical expertise. Government spending in this area supports a wide range of functions, from infrastructure development to complex system design. Comparable spending benchmarks would depend on the specific type of engineering services rendered, but overall federal spending on engineering services is substantial.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without a set-aside, larger firms are typically better positioned to compete for and win these types of prime contracts.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Justice's contracting and program management offices. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Justice IT Services
Federal Engineering Consulting Contracts
Government Professional Services Contracts
Defense Engineering Support
Infrastructure Engineering Services

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' contract type.
Need for robust oversight given the long contract duration.
Complexity of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires careful documentation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.5 million to MIRACLE SYSTEMS LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is MIRACLE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2015-11-30. End: 2021-02-28.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, it does not specify the exact nature of these services. Typically, this broad category can encompass a wide range of activities, including but not limited to civil, mechanical, electrical, or environmental engineering consulting, design, analysis, and project management. For a more precise understanding, one would need to consult the contract's Performance Work Statement (PWS) or Statement of Work (SOW), which details the specific tasks, deliverables, and technical requirements expected from MIRACLE SYSTEMS LLC.

How does the $23.5 million award compare to similar engineering services contracts awarded by the federal government?

Comparing the $23.5 million total award requires context regarding the contract's duration and scope. This contract spanned approximately 1917 days (over 5 years), making the average annual value around $4.5 million. This is a moderate-sized contract within the federal engineering services landscape. Larger, more complex projects, especially in defense or infrastructure, can reach hundreds of millions or even billions of dollars. Smaller, more specialized consulting tasks might be in the hundreds of thousands. Without knowing the specific services, it's challenging to provide a precise benchmark, but $4.5 million annually for engineering services is within a common range for agency-specific support.

What are the primary risks associated with a 'LABOR HOURS' contract of this magnitude and duration?

The primary risk with a 'LABOR HOURS' contract, especially one valued at $23.5 million over five years, is cost control. Since payment is based on the hours worked by contractor personnel multiplied by agreed-upon rates, there's an inherent risk of scope creep and inefficient labor utilization. If the government's requirements are not clearly defined and strictly managed, or if the contractor does not manage its workforce efficiently, costs can escalate beyond initial projections. Effective oversight, detailed tracking of hours, and robust performance management are crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type signify?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) award type suggests a multi-stage procurement process. Initially, certain potential sources may have been excluded, perhaps due to specific requirements, past performance issues, or other pre-defined criteria. Following this exclusion, the remaining opportunities were competed fully and openly among all eligible responsible sources. This approach aims to balance the need for specialized capabilities or to address specific concerns with the principle of broad competition, ensuring that the final award is made to the best-value offeror from a competitive pool.

What is the track record of MIRACLE SYSTEMS LLC in securing federal contracts?

The provided data identifies MIRACLE SYSTEMS LLC as the contractor for this $23.5 million Department of Justice contract. To assess their track record, one would need to examine their complete federal contract history. This includes the number of contracts awarded, their total value, the agencies they've served, the types of services provided, and their performance ratings (if available). A history of successful contract completions, positive performance reviews, and experience with similar scope and complexity would indicate a reliable contractor. Conversely, a history of contract issues, disputes, or poor performance would raise concerns.

How has the Department of Justice historically spent funds on engineering services?

Historical spending data for the Department of Justice (DOJ) on engineering services would reveal trends and patterns in their procurement of such expertise. Analyzing past contracts (e.g., over the last 5-10 years) would show the typical contract values, the types of engineering services most frequently procured (e.g., civil, structural, IT infrastructure design), the primary contracting vehicles used (e.g., IDIQs, task orders), and the dominant contractors in this space. This analysis helps contextualize the current $23.5 million award, indicating whether it represents a typical investment, an increase, or a decrease in DOJ's spending on engineering support.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $23,780,008

Exercised Options: $23,780,008

Current Obligation: $23,515,397

Actual Outlays: $8,293,760

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS128

IDV Type: IDC

Timeline