DOT's FAA awarded $23.8M for administrative management consulting, with performance extending over five years

Contract Overview

Contract Amount: $23,780,346 ($23.8M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Transportation

Start Date: 2016-06-01

End Date: 2021-08-31

Contract Duration: 1,917 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: "CONTRACT NUMBER: FIS CONTRACT, DTFAWA-12-D-00057 TASK ORDER NUMBER: 0012 PERIOD OF PERFORMANCE: 6/01/2016 TO 5/31/2017 COR: JONATHAN BRANKER, 202-267-1691 CO: RICHARD A. CUTTS, 202-267-2862 " IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $23.8 million to THE MIL CORPORATION for work described as: "CONTRACT NUMBER: FIS CONTRACT, DTFAWA-12-D-00057 TASK ORDER NUMBER: 0012 PERIOD OF PERFORMANCE: 6/01/2016 TO 5/31/2017 COR: JONATHAN BRANKER, 202-267-1691 CO: RICHARD A. CUTTS, 202-267-2862 " IGF::OT::IGF Key points: 1. The contract value of $23.8 million over five years suggests a significant investment in management consulting services. 2. The use of 'Full and Open Competition' indicates a broad solicitation process, potentially leading to competitive pricing. 3. The contract's duration of 1917 days (over 5 years) may present risks related to evolving needs and potential cost overruns if not managed closely. 4. The services provided fall under Administrative Management and General Management Consulting, a common area for federal procurement. 5. The fixed-price contract type offers some cost certainty, but the scope of services will be critical to its value. 6. The contract was awarded to The MIL Corporation, whose past performance and pricing will be key indicators of value.

Value Assessment

Rating: fair

The total award of $23.8 million over approximately five years averages to about $4.76 million annually. Benchmarking this against similar administrative management consulting contracts requires detailed analysis of the specific services rendered. Without a clear breakdown of deliverables and labor categories, it's difficult to definitively assess value for money. However, the duration suggests a substantial, ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit offers. This typically involves a solicitation process where multiple bidders can compete, which can drive down prices and improve service quality. The number of bidders and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and a wider range of innovative approaches.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving management consulting services to support its operations. The services delivered are categorized as Administrative Management and General Management Consulting, likely aimed at improving efficiency and effectiveness within the FAA. The contract's performance is centered in the District of Columbia, indicating a focus on administrative functions within the nation's capital. While not directly tied to a specific workforce expansion, the consulting services could lead to process improvements that impact federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the five-year performance period, leading to increased costs if not tightly managed.
The long duration may result in services becoming outdated if the contract is not regularly reviewed and adapted to changing agency needs.
Assessing the true value for money requires a detailed understanding of the specific consulting tasks and their impact on FAA operations.

Positive Signals

The use of 'Full and Open Competition' suggests a robust process that should yield competitive pricing.
The firm fixed-price contract type provides a degree of cost certainty for the government.
The contract is awarded to The MIL Corporation, whose specific expertise in administrative management consulting is likely a positive signal.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the federal contracting market. Agencies frequently procure these services to enhance operational efficiency, strategic planning, and organizational effectiveness. Spending in this sector can range from millions to billions annually across various departments, with contracts often awarded through competitive processes to firms specializing in business process improvement, organizational development, and strategic advisory.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, The MIL Corporation, would determine any subcontracting opportunities, which are not specified in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Contracting Officer's Representative (COR) and Contracting Officer (CO) listed in the data. The Federal Aviation Administration (FAA) is responsible for ensuring the contractor meets performance requirements. Transparency would be enhanced by public reporting of contract performance and any modifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Management Support Contracts
Department of Transportation Administrative Services
General Management Consulting Services Federal Procurement
IT Management Consulting Federal Contracts
Professional Services Contracts FAA

Risk Flags

Long contract duration may lead to outdated services.
Potential for scope creep over five years.
Value for money assessment requires detailed SOW review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.8 million to THE MIL CORPORATION. "CONTRACT NUMBER: FIS CONTRACT, DTFAWA-12-D-00057 TASK ORDER NUMBER: 0012 PERIOD OF PERFORMANCE: 6/01/2016 TO 5/31/2017 COR: JONATHAN BRANKER, 202-267-1691 CO: RICHARD A. CUTTS, 202-267-2862 " IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2016-06-01. End: 2021-08-31.

What is the track record of The MIL Corporation in delivering similar administrative management consulting services to the federal government?

Assessing The MIL Corporation's track record requires a review of their past federal contract performance, including any past performance evaluations, awards, or disputes. Information on previous contracts, particularly those involving administrative management and general management consulting for agencies like the FAA or other DOT components, would be crucial. A positive history of successful project completion, adherence to timelines, and client satisfaction would indicate a lower performance risk. Conversely, any documented issues with quality, timeliness, or cost control on prior engagements would raise concerns. Publicly available contract databases and agency performance rating systems can provide insights into their historical performance.

How does the awarded amount of $23.8 million compare to similar administrative management consulting contracts awarded by the FAA or other federal agencies?

To benchmark the $23.8 million award, one would need to compare it against contracts for similar services (NAICS 541611) with comparable scope, duration, and complexity. This involves identifying other FAA or Department of Transportation contracts, or even contracts from agencies like GSA or DOD, that procured administrative and general management consulting. Factors such as the number of labor hours, types of expertise required (e.g., strategic planning, process improvement, organizational analysis), and the specific deliverables expected would need to be aligned. A higher average hourly rate or total contract value for comparable services might suggest this award is within market norms, while a significantly lower value could indicate a better deal for the government or potentially a less comprehensive scope.

What are the primary risks associated with a five-year contract for administrative management consulting services?

A five-year performance period for administrative management consulting presents several risks. Firstly, the rapidly evolving nature of management practices and technology means that the services or strategies defined at the outset may become less relevant or effective over time. This necessitates robust contract management and potential modifications to keep the services aligned with current needs. Secondly, there's a risk of 'contractor lock-in,' where the agency becomes overly reliant on the incumbent contractor, potentially reducing future competition or innovation. Thirdly, long-term contracts can sometimes mask inefficiencies or lead to scope creep if not meticulously monitored, potentially increasing costs beyond initial projections. Finally, changes in agency leadership or strategic priorities over five years could render the original consulting objectives obsolete.

What specific administrative management or general management consulting services are being provided under this contract?

The provided data classifies the services under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This broad category typically encompasses a range of activities aimed at improving an organization's efficiency and effectiveness. Specific services could include strategic planning, organizational design and restructuring, business process re-engineering, performance management system development, policy development and analysis, program management support, and general management advisory services. Without the specific Statement of Work (SOW) or task order details, the precise nature of the consulting engagement remains undefined, making it difficult to assess the direct impact or value of the services rendered.

How has federal spending on administrative management and general management consulting services trended over the past five years, and where does this contract fit?

Federal spending on administrative management and general management consulting services has generally seen a steady increase over the past five years, driven by agencies' needs for efficiency improvements, digital transformation support, and strategic guidance. This $23.8 million contract awarded in 2016 for a five-year period aligns with this trend, representing a significant, albeit specific, investment within the broader federal procurement landscape for these services. Analyzing aggregate spending data from sources like USASpending.gov for NAICS code 541611 across all agencies would reveal the overall market size and growth. This particular contract, awarded to The MIL Corporation by the FAA, contributes to that overall spending but is just one component of a much larger federal expenditure on professional consulting services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 MITCHELLVILLE RD STE A210, BOWIE, MD, 20716

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

Financial Breakdown

Contract Ceiling: $24,711,065

Exercised Options: $23,780,346

Current Obligation: $23,780,346

Actual Outlays: $4,694,520

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,074,269

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA12D00057

IDV Type: IDC

Timeline