DoD's $27M Integrated Broadcast System contract awarded to The Mission Essential Group, LLC, for computer systems design

Contract Overview

Contract Amount: $27,022,129 ($27.0M)

Contractor: THE Mission Essential Group, LLC

Awarding Agency: Department of Defense

Start Date: 2011-04-06

End Date: 2014-04-05

Contract Duration: 1,095 days

Daily Burn Rate: $24.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INTEGRATED BROADCAST SYSTEM (IBS)

Place of Performance

Location: HOLLYWOOD, BROWARD County, FLORIDA, 33022

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to THE MISSION ESSENTIAL GROUP, LLC for work described as: INTEGRATED BROADCAST SYSTEM (IBS) Key points: 1. Value for money appears fair given the 3-year duration and cost-plus-fixed-fee structure. 2. Competition dynamics were limited, with the contract being 'NOT COMPETED'. 3. Risk indicators include the cost-plus-fixed-fee pricing structure, which can incentivize cost overruns. 4. Performance context is within computer systems design services for the Department of Defense. 5. Sector positioning is within IT services supporting defense operations.

Value Assessment

Rating: fair

The contract's total value of approximately $27 million over three years suggests a moderate annual spend. Without specific performance metrics or comparison to similar systems, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure means the government pays costs plus a fixed fee, which can lead to less price pressure compared to fixed-price contracts. Benchmarking against other DoD IT system design contracts would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT COMPETED' basis, indicating a sole-source procurement. This means only one vendor, The Mission Essential Group, LLC, was solicited. The lack of competition limits the government's ability to explore alternative solutions or secure the most competitive pricing. Reasons for sole-sourcing, such as unique capabilities or urgent needs, are not detailed here but are critical for understanding the procurement strategy.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent. This necessitates strong justification and oversight to ensure fair pricing and value.

Public Impact

The primary beneficiary is the Department of Defense, which receives enhanced integrated broadcast system capabilities. Services delivered include computer systems design, crucial for modern defense communication and intelligence. The geographic impact is likely national, supporting DoD operations across various locations, with specific mention of Florida (ST/SN). Workforce implications may involve specialized IT professionals and system engineers employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Cost-plus-fixed-fee contract type can lead to less incentive for cost control by the contractor.
The specific nature of 'INTEGRATED BROADCAST SYSTEM (IBS)' suggests a critical system where vendor lock-in could be a risk.

Positive Signals

The contract duration of 3 years (1095 days) suggests a stable, long-term need for these services.
The award to a single, presumably capable, vendor implies a focused approach to meeting a specific requirement.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex system design and integration. This contract falls under computer systems design services, a segment that supports the development and maintenance of critical infrastructure for government agencies. The market often involves specialized firms capable of handling sensitive defense requirements. Benchmarking this contract's value against similar IT system design contracts for defense agencies would provide further context on its market alignment.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to The Mission Essential Group, LLC, does not specify its size status. Further analysis would be needed to determine if small businesses were involved in the supply chain or if there were opportunities missed for their participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Defense Contract Management Agency (DCMA) and the contracting officer within the Department of Defense. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and justification. Transparency is limited due to the sole-source nature, but contract details and performance reviews, if publicly available, would offer insights. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
Command and Control Systems
Intelligence, Surveillance, and Reconnaissance (ISR) technology contracts
DoD IT Modernization Programs

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to THE MISSION ESSENTIAL GROUP, LLC. INTEGRATED BROADCAST SYSTEM (IBS)

Who is the contractor on this award?

The obligated recipient is THE MISSION ESSENTIAL GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2011-04-06. End: 2014-04-05.

What is the track record of The Mission Essential Group, LLC with the Department of Defense?

The provided data indicates The Mission Essential Group, LLC was awarded this specific contract. To assess their broader track record, a review of their contract history with the DoD, including past performance evaluations, other awarded contracts, and any reported issues or successes, would be necessary. Information on their experience with similar Integrated Broadcast Systems or computer systems design projects would be particularly relevant. Without this additional data, it's difficult to provide a comprehensive assessment of their capabilities and reliability beyond this single contract award.

How does the $27 million contract value compare to similar DoD IT system design contracts?

A direct comparison of the $27 million contract value for the Integrated Broadcast System (IBS) to similar DoD IT system design contracts requires access to a broader dataset of federal procurements. Factors such as contract duration (3 years), specific services (computer systems design), and the complexity of the system (IBS) need to be considered. Generally, large-scale IT system design and integration for defense purposes can range from millions to hundreds of millions of dollars. The annual spend of approximately $9 million for this contract appears moderate within the context of major defense IT projects, but a definitive benchmark requires detailed comparative analysis of scope, complexity, and market rates for comparable services.

What are the primary risks associated with a 'NOT COMPETED' sole-source award for a critical system like IBS?

The primary risks associated with a 'NOT COMPETED' sole-source award for a critical system like the Integrated Broadcast System (IBS) include potential lack of price competition, which can lead to higher costs for the government and taxpayers. There's also a risk of reduced innovation, as the government doesn't benefit from the diverse solutions and technological advancements that multiple bidders might offer. Furthermore, sole-sourcing can create vendor lock-in, making it difficult and costly to switch providers in the future. Without a competitive process, there's also a heightened need for robust government oversight to ensure the contractor delivers quality services at a fair price and meets all performance requirements.

How effective is the Cost Plus Fixed Fee (CPFF) contract type in managing costs for IT system design?

The Cost Plus Fixed Fee (CPFF) contract type aims to provide a balance between flexibility and cost control for complex projects where the scope may not be fully defined at the outset, such as IT system design. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the contractor's profit, the primary risk of cost escalation lies with the government, as the contractor is reimbursed for all allowable costs. This structure can incentivize contractors to incur costs, as their fee remains constant regardless of the total project cost. Effective management and stringent oversight by the government are crucial to mitigate cost overruns and ensure value.

What is the historical spending pattern for Integrated Broadcast System (IBS) or similar systems within the DoD?

Analyzing historical spending patterns for Integrated Broadcast System (IBS) or similar systems within the DoD requires access to historical contract databases. This specific contract, awarded in 2011 for $27 million over three years, represents a snapshot of spending during that period. To understand broader trends, one would need to examine spending on IBS and related command, control, and communication systems over multiple fiscal years, identifying key contractors, contract types, and average award values. This would reveal whether spending has increased or decreased, and if there have been shifts in procurement strategies or technology adoption within the DoD for such systems.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12701 FAIR LAKES CIR STE 580, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $27,022,129

Exercised Options: $27,022,129

Current Obligation: $27,022,129

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,197,892

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline