The MIL Corporation received $19.7M for IT services, awarded via full and open competition

Contract Overview

Contract Amount: $19,697,960 ($19.7M)

Contractor: THE MIL Corporation

Awarding Agency: Department of the Interior

Start Date: 2011-01-14

End Date: 2014-01-31

Contract Duration: 1,113 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE APPLICATION DEVELOPMENT AND OTHER IT SERVICES FOR THE DEPARTMENT OF COMMERCE, INTERNATIONAL TRADE ADMINISTRATION, OFFICE OF THE CHIEF INFORMATION OFFICER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $19.7 million to THE MIL CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE APPLICATION DEVELOPMENT AND OTHER IT SERVICES FOR THE DEPARTMENT OF COMMERCE, INTERNATIONAL TRADE ADMINISTRATION, OFFICE OF THE CHIEF INFORMATION OFFICER. Key points: 1. The contract was awarded using a Time and Materials pricing structure, which can present cost control challenges. 2. The contract's duration of 1113 days suggests a need for sustained IT support. 3. The award was made under full and open competition, indicating a broad market solicitation. 4. The North American Industry Classification System (NAICS) code 541519 categorizes this as 'Other Computer Related Services'. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle. 6. The contractor, The MIL Corporation, has a track record of performing IT services for federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this specific $19.7 million contract is challenging without access to the original IDIQ vehicle's terms and pricing. However, Time and Materials contracts generally carry a higher risk of cost overruns compared to fixed-price contracts. The duration of over three years suggests a significant scope of work, and the value appears moderate for a multi-year IT services contract of this nature. Further analysis would require comparing the labor rates and overall cost to similar IT services contracts awarded during the same period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, potentially leading to better pricing and service quality. The fact that it was a delivery order suggests it was placed against an existing IDIQ contract that itself was competed. The number of bidders on the original IDIQ vehicle would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of vendors to bid, which can drive down prices and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Commerce's International Trade Administration, which receives essential IT application development and support services. The services delivered are crucial for the operational efficiency and technological infrastructure of the Office of the Chief Information Officer. The contract's geographic impact is centered in the District of Columbia, where the agency is located. The contract supports IT professionals and developers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to unpredictable costs if not closely managed.
The contract's duration of over three years requires ongoing performance monitoring to ensure continued value.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The contract was awarded to a single entity, limiting immediate opportunities for other vendors in this specific instance.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The MIL Corporation has experience in providing IT services to federal agencies.
The contract addresses critical IT needs for the Department of Commerce.
The delivery order structure suggests it was part of a pre-competed framework.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on application development and IT services. The market for federal IT services is substantial, with agencies consistently seeking to modernize their systems and enhance digital capabilities. This contract represents a portion of the broader federal spending on IT modernization and operational support, competing with numerous other contracts for similar services across various agencies. Benchmarks for IT services contracts vary widely based on scope, duration, and complexity.

Small Business Impact

The provided 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 small business set-aside. The award to a larger entity like The MIL Corporation means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plan, if any, rather than a mandated set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Commerce's contracting officers and program managers. Accountability measures would be embedded in the contract's terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Commerce IT Modernization Initiatives
Federal Application Development Services
Office of the Chief Information Officer Support Contracts
International Trade Administration Technology Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust government oversight to manage T&M contract effectively.
Scope creep risk if requirements are not clearly defined and managed.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $19.7 million to THE MIL CORPORATION. THE CONTRACTOR SHALL PROVIDE APPLICATION DEVELOPMENT AND OTHER IT SERVICES FOR THE DEPARTMENT OF COMMERCE, INTERNATIONAL TRADE ADMINISTRATION, OFFICE OF THE CHIEF INFORMATION OFFICER.

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2011-01-14. End: 2014-01-31.

What is The MIL Corporation's track record with federal IT contracts?

The MIL Corporation has a history of securing and performing federal IT contracts. While this specific contract was for $19.7 million with the Department of Commerce, their broader federal contracting portfolio likely includes various IT services across different agencies. Analyzing their past performance on similar contracts, including on-time delivery, budget adherence, and client satisfaction, would provide a more comprehensive view of their capabilities and reliability. Publicly available data from contract databases can offer insights into the types and values of contracts they have previously held, as well as any performance ratings or awards received.

How does the $19.7 million value compare to similar IT services contracts?

The $19.7 million value for a three-year IT services contract is within a moderate range for federal procurements. However, direct comparisons are difficult without knowing the specific services rendered, the labor categories involved, and the complexity of the IT systems supported. Contracts for enterprise-wide system development or major infrastructure overhauls can easily exceed this amount, while smaller, more focused support tasks might be valued lower. Benchmarking would require analyzing contracts with similar NAICS codes (541519), contract types (Time and Materials), and award dates to assess if the pricing was competitive for the scope of work.

What are the primary risks associated with this Time and Materials contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. This necessitates robust oversight from the government to monitor labor hours, ensure personnel are working on contract-related tasks, and validate material costs. Without stringent management and clear task definitions, T&M contracts can become significantly more expensive than initially anticipated.

How effective is full and open competition in ensuring value for IT services?

Full and open competition is generally considered the most effective method for ensuring value in federal IT services procurement. By allowing all responsible vendors to bid, it maximizes the pool of potential offerors, fostering a competitive environment that can drive down prices and encourage innovation. This process helps agencies identify the best technical solutions at the most reasonable costs. However, the effectiveness is contingent on the clarity of the solicitation requirements and the rigor of the evaluation process. A poorly defined solicitation can still lead to suboptimal outcomes even under full competition.

What is the historical spending trend for 'Other Computer Related Services' (NAICS 541519) by the Department of Commerce?

Historical spending data for NAICS code 541519 by the Department of Commerce would reveal trends in their procurement of IT services beyond standard software development or hardware maintenance. Analyzing this data over several fiscal years would indicate whether spending in this category has been increasing, decreasing, or remaining stable. It could also highlight key contractors or specific types of 'other computer related services' that the department frequently procures. This context is crucial for understanding the significance of the $19.7 million award and its place within the department's overall IT budget and strategy.

What are the implications of this contract being a 'Delivery Order'?

The designation of this contract as a 'Delivery Order' implies that it was issued under a pre-existing Indefinite Delivery Indefinite Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing agencies to issue specific orders (delivery or task orders) as needed. This approach streamlines procurement for recurring needs. The fact that it's a delivery order means the underlying IDIQ contract itself must have undergone a competitive bidding process. This specific order represents a defined scope of work and funding allocated against that larger, competed framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: IND11PD18756

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4000 MITCHELLVILLE RD STE A212, BOWIE, MD, 20716

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $21,302,065

Exercised Options: $21,302,065

Current Obligation: $19,697,960

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCCM130105CT0058DOCCM130105CT0058

IDV Type: GWAC

Timeline