DoD's $50.4M IT Engineering Contract Awarded to The MIL Corporation Under Full and Open Competition

Contract Overview

Contract Amount: $50,454,370 ($50.5M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Defense

Start Date: 2014-05-13

End Date: 2018-09-16

Contract Duration: 1,587 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE CONTRACTOR SHALL PROVIDE A FULL SPECTRUM INFORMATION TECHNOLOGY (IT) ENGINEERING AND MANAGEMENT SUPPORT SERVICES FOR THE RDT&E INFRASTRUCTURE DIVISION. REQUIREMENTS INCLUDE SUPPORT FOR: PROJECT INITIATION AND GOVERNANCE; IMPROVEMENT AND MODERNIZATION (I&M); ENGINEERING AND INSTALLATION (E&I); OPERATIONS AND MAINTENANCE (O&M); INFORMATION ASSURANCE (IA); ARCHITECTURE DESIGN; AND INTEGRATION OF NEW TECHNOLOGIES.

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $50.5 million to THE MIL CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE A FULL SPECTRUM INFORMATION TECHNOLOGY (IT) ENGINEERING AND MANAGEMENT SUPPORT SERVICES FOR THE RDT&E INFRASTRUCTURE DIVISION. REQUIREMENTS INCLUDE SUPPORT FOR: PROJECT INITIATION AND GOVERNANCE; IMPROVEMENT AND MODERNIZATION (I&M); ENGINEERING AND IN… Key points: 1. Contract focuses on comprehensive IT engineering and management support for RDT&E infrastructure. 2. Services span project initiation, modernization, operations, information assurance, and technology integration. 3. Awarded to The MIL Corporation, indicating a specific vendor capability in IT services. 4. The contract duration of 1587 days suggests a significant, long-term need for these services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF IT engineering contracts is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF pricing type requires diligent oversight to ensure fair and reasonable costs.

Taxpayer Impact: Taxpayer funds are utilized for IT engineering and management support, with the efficiency of spending dependent on effective contract management and competitive pricing.

Public Impact

Ensures critical RDT&E infrastructure is supported by advanced IT engineering. Facilitates modernization and integration of new technologies within defense research. Supports operational readiness and information assurance for sensitive defense systems. Contributes to the overall technological advancement of the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can incentivize contractor to increase costs.
Potential for scope creep in complex IT engineering projects.
Reliance on a single contractor for critical IT infrastructure support.

Positive Signals

Awarded through full and open competition.
Addresses a broad spectrum of IT engineering and management needs.
Supports vital RDT&E infrastructure for national security.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure for Research, Development, Test, and Evaluation (RDT&E). Spending in this area is crucial for maintaining technological superiority and innovation within the defense sector.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract's CPFF structure necessitates robust oversight from the Department of the Navy to monitor costs and ensure performance. Regular audits and performance reviews are critical for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee pricing model.
Potential for cost overruns.
Complexity of IT engineering and management support.
Long contract duration.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.5 million to THE MIL CORPORATION. THE CONTRACTOR SHALL PROVIDE A FULL SPECTRUM INFORMATION TECHNOLOGY (IT) ENGINEERING AND MANAGEMENT SUPPORT SERVICES FOR THE RDT&E INFRASTRUCTURE DIVISION. REQUIREMENTS INCLUDE SUPPORT FOR: PROJECT INITIATION AND GOVERNANCE; IMPROVEMENT AND MODERNIZATION (I&M); ENGINEERING AND INSTALLATION (E&I); OPERATIONS AND MAINTENANCE (O&M); INFORMATION ASSURANCE (IA); ARCHITECTURE DESIGN; AND INTEGRATION OF NEW TECHNOLOGIES.

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $50.5 million.

What is the period of performance?

Start: 2014-05-13. End: 2018-09-16.

What is the typical profit margin for CPFF IT engineering contracts of this size and scope within the DoD?

Profit margins for Cost Plus Fixed Fee (CPFF) IT engineering contracts within the DoD can vary based on complexity, risk, and specific service requirements. Generally, fixed fees are negotiated as a percentage of the estimated cost, often ranging from 7% to 15%. However, factors like the criticality of the RDT&E infrastructure, the level of innovation required, and the competitive landscape can influence the final negotiated fee. Detailed benchmarking against similar contracts is essential for a precise assessment.

What are the key performance indicators (KPIs) used to measure the success of this IT engineering support contract?

Key Performance Indicators (KPIs) for this contract would likely include metrics related to system uptime and availability, response times for issue resolution, successful implementation of new technologies, adherence to security protocols (Information Assurance), project completion rates within defined timelines, and overall user satisfaction. The Department of the Navy would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs to ensure the contractor meets the demanding requirements of RDT&E infrastructure support.

How does the CPFF structure impact the government's ability to control costs and ensure value for money in this IT engineering contract?

The Cost Plus Fixed Fee (CPFF) structure allows the government to reimburse the contractor for all allowable costs plus a predetermined fixed fee. While this structure can be beneficial for projects with uncertain costs or scope, it places a significant burden on the government to meticulously track and audit all incurred costs. Effective cost control relies heavily on robust oversight, clear definition of allowable costs, and diligent negotiation of the fixed fee to ensure value for money and prevent contractor incentives for cost escalation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002411R3507

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,083,605

Exercised Options: $51,083,605

Current Obligation: $50,454,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7835

IDV Type: IDC

Timeline