DoD's $95M contract for integrated communications systems engineering support awarded to The MIL Corporation

Contract Overview

Contract Amount: $94,908,970 ($94.9M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Defense

Start Date: 2012-10-29

End Date: 2019-05-31

Contract Duration: 2,405 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE INTEGRATED COMMUNICATIONS AND INFORMATION SYSTEMS (ICIS) DIVISION, THROUGH THE MISSION SYSTEMS ENGINEERING BRANCH (AIR-4.5.10.3), THE INTEGRATIONS AND ENGINEERING SUPPORT ESSENTIAL TO MEET REQUIREMENTS FOR DEVELOPMENT, INTEGRATION, AND PROCUREMENT SUPPORT OF MISSION SYSTEMS INTEGRATION FOR GROUND-BASED, SURFACE, AIRBORNE AND SHIPBOARD PLATFORMS.

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $94.9 million to THE MIL CORPORATION for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE INTEGRATED COMMUNICATIONS AND INFORMATION SYSTEMS (ICIS) DIVISION, THROUGH THE MISSION SYSTEMS ENGINEERING BRANCH (AIR-4.5.10.3), THE INTEGRATIONS AND ENGINEERING SUPPORT ESSENTIAL TO MEET REQUIREMENTS FOR DEVELOPMENT, INTEGRATION, A… Key points: 1. Contract provides essential engineering support for mission systems integration across various platforms. 2. The MIL Corporation has secured a significant portion of this contract's value. 3. Performance period spans over 6 years, indicating a long-term need for these services. 4. The contract type, Cost Plus Fixed Fee, can present cost control challenges. 5. This award falls under Engineering Services, a critical sector for defense modernization. 6. The contract was awarded via full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

The total award of $94.9M over approximately 6.5 years suggests a substantial investment in engineering services. Benchmarking this against similar contracts for integrated communications and systems engineering support is challenging without more granular data on the specific services rendered. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. The contract's duration and value indicate a significant commitment, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received, which suggests a moderate level of competition for this significant engineering services contract. While three bidders is better than a sole-source award, a higher number of bids would typically lead to more competitive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive bidding.

Public Impact

The Department of the Navy benefits from enhanced integrated communications and information systems. Services support development, integration, and procurement for ground-based, airborne, shipboard, and surface platforms. The contract supports modernization efforts within the U.S. Navy's mission systems. Workforce implications include specialized engineering and technical roles within The MIL Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns if not closely monitored.
Long contract duration (over 6 years) increases the risk of scope creep or evolving requirements not being optimally addressed.
Limited competition (3 bidders) might have resulted in a higher price than if more firms had participated.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract addresses critical mission systems integration, vital for national defense capabilities.
The MIL Corporation's selection suggests they met the technical and performance requirements outlined by the Navy.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. This sector encompasses a wide range of services, including design, consulting, and project management for various engineering disciplines. The defense sector's spending on such services is substantial, driven by the need for advanced technological solutions and platform modernization. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar complex systems integration projects.

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 specifically mandated for small businesses through a set-aside program. However, as a large prime contract, The MIL Corporation may engage small businesses as subcontractors to fulfill specific aspects of the work, contributing to the broader small business ecosystem. The extent of small business participation would depend on the prime contractor's subcontracting plan and the availability of qualified small business vendors for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officers and program managers responsible for the ICIS Division and Mission Systems Engineering Branch. Accountability measures are embedded within the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG typically oversees contracts of this magnitude to ensure efficiency, prevent fraud, and promote accountability.

Related Government Programs

Defense Engineering Services
Mission Systems Integration
Naval Air Systems Command (NAVAIR) Contracts
Integrated Communications Systems
Information Systems Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Moderate competition level (3 bidders) may impact price competitiveness.
Long contract duration necessitates careful management of evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.9 million to THE MIL CORPORATION. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE INTEGRATED COMMUNICATIONS AND INFORMATION SYSTEMS (ICIS) DIVISION, THROUGH THE MISSION SYSTEMS ENGINEERING BRANCH (AIR-4.5.10.3), THE INTEGRATIONS AND ENGINEERING SUPPORT ESSENTIAL TO MEET REQUIREMENTS FOR DEVELOPMENT, INTEGRATION, AND PROCUREMENT SUPPORT OF MISSION SYSTEMS INTEGRATION FOR GROUND-BASED, SURFACE, AIRBORNE AND SHIPBOARD PLATFORMS.

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 $94.9 million.

What is the period of performance?

Start: 2012-10-29. End: 2019-05-31.

What is The MIL Corporation's track record with similar large-scale defense engineering contracts?

The MIL Corporation has a history of performing defense-related contracts, often involving engineering, IT, and professional services. Analyzing their past performance on contracts of similar size, scope, and complexity, particularly those involving systems integration and communications for platforms like those specified (ground, air, sea), would provide insight into their capabilities and reliability. Reviewing past performance evaluations, any contract disputes, or awards for exceptional performance would offer a more complete picture. Their experience with Cost Plus Fixed Fee (CPFF) contracts is also a relevant factor, as this contract type requires robust cost management and oversight from the contractor.

How does the $94.9M total award compare to other integrated communications and systems engineering contracts within the DoD?

The $94.9 million total award for integrated communications and systems engineering support over approximately 6.5 years is a significant sum, placing it in the mid-to-large tier for such specialized services within the Department of Defense. To benchmark effectively, one would compare this contract's value and duration against similar awards made by agencies like the Navy, Air Force, or Army for systems integration, C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance), and engineering support. Factors such as the specific platforms supported (airborne, shipboard, etc.), the level of technological sophistication required, and the competitive landscape at the time of award would influence comparisons. Without access to a comprehensive database of comparable contracts with detailed service breakdowns, a precise benchmark is difficult, but this award represents a substantial investment in critical defense capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($94.9M) revolve around cost control and potential for overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This incentivizes the contractor to incur costs, as their fee remains constant regardless of the total cost. Key risks include: 1) Inadequate cost estimation by the government during contract negotiation, leading to an insufficient fixed fee to motivate efficiency. 2) Contractor inefficiency or 'gold plating' (adding unnecessary features or services) to increase costs, as the government bears the direct cost burden. 3) Difficulty in accurately defining the scope of work upfront, leading to cost growth if requirements evolve significantly. Robust government oversight, stringent cost accounting standards, and clear performance metrics are crucial to mitigate these risks.

How effective has The MIL Corporation been in delivering similar engineering services based on historical performance data?

Assessing The MIL Corporation's effectiveness requires a review of their historical performance data on similar contracts. This would involve examining past performance evaluations (if publicly available), contract modifications, timeliness of delivery, quality of work, and any instances of disputes or contract terminations. For this specific contract, performance data would ideally be tracked against milestones related to the development, integration, and procurement support of mission systems. Without direct access to contractor performance assessment reports (CPARs) or similar internal government evaluations, a definitive statement on their effectiveness is speculative. However, their continued award of significant contracts suggests a generally satisfactory performance history.

What has been the historical spending trend for integrated communications and systems engineering support within the Department of the Navy?

Historical spending trends for integrated communications and systems engineering support within the Department of the Navy (DoN) generally show a consistent and significant investment. The DoN relies heavily on advanced C4ISR systems, network infrastructure, and platform integration to maintain its operational readiness and technological superiority. Spending in this area is often driven by modernization programs, platform upgrades (ships, aircraft, submarines), and the need to counter evolving threats. While specific year-over-year figures fluctuate based on budgetary cycles, major acquisition programs, and strategic priorities, the overall trend indicates sustained demand for these specialized engineering services. Factors like cybersecurity requirements, interoperability mandates, and the integration of new technologies (e.g., AI, cloud computing) also influence spending patterns.

What is the strategic importance of the ICIS Division and its need for engineering support?

The Integrated Communications and Information Systems (ICIS) Division plays a crucial role in ensuring the Navy's ability to communicate, process information, and operate effectively across its diverse platforms. The 'mission systems integration' supported by this contract is fundamental to the functioning of naval assets, encompassing everything from command and control networks to sensor data processing and weapon system interfaces. The strategic importance lies in enabling seamless information flow, enhancing situational awareness, and ensuring the interoperability of complex systems in dynamic operational environments. Robust engineering support is vital for the development, integration, testing, and sustainment of these critical systems, directly impacting the Navy's operational effectiveness, readiness, and ability to execute its missions globally.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002411R3060

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $103,600,796

Exercised Options: $102,148,588

Current Obligation: $94,908,970

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $215,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4623

IDV Type: IDC

Timeline