Navy Awards $71.7M ICA Support Services Contract to Magellan Federal

Contract Overview

Contract Amount: $71,734,172 ($71.7M)

Contractor: Magellan Federal, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-01-14

End Date: 2026-07-31

Contract Duration: 2,024 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CNIC HQ/NAVY PERSONNEL COMMAND (NPC) IDENTIFICATION CARD ADMINISTRATION (ICA) SUPPORT SERVICES

Place of Performance

Location: MILLINGTON, SHELBY County, TENNESSEE, 38053

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $71.7 million to MAGELLAN FEDERAL, INC. for work described as: CNIC HQ/NAVY PERSONNEL COMMAND (NPC) IDENTIFICATION CARD ADMINISTRATION (ICA) SUPPORT SERVICES Key points: 1. Contract awarded to Magellan Federal, Inc. for Identification Card Administration (ICA) Support Services. 2. The contract has a total value of $71.7 million and runs through July 2026. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The NAICS code 541330 points to Engineering Services, suggesting specialized technical support.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee. While this can be suitable for complex projects, it carries a risk of cost escalation if the government does not maintain strong oversight of contractor expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The competitive nature of the award aims to ensure reasonable pricing, but the Cost Plus Fixed Fee structure requires diligent oversight to prevent excessive spending.

Public Impact

Ensures continued operation of Navy personnel identification card systems. Supports the administrative and technical functions related to ID card issuance and management. Impacts Navy personnel by ensuring seamless access and identification processes. Potential for job creation within Magellan Federal and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher costs without strict oversight.
No small business participation indicated.
Engineering Services NAICS code may not fully capture the scope of administrative support.

Positive Signals

Awarded through full and open competition.
Long-term contract duration provides stability.
Supports critical Navy personnel functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Benchmarks for similar administrative support contracts within the Department of Defense can vary widely based on scope and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and there is no explicit requirement for subcontracting to small businesses in this specific award.

Oversight & Accountability

The contract's Cost Plus Fixed Fee structure necessitates robust government oversight to monitor costs, ensure performance, and prevent potential overruns. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No small business participation.
Potential for cost overruns.
Reliance on a single prime contractor for critical administrative functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.7 million to MAGELLAN FEDERAL, INC.. CNIC HQ/NAVY PERSONNEL COMMAND (NPC) IDENTIFICATION CARD ADMINISTRATION (ICA) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAGELLAN FEDERAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $71.7 million.

What is the period of performance?

Start: 2021-01-14. End: 2026-07-31.

What specific engineering services are required for Identification Card Administration support?

The NAICS code 541330 (Engineering Services) is broad. For ICA support, this likely encompasses technical expertise in system design, integration, maintenance, and potentially cybersecurity related to the ID card infrastructure. It may also include project management and technical consulting to optimize the ID card lifecycle processes.

How will the Cost Plus Fixed Fee structure be managed to ensure value for taxpayers?

Effective management will rely on stringent government oversight of all direct and indirect costs incurred by Magellan Federal. This includes detailed auditing of expenses, regular performance reviews against defined metrics, and clear communication channels to address any deviations from the planned budget or scope promptly.

What is the potential impact on Navy personnel if ICA support services are disrupted?

Disruption could lead to delays or failures in issuing new identification cards, renewing existing ones, or accessing secure facilities and systems that rely on valid IDs. This could impact daily operations, personnel movement, and overall security for Navy personnel.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018920R3056

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Magellan Federal Inc.

Address: 2800 S SHIRLINGTON RD STE 350, ARLINGTON, VA, 22206

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

Financial Breakdown

Contract Ceiling: $75,159,960

Exercised Options: $75,159,960

Current Obligation: $71,734,172

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $15,900,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7162

IDV Type: IDC

Timeline