DoD's $48.4M Engineering Services Contract Awarded to The MIL Corporation for Project Management and System Integration

Contract Overview

Contract Amount: $48,369,612 ($48.4M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-16

End Date: 2026-04-15

Contract Duration: 1,825 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS TASK ORDER (TO) WILL SUPPORT PROJECT MANAGEMENT, SYSTEM INTEGRATION, SYSTEMS ENGINEERING, SYSTEM DESIGN AND INTEGRATION, AND LIFECYCLE SUSTAINMENT FOR OTHER THAN DOD COMPONENTS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to THE MIL CORPORATION for work described as: THIS TASK ORDER (TO) WILL SUPPORT PROJECT MANAGEMENT, SYSTEM INTEGRATION, SYSTEMS ENGINEERING, SYSTEM DESIGN AND INTEGRATION, AND LIFECYCLE SUSTAINMENT FOR OTHER THAN DOD COMPONENTS. Key points: 1. Contract focuses on critical project management, system integration, and lifecycle sustainment for non-DoD components, indicating a broad application of engineering expertise. 2. The award to The MIL Corporation suggests a strong performance record or competitive advantage in specialized engineering services. 3. The cost-plus-fixed-fee structure allows for flexibility in project scope but requires careful monitoring of costs to ensure value. 4. This contract's duration of five years points to a long-term need for these engineering services within the federal government. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities for smaller firms. 6. The contract's value places it in the mid-to-large tier for engineering services, requiring robust oversight.

Value Assessment

Rating: good

The contract value of approximately $48.4 million over five years for engineering services appears reasonable when benchmarked against similar large-scale federal IT and systems engineering contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects with evolving requirements, necessitates diligent cost tracking to ensure the fixed fee remains appropriate and doesn't inflate overall project expenses. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and scope suggest a significant need being met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is designed to foster price discovery and ensure the government receives the best value. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price and terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging a wider pool of qualified contractors to bid, leading to potentially more innovative solutions at competitive prices.

Public Impact

The primary beneficiaries are non-DoD components requiring advanced project management, system integration, and lifecycle sustainment services. Services delivered include crucial support for complex systems, ensuring operational readiness and efficiency. The geographic impact is likely nationwide, supporting various federal agencies and their unique operational needs. Workforce implications include the creation or sustainment of specialized engineering and project management jobs within The MIL Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed meticulously.
Lack of specific performance metrics makes it difficult to gauge true value for money.
The absence of small business set-asides may limit opportunities for smaller, specialized firms.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Long-term contract duration indicates a sustained need and potential for stable service delivery.
Focus on critical system integration and lifecycle sustainment highlights the strategic importance of the services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. This sector encompasses a wide range of specialized services, from civil and mechanical engineering to systems engineering and technical assistance. The federal government is a major consumer of these services, particularly for defense, infrastructure, and technology projects. The $48.4 million award is substantial, placing it in the upper tier for individual engineering service contracts, reflecting the complexity and scale of the support required.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. This means the competition was open to all eligible businesses, including large corporations. While this ensures broad competition, it also means that specific opportunities for small businesses to directly compete for the prime contract were not prioritized. However, The MIL Corporation may engage small businesses as subcontractors to fulfill parts of the contract, which would be a key area to monitor for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, acting as the contracting agency, with potential involvement from the Defense Contract Management Agency (DCMA). The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Transparency would be enhanced through regular reporting requirements and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Engineering Services
IT Project Management Support
Systems Integration Services
Lifecycle Sustainment Contracts
Federal Engineering Consulting

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Potential
Performance Monitoring Challenges
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to THE MIL CORPORATION. THIS TASK ORDER (TO) WILL SUPPORT PROJECT MANAGEMENT, SYSTEM INTEGRATION, SYSTEMS ENGINEERING, SYSTEM DESIGN AND INTEGRATION, AND LIFECYCLE SUSTAINMENT FOR OTHER THAN DOD COMPONENTS.

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 $48.4 million.

What is the period of performance?

Start: 2021-04-16. End: 2026-04-15.

What is The MIL Corporation's track record with similar federal contracts, particularly within the Department of Defense or for system integration projects?

The MIL Corporation has a history of securing and performing on federal contracts, often in the IT, engineering, and professional services domains. While specific details on past performance for contracts of this exact scope and value require deeper database analysis, their presence as a prime contractor suggests a demonstrated capability to manage complex projects and meet government requirements. Their experience likely includes various contract types and agencies, providing a foundation for undertaking this significant task order. Further review of their contract history, including past performance evaluations and any reported issues, would offer a more comprehensive understanding of their reliability and expertise in delivering similar services.

How does the $48.4 million contract value compare to other federal engineering services contracts awarded over the past three years?

The $48.4 million contract value for engineering services positions this award as a substantial, mid-to-large-sized contract within the federal landscape. While the federal government procures a vast array of engineering services, contracts in the tens of millions are common for complex projects requiring specialized expertise, system integration, and long-term support. Benchmarking against similar contracts awarded by agencies like the Department of Defense, NASA, or GSA for project management, systems engineering, and lifecycle sustainment would reveal if this value is competitive. Factors such as contract duration, scope of work, and the specific technical requirements heavily influence these values, making direct comparisons challenging without detailed context.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($48.4M over 5 years) revolve around cost control and contractor performance. For the government, the risk is that the contractor's actual costs could significantly exceed initial estimates, even though the fee is fixed. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. Contractors risk not accurately estimating costs, potentially leading to a fixed fee that is disproportionately low compared to the effort expended. Scope creep is another significant risk; if project requirements expand without proper modification to the contract, it can strain resources and impact profitability. Ensuring clear performance metrics and diligent project management are crucial to mitigate these risks.

What is the expected impact of this contract on the specific engineering services market, particularly for system integration and lifecycle sustainment?

This contract is expected to have a notable impact on the system integration and lifecycle sustainment market segments within federal contracting. By awarding a significant task order to The MIL Corporation, the Department of Defense signals a continued demand for these specialized capabilities. This can stimulate competition among other firms vying for similar work, potentially leading to innovation and improved service offerings. For The MIL Corporation, it represents a substantial revenue stream and a platform to further develop its expertise and market position. The contract's duration also suggests a stable, long-term demand, which can influence strategic planning and investment decisions for companies operating in this niche.

Are there any specific performance indicators or metrics defined within the contract to measure the success of project management and system integration?

The provided data does not explicitly detail the performance indicators or metrics defined within the contract for measuring the success of project management and system integration. However, for a Cost Plus Fixed Fee (CPFF) contract of this nature, it is standard practice to include performance standards, deliverables, and key performance indicators (KPIs) within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would likely cover aspects such as on-time delivery of milestones, adherence to budget, quality of deliverables, system uptime, and user satisfaction. The effectiveness of the contractor's oversight and the government's contract administration are critical in ensuring these metrics are established, monitored, and enforced.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042118R0053

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: $53,938,226

Exercised Options: $53,938,223

Current Obligation: $48,369,612

Actual Outlays: $2,895,784

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $4,881,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0010

IDV Type: IDC

Timeline