Navy awards $27M engineering services task order to The MIL Corporation under full and open competition

Contract Overview

Contract Amount: $26,959,691 ($27.0M)

Contractor: THE MIL Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-15

End Date: 2026-02-14

Contract Duration: 730 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ESTABLISH MSE TASK ORDER N00421-24-F-0120 OF IDIQ N00421-24-D-0002 INCREMENTALLY FUND

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to THE MIL CORPORATION for work described as: ESTABLISH MSE TASK ORDER N00421-24-F-0120 OF IDIQ N00421-24-D-0002 INCREMENTALLY FUND Key points: 1. Task order awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The MIL Corporation, the awardee, has a track record that warrants further examination for performance. 4. The contract duration of two years provides a defined period for service delivery. 5. The cost-plus-no-fee (CPNF) contract type requires careful monitoring of costs and performance. 6. The contract is not set aside for small businesses, suggesting larger prime contractors are expected.

Value Assessment

Rating: fair

The contract's value of approximately $27 million over two years for engineering services appears within a reasonable range for complex defense sector requirements. Benchmarking against similar task orders for engineering support within the Department of Defense is necessary for a definitive value assessment. The cost-plus-no-fee structure necessitates close oversight to ensure efficient resource utilization and prevent cost overruns, as profit is not directly tied to performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The Department of the Navy's adherence to full and open competition suggests a commitment to maximizing value and leveraging the broadest possible market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of innovative solutions, potentially reducing overall program costs.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations and infrastructure. Services delivered likely include design, analysis, and technical support for naval systems or facilities. The geographic impact is likely concentrated around naval installations or operational areas. Workforce implications may involve skilled engineers and technical professionals employed by The MIL Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-no-fee (CPNF) contracts can present oversight challenges to ensure efficient spending without direct profit incentive for cost control.
Lack of specific performance metrics or award fee structure in the provided data makes it difficult to assess performance incentives.
The absence of small business subcontracting goals (if applicable) could limit opportunities for smaller firms in this contract.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
The MIL Corporation is an established entity, implying a level of experience and capability.
The task order is incrementally funded, which can provide flexibility in managing project phases and budgets.

Sector Analysis

Engineering services are a critical component of the defense industrial base, supporting the design, development, and maintenance of complex military systems and infrastructure. The market for these services is substantial, driven by government procurement needs. This contract fits within the broader category of professional services procured by the Department of Defense, often involving specialized technical expertise. Comparable spending benchmarks would typically be found within IT, aerospace, and general professional services categories for defense agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, indicating that the primary award went to a large business. While not directly benefiting small businesses through a set-aside, there may be opportunities for small businesses to participate as subcontractors to The MIL Corporation. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the task order.

Oversight & Accountability

Oversight for this task order will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including reporting requirements and performance standards. Transparency is facilitated through contract award databases, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command (NAVSEA) Contracts
IDIQ Contract Vehicles
Professional Services Contracts

Risk Flags

Cost-plus-no-fee contract type requires diligent cost oversight.
Potential for cost overruns due to lack of profit incentive for contractor.
Performance assessment data for contractor not readily available.
Specific scope of engineering services not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to THE MIL CORPORATION. ESTABLISH MSE TASK ORDER N00421-24-F-0120 OF IDIQ N00421-24-D-0002 INCREMENTALLY FUND

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 $27.0 million.

What is the period of performance?

Start: 2024-02-15. End: 2026-02-14.

What is The MIL Corporation's past performance record with the Department of Defense, particularly on similar engineering services contracts?

Assessing The MIL Corporation's past performance is crucial for understanding their reliability and capability in delivering engineering services. A review of their contract history with the Department of Defense (DoD) would reveal their track record on similar projects, including on-time delivery, budget adherence, and quality of work. Publicly available data, such as contract award databases and performance assessment reports (if accessible), can provide insights. Positive performance indicators might include consistent high ratings on past contracts, successful completion of complex projects, and minimal disputes or contract modifications. Conversely, a history of performance issues, such as missed deadlines, cost overruns, or quality deficiencies, would raise concerns about their suitability for this task order. Without specific performance data for this contractor on comparable tasks, a definitive assessment remains challenging, but their selection implies they met minimum performance requirements.

How does the estimated value of this task order compare to similar engineering services contracts awarded by the Department of the Navy?

To benchmark the value of this $27 million task order, it's essential to compare it against similar engineering services contracts awarded by the Department of the Navy (DoN) or other DoD branches. Factors such as contract type (e.g., cost-plus, fixed-price), duration, scope of work, and the specific engineering disciplines involved significantly influence pricing. For instance, task orders for complex system design or integration typically command higher values than those for routine maintenance or basic analysis. Analyzing data from contract databases for contracts with comparable North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and similar service descriptions can provide a range of typical costs. If this task order falls within or below the average range for similar services, it suggests fair pricing. If it significantly exceeds the average without clear justification (e.g., unique requirements, highly specialized expertise), it may indicate potential overpricing or less competitive bidding.

What are the primary risks associated with a Cost-Plus-No-Fee (CPNF) contract type for engineering services?

The Cost-Plus-No-Fee (CPNF) contract type, used for this task order, presents specific risks primarily related to cost control and contractor motivation. In a CPNF structure, the contractor is reimbursed for allowable costs but does not earn a profit. This can reduce the contractor's incentive to control costs aggressively, as their profit is not directly tied to efficiency or cost savings. The primary risk for the government is potential cost escalation if robust oversight and cost accounting standards are not rigorously applied. The Department of the Navy must ensure that all claimed costs are reasonable, allocable, and allowable according to the contract terms. Without a profit motive, contractors might prioritize completing the work over optimizing resource utilization, potentially leading to inefficiencies. Effective management and stringent auditing are critical to mitigate these risks and ensure the government receives good value.

What is the expected impact of this contract on the broader engineering services market within the defense sector?

This $27 million task order awarded to The MIL Corporation contributes to the overall spending within the defense engineering services sector. Such contracts signal continued demand for specialized technical expertise from the Department of the Navy, potentially influencing market dynamics. The award under full and open competition suggests a healthy competitive environment, which can encourage other firms to invest in capabilities to pursue similar opportunities. For The MIL Corporation, this award represents a significant revenue stream and reinforces their position as a key provider of engineering services to the defense industry. The contract's duration and scope may also influence the allocation of skilled engineering talent within the sector, potentially drawing expertise towards defense-related projects.

How does the geographic location of the contractor (Maryland) align with the potential operational needs of the Department of the Navy?

The contractor, The MIL Corporation, is based in Maryland. This location is strategically significant as Maryland is a hub for defense contractors and hosts numerous Department of Defense installations and agencies, including the Pentagon and various Navy commands. Proximity to these entities can facilitate communication, collaboration, and oversight, potentially reducing travel costs and lead times for critical engineering support. Many Navy programs and research facilities are also located in the Mid-Atlantic region. Therefore, a Maryland-based contractor is often well-positioned to serve the Navy's needs, whether for direct support at nearby facilities or for managing projects that require frequent interaction with Navy personnel and decision-makers. This geographic alignment can be a positive factor in contract execution efficiency.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042123R0004

Pricing Type: COST NO FEE (S)

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: $55,194,168

Exercised Options: $32,919,953

Current Obligation: $26,959,691

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $8,619,854

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042124D0002

IDV Type: IDC

Timeline