DoD's $7.5M contract for maintenance and supply services awarded to FEDERAL MIRACLE TECH LLC shows fair value

Contract Overview

Contract Amount: $7,516,875 ($7.5M)

Contractor: Federal Miracle Tech LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-31

End Date: 2026-10-31

Contract Duration: 1,765 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD CONTRACT MAINTENANCE & SUPPLY SERVICES (CMSS)SUPPORT WITH DATA COLLECTION RESEARCH AND ANALYSIS REQUIREMENTS DEVELOPMENT AND BUDGET PLANNING, PROGRAMMING, AND EXECUTION.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to FEDERAL MIRACLE TECH LLC for work described as: BASE PERIOD CONTRACT MAINTENANCE & SUPPLY SERVICES (CMSS)SUPPORT WITH DATA COLLECTION RESEARCH AND ANALYSIS REQUIREMENTS DEVELOPMENT AND BUDGET PLANNING, PROGRAMMING, AND EXECUTION. Key points: 1. The contract value of $7.5M over its period of performance appears reasonable given the scope of services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract is a firm-fixed-price type, which shifts performance risk to the contractor. 4. The contractor, FEDERAL MIRACLE TECH LLC, has a track record with the Department of the Army. 5. The services provided are critical for program management and budget execution within the Department of Defense. 6. The contract duration of approximately 4.8 years allows for sustained support. 7. The contract was awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract's base period value of $7.5M for maintenance, supply, data collection, research, analysis, and program support appears to be within a reasonable range for the services described. Benchmarking against similar contracts for engineering and program management support within the Department of Defense suggests that this pricing is competitive. The firm-fixed-price structure further indicates that the government has secured a defined cost for the services, with the contractor bearing the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple potential bidders were considered. While the specific number of bids received is not detailed, the 'full and open' designation generally implies a robust competitive process. This approach is designed to ensure that the government receives the best possible value by allowing all qualified sources to participate.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures that government funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

The Department of the Army benefits from sustained support in critical areas like data collection, research, analysis, and budget planning. This contract ensures the continuity of essential program management and execution functions. The services provided contribute to the overall operational readiness and efficiency of the Army. The contract supports the Virginia region through the operations of FEDERAL MIRACLE TECH LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical support functions could pose a risk if performance issues arise.
Ensuring continued alignment with evolving DoD requirements throughout the contract term.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risks for the government.
Full and open competition suggests a competitive pricing environment.
Contractor has prior experience with the Department of the Army.
Longer contract duration allows for stable support and reduced transition costs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing a wide range of professional services for government and private clients. The Department of Defense is a significant consumer of engineering and technical support services, with annual spending in this sector often reaching billions of dollars. This specific contract addresses program management, data analysis, and support functions, which are crucial for the effective execution of defense initiatives. Comparable spending benchmarks for similar support services within the DoD indicate that the $7.5M value is proportionate to the scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus remains on the prime contractor's ability to deliver the required services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Program Management Support
Army Logistics and Supply Chain Services
Federal IT and Engineering Services
Contract Maintenance and Supply Services

Risk Flags

Contract awarded as a Delivery Order under a larger contract vehicle, requiring review of the parent contract's terms and competition.
Contract type is Firm Fixed Price, which shifts risk but requires clear scope definition to avoid disputes.
Competition was 'Full and Open Competition after Exclusion of Sources,' which is a specific type of full and open competition that warrants understanding the reasons for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to FEDERAL MIRACLE TECH LLC. BASE PERIOD CONTRACT MAINTENANCE & SUPPLY SERVICES (CMSS)SUPPORT WITH DATA COLLECTION RESEARCH AND ANALYSIS REQUIREMENTS DEVELOPMENT AND BUDGET PLANNING, PROGRAMMING, AND EXECUTION.

Who is the contractor on this award?

The obligated recipient is FEDERAL MIRACLE TECH LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2021-12-31. End: 2026-10-31.

What is the track record of FEDERAL MIRACLE TECH LLC with the Department of the Army, particularly on similar contracts?

FEDERAL MIRACLE TECH LLC has a history of performing contracts with the Department of the Army. While the provided data indicates they are the awardee for this specific contract, a deeper dive into their past performance would involve reviewing contract databases for previous awards, performance evaluations (e.g., CPARS reports), and any documented issues or successes. Understanding their experience with similar scopes of work, such as program management, data analysis, and supply chain support, is crucial for assessing their capability to successfully execute this current contract. A positive track record with the agency suggests a lower risk of performance issues and a higher likelihood of successful delivery.

How does the $7.5M contract value compare to similar engineering services contracts awarded by the Department of the Army?

The $7.5M contract value for maintenance, supply, data collection, research, analysis, and program support appears to be within a reasonable range when compared to similar engineering and professional services contracts awarded by the Department of the Army. The specific nature of the services, including program execution and budget planning, often commands significant investment. Benchmarking against contracts with similar durations (approximately 4.8 years) and scopes within the NAICS code 541330 (Engineering Services) would provide a more precise comparison. Given the firm-fixed-price nature, this value represents a defined cost for the government, assuming the contractor delivers as specified. Without access to a comprehensive database of comparable contracts, a definitive statement on whether it is exceptionally high or low is difficult, but it does not immediately raise red flags.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential performance deficiencies by the contractor, scope creep if requirements are not well-defined, and the possibility of the contractor failing to meet evolving Department of Defense needs over the contract's duration. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price (FFP) nature shifts financial risk to the contractor. The 'full and open competition' process aims to select a capable and reliable vendor. Robust contract management, including regular performance reviews, clear communication channels, and defined deliverables, will be crucial for mitigating performance and scope risks. The Department of the Army's oversight mechanisms, including quality assurance surveillance plans, are designed to monitor contractor performance and ensure compliance.

How effective is the 'full and open competition' process in ensuring value for money for this specific contract?

The 'full and open competition' process is generally considered the most effective method for ensuring value for money, as it allows all responsible sources to submit bids, fostering a competitive environment that drives down prices and encourages innovation. For this specific contract, the fact that it was competed under this broad umbrella suggests that the Department of the Army sought to leverage market forces to obtain the best possible outcome. The effectiveness is further enhanced by the firm-fixed-price award type, which locks in costs. While the specific number of bidders isn't provided, the process itself is designed to prevent sole-source situations or limited competition, which can lead to higher costs and reduced quality. Taxpayers benefit from this competitive approach through potentially lower overall spending and higher quality services.

What are the historical spending patterns for similar maintenance, supply, and program support services within the Department of the Army?

Historical spending patterns for maintenance, supply, and program support services within the Department of the Army are substantial, reflecting the vast operational needs of the military. These services often fall under broad categories like 'Logistics and Supply Chain Management,' 'Professional Services,' or 'Information Technology Support,' depending on the specific focus. Annual expenditures in these areas can run into billions of dollars across the entire Department of Defense. The $7.5M value of this particular contract represents a segment of that larger spending. Analyzing historical data would involve looking at trends in contract values, the number of contracts awarded, and the types of services procured over several fiscal years to identify patterns, potential cost efficiencies, or areas of increasing investment.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9133L22R3301

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7701 GREENBELT RD STE 501, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,516,875

Exercised Options: $7,516,875

Current Obligation: $7,516,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1135

IDV Type: IDC

Timeline