DOT's FAA awards $4.5M contract for administrative and management consulting to Millennium Enterprise Corp

Contract Overview

Contract Amount: $4,576,385 ($4.6M)

Contractor: Millennium Enterprise Corp.

Awarding Agency: Department of Transportation

Start Date: 2023-07-03

End Date: 2026-07-31

Contract Duration: 1,124 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ACQUISITION, PROCUREMENT, FINANCIAL, AND SHAREPOINT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to MILLENNIUM ENTERPRISE CORP. for work described as: ACQUISITION, PROCUREMENT, FINANCIAL, AND SHAREPOINT SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The contract's Time and Materials pricing structure may lead to cost overruns if not closely managed. 3. Millennium Enterprise Corp. is the sole awardee, indicating a lack of broader market engagement for these services. 4. The duration of the contract (over 3 years) suggests a need for sustained support in administrative and management functions. 5. Services are concentrated in Washington D.C., potentially limiting broader geographic impact or benefits. 6. The contract falls under administrative management and general management consulting services, a common area for federal support.

Value Assessment

Rating: fair

The contract value of $4.5 million over approximately three years for administrative and management consulting services appears within a typical range for such support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking against similar sole-source contracts for administrative support within the FAA or other DOT agencies would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to specialized capabilities, existing infrastructure, or urgent needs. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This raises concerns about whether the most cost-effective solution was secured.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for services due to the absence of competitive pressure. It also limits opportunities for small businesses or other qualified vendors to secure federal contracts.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA), which will receive administrative and management consulting support. Services are expected to enhance the efficiency and effectiveness of FAA's administrative operations. The contract's geographic impact is focused on Washington D.C., where the services will be performed. Workforce implications are likely internal to the FAA, with consultants supporting existing staff and processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Time and Materials pricing structure introduces risk of cost overruns if not managed diligently.
Lack of competition may stifle innovation and prevent the government from accessing a wider range of solutions.
Concentration of services in a single geographic location may not leverage broader market capabilities.

Positive Signals

Contract provides essential administrative and management support to the FAA, ensuring operational continuity.
Millennium Enterprise Corp. is a known entity, potentially offering continuity and familiarity with FAA's needs.
The contract duration allows for sustained support and development of long-term solutions.
The specific NAICS code (541611) indicates a focus on specialized management consulting expertise.

Sector Analysis

The administrative management and general management consulting services sector is a significant component of federal spending, supporting a wide array of government functions. This contract falls within a broad category of professional services that agencies rely on for operational efficiency and strategic planning. Comparable spending benchmarks for similar consulting services can vary widely based on scope, duration, and the specific expertise required. The federal government frequently procures these services to augment internal capabilities or address specialized needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific contract. While Millennium Enterprise Corp. may be a small business itself, the lack of a formal set-aside or subcontracting plan means this contract does not directly contribute to the broader federal small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Federal Aviation Administration. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs will be crucial to ensure compliance and prevent overspending. Transparency regarding the specific tasks performed and the justification for the sole-source award would be beneficial for public accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Administrative Support Contracts
Department of Transportation Management Consulting Services
General Management Consulting Services Federal Contracts
Time and Materials Contracts
Sole Source Acquisition

Risk Flags

Sole Source Award
Time and Materials Pricing
Lack of Competition
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to MILLENNIUM ENTERPRISE CORP.. ACQUISITION, PROCUREMENT, FINANCIAL, AND SHAREPOINT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MILLENNIUM ENTERPRISE CORP..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2023-07-03. End: 2026-07-31.

What is the specific scope of work for Millennium Enterprise Corp.'s administrative and management consulting services?

The provided data indicates the contract is for 'ACQUISITION, PROCUREMENT, FINANCIAL, AND SHAREPOINT SUPPORT SERVICES' under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the granular details of the tasks, deliverables, and specific objectives are not publicly available in this summary. Typically, such services could encompass areas like process improvement, strategic planning support, procurement assistance, financial management advisory, and potentially IT-related support for systems like SharePoint. A comprehensive understanding of the scope would require reviewing the contract's Statement of Work (SOW).

How does the $4.5 million contract value compare to similar administrative support contracts at the FAA?

A direct comparison of the $4.5 million contract value to similar administrative support contracts at the FAA is difficult without more specific data on contract scope, duration, and the nature of the services provided. However, for a contract spanning over three years (July 2023 to July 2026), this value suggests a moderate level of support. Federal agencies often award contracts in this range for specialized consulting or support services. Benchmarking would ideally involve comparing the estimated hourly rates and total effort against other T&M contracts for similar professional services within the FAA or other transportation-related agencies, considering factors like labor categories and geographic location.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work expands, or if the contractor's efficiency is lower than anticipated, the total cost can escalate significantly beyond initial estimates. For the government, this necessitates robust oversight to monitor hours, ensure rates are reasonable, and verify that only necessary materials are procured. Without stringent controls, T&M contracts can become more expensive than initially budgeted.

What is the justification for awarding this contract on a sole-source basis to Millennium Enterprise Corp.?

The provided data simply states the contract was 'NOT COMPETED,' which typically implies a sole-source award. The specific justification for this sole-source determination is not included. Common reasons for sole-source awards include: only one responsible source exists with the required capability or capacity; an urgent and compelling need exists that cannot be met by other sources; or the contract is a follow-on to a previous competition where only one vendor's solution is compatible. Without the official justification document (e.g., a Justification and Approval - J&A), the precise rationale remains unknown, but it suggests the FAA determined that competition was not feasible or practical in this instance.

What is Millennium Enterprise Corp.'s track record with federal contracts, particularly with the FAA or DOT?

Information regarding Millennium Enterprise Corp.'s specific track record with federal contracts, especially with the Department of Transportation (DOT) or the Federal Aviation Administration (FAA), is not detailed in the provided data. To assess their performance history, one would typically consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past awards, contract performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any history of disputes or issues. A positive track record with relevant agencies would increase confidence in their ability to successfully execute this current contract.

How does this contract align with the FAA's broader strategic goals for administrative efficiency and procurement modernization?

This contract for 'ACQUISITION, PROCUREMENT, FINANCIAL, AND SHAREPOINT SUPPORT SERVICES' appears to align with the FAA's need for ongoing operational support in critical administrative functions. By engaging consultants, the FAA likely aims to leverage external expertise to improve processes, enhance efficiency, and potentially modernize its procurement and financial management systems. The focus on SharePoint support also suggests an effort to optimize collaboration and information management. The effectiveness of this alignment hinges on the specific tasks performed under the contract and whether they directly contribute to the FAA's stated strategic objectives for modernization and efficiency gains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 3520 ST. AUGUSTINE LANE, OAKTON, VA, 22124

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,789,717

Exercised Options: $4,576,385

Current Obligation: $4,576,385

Actual Outlays: $4,062,891

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline