Interior Department awards $51.1M for application development, with The Mil Corporation securing the contract

Contract Overview

Contract Amount: $51,102,287 ($51.1M)

Contractor: THE MIL Corporation

Awarding Agency: Department of the Interior

Start Date: 2014-04-01

End Date: 2019-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: APPLICATION DEVELOPMENT SUPPORT "IGF::CT::IGF"

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $51.1 million to THE MIL CORPORATION for work described as: APPLICATION DEVELOPMENT SUPPORT "IGF::CT::IGF" Key points: 1. Contract value of $51.1M over five years suggests a significant investment in application development services. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. The duration of 1825 days (5 years) allows for sustained support and potential for long-term impact. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 5. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of effort. 6. The award was made to The Mil Corporation, a key contractor in this domain.

Value Assessment

Rating: good

The total contract value of $51.1 million over five years averages to approximately $10.2 million annually. Without specific benchmarks for similar application development support contracts within the Department of the Interior or across federal agencies, a precise value-for-money assessment is challenging. However, the competitive nature of the award suggests that pricing was likely scrutinized against market rates. The 'Labor Hours' contract type implies that costs are tied to the hours worked by personnel, which can be efficient if managed well but also carries a risk of cost overruns if not properly overseen.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders (no: 6) indicates a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process as it typically drives down prices and ensures the government receives services at a fair market value. The multiple bids suggest that the government had options and could select the most advantageous offer.

Public Impact

The primary beneficiaries are the Department of the Interior's various offices, which will receive enhanced application development support. Services delivered include the development, maintenance, and enhancement of critical applications supporting the agency's mission. The geographic impact is primarily within the District of Columbia, where the Department of the Interior is headquartered. Workforce implications may include the direct employment of IT professionals by The Mil Corporation and potential indirect benefits to the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'Labor Hours' contract type if not closely monitored.
Dependence on a single contractor for critical application development over a five-year period.
Scope definition and management are crucial to ensure all requirements are met within budget.

Positive Signals

Awarded through full and open competition, ensuring a competitive marketplace.
The Mil Corporation's established presence suggests experience in delivering similar services.
Long-term contract duration allows for continuity and deep understanding of agency needs.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on application development and support. The federal IT services market is substantial, with agencies consistently investing in modernizing and maintaining their software systems. The NAICS code 541519, 'Other Computer Related Services,' encompasses a broad range of IT consulting and support activities. Benchmarking this contract's value against similar application development contracts within the federal government would require access to detailed contract data across various agencies and service providers.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (sb: false, ss: false). While there is no explicit small business set-aside, the prime contractor, The Mil Corporation, may engage small businesses as subcontractors to fulfill specific aspects of the contract. The extent of subcontracting to small businesses would depend on the prime contractor's strategy and the specific technical requirements of the application development tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/project managers within the Department of the Interior. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG (now SAM.gov), which reports award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Application Development Services
IT Professional Services
Software Development Contracts
Department of the Interior IT Spending
Federal IT Modernization Programs

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Need for robust performance monitoring to ensure contractor efficiency.
Risk of scope creep if not managed diligently.
Dependence on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $51.1 million to THE MIL CORPORATION. APPLICATION DEVELOPMENT SUPPORT "IGF::CT::IGF"

Who is the contractor on this award?

The obligated recipient is THE MIL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2014-04-01. End: 2019-03-31.

What is the track record of The Mil Corporation in delivering application development services to the federal government?

The Mil Corporation has a history of securing federal contracts, including those related to IT services. Analyzing their past performance on similar application development contracts would involve reviewing their award history, contract values, and any reported performance issues or successes. Federal procurement data can provide insights into their experience with different agencies and contract types. A deeper dive would examine client feedback, past performance evaluations, and any debriefings from competitors on awarded contracts. This helps assess their capability and reliability in meeting government requirements for complex IT projects.

How does the $51.1 million contract value compare to similar application development contracts within the Department of the Interior?

Comparing the $51.1 million contract value requires benchmarking against similar application development and support contracts awarded by the Department of the Interior over comparable timeframes. Without direct access to a comprehensive database of all DOI IT contracts, a precise comparison is difficult. However, this value suggests a significant, multi-year investment. Agencies often award large contracts for critical IT functions to ensure continuity and leverage economies of scale. The value is plausible for a five-year contract supporting core application needs, but a detailed analysis would necessitate comparing it to contracts with similar scope, duration, and service requirements within the agency.

What are the primary risks associated with a 'Labor Hours' contract type for application development?

The primary risk with a 'Labor Hours' contract type for application development is the potential for cost overruns if the effort required exceeds initial estimates. Unlike fixed-price contracts, costs are directly tied to the hours worked by personnel. This necessitates robust oversight and diligent tracking of labor hours to prevent inefficiencies or unnecessary work. Another risk is ensuring that the scope of work remains well-defined and managed, as 'Labor Hours' can sometimes lead to scope creep if not carefully controlled. The government bears the risk of the contractor's efficiency, making performance monitoring critical.

How effective is 'full and open competition' in ensuring value for money for application development services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the 6 bidders in this case, suggests that the government had a range of options to choose from, increasing the likelihood of selecting a contractor that offers the best combination of price, technical capability, and past performance. This process helps prevent price gouging and ensures that taxpayer dollars are used efficiently.

What is the historical spending trend for application development support within the Department of the Interior?

Analyzing historical spending trends for application development support within the Department of the Interior would involve examining procurement data over several fiscal years. This contract, awarded in 2014 for services through 2019, represents a specific period. To understand broader trends, one would need to look at spending patterns before and after this award, as well as other similar contracts. Factors influencing spending include agency modernization initiatives, budget allocations, and shifts in IT strategy. A consistent or increasing trend might indicate a growing reliance on external support for application development, while a decrease could signal a shift towards in-house capabilities or reduced IT investment.

What are the implications of the NAICS code 541519 for the type of services being procured?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' indicates that the contract is for a broad range of IT services beyond standard software development or IT infrastructure management. This can include services such as IT consulting, systems integration, data processing, computer disaster recovery services, and IT support services. For application development support, this code suggests that the contract may encompass not only coding but also analysis, design, testing, and potentially ongoing maintenance and support for various software applications critical to the Department of the Interior's operations. It signifies a need for specialized IT expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4000 MITCHELLVILLE RD A21, BOWIE, MD, 20716

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,096,045

Exercised Options: $61,096,045

Current Obligation: $51,102,287

Actual Outlays: $-117

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F4670G

IDV Type: FSS

Timeline