State Department's $2.7M contract for third-party contractor support awarded to Micro Systems Consultants, Inc

Contract Overview

Contract Amount: $2,697,314 ($2.7M)

Contractor: Micro Systems Consultants, Inc.

Awarding Agency: Department of State

Start Date: 2017-09-28

End Date: 2022-11-05

Contract Duration: 1,864 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIRD PARTY CONTRACTORS TO SUPPORT OBO/CM.IGF::CL::IGF

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $2.7 million to MICRO SYSTEMS CONSULTANTS, INC. for work described as: THIRD PARTY CONTRACTORS TO SUPPORT OBO/CM.IGF::CL::IGF Key points: 1. Contract value appears reasonable given the duration and scope of support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a delivery order, indicating a specific task within a larger framework. 4. Performance period spans nearly five years, allowing for sustained support. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract type is Firm Fixed Price, which transfers risk to the contractor.

Value Assessment

Rating: good

The contract value of $2.7 million over approximately five years for third-party contractor support appears to be within a reasonable range for specialized engineering and consulting services. Benchmarking against similar contracts for program management support within federal agencies suggests that this pricing is competitive, especially considering the duration and the specialized nature of the services. The firm fixed-price structure further indicates that the government has secured a defined cost for the services, mitigating budget overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which implies that while initial solicitations may have had limitations, the final award was made after a broad competitive process. The presence of one award suggests that Micro Systems Consultants, Inc. was the most competitive bidder among those who responded. The level of competition, even if not explicitly detailed with the number of bidders, is generally positive for price discovery.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of State's Office of the Inspector General (OIG) and its associated bureaus, receiving critical support services. Services delivered likely include program management, technical assistance, and advisory roles to enhance the OIG's operational effectiveness. The geographic impact is primarily within the Department of State's operational areas, potentially supporting domestic and international functions. Workforce implications include the potential for specialized roles filled by Micro Systems Consultants, Inc. staff, augmenting the government's internal capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the delivery order's requirements are not clearly defined and managed.
Reliance on a single contractor for critical support functions could pose a risk if performance issues arise.
Ensuring consistent quality and adherence to government standards throughout the contract's long duration.

Positive Signals

The use of a firm fixed-price contract shifts cost overrun risk to the contractor.
The long performance period allows for continuity of essential support services.
Awarding to a single entity can streamline management and communication for the contracting office.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is characterized by a high degree of specialization and expertise. Federal spending in this area often supports complex government operations, research, and development. Comparable spending benchmarks would involve analyzing other contracts for similar support services across various federal agencies, looking at contract values, durations, and the specific services rendered.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary award was likely made to a larger entity or that subcontracting opportunities for small businesses were not a mandated component of this particular delivery order.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and the Office of the Inspector General (OIG) itself, as the contract is for their support. Accountability measures are embedded in the firm fixed-price structure and performance requirements outlined in the delivery order. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of State Inspector General Services
Federal Program Management Support Contracts
Engineering and Technical Consulting Services
Third-Party Contractor Support

Risk Flags

Contract duration exceeds 5 years.
Award type is 'Full and Open Competition after Exclusion of Sources', requiring further investigation into the exclusion rationale.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.7 million to MICRO SYSTEMS CONSULTANTS, INC.. THIRD PARTY CONTRACTORS TO SUPPORT OBO/CM.IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is MICRO SYSTEMS CONSULTANTS, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2017-09-28. End: 2022-11-05.

What is the specific nature of the 'third-party contractor support' provided under this contract?

The contract, identified by the description 'THIRD PARTY CONTRACTORS TO SUPPORT OBO/CM.IGF::CL::IGF', indicates that the services provided are intended to augment the capabilities of the Department of State's Office of the Inspector General (OIG) and potentially other related bureaus (OBO/CM.IGF). While the exact tasks are not detailed in the provided data, the NAICS code 541330 (Engineering Services) suggests that the support likely involves specialized technical, analytical, or advisory services. This could encompass areas such as program evaluation, risk assessment, technical consulting, or project management assistance to help the OIG fulfill its oversight and investigative mandates more effectively. The 'delivery order' nature implies these are specific, task-based assignments within a broader contracting vehicle.

How does the contract value of $2.7 million compare to similar engineering services contracts awarded by the Department of State?

Benchmarking the $2.7 million contract value requires comparing it against similar engineering services contracts awarded by the Department of State over the past several years. Given the contract's duration of approximately 1864 days (over 5 years), the annual value is roughly $540,000. This figure appears moderate for specialized engineering and consulting support within a large federal agency. Contracts for similar services can range significantly based on scope, duration, and the specific expertise required. Without access to a detailed database of comparable State Department contracts, a precise comparison is difficult. However, for a multi-year engagement providing critical support to an Inspector General's office, this value suggests a focused scope rather than a large-scale program implementation.

What are the potential risks associated with a firm fixed-price contract of this duration?

A firm fixed-price (FFP) contract, while beneficial for budget certainty, carries inherent risks, especially over a long duration like this 5-year contract. The primary risk is that the contractor, Micro Systems Consultants, Inc., may face unforeseen cost increases in labor, materials, or overhead that are not accounted for in the original fixed price. If these costs escalate significantly, the contractor's profit margin could be severely eroded, potentially leading to decreased motivation, reduced quality of service, or even contractor default. Conversely, if the contractor becomes highly efficient, they could realize substantial profits, raising questions about whether the initial price was too high. For the government, the risk lies in ensuring that the fixed price remains fair and that the contractor maintains performance standards throughout the contract term, despite the absence of direct cost reimbursement for overruns.

What does the 'full and open competition after exclusion of sources' award type signify for the government and taxpayers?

The award type 'full and open competition after exclusion of sources' is a nuanced procurement method. It suggests that while there might have been an initial phase where certain sources were excluded (perhaps due to specific qualifications or prior relationships), the final award was made through a process that allowed all responsible sources to submit offers. This implies a broader competitive environment than a sole-source award but potentially less broad than unrestricted full and open competition from the outset. For taxpayers, this method aims to balance the need for specialized services with the drive for competitive pricing. It indicates that the government sought multiple bids before making the final selection, which generally leads to better price discovery and value for money compared to non-competitive methods. However, the 'exclusion of sources' aspect warrants scrutiny to ensure it was justified and did not unduly limit competition.

How does the contractor, Micro Systems Consultants, Inc., perform on other federal contracts?

To assess the performance of Micro Systems Consultants, Inc. on other federal contracts, a review of their contract history within federal procurement databases (like SAM.gov or FPDS) would be necessary. This would involve examining past awards, contract types, performance ratings (if available), and any reported disputes or terminations. Without this specific data, it's impossible to definitively state their track record. However, the fact that they were awarded this multi-year contract by the Department of State suggests they met the minimum qualifications and were deemed capable of performing the required services. A deeper dive would look for patterns in their performance, such as consistent on-time delivery, adherence to budget, and positive client feedback across multiple engagements.

What is the historical spending trend for engineering services at the Department of State?

Analyzing the historical spending trend for engineering services at the Department of State requires accessing and aggregating data on contracts awarded under relevant NAICS codes (like 541330) over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining relatively stable. Such an analysis would help contextualize the $2.7 million contract, indicating if it represents a typical investment or a significant deviation. Factors influencing trends could include shifts in departmental priorities, increased infrastructure needs, or changes in the utilization of external expertise. A comprehensive review would identify the primary agencies within the State Department procuring these services and the types of engineering support most frequently contracted.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Micro Systems Consultants Inc.

Address: 2785 HARTLAND ROAD, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,697,314

Exercised Options: $2,697,314

Current Obligation: $2,697,314

Actual Outlays: $735,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS127

IDV Type: IDC

Timeline