Department of the Army awards $4.26M contract for Soldier Readiness Program support services to Magnificus Corporation

Contract Overview

Contract Amount: $4,261,738 ($4.3M)

Contractor: Magnificus Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOLDIER READINESS PROGRAM (SRP) SUPPORT SERVICES

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79918

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $4.3 million to MAGNIFICUS CORPORATION for work described as: SOLDIER READINESS PROGRAM (SRP) SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Sole-source award suggests potential limitations in competitive pricing. 3. Contract duration of one year with no option periods. 4. Service area concentrated in Texas. 5. Focus on general medical and surgical hospital services. 6. No small business set-aside noted, potentially impacting small business participation.

Value Assessment

Rating: fair

The contract value of $4.26 million for a one-year period for Soldier Readiness Program support services appears to be within a reasonable range for specialized medical support. However, without detailed service breakdowns and market benchmarks for similar support services in Texas, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government. Benchmarking against other similar contracts for SRP support would be beneficial for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This approach limits the opportunity for multiple vendors to bid, which can reduce price discovery and potentially lead to higher costs for the government compared to a fully competed contract. The rationale for the sole-source award is not provided, but it typically indicates a specific capability or urgency that only one vendor could meet.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most competitive pricing available in the market, as the government did not leverage competition to drive down costs.

Public Impact

Provides essential support services for soldiers' readiness, contributing to military operational effectiveness. Services are delivered within Texas, impacting military personnel stationed or operating in the region. Supports the healthcare and administrative needs of soldiers, ensuring they meet medical and readiness standards. The contract supports the Department of the Army's personnel readiness mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition in a sole-source award could lead to suboptimal pricing.
Limited contract duration may necessitate future re-competition or extensions, introducing potential instability.
Absence of small business participation could limit opportunities for smaller, specialized providers.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Contract directly supports critical soldier readiness programs.
Specific geographic focus in Texas may align with existing military infrastructure and needs.

Sector Analysis

The healthcare services sector, particularly within the defense industry, involves a wide range of support functions essential for maintaining military personnel health and readiness. This contract falls under the General Medical and Surgical Hospitals (NAICS 622110) category, indicating a focus on direct medical care and related administrative support. Spending in this area is critical for ensuring service members are medically fit for duty. Comparable spending benchmarks would typically involve analyzing other contracts for medical readiness support services across different military branches and geographic locations.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in delivering these Soldier Readiness Program support services are limited under this specific award. Future contracting actions could potentially include small business set-asides to foster greater participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Army. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is facilitated through contract databases, but detailed performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Army Medical Command Services
Military Health System Support
Soldier Readiness Processing
Medical Readiness Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of public justification for sole-source award.
Limited contract duration could lead to future procurement challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to MAGNIFICUS CORPORATION. SOLDIER READINESS PROGRAM (SRP) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MAGNIFICUS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the specific scope of services included in the Soldier Readiness Program (SRP) support?

The provided data indicates the contract is for 'SOLDIER READINESS PROGRAM (SRP) SUPPORT SERVICES' under NAICS code 622110 (General Medical and Surgical Hospitals). While the exact services are not detailed, SRP typically encompasses a range of medical and administrative functions necessary to ensure soldiers are medically fit for deployment and duty. This can include medical examinations, vaccinations, dental screenings, vision tests, mental health assessments, and administrative processing to document readiness status. The 'General Medical and Surgical Hospitals' classification suggests a focus on direct patient care and associated support operations, potentially including diagnostic services and treatment coordination as part of the readiness evaluation process.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and is a 'SOLE SOURCE'. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Common reasons include urgency, unique capabilities, proprietary technology, or a lack of other qualified vendors. Without further information from the Department of the Army, the specific justification for this sole-source award remains unknown. However, the government must have determined that competition was not feasible or practicable for this particular requirement, potentially due to specialized expertise or a critical, time-sensitive need that only Magnificus Corporation could fulfill.

How does the $4.26 million contract value compare to similar Soldier Readiness Program support contracts?

Benchmarking the $4.26 million contract value requires comparing it to similar Soldier Readiness Program (SRP) support services contracts awarded by the Department of Defense or other federal agencies. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for a one-year duration, this value suggests a significant scope of services. Factors influencing this value include the number of soldiers supported, the complexity of medical and administrative requirements, and the geographic location (Texas). If similar one-year contracts for SRP support in other regions or for different branches are in the range of $3-5 million, then this award would be considered within a typical range. A lower value might indicate better price negotiation or a smaller scope, while a significantly higher value could raise questions about cost-effectiveness.

What are the potential risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the potential for reduced value for money due to the lack of competition. Without competing bids, the government may pay a higher price than if multiple vendors had vied for the contract. There's also a risk of complacency from the sole provider, potentially impacting service quality or innovation over time, although performance is typically monitored. Furthermore, reliance on a single vendor can create supply chain risks if that vendor faces operational issues. For taxpayers, the risk is that their funds are not being utilized in the most cost-efficient manner possible, as the government did not have the benefit of competitive pressures to drive down costs.

What is Magnificus Corporation's track record with government contracts, particularly in healthcare support?

Information regarding Magnificus Corporation's specific track record with government contracts, especially in healthcare support, is not provided in the data. A thorough analysis would require examining their contract history, past performance evaluations, and any reported issues or successes with previous federal awards. Understanding their experience with similar services, their ability to meet deadlines, manage costs, and comply with government regulations would be crucial for assessing their reliability and capability in fulfilling this Soldier Readiness Program support contract.

What are the implications of the firm-fixed-price contract type for cost control and risk?

A firm-fixed-price (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and risks of cost overruns are relatively low. Under an FFP contract, the contractor, Magnificus Corporation, assumes the primary responsibility for all costs incurred and is paid a predetermined price regardless of the actual costs. This provides the government with cost certainty and predictability, making budgeting easier. For the contractor, it introduces the risk of financial loss if costs exceed the fixed price, incentivizing them to manage their expenses efficiently. This structure is beneficial for controlling government spending as it caps the total expenditure for the defined services.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W81K0025QA026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9500 ANNAPOLIS RD, LANHAM, MD, 20706

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

Financial Breakdown

Contract Ceiling: $4,261,738

Exercised Options: $4,261,738

Current Obligation: $4,261,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline