Department of the Army awarded $67.18M contract for management support services, with Engility LLC as the contractor

Contract Overview

Contract Amount: $67,181,361 ($67.2M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2004-09-20

End Date: 2005-09-09

Contract Duration: 354 days

Daily Burn Rate: $189.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200412!043458!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W404D0005 !A!N! !N!0001 ! !20040920!20050309!048341838!048341838!048341838!N!THE TITAN CORPORATION !3033 SCIENCE PARK ROAD !SAN DIEGO !CA!92121!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004000000!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541618!E! !5!B!S! ! !B!20050309!B! ! !N!A!D!U!U!1!001!N!2A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.2 million to ENGILITY LLC for work described as: 200412!043458!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W404D0005 !A!N! !N!0001 ! !20040920!20050309!048341838!048341838!048341838!N!THE TITAN CORPORATION !3033 SCIENCE PARK ROAD !SAN DIEGO !CA!92121!66672!059!51!RESTON !FAIR… Key points: 1. Contract awarded for Other Management Consulting Services, indicating a need for specialized expertise. 2. The contract was not competed, raising questions about potential cost efficiencies and market fairness. 3. A significant contract value suggests a substantial requirement for these services by the Department of the Army. 4. The contract duration of 354 days points to a medium-term engagement for the services provided. 5. The contractor, Engility LLC, is a known entity in the federal contracting space. 6. The contract type is Cost Plus Fixed Fee, which can carry risks of cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $67.18 million for approximately one year of service appears substantial. Benchmarking this against similar 'Other Management Consulting Services' contracts is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if the contractor's costs are not rigorously scrutinized. The awarded amount is a significant sum, suggesting a high level of service or a broad scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. 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.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for services, as the government did not have the opportunity to solicit the lowest possible price from multiple qualified bidders.

Public Impact

The primary beneficiary is the Department of the Army, which receives management support services. Services delivered likely include strategic planning, organizational analysis, process improvement, or similar consulting functions. The geographic impact is centered around the Department of the Army's operational areas, potentially worldwide. Workforce implications could involve the utilization of specialized consultants, impacting both government personnel and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Cost Plus Fixed Fee contract type carries inherent risk of cost escalation if not closely monitored.
Lack of detailed service description makes it difficult to assess true value for money.
Contract duration is relatively short, suggesting a specific project or phase rather than long-term support.

Positive Signals

Contract awarded to a known entity (Engility LLC) which may imply prior positive performance.
The substantial funding indicates a recognized need for the services by a major government agency.
The contract is for management support services, which can enhance operational efficiency.

Sector Analysis

The 'Other Management Consulting Services' category falls under professional, scientific, and technical services. This sector is characterized by a wide range of specialized expertise offered to government and commercial clients. Federal spending in this area often supports strategic planning, organizational effectiveness, and operational improvements. The market size for federal management consulting is substantial, with numerous firms competing for contracts across various agencies. This particular contract represents a significant award within this sector.

Small Business Impact

There is no indication from the provided data that this contract involved a small business set-aside. As a large contract awarded to Engility LLC, it is unlikely that small businesses were directly involved as the prime contractor. However, there may be subcontracting opportunities for small businesses, depending on the nature of the services and the prime contractor's subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Department of the Army's contract management personnel. Given the sole-source nature and the CPFF structure, rigorous oversight of expenditures and performance is crucial. Transparency is limited by the lack of public competition details. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization Services
Professional, Scientific, and Technical Services
Department of Defense Contracting
Consulting Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of detailed service description
Potential for cost overruns without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.2 million to ENGILITY LLC. 200412!043458!2100!W911W4!HQ USAINSCOM, DIR OF CONTRACTING!W911W404D0005 !A!N! !N!0001 ! !20040920!20050309!048341838!048341838!048341838!N!THE TITAN CORPORATION !3033 SCIENCE PARK ROAD !SAN DIEGO !CA!92121!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004000000!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !S1 !SERVICES !000 !* !541618!E! !5!B!S! ! !B!200

Who is the contractor on this award?

The obligated recipient is ENGILITY 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 $67.2 million.

What is the period of performance?

Start: 2004-09-20. End: 2005-09-09.

What specific management consulting services were provided under this contract?

The data indicates the contract was for 'Other Management Consulting Services' (NAICS code 541618). However, the precise nature of these services is not detailed. Typically, this category can encompass a broad range of activities, including strategic planning, organizational analysis, process improvement, program management support, and policy development. Without further documentation, it's impossible to specify the exact deliverables. The contractor, Engility LLC, would have provided these services as outlined in the contract's statement of work.

How does the $67.18 million contract value compare to similar management consulting contracts awarded by the Department of the Army?

Comparing the $67.18 million value requires context on the scope and duration. For a roughly one-year contract (354 days), this is a substantial award. The Department of the Army procures a wide array of consulting services, ranging from small, specialized engagements to large, multi-year programs. A contract of this magnitude suggests a significant need or a broad scope of services. To provide a precise comparison, one would need to analyze other large-scale management consulting contracts awarded by the Army within a similar timeframe and for comparable service categories, considering factors like the number of personnel involved and the complexity of the tasks.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for management services?

The Cost Plus Fixed Fee (CPFF) contract type presents specific risks. While it allows the government to obtain services when cost estimates are uncertain, it shifts some financial risk to the government. The 'cost plus' element means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs compared to a fixed-price contract, as their profit (the fee) is fixed regardless of the final cost. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. If not managed diligently, CPFF contracts can lead to cost overruns.

What is the significance of this contract being awarded on a sole-source basis?

A sole-source award signifies that the contract was not competed. This typically occurs when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. The primary implication for the government and taxpayers is the absence of competitive pressure to drive down prices. While there might be justifiable reasons for a sole-source award (e.g., unique proprietary technology, specific expertise), it generally reduces the government's ability to secure the best possible price and value compared to a full and open competition.

What is Engility LLC's track record with federal contracts, particularly with the Department of Defense?

Engility LLC (which has since undergone mergers and acquisitions, notably with SAIC) has a significant history of contracting with the U.S. federal government, particularly the Department of Defense. Prior to its integration into SAIC, Engility was a major provider of IT, engineering, and mission support services. Its track record includes numerous large contracts across various defense agencies. While specific performance details for every contract are not publicly available, its sustained presence and substantial contract awards indicate a capacity to meet federal requirements. However, like any large contractor, its history would include a range of contract performance outcomes.

How does the $67.18 million spending on 'Other Management Consulting Services' fit into the broader federal IT or professional services spending landscape?

The $67.18 million for 'Other Management Consulting Services' represents a portion of the vast federal spending on professional and technical services. While not strictly an IT contract, management consulting often intersects with IT modernization, strategic planning for technology adoption, and program management of large technology initiatives. Federal spending on professional services, including consulting, is in the tens of billions annually. This single contract, while substantial, is one of many contributing to the overall expenditure in this domain. Its significance lies in supporting a specific operational need within the Department of the Army, rather than representing a major trend in overall federal IT or service procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W404D0005

IDV Type: IDC

Timeline