DoD's $18.3M R&D contract for electronics research awarded to Engility LLC shows fair value

Contract Overview

Contract Amount: $18,306,555 ($18.3M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2005-04-14

End Date: 2006-08-31

Contract Duration: 504 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200507!199894!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0080 !A!N! !Y!0005 ! !20050414!20051130!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !+000000300000!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541710!E! !5!B!M! !A!D!20090412!B! ! !A! !A!N!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!B!N! ! ! !Y!1719!N00421!0001! !

Place of Performance

Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to ENGILITY LLC for work described as: 200507!199894!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0080 !A!N! !Y!0005 ! !20050414!20051130!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!46725!037!24!LEXINGTON PARK !ST. … Key points: 1. Contract value of $18.3M for applied research in electronics and communication equipment appears reasonable given the scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded to Engility LLC, a known entity in the defense sector. 4. Performance period of approximately 1.4 years provides a defined timeframe for research and development. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, a critical area for defense innovation. 6. The contract type is Cost Plus Fixed Fee, which allows for flexibility in R&D projects but requires careful cost monitoring.

Value Assessment

Rating: good

The contract value of $18.3 million for applied research in electronics and communication equipment seems within a reasonable range for a project of this nature and duration. While specific benchmarks for this exact type of R&D are difficult to ascertain without more granular data, the fixed fee component suggests a degree of cost control. Comparing it to similar applied research contracts within the Department of Defense, this award appears to represent a fair allocation of resources for the intended technological advancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though the exact number is not specified in the provided data, generally leads to more competitive pricing and a wider range of technical solutions. This approach is beneficial for the government in securing the best value for its investment.

Taxpayer Impact: Full and open competition typically results in better price discovery and can lead to cost savings for taxpayers by fostering a competitive environment among contractors.

Public Impact

The primary beneficiaries are the U.S. Navy, through advancements in electronics and communication equipment for air warfare. The contract delivers applied research services, contributing to the development of next-generation defense technologies. The geographic impact is centered around Lexington Park, Maryland, a known hub for naval aviation research and development. Workforce implications include employment for skilled researchers, engineers, and technical staff within the defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The relatively short performance period might limit the depth of research achievable.
Reliance on a single contractor for this specific R&D could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contractor, Engility LLC, is a recognized entity in the defense contracting space.
The contract supports critical applied research for naval air warfare capabilities.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on applied research and development for electronics and communication equipment. The market for defense R&D is highly specialized, with significant government investment driven by national security needs. Comparable spending benchmarks would typically be found within the broader category of defense research, development, testing, and evaluation (RDT&E), where innovation in electronics is a continuous priority.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition award, it is unlikely to have been exclusively reserved for small businesses. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this record. The primary focus appears to be on securing specialized R&D capabilities from established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Warfare Center Aircraft Division (NAWCAD) and the Defense Contract Management Agency (DCMA). These agencies are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying costs. Transparency is generally maintained through contract reporting mechanisms and performance reviews, with potential oversight from the Department of Defense's Inspector General for significant R&D investments.

Related Government Programs

Naval Air Systems Command (NAVAIR) Research and Development Programs
Department of Defense Applied Research Initiatives
Electronics and Communication Equipment Development
Defense Research and Engineering Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Short performance period may limit the scope of research achievable.
Reliance on a single contractor for specialized R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to ENGILITY LLC. 200507!199894!1700!N00421!NAVAL AIR WARFARE CENTER AIR DIV!N0042104D0080 !A!N! !Y!0005 ! !20050414!20051130!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !+000000300000!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541710!E! !5!B!M! !A!D!200

Who is the contractor on this award?

The obligated recipient is ENGILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2005-04-14. End: 2006-08-31.

What is the track record of Engility LLC in performing similar applied research and development contracts for the Department of Defense?

Engility LLC, prior to its acquisition by SAIC, had a significant history of performing various types of contracts for the Department of Defense, including those involving research and development, systems engineering, and technical support. Their expertise often spanned areas like command, control, communications, computers, and intelligence (C4I) systems, as well as electronic warfare and other advanced technologies. While specific performance metrics for individual contracts are not publicly detailed here, their established presence suggests a capacity to handle complex R&D projects. The company's background indicates experience in delivering solutions that align with the technological needs of military branches, including the Navy. Further analysis would require examining specific past performance evaluations and contract completion records.

How does the $18.3 million contract value compare to other applied research contracts in electronics and communication equipment for naval aviation?

The $18.3 million contract value for applied research in electronics and communication equipment for naval aviation appears to be within a moderate range for such specialized R&D efforts. Contracts in this domain can vary significantly based on scope, duration, and technological complexity. Larger, more comprehensive programs might reach hundreds of millions or even billions of dollars, while smaller, more focused research tasks could be in the single-digit millions. Given this contract's performance period of approximately 1.4 years and its focus on applied research rather than full-scale production or system integration, $18.3 million suggests a substantial but not exceptionally large investment. Benchmarking against similar NAWCAD or NAVAIR contracts for applied research in electronics would provide a more precise comparison, but the figure itself does not immediately suggest an outlier.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this applied research project?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for applied research projects like this one revolve around cost control and potential for scope creep. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs rigorously, as their profit is fixed regardless of the final cost incurred. If the research encounters unforeseen technical challenges or requires more extensive investigation than initially planned, costs can escalate significantly, although the fee remains constant. Conversely, the contractor bears the risk if actual costs exceed estimates, as their profit is capped. Effective oversight by the contracting agency is crucial to monitor expenditures, ensure the allowability of costs, and manage any potential changes to the project's scope to mitigate these risks.

What is the expected program effectiveness or outcome of this applied research contract?

The expected program effectiveness of this applied research contract is to advance the state-of-the-art in electronics and communication equipment relevant to naval air warfare. The specific outcomes would likely involve the development of new technologies, improved system designs, or enhanced capabilities that can be integrated into future naval aircraft or support systems. This could translate to better radar systems, more secure communication links, advanced electronic countermeasures, or improved sensor technologies. The ultimate goal is to enhance the operational effectiveness, survivability, and mission capabilities of naval aviation assets. The success will be measured by the successful completion of research objectives, the technical feasibility of developed concepts, and their potential for transition into subsequent development or acquisition phases.

How has federal spending in the 'Research and Development in Physical, Engineering, and Life Sciences' category (NAICS 541710) trended over the past decade, and how does this contract fit within that

Federal spending within the 'Research and Development in Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally shown a consistent upward trend over the past decade, driven largely by defense, health, and energy research initiatives. The Department of Defense is consistently one of the largest federal funders in this category. This specific $18.3 million contract, awarded in 2005, represents a relatively small portion of the overall annual federal R&D spending in this broad NAICS code. However, it signifies investment in a critical sub-area—applied research for electronics and communication equipment—which is vital for maintaining technological superiority in defense. Its fit within the trend is as a component of the larger defense R&D portfolio, contributing to incremental advancements rather than a massive foundational research program.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: FOUR GREENTREE CENTER, MARLTON, NJ, 03

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: N0042104D0080

IDV Type: IDC

Timeline