DoD's $49.2M Engineering Services Contract Awarded to Engility LLC in 2010
Contract Overview
Contract Amount: $49,231,399 ($49.2M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-26
End Date: 2011-07-08
Contract Duration: 497 days
Daily Burn Rate: $99.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: BASE PERIOD - T&M
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.2 million to ENGILITY LLC for work described as: BASE PERIOD - T&M Key points: 1. Contract awarded under full and open competition, suggesting a broad search for qualified vendors. 2. The contract utilized a Time and Materials (T&M) pricing structure, which can pose cost control challenges. 3. The base period duration was approximately 1.6 years, with a total contract value of $49.2 million. 4. The awarded amount represents a significant investment in engineering services for the Department of the Army. 5. The contract was awarded to Engility LLC, a known entity in the federal contracting space. 6. The North American Industry Classification System (NAICS) code 541330 indicates a focus on engineering services.
Value Assessment
Rating: fair
The contract's value of $49.2 million for engineering services over roughly 1.6 years needs further benchmarking against similar Department of Defense contracts. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. Without detailed performance metrics or comparison data, assessing the true value-for-money is challenging. The awarded amount of $99,057 for the base period suggests a substantial initial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. The presence of 2 bids suggests a moderate level of competition for this engineering services requirement. While full and open competition is generally preferred for maximizing price discovery, the specific number of bidders can influence the final pricing and the range of solutions considered.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through a wide range of offers. However, the ultimate benefit depends on the effectiveness of the solicitation and evaluation process in driving down costs.
Public Impact
The primary beneficiary is the Department of the Army, which receives essential engineering services to support its operations and missions. The services delivered likely encompass a range of engineering disciplines critical for military infrastructure, equipment, or systems. The geographic impact is primarily within the operational areas of the Department of the Army, potentially worldwide. The contract supports a workforce of engineers and technical specialists employed by Engility LLC, contributing to the professional services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost uncertainty and potential overruns if not closely monitored.
- Limited competition (2 bidders) might have resulted in a less competitive price than a more robust bidding environment.
- The contract's duration and scope require diligent oversight to ensure objectives are met within budget.
Positive Signals
- Awarded through full and open competition, maximizing the pool of potential offerors.
- Engility LLC is a known contractor, suggesting a degree of familiarity with their capabilities.
- The contract addresses a clear need for engineering services within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports complex government and private sector projects. The market for federal engineering services is substantial, with significant spending allocated annually across various agencies for design, analysis, and technical support. This contract represents a portion of that broader spending landscape.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Engility LLC, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the engineering services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Accountability measures would be defined in the contract terms and conditions, focusing on performance, delivery, and adherence to the T&M ceiling. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance details may be sensitive.
Related Government Programs
- Defense Engineering Support Contracts
- Professional, Scientific, and Technical Services
- Department of the Army Procurement
Risk Flags
- Potential for cost overruns due to T&M pricing structure.
- Limited competition may have impacted price competitiveness.
- Need for diligent government oversight to manage contractor performance and costs.
Tags
department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, professional-services, defense-contracting, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.2 million to ENGILITY LLC. BASE PERIOD - T&M
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 $49.2 million.
What is the period of performance?
Start: 2010-02-26. End: 2011-07-08.
What was Engility LLC's performance history with the Department of Defense prior to this award?
Prior to this 2010 award, Engility LLC (and its predecessor entities) had a history of performing various services for the Department of Defense. While specific performance details for contracts preceding this one are not provided in the given data, Engility was generally recognized as a significant contractor in areas such as IT, engineering, and logistics support for defense agencies. A comprehensive review would involve examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for relevant contracts to understand their track record regarding quality, timeliness, and cost control.
How does the awarded amount compare to similar engineering services contracts within the DoD during that period?
The awarded base period value of approximately $49.2 million for Engility LLC's engineering services contract with the Department of the Army in 2010 needs to be benchmarked against comparable contracts. Without specific data on the scope, duration, and complexity of other engineering services contracts awarded by the DoD around the same time, a direct comparison is difficult. However, contracts of this magnitude for specialized engineering support were not uncommon within the DoD, reflecting the significant technical requirements of military operations and acquisitions. A detailed analysis would require identifying contracts with similar NAICS codes (e.g., 541330) and service descriptions awarded to other large defense contractors during the 2010-2011 timeframe.
What were the primary risks associated with using a Time and Materials (T&M) contract for these engineering services?
The primary risk associated with a Time and Materials (T&M) contract for engineering services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a fixed fee or profit. If the scope of work is not well-defined, or if project management is lacking, the contractor may incur higher labor hours or material costs than anticipated, leading to an increased total contract price. This necessitates robust oversight from the government to monitor labor hours, material usage, and overall project progress to ensure efficiency and prevent unnecessary expenditures. The government also bears the risk of contractor inefficiency.
How effective was the competition level (2 bidders) in ensuring a competitive price for taxpayers?
A competition level of two bidders represents a moderate level of competition, which is generally better than a sole-source award but less ideal than a scenario with numerous competitive bids. While it indicates that at least two companies were capable and interested in performing the work, it does not guarantee the most competitive pricing achievable. With only two bidders, there is a risk that the pricing may not be as aggressive as it could be if there were three or more strong contenders vying for the contract. Taxpayers benefit from competition, but the degree of benefit is often correlated with the number and strength of the competing offers.
What is the typical duration and value range for engineering services contracts of this nature within the federal government?
The typical duration and value range for engineering services contracts within the federal government can vary significantly based on the specific agency, the complexity of the requirement, and the contract type. Contracts like this one, with a base period of approximately 1.6 years and a value around $49.2 million, fall within a common range for substantial engineering support. Many federal engineering contracts can extend for several years, often with options for renewal, and their total values can range from hundreds of thousands to hundreds of millions of dollars. Factors such as the need for specialized expertise, long-term project lifecycles, and the strategic importance of the services influence these parameters.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB06R0013
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 9302 LEE HWY STE 800, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,433,235
Exercised Options: $62,433,235
Current Obligation: $49,231,399
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB06D0037
IDV Type: IDC
Timeline
Start Date: 2010-02-26
Current End Date: 2011-07-08
Potential End Date: 2011-07-08 00:00:00
Last Modified: 2012-05-08
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