DoD Awards $145M Engineering Services Contract to Engility LLC, Extending to 2024
Contract Overview
Contract Amount: $14,508,996 ($14.5M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2004-12-01
End Date: 2024-01-25
Contract Duration: 6,994 days
Daily Burn Rate: $2.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200504!099245!1700!N68936!NAVAL AIR WARFARE CENTER !N6893602D0016 !A!N! !N!0015 ! !20041201!20060531!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!57930!111!06!POINT MUGU !VENTURA !CALIFORNIA!+000000533309!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!S! ! !D!20070325!B! ! !A! !A!N!U!2!002!A! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!1719!N68936!0001! !
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $14.5 million to ENGILITY LLC for work described as: 200504!099245!1700!N68936!NAVAL AIR WARFARE CENTER !N6893602D0016 !A!N! !N!0015 ! !20041201!20060531!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!57930!111!06!POINT MUGU !VENT… Key points: 1. Contract value of $145,008,996 for engineering services. 2. Competition type is 'Full and Open', suggesting broad market participation. 3. Risk is moderate due to contract duration and cost-plus structure. 4. Sector is Defense, specifically engineering services for the Naval Air Warfare Center.
Value Assessment
Rating: good
The contract value of $145M over its extended period appears reasonable for specialized engineering services. Benchmarking against similar large-scale defense engineering contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary engineering services.
Public Impact
Ensures continued engineering support for naval air warfare capabilities. Supports technological advancement and maintenance within the Department of Defense. Potential for job creation and economic activity in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration increases long-term cost exposure.
- Cost-plus contract type can incentivize spending if not tightly managed.
- Potential for scope creep over the extended period.
Positive Signals
- Full and open competition suggests a competitive market.
- Award to a known entity (Engility LLC) implies established capability.
- Contract supports critical defense functions.
Sector Analysis
This contract falls within the Defense sector, specifically for engineering services. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar engineering services contracts within DoD are typically in the millions to billions of dollars.
Small Business Impact
While the primary awardee is Engility LLC, the 'full and open' competition allows for small business participation as subcontractors. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract is managed by the Department of Defense, likely with oversight from the Naval Air Systems Command. Regular performance reviews and financial audits are standard for contracts of this magnitude to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overruns
- Scope Creep
- Contractor Performance Issues
- Technological Obsolescence
Tags
engineering-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to ENGILITY LLC. 200504!099245!1700!N68936!NAVAL AIR WARFARE CENTER !N6893602D0016 !A!N! !N!0015 ! !20041201!20060531!020278375!020278375!008898843!N!TITAN CORPORATION !FOUR GREENTREE CENTER !MARLTON !NJ!08053!57930!111!06!POINT MUGU !VENTURA !CALIFORNIA!+000000533309!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!S! ! !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 $14.5 million.
What is the period of performance?
Start: 2004-12-01. End: 2024-01-25.
What specific engineering services are being provided under this contract?
The contract specifies 'ENGINEERING TECHNICAL SERVICES' under PSC code 541330. This typically encompasses a broad range of activities including research, design, development, testing, and evaluation of systems and components related to naval air warfare. Specific tasks would be detailed in the contract's statement of work.
What are the primary risks associated with the 'Cost Plus Fixed Fee' pricing structure?
Cost-plus contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-consciousness if not rigorously monitored. The government bears the risk of cost increases, while the contractor's profit is fixed, potentially reducing their incentive for efficiency.
How does the extended contract duration impact overall value and effectiveness?
The extended duration, from 2004 to 2024, allows for continuity of critical services but also increases the potential for cost escalation and technological obsolescence. While it ensures stable support, it necessitates vigilant oversight to ensure the services remain effective and cost-efficient throughout the extended period.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Science Applications International Corporation
Address: 35 NEW ENGLAND BUSINESS CENTER DR STE 200, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N6893602D0016
IDV Type: IDC
Timeline
Start Date: 2004-12-01
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-26
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