DoD's $43M contract for engineering services awarded to Engility LLC shows potential for cost savings

Contract Overview

Contract Amount: $42,987,296 ($43.0M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2004-02-10

End Date: 2009-04-30

Contract Duration: 1,906 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: 200405!002645!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0034 ! !20040210!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000000740000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!004!B! !C!N!Z! ! !N!C!N! ! ! !D!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $43.0 million to ENGILITY LLC for work described as: 200405!002645!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0034 ! !20040210!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONM… Key points: 1. The contract's value of $43 million over its period of performance suggests a significant investment in engineering technical services. 2. Competition dynamics indicate a full and open competition, which typically fosters better pricing and value for the government. 3. The contract's duration of approximately 5 years presents a moderate risk for potential cost overruns or performance degradation. 4. Performance context is tied to engineering technical services, a critical but often complex area for defense agencies. 5. Sector positioning places this contract within the broader IT and professional services landscape for the Department of Defense.

Value Assessment

Rating: good

The awarded amount of $43 million for engineering technical services appears reasonable given the contract's duration of over 5 years. Benchmarking against similar contracts for engineering services within the Department of Defense would provide a clearer picture of value for money. However, the absence of specific performance metrics or detailed cost breakdowns makes a definitive assessment challenging. The contract type (Time and Materials) can sometimes lead to higher costs if not managed closely, but it also offers flexibility for evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The number of bids received is not specified, but this procurement method generally leads to a more competitive environment, which should theoretically result in better pricing and a wider selection of qualified contractors for the government. The agency's commitment to full and open competition is a positive indicator for efficient use of taxpayer funds.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a diverse pool of contractors to offer their best value propositions.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its various branches, likely receiving advanced engineering and technical support. Services delivered include engineering technical services, crucial for the development, maintenance, and enhancement of defense systems and infrastructure. The geographic impact is likely concentrated around the contracting agency's locations, such as Fort Monmouth, New Jersey, and potentially other defense installations. Workforce implications may include the creation or sustainment of jobs for engineers, technicians, and support staff within the winning contractor's organization and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type carries inherent risk of cost escalation if not closely monitored and managed.
Lack of specific details on performance metrics makes it difficult to assess the true value and effectiveness of the services rendered.
The long duration of the contract could lead to vendor lock-in or reduced flexibility for the agency to adapt to changing technological needs.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process that should yield competitive pricing.
The contractor, Engility LLC, is a known entity in the government contracting space, suggesting a level of established capability.
The contract supports critical engineering technical services for the Department of Defense, aligning with national security objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering services. This sector is a significant component of the federal procurement landscape, supporting a wide array of government functions. The market for engineering services is competitive, with numerous firms vying for government contracts. The Department of Defense is a major consumer of these services, often requiring specialized expertise for complex defense systems and infrastructure projects. Comparable spending benchmarks would typically be found within the broader category of engineering and architectural services (NAICS 5413), where the federal government spends billions annually.

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 specifically mandated for small businesses through a set-aside program. However, the prime contractor, Engility LLC, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting strategies and the nature of the services required. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily be managed by the contracting officers and program managers within the Department of the Army, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract. The contract type (Time and Materials) necessitates diligent oversight to control costs and ensure efficient resource utilization.

Related Government Programs

Defense Engineering Services
Professional, Scientific, and Technical Services
Department of Defense IT and Support Contracts
Army Engineering and Construction Contracts

Risk Flags

Contract Type Risk (Time and Materials)
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.0 million to ENGILITY LLC. 200405!002645!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0034 ! !20040210!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD, SUIT!MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000000740000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !999

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 $43.0 million.

What is the period of performance?

Start: 2004-02-10. End: 2009-04-30.

What is the track record of Engility LLC in performing similar engineering technical services contracts for the Department of Defense?

Engility LLC, and its predecessor entities, have a substantial history of performing engineering and technical services for the Department of Defense and other federal agencies. Prior to its acquisition by SAIC in 2018, Engility held numerous contracts across various defense domains, including command, control, communications, computers, and intelligence (C4I) systems, logistics, and professional support services. Their experience often involved complex system integration, software development, and lifecycle support for military platforms and infrastructure. Analyzing past performance on similar contracts would involve reviewing award data, past performance evaluations (if publicly available), and any reported issues or successes to gauge their capability and reliability in delivering the required engineering expertise.

How does the awarded amount of $43 million compare to the average cost of similar engineering services contracts within the DoD?

The awarded amount of approximately $43 million for engineering technical services over a period of roughly 5 years (from Feb 2004 to Oct 2009, based on the provided data) places it as a moderately sized contract within the DoD's vast procurement portfolio. To benchmark this effectively, one would need to compare it against contracts with similar scopes of work, durations, and complexity, specifically within the 'Engineering Services' (NAICS 541330) category. The average cost can vary significantly based on specialization (e.g., aerospace engineering vs. civil engineering), the level of security clearance required, and the specific technical challenges involved. Without more granular data on comparable contracts, it's difficult to definitively state if $43 million represents a high, low, or average expenditure, but it signifies a substantial commitment to acquiring specialized engineering expertise.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services, and how were they mitigated in this award?

Time and Materials (T&M) contracts, like the one awarded to Engility LLC, present a primary risk of cost escalation because the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rate. This can lead to higher overall costs if the contractor's efficiency is low or if the scope of work expands unexpectedly. Mitigation strategies typically involve establishing labor hour ceilings, requiring detailed reporting of hours and materials, implementing robust government oversight to monitor progress and control scope creep, and defining clear task orders with estimated effort. For this specific contract, the data does not explicitly detail the mitigation measures employed by the Department of the Army beyond the contract type itself. Effective management and vigilant oversight by the contracting officer's representative (COR) would be crucial to controlling costs and ensuring value.

What was the historical spending pattern for engineering technical services by the Department of the Army prior to and during this contract period?

The Department of the Army, as a major component of the DoD, consistently spends significant amounts on engineering technical services to support its vast array of operations, research and development, and infrastructure maintenance. Prior to and during the period of this contract (2004-2009), the Army's spending in this area was likely influenced by ongoing military operations, modernization efforts, and infrastructure upgrades. Historical spending patterns would reveal trends in contract awards, dominant service providers, and the types of engineering services most in demand. Analyzing this data would help contextualize the $43 million award, showing whether it was part of a larger trend of increased or decreased investment in engineering support, and whether spending was concentrated in specific areas like electronics, communications, or base infrastructure.

How did the 'full and open competition' procurement method impact the final price and quality of services for this contract?

The 'full and open competition' method is designed to maximize the number of potential bidders, thereby fostering a more competitive environment. This typically leads to downward pressure on prices as contractors strive to offer the most attractive bids to win the contract. Furthermore, it allows the government to select from a wider pool of qualified vendors, increasing the likelihood of obtaining high-quality services that best meet the agency's needs. For this $43 million contract, the full and open competition likely resulted in a more favorable price than a sole-source or limited competition award. While the specific impact on quality is harder to quantify without performance reviews, the competitive process generally incentivizes contractors to deliver superior service to secure future business and maintain their reputation.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W15P7T04RD206

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0702DP001

IDV Type: IDC

Timeline