DoD's $99.8M Linguist Support Contract Awarded to Engility LLC Under Sole-Source Basis
Contract Overview
Contract Amount: $99,768,145 ($99.8M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-11
End Date: 2006-12-09
Contract Duration: 89 days
Daily Burn Rate: $1.1M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR/WORLDWIDE LINGUIST SUPPORT SERVICE TAS::21 2020::TAS
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $99.8 million to ENGILITY LLC for work described as: LABOR/WORLDWIDE LINGUIST SUPPORT SERVICE TAS::21 2020::TAS Key points: 1. Significant contract value of $99.8 million for linguist support services. 2. Awarded to Engility LLC, indicating a potential lack of broad market competition. 3. The contract's sole-source nature raises questions about price discovery and potential overspending. 4. Services fall under 'Other Management Consulting Services', a broad category.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to assess if the $99.8 million award represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: Sole-source awards can lead to reduced value for taxpayer money due to the absence of competitive pricing mechanisms.
Public Impact
Taxpayers may be paying a premium for linguist support due to the lack of competition. The Department of Defense relies on these services, making their cost and effectiveness crucial for national security operations. Engility LLC is the sole provider, raising concerns about vendor lock-in and future pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential service for DoD operations
- Long-standing contract (awarded 2006)
Sector Analysis
This contract falls under management consulting services, specifically supporting linguistic needs within the Department of Defense. Benchmarks for such specialized services can vary widely, but sole-source awards often deviate from competitive market rates.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Sole-source awards often bypass the standard competitive processes where small business participation is typically assessed.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not competing the requirement. Oversight should focus on ensuring the necessity of the sole-source approach and the reasonableness of costs incurred.
Related Government Programs
- Other Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Limited oversight on pricing
- Contractor lock-in
- Questionable value for taxpayer money
Tags
other-management-consulting-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.8 million to ENGILITY LLC. LABOR/WORLDWIDE LINGUIST SUPPORT SERVICE TAS::21 2020::TAS
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 $99.8 million.
What is the period of performance?
Start: 2006-09-11. End: 2006-12-09.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically centers on unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's presumed the Army determined Engility LLC possessed specialized skills or resources essential for the linguist support services that could not be met through a competitive process within the required timeframe.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract?
Cost Plus Fixed Fee contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While providing flexibility, this structure can incentivize cost overruns if not rigorously monitored. The fixed fee component aims to control profit, but the overall cost-effectiveness hinges on the government's ability to control and audit the contractor's expenses.
What is the potential risk to the DoD if Engility LLC's performance is unsatisfactory, given the sole-source nature of the contract?
The primary risk is the difficulty in transitioning to a new provider or remedying performance issues quickly due to the lack of pre-established competitive alternatives. The DoD might be compelled to continue with a underperforming contractor or face significant delays and costs in initiating a new sole-source procurement if performance doesn't improve.
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: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 3033 SCIENCE PARK ROAD, SAN DIEGO, CA, 92121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $136,851,090
Exercised Options: $136,851,090
Current Obligation: $99,768,145
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911W404D0005
IDV Type: IDC
Timeline
Start Date: 2006-09-11
Current End Date: 2006-12-09
Potential End Date: 2006-12-09 00:00:00
Last Modified: 2016-10-18
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