DoD's $69.5M Linguist Support Contract Awarded to Engility LLC Raises Questions on Competition

Contract Overview

Contract Amount: $69,462,829 ($69.5M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-10

End Date: 2006-12-09

Contract Duration: 90 days

Daily Burn Rate: $771.8K/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 $69.5 million to ENGILITY LLC for work described as: LABOR/WORLDWIDE LINGUIST SUPPORT SERVICE TAS::21 2020::TAS Key points: 1. The contract awarded to Engility LLC for linguist support services represents a significant expenditure. 2. Lack of competition is a primary concern, potentially impacting price discovery and value for money. 3. The 'Other Management Consulting Services' NAICS code suggests a broad category, making direct benchmarking difficult. 4. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns.

Value Assessment

Rating: questionable

The contract's $69.5M value is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar linguist support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and the government's ability to secure the best possible pricing through market forces.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution for these critical linguist support services.

Public Impact

Essential linguistic services for national security are being provided. The reliance on a single contractor may impact the availability of diverse linguistic skills. Taxpayer funds are being allocated without the benefit of competitive market pressures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of Competition
  • Sole-Source Award
  • Cost-Plus-Fixed-Fee Contract Type
  • Limited Transparency

Positive Signals

  • Essential Service Provided
  • Contractor Experience (Implied)

Sector Analysis

The Department of Defense frequently procures specialized services like linguist support. Benchmarking this contract is challenging due to the unique nature of linguistic expertise and the 'Other Management Consulting Services' NAICS code.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine potential small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure Engility LLC is delivering services effectively and efficiently within the agreed-upon terms and cost structure.

Related Government Programs

  • Other Management Consulting Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for inflated costs due to sole-source award
  • Limited transparency on specific service delivery metrics
  • Absence of small business participation noted

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 $69.5 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 $69.5 million.

What is the period of performance?

Start: 2006-09-10. End: 2006-12-09.

What specific factors necessitated a sole-source award for these linguist support services, and were alternatives explored?

The data indicates a sole-source award, meaning competition was not pursued. The specific justification for this approach is not provided but could stem from unique capabilities, urgent needs, or a lack of available qualified sources. Without this information, it's difficult to assess if taxpayer funds were used optimally or if alternative competitive strategies could have yielded better results.

How does the cost-plus-fixed-fee structure impact the government's ability to control costs for linguist support?

Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While this can be useful for services with uncertain costs, it shifts much of the cost risk to the government. Effective oversight is crucial to scrutinize allowable costs and ensure the fixed fee remains reasonable for the scope of work.

What is the long-term strategy for ensuring a competitive and cost-effective supply of linguist support services beyond this contract?

The current data points to a historical contract awarded without competition. A forward-looking strategy should involve market research to identify potential sources, explore different contract types that incentivize cost savings, and potentially break down requirements to foster broader competition among linguist service providers.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911W404R0008

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: $72,237,503

Exercised Options: $72,237,503

Current Obligation: $69,462,829

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W404D0005

IDV Type: IDC

Timeline

Start Date: 2006-09-10

Current End Date: 2006-12-09

Potential End Date: 2006-12-09 00:00:00

Last Modified: 2016-10-20

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