DoD awards $80.8M for Engineering Technical Services, with competition impacting price discovery
Contract Overview
Contract Amount: $58,757,842 ($58.8M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-22
End Date: 2024-01-25
Contract Duration: 6,699 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200512!008375!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0076 ! !20050922!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000001546650!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !20200930!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: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $58.8 million to ENGILITY LLC for work described as: 200512!008375!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0076 ! !20050922!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONM… Key points: 1. Contract awarded for Engineering Technical Services to Engility LLC. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. The contract duration is substantial, spanning over 18 years. 4. The sector is IT/Defense, with a focus on electronics and communication equipment.
Value Assessment
Rating: good
The contract value of $80.8M over 18 years appears reasonable given the scope of engineering technical services. Benchmarking against similar long-term, complex service contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the services rendered, though ongoing monitoring is crucial.
Public Impact
Ensures continued availability of critical engineering and technical support for defense systems. Supports technological advancements in communications and electronics for the Department of Defense. Provides long-term employment opportunities within the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or evolving needs not fully captured in initial pricing.
- Reliance on a single awardee for such a long period could limit future innovation or cost-saving opportunities.
Positive Signals
- Full and open competition promotes a competitive environment.
- The contract addresses essential defense capabilities.
- Clear award date and period of performance.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense electronics and communication equipment. Spending benchmarks in this area are highly variable, depending on the complexity and duration of services required.
Small Business Impact
The data does not indicate specific set-asides for small businesses. While Engility LLC is a large business, the contract's structure may allow for subcontracting opportunities for smaller firms.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would typically involve performance monitoring, quality assurance, and financial reviews to ensure compliance and value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration potentially leading to price escalation or obsolescence.
- Lack of specific small business participation noted.
- Potential for vendor lock-in over an extended period.
- Complexity of 'Engineering Technical Services' requires robust oversight.
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 $58.8 million to ENGILITY LLC. 200512!008375!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0076 ! !20050922!20061031!808357131!008898884!008898843!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLION BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000001546650!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !202
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 $58.8 million.
What is the period of performance?
Start: 2005-09-22. End: 2024-01-25.
What specific engineering technical services are included, and how do they align with current and future defense needs?
The contract specifies 'ENGINEERING TECHNICAL SERVICES' related to 'ELECTRONICS AND COMMUNICATION EQUIP'. A detailed breakdown of tasks, deliverables, and performance metrics is crucial to understand how these services directly support evolving defense requirements and technological advancements in communications and electronics.
How has the long contract duration (over 18 years) impacted the overall cost-effectiveness and potential for innovation?
While long-term contracts can provide stability, they also pose risks of cost overruns if not managed diligently. The extended period may have allowed for significant cost savings through economies of scale, but it could also stifle innovation by locking in specific technologies or approaches, potentially missing out on more cost-effective or advanced solutions that emerge over time.
What mechanisms are in place to ensure the quality and relevance of the engineering services provided throughout the contract's extensive lifespan?
Effective oversight mechanisms, including regular performance reviews, quality assurance checks, and stakeholder feedback loops, are essential. The Department of Defense must actively manage the contract to ensure services remain relevant to evolving threats and technologies, and that the contractor consistently meets or exceeds performance standards.
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: W15P7T05RB253
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Science Applications International Corporation
Address: 4803 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,364,946
Exercised Options: $58,757,842
Current Obligation: $58,757,842
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0702DP001
IDV Type: IDC
Timeline
Start Date: 2005-09-22
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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