DoD's $26.6M contract for engineering services awarded to Engility LLC shows potential for cost savings
Contract Overview
Contract Amount: $26,653,095 ($26.7M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-26
End Date: 2008-09-30
Contract Duration: 1,100 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 200512!008385!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0080 ! !20050926!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!+000007902660!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: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $26.7 million to ENGILITY LLC for work described as: 200512!008385!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0080 ! !20050926!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 value of $26.6M for engineering services. 2. Awarded to Engility LLC, a significant defense contractor. 3. Contract duration of 1100 days, indicating a substantial project. 4. Procurement type is Time and Materials, which can pose cost control challenges. 5. The contract was awarded under full and open competition. 6. Geographic location of performance is New Jersey.
Value Assessment
Rating: fair
The total contract value of $26.6 million for engineering services over approximately three years appears within a reasonable range for complex technical support. However, the Time and Materials pricing structure warrants careful monitoring to ensure cost efficiency and prevent overruns. Benchmarking against similar engineering services contracts within the Department of Defense would provide a clearer picture of value for money, but preliminary assessment suggests it is not exceptionally high or low.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing to win awards.
Public Impact
The Department of Defense benefits from specialized engineering and technical services. Services delivered likely support the development, testing, or maintenance of defense systems. The contract's performance is based in New Jersey, potentially impacting the local workforce. The contract supports the broader defense industrial base by engaging a significant contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost uncertainty if not managed closely.
- The specific nature of 'Engineering Technical Services' is broad and may require detailed oversight to ensure scope alignment.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contract was awarded to a known entity, Engility LLC, which may have a track record with the agency.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including defense, research, and infrastructure. The market for such services is substantial, with significant government spending allocated annually. Comparable contracts often involve specialized expertise for complex projects, and this award appears to align with that trend.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Engility LLC, is a large business. There is no explicit information on subcontracting plans for small businesses within this data, which could represent missed opportunities for small business participation. Further investigation into subcontracting goals and achievements would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. The Time and Materials nature of the contract necessitates robust oversight to track labor hours, material costs, and ensure adherence to the contract's ceiling. Transparency would be enhanced through regular reporting and performance reviews, with potential for Inspector General involvement if specific concerns arise.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Army Technical Support Contracts
- Time and Materials Contracts
- Professional, Scientific, and Technical Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Need for robust government oversight to manage contractor performance and costs.
- Lack of specific detail on the technical services procured limits full assessment of value.
Tags
department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, new-jersey, large-business, electronics-and-communication-equipment, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to ENGILITY LLC. 200512!008385!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0080 ! !20050926!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!+000007902660!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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.7 million.
What is the period of performance?
Start: 2005-09-26. End: 2008-09-30.
What is the track record of Engility LLC with the Department of Defense, particularly for similar engineering services contracts?
Engility LLC, prior to its acquisition by SAIC, was a significant contractor for the Department of Defense. The company held numerous contracts across various agencies, including the Army, Air Force, and Navy, providing a wide range of services such as IT, engineering, logistics, and program management. For engineering services specifically, Engility often supported complex system development, integration, and sustainment efforts. Analyzing their past performance on similar Time and Materials contracts would be crucial to assess their ability to manage costs effectively and deliver within scope. Historical data on contract modifications, cost overruns, and performance reviews for Engility's previous DoD engineering contracts would provide valuable context for evaluating this specific award.
How does the awarded amount compare to similar engineering services contracts within the DoD over the past five years?
Comparing the $26.6 million award to similar engineering services contracts within the DoD requires a detailed analysis of contract databases, filtering by service type (engineering, technical services), agency (DoD components), and contract vehicle (e.g., IDIQ, fixed-price, T&M). Preliminary benchmarking suggests that for a contract duration of approximately three years (1100 days), a value in the tens of millions is not uncommon for specialized engineering support. However, the 'value for money' depends heavily on the specific technical requirements, the level of expertise required, and the competitive landscape. Contracts with similar scope and duration awarded under full and open competition to large businesses could range from $15 million to over $50 million, depending on complexity. The Time and Materials nature of this contract warrants closer scrutiny regarding cost efficiency compared to fixed-price alternatives, if applicable.
What are the primary risks associated with a Time and Materials (T&M) contract for engineering services, and how are they mitigated in this case?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage. This structure can incentivize longer project durations or less efficient work if not properly managed. Mitigation strategies typically include establishing a strong ceiling price, requiring detailed timesheets and expense reports, implementing rigorous oversight by government personnel (e.g., Contracting Officer's Representatives - CORs), and conducting regular performance reviews. For this specific contract, the presence of 4 bids under full and open competition suggests a degree of market discipline. However, the effectiveness of mitigation hinges on the government's active management and oversight throughout the contract's lifecycle.
What specific engineering or technical services are being procured under this contract, and how do they align with Army modernization priorities?
The provided data categorizes the service as 'ENGINEERING TECHNICAL SERVICES' under PSC code R425 and NAICS code 541330 (Engineering Services). While the specific technical services are not detailed, they likely encompass areas such as systems engineering, design, analysis, testing, and technical support for electronic and communication equipment, given the broader context of the award. To assess alignment with Army modernization priorities, one would need to cross-reference the contract's statement of work (if available) with current Army strategic goals, such as advancements in C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance), network modernization, or electronic warfare capabilities. Without a detailed SOW, this alignment remains speculative but is a critical area for further inquiry.
What has been the historical spending trend for engineering technical services by the Department of the Army over the last decade?
Historical spending by the Department of the Army on engineering technical services has generally been substantial and has seen fluctuations influenced by defense budgets, geopolitical events, and modernization initiatives. Over the last decade, the Army has consistently invested in R&D, systems engineering, and technical support to maintain and upgrade its vast array of equipment and platforms. Spending in this category often increases during periods of significant technological advancement or when undertaking major platform upgrades or new system developments. Analyzing specific budget lines for engineering services, technical support, and related R&D activities within the Army's financial reports would reveal trends, identify key areas of investment, and provide context for the $26.6 million awarded here. This spending is crucial for ensuring technological superiority and operational readiness.
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
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
Start Date: 2005-09-26
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2015-05-05
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