DoD Awards $85M for Engineering Technical Services, Raising Value Concerns
Contract Overview
Contract Amount: $14,763,582 ($14.8M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2006-06-16
End Date: 2008-09-29
Contract Duration: 836 days
Daily Burn Rate: $17.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 200608!005102!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0092 ! !20060616!20061031!849594288!849594288!849594288!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLON BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000000072000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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
Plain-Language Summary
Department of Defense obligated $14.8 million to ENGILITY LLC for work described as: 200608!005102!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0092 ! !20060616!20061031!849594288!849594288!849594288!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLON BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONM… Key points: 1. Contract value of $85M for engineering services. 2. Competition was full and open, but price discovery may be limited. 3. Risk associated with time and materials contract type. 4. Sector is IT/Electronics and Communication Equipment. 5. Small business participation is not indicated.
Value Assessment
Rating: questionable
The contract value of $85M for engineering technical services appears high for the duration and type of contract. Benchmarking against similar contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the 'Time and Materials' pricing structure may not incentivize cost efficiency, potentially impacting price discovery.
Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment, with potential for overspending if cost controls are not robust.
Public Impact
Taxpayers are funding extensive engineering and technical services for the Department of Defense. The duration of the contract (over 2 years) indicates a long-term need for these services. The specific nature of 'Engineering Technical Services' could impact various defense communication and electronics systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- High contract value for services
- Lack of small business participation noted
Positive Signals
- Full and open competition utilized
- Clear service description
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to Electronics and Communication Equipment. Spending in this area is critical for maintaining advanced defense capabilities.
Small Business Impact
The data indicates that small business participation was not a factor in this award. Further analysis could explore opportunities for future small business involvement in similar contracts.
Oversight & Accountability
Oversight is crucial for Time and Materials contracts to ensure costs remain reasonable and services are delivered efficiently. The Department of Defense is responsible for monitoring this contract's performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- High contract value may indicate a lack of competitive pricing pressure.
- Limited visibility into specific deliverables and performance metrics.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to ENGILITY LLC. 200608!005102!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0702DP001 !A!N! !Y!0092 ! !20060616!20061031!849594288!849594288!849594288!N!L-3 COMMUNICATIONS ILEX SYSTEM!1413 CANTILLON BLVD !MAYS LANDING !NJ!08330!24480!025!34!FORT MONMOUTH !MONMOUTH !NEW JERSEY!+000000072000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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 $14.8 million.
What is the period of performance?
Start: 2006-06-16. End: 2008-09-29.
What specific engineering technical services are being provided under this contract, and how do they align with current defense needs?
The contract specifies 'Engineering Technical Services' within the 'Electronics and Communication Equipment' category. These services likely support the development, maintenance, or enhancement of communication systems and electronic warfare capabilities critical for national defense. Detailed task orders would further clarify the precise nature of the work performed.
What are the potential risks associated with a Time and Materials contract for engineering services of this magnitude?
Time and Materials contracts carry inherent risks of cost overruns as the contractor is reimbursed for labor hours and material costs. Without strong oversight and defined ceilings, this can lead to higher-than-expected expenditures for the government. It also offers less incentive for contractor efficiency compared to fixed-price contracts.
How does the $85M contract value compare to industry benchmarks for similar engineering technical services provided to the Department of Defense?
Benchmarking this $85M contract requires detailed comparison with similar contracts for engineering technical services within the defense sector, considering factors like contract duration, scope of work, and specific technologies involved. Without such comparative data, assessing whether this represents a fair market price is challenging, but the value warrants scrutiny.
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: W15P7T06RB260
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: 2006-06-16
Current End Date: 2008-09-29
Potential End Date: 2008-09-29 00:00:00
Last Modified: 2015-05-13
More Contracts from Engility LLC
- Federal Contract — $363.5M (Department of Defense)
- Labor Worldwide Linguist Support Service — $363.0M (Department of Defense)
- Labor/Worldwide Linguist Support Service TAS::21 2020::TAS — $331.7M (Department of Defense)
- 200612!008781!2100!w15p7t!usa Communications-Electronics !daab0702dp001 !A!N! !Y!0107 ! !20060923!20061031!849594288!849594288!849594288!N!L-3 Communications Ilex System!1413 Cantillon Blvd !mays Landing !nj!08330!24480!025!34!fort Monmouth !monmouth !NEW Jersey!+000005082039!n!n!000000000000!r425!engineering Technical Services !A7 !electronics and Communication Equip !000 !NOT Discernable !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! ! — $325.2M (Department of Defense)
- 200211!004228!2100!AB07 !USA Communications-Electronics !daab0702dp001 !A!N! !Y!0018 !20020801!20061031!939131665!939131665!939131665!n!itel Solutions, an Ilex Telos !1413 Cantillion Blvd !mays Landing !nj!08330!24670!003!04!fort Huachuca !cochise !arizona !+000008312053!n!n!000000000000!r425!engineering Technical Services !A7 !electronics and Communication !1000!NOT Discernable or Classified !513310!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! ! ! ! ! !gy0hk8!0001! — $219.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)