DoD's $363M Linguist Support Contract Awarded to Engility LLC Under Sole Source

Contract Overview

Contract Amount: $363,036,897 ($363.0M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-10

End Date: 2007-12-09

Contract Duration: 90 days

Daily Burn Rate: $4.0M/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

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 $363.0 million to ENGILITY LLC for work described as: LABOR WORLDWIDE LINGUIST SUPPORT SERVICE Key points: 1. Significant contract value of $363 million for linguist support services. 2. Engility LLC secured the sole-source award, raising questions about competition. 3. The contract falls under 'Other Management Consulting Services', potentially indicating a broad scope. 4. Awarded by the Department of the Army, highlighting defense-related needs.

Value Assessment

Rating: questionable

The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the fixed fee and cost-plus structure represent fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $363 million contract suggests potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may have paid a premium due to the absence of competitive bidding. The reliance on a single provider could impact service quality and innovation over time. Defense operations may be dependent on a single contractor for critical linguist support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • High contract value

Positive Signals

  • Specific service provided to the Department of Defense

Sector Analysis

This contract falls under 'Other Management Consulting Services' (NAICS 541618), a broad category. The $363 million value is significant for this sector, especially for a sole-source award, suggesting specialized or critical needs.

Small Business Impact

The data indicates this contract was not awarded to a small business, and no specific small business subcontracting information is provided.

Oversight & Accountability

The sole-source nature of this large contract warrants scrutiny to ensure proper justification and that taxpayer funds were used efficiently and effectively.

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
  • Limited oversight due to sole-source nature
  • Dependency on a single contractor

Tags

other-management-consulting-services, department-of-defense, va, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $363.0 million to ENGILITY LLC. LABOR WORLDWIDE LINGUIST SUPPORT SERVICE

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 $363.0 million.

What is the period of performance?

Start: 2007-09-10. End: 2007-12-09.

What was the justification for awarding this $363 million contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For a contract of this magnitude, a thorough review of the justification is crucial to ensure it was indeed the only viable option and that competition was not feasible or would have been detrimental to national security interests.

How does the cost-plus fixed-fee structure compare to industry benchmarks for linguist support services?

Cost-plus fixed-fee contracts can incentivize contractors to incur costs, as a portion of their profit is tied to the total cost. Benchmarking this against similar sole-source or competitively awarded contracts for linguist support is essential to determine if the government received fair value. Without competitive data, this assessment is challenging.

What is the long-term impact of relying on a single provider for critical linguist support services?

Long-term reliance on a single provider can lead to vendor lock-in, reduced innovation, and potential price increases upon contract renewal. It also concentrates risk, as any performance issues or financial instability with the sole provider could directly impact critical defense operations requiring linguist support.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

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: Engility Corporation (UEI: 783837672)

Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $492,761,170

Exercised Options: $492,761,170

Current Obligation: $363,036,897

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W404D0005

IDV Type: IDC

Timeline

Start Date: 2007-09-10

Current End Date: 2007-12-09

Potential End Date: 2007-12-09 00:00:00

Last Modified: 2016-03-03

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