DoD's $28.7M Engineering Services Contract Awarded to Engility LLC for Systems Engineering Support
Contract Overview
Contract Amount: $28,704,032 ($28.7M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2011-04-05
End Date: 2012-03-30
Contract Duration: 360 days
Daily Burn Rate: $79.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEMS ENGINEERING SUPPORT SERVICES
Place of Performance
Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054
Plain-Language Summary
Department of Defense obligated $28.7 million to ENGILITY LLC for work described as: SYSTEMS ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 360 days indicates a short-term need for services. 3. Awarded to Engility LLC, a contractor with a significant presence in federal IT and defense sectors. 4. The 'Engineering Services' NAICS code (541330) covers a broad range of technical consulting. 5. The contract type 'Cost Plus Fixed Fee' can sometimes lead to cost overruns if not managed carefully. 6. The presence of 7 bidders indicates a healthy level of interest in this contract.
Value Assessment
Rating: fair
The total contract value of $28.7 million for a 360-day period averages to approximately $79,733 per day. Without specific deliverables or performance metrics, it is difficult to benchmark this value definitively. However, the number of bidders (7) suggests that the pricing was likely competitive. The 'Cost Plus Fixed Fee' contract type introduces some risk of cost escalation, which warrants careful monitoring of expenditures against the fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This indicates a robust bidding environment where multiple qualified contractors had the opportunity to compete for the work. The presence of numerous bidders generally supports price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source or limited competition scenario.
Public Impact
The Department of the Navy benefits from specialized systems engineering support. This contract supports critical defense operations by ensuring the integrity and functionality of complex systems. The services are delivered within New Jersey, potentially impacting the local workforce in engineering and technical fields. The contract aims to enhance the capabilities and readiness of naval systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee if not properly managed.
- The short duration of the contract may indicate a need for ongoing, potentially re-competed, services, leading to administrative overhead.
- Lack of specific performance metrics in the provided data makes it hard to assess the true value and effectiveness of the services.
Positive Signals
- Awarded through full and open competition, indicating a competitive market for these services.
- Multiple bidders (7) suggest a healthy competition and potential for good pricing.
- The contractor, Engility LLC, has experience in government contracting, potentially leading to efficient service delivery.
Sector Analysis
The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from defense to infrastructure. This contract falls under the Engineering Services category (NAICS 541330), which encompasses firms providing specialized engineering consulting. Federal spending in this sector is substantial, with significant portions allocated to defense and aerospace projects. This contract's value of $28.7 million is moderate within the context of large federal engineering contracts, but its specific focus on systems engineering for the Navy highlights its strategic importance.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Engility LLC, is likely a large business. There is no information provided on subcontracting plans or actual subcontracting to small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The 'Cost Plus Fixed Fee' structure necessitates diligent oversight to ensure costs remain reasonable and the fixed fee is earned through satisfactory performance. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Systems Engineering Support Services
- Department of Defense IT Services
- Naval Systems Modernization
- Engineering Consulting Services
- Federal IT and Engineering Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Short contract duration may imply recurring needs and potential for follow-on contracts.
- Lack of detailed performance metrics makes objective value assessment challenging.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, systems-engineering, cost-plus-fixed-fee, full-and-open-competition, large-business, new-jersey, it-services, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to ENGILITY LLC. SYSTEMS ENGINEERING SUPPORT SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $28.7 million.
What is the period of performance?
Start: 2011-04-05. End: 2012-03-30.
What is Engility LLC's track record with the Department of Defense, particularly in systems engineering support?
Engility LLC, prior to its acquisition by SAIC in 2018, had a substantial track record with the Department of Defense across various service areas, including IT, engineering, and professional services. Their experience often involved supporting complex defense programs, including systems engineering, integration, and sustainment. While this specific contract predates the SAIC acquisition, Engility's history suggests familiarity with DoD requirements and processes. Analyzing their past performance on similar contracts, including any performance evaluations or past performance questionnaires, would provide deeper insight into their capabilities and reliability in delivering systems engineering support.
How does the $28.7 million contract value compare to similar systems engineering support contracts awarded by the Navy or DoD?
The $28.7 million contract value for a 360-day period represents a significant but not exceptionally large award within the defense sector. Systems engineering support can range widely in cost depending on the complexity of the systems, the duration of the support, and the specific services required. Contracts for major defense programs can run into hundreds of millions or even billions of dollars over several years. This $28.7 million award appears to be for a focused, likely tactical or specific platform-related, systems engineering effort. Benchmarking against similar, contemporaneous contracts for comparable scope and duration would be necessary for a precise value-for-money assessment.
What are the primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract type for systems engineering services?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a predetermined fixed fee, there's less incentive for the contractor to control costs compared to fixed-price contracts. If the contractor's costs exceed estimates, the government still pays those costs. The fixed fee, however, remains constant, meaning the contractor's profit margin shrinks if costs rise significantly. Effective government oversight, detailed cost tracking, and robust negotiation of the fee are crucial to mitigate these risks and ensure the government receives good value.
How effective is 'full and open competition' in ensuring competitive pricing for specialized engineering services like systems engineering?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The presence of seven bidders in this case suggests that the market for these systems engineering services is robust. This competition drives down prices as contractors vie for the award. However, the effectiveness also depends on the clarity of the solicitation requirements and the government's ability to evaluate proposals fairly and accurately.
What is the historical spending trend for systems engineering support services within the Department of the Navy?
Historical spending on systems engineering support services within the Department of the Navy has been substantial and generally increasing, driven by the modernization of naval platforms, development of new technologies (e.g., cyber, AI, unmanned systems), and the sustainment of existing fleets. While specific figures for 'systems engineering support' can be aggregated differently across various contract types and NAICS codes, the overall trend reflects a consistent need for specialized technical expertise. Analyzing historical data from FPDS or other federal procurement databases would reveal year-over-year spending patterns, identify major contract vehicles, and highlight key contractors in this domain.
What are the potential implications of this contract on the small business ecosystem, given it was not a small business set-aside?
Since this contract was awarded under full and open competition and not designated as a small business set-aside, the direct award is likely to a large business (Engility LLC). This means small businesses would primarily participate as subcontractors, if at all. The impact on the small business ecosystem depends heavily on the prime contractor's subcontracting plan and execution. If Engility actively seeks out and utilizes small business subcontractors for specialized tasks, it can provide valuable opportunities. Conversely, if the work is performed entirely by the prime or its large business partners, the direct benefit to the small business sector would be minimal.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6523602R0079
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 13000 ROUTE 73 STE 400, MARLTON, NJ, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,704,032
Exercised Options: $28,704,032
Current Obligation: $28,704,032
Parent Contract
Parent Award PIID: N6523604D6842
IDV Type: IDC
Timeline
Start Date: 2011-04-05
Current End Date: 2012-03-30
Potential End Date: 2012-03-30 00:00:00
Last Modified: 2012-06-13
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