DoD's $16.6M contract for engineering services awarded to Engility LLC shows potential for cost savings
Contract Overview
Contract Amount: $16,578,394 ($16.6M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2004-02-20
End Date: 2006-09-30
Contract Duration: 953 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200405!041060!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014003D0005 !A!N! !N!5003 ! !20040220!20050104!181175597!181175597!048341838!N!ADVANCED COMMUNICATION SYSTEMS!1550 HOTEL CIRCLE NORTH !SAN DIEGO !CA!92108!48990!005!34!MOUNT LAUREL !BURLINGTON !NEW JERSEY!+000000144000!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !* !541330!E! !5!B!M! !E! !99990909!B! ! !A! !A!U!U!2!006!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! !N00181!0001! !
Place of Performance
Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054
Plain-Language Summary
Department of Defense obligated $16.6 million to ENGILITY LLC for work described as: 200405!041060!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014003D0005 !A!N! !N!5003 ! !20040220!20050104!181175597!181175597!048341838!N!ADVANCED COMMUNICATION SYSTEMS!1550 HOTEL CIRCLE NORTH !SAN DIEGO !CA!92108!48990!005!34!MOUNT LAUREL !BURL… Key points: 1. Contract awarded to Engility LLC for engineering services. 2. Significant contract value suggests a need for robust oversight. 3. Competition level indicates potential for competitive pricing. 4. Contract duration of 953 days allows for performance evaluation. 5. Small business participation not explicitly detailed, requiring further review. 6. Geographic location of contractor in New Jersey may impact local economies.
Value Assessment
Rating: good
The contract's value of $16.6 million for engineering services is substantial. Benchmarking against similar contracts for engineering services within the Department of Defense is crucial to assess value for money. Given the Cost Plus Fixed Fee (CPFF) structure, careful monitoring of costs and fee is necessary to ensure efficiency and prevent overruns. The contract's duration of 953 days provides ample time for performance assessment and potential adjustments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 6 bidders indicates a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that the government secures services at the most competitive rates available.
Public Impact
The Department of Defense benefits from specialized engineering services. The contract supports the maintenance and repair of equipment and miscellaneous items. The contractor, Engility LLC, is based in New Jersey, potentially impacting the local workforce. The services provided are critical for the operational readiness of defense assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts require diligent oversight to manage costs and ensure the fixed fee remains appropriate.
- The specific nature of 'miscellaneous equipment' maintenance could lead to scope creep if not clearly defined.
- Long-term contracts can sometimes lead to complacency if performance is not continuously monitored.
Positive Signals
- Awarded under full and open competition, indicating a competitive market.
- Multiple bidders (6) suggest a robust selection process.
- The contract has a defined period, allowing for performance evaluation.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government operations. The market for engineering services is diverse, encompassing a wide range of specialties. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts within the Department of Defense and other federal agencies to gauge cost-effectiveness and pricing structures.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Further investigation into the contractor's subcontracting plan would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases, though specific performance metrics and audit reports may not always be publicly accessible.
Related Government Programs
- Defense Logistics Agency Support Contracts
- Naval Sea Systems Command (NAVSEA) Engineering Services
- Department of Defense Maintenance and Repair Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Potential for scope creep in 'miscellaneous equipment' maintenance.
- Need for detailed performance metrics to ensure value.
- Small business subcontracting impact requires further review.
Tags
defense, department-of-defense, engineering-services, maintenance-and-repair, cost-plus-fixed-fee, full-and-open-competition, engility-llc, new-jersey, federal-contract, dod, services, equipment-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to ENGILITY LLC. 200405!041060!1700!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014003D0005 !A!N! !N!5003 ! !20040220!20050104!181175597!181175597!048341838!N!ADVANCED COMMUNICATION SYSTEMS!1550 HOTEL CIRCLE NORTH !SAN DIEGO !CA!92108!48990!005!34!MOUNT LAUREL !BURLINGTON !NEW JERSEY!+000000144000!N!N!000000000000!J099!MAINT & REPAIR OF EQ/MISCELLANEOUS EQUIPMENT !S1 !SERVICES !000 !* !541330!E! !5!B!M! !E! !999
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 $16.6 million.
What is the period of performance?
Start: 2004-02-20. End: 2006-09-30.
What is the track record of Engility LLC in performing similar engineering services contracts for the Department of Defense?
Engility LLC, prior to its acquisition by SAIC, had a significant history of performing various IT, engineering, and support services for the Department of Defense and other federal agencies. Their portfolio often included complex systems engineering, technical support, and program management. Analyzing past performance reviews, contract awards, and any documented issues on similar contracts would provide insight into their capabilities and reliability in delivering engineering services. Specific data on their performance on contracts of similar size and scope would be crucial for a comprehensive assessment.
How does the $16.6 million contract value compare to similar engineering services contracts awarded by the DoD?
The $16.6 million value for this engineering services contract is moderate within the context of large federal procurements. To benchmark effectively, one would compare it against contracts for similar services (e.g., maintenance and repair of equipment, systems engineering) awarded by the DoD or other agencies over the past few years. Factors like contract duration, scope of work, and the specific technical requirements influence pricing. If similar contracts for comparable services were awarded at significantly lower or higher price points, it would indicate whether this contract represents good or questionable value.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides a profit ceiling, there's a risk of cost overruns if the government's oversight is insufficient. For engineering services, risks also include potential scope creep if requirements are not well-defined, technical challenges leading to unforeseen costs, and contractor performance issues impacting project timelines or quality. Robust government oversight, clear performance metrics, and diligent cost tracking are essential to mitigate these risks.
How effective has the competition level (6 bidders) been in ensuring competitive pricing for this contract?
A competition level of 6 bidders is generally considered healthy and indicative of a competitive market for the services solicited. This suggests that the solicitation was well-structured and attracted a good number of qualified vendors. In theory, a larger pool of bidders increases the likelihood that the government receives competitive proposals, leading to better pricing and terms. However, the true effectiveness can only be assessed by analyzing the price proposals received and comparing them against the government's cost estimates and the final negotiated price. Without access to that detailed pricing data, we assume the competition was effective.
What is the historical spending trend for 'Maintenance & Repair of Equipment/Miscellaneous Equipment' within the Department of Defense?
Historical spending on 'Maintenance & Repair of Equipment/Miscellaneous Equipment' within the Department of Defense is substantial and generally consistent, reflecting the ongoing need to maintain a vast array of military assets. This category often represents a significant portion of the DoD's operational budget. Trends can fluctuate based on modernization cycles, geopolitical events, and specific equipment lifecycles. Analyzing multi-year spending data for this specific Product Service Code (PSC) or similar codes would reveal patterns, identify peak spending periods, and highlight any significant increases or decreases that might warrant further investigation into the drivers behind those shifts.
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
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 815 EAST GATE DRIVE, MOUNT LAUREL, NJ, 03
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0014003D0005
IDV Type: IDC
Timeline
Start Date: 2004-02-20
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2012-03-27
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