DoD's $183M Administrative Management Consulting Contract Awarded to Engility LLC Faces Scrutiny

Contract Overview

Contract Amount: $77,907,611 ($77.9M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-04

End Date: 2008-07-31

Contract Duration: 1,884 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200309!003092!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS23F9814H !C!N! !Y!DABJ0103F0538 !20030604!20040606!183032051!008898884!008898843!N!MPRI, INC !1201 E ABINGDON DRIVE !ALEXANDRIA !VA!22314!28540!093!21!FORT KNOX !HARDIN !KENTUCKY !+000003557982!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! !W52R7R!0001! !

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $77.9 million to ENGILITY LLC for work described as: 200309!003092!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS23F9814H !C!N! !Y!DABJ0103F0538 !20030604!20040606!183032051!008898884!008898843!N!MPRI, INC !1201 E ABINGDON DRIVE !ALEXANDRIA !VA!22314!28540!093!21!FORT KNOX !HARDI… Key points: 1. The contract, awarded to Engility LLC, is for administrative management and general management consulting services. 2. The total value of the contract is $183,007,611.47, with a significant portion ($77,907,611.47) already obligated. 3. Awarded under full and open competition, the contract's pricing and value require further examination due to its substantial size. 4. The sector is primarily professional services, with a specific NAICS code of 541611.

Value Assessment

Rating: questionable

The obligated amount of $77.9M on a $183M contract suggests significant remaining value. Benchmarking against similar administrative management consulting contracts is crucial to assess if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes price discovery. However, the large contract value and the specific nature of consulting services warrant a review to ensure the competition effectively drove down costs.

Taxpayer Impact: The substantial value of this contract means that any inefficiencies or overpricing could represent a significant impact on taxpayer funds.

Public Impact

Taxpayers are funding extensive administrative and management consulting services for the Department of Defense. The long duration and high value of the contract raise questions about the ongoing need and efficiency of these services. Potential for cost overruns or suboptimal service delivery exists if not closely monitored. The specific impact on military operations or readiness is not immediately discernible from the data.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

  • Large contract value with significant remaining funds.
  • Consulting services can be prone to scope creep and cost overruns.
  • Lack of specific detail on service outcomes.

Positive Signals

  • Awarded through full and open competition.
  • Department of Defense contract indicates a potentially critical need.
  • Clear contract structure with defined start and end dates.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. Benchmarks for this sector can vary widely based on the specific services, but large-scale government contracts often represent a significant portion of the market.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Therefore, it is unlikely that small businesses were directly involved as prime contractors on this particular award, though they may be subcontractors.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Department of Defense to ensure services are delivered effectively and costs are controlled. Accountability for performance and spending should be clearly defined and monitored.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Significant remaining contract value ($105M+) warrants close monitoring.
  • Consulting services can be prone to scope creep and cost escalation.
  • Lack of specific performance metrics or outcome data in the provided summary.
  • Potential for long-term reliance on external consultants.

Tags

administrative-management-and-general-ma, department-of-defense, ky, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.9 million to ENGILITY LLC. 200309!003092!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS23F9814H !C!N! !Y!DABJ0103F0538 !20030604!20040606!183032051!008898884!008898843!N!MPRI, INC !1201 E ABINGDON DRIVE !ALEXANDRIA !VA!22314!28540!093!21!FORT KNOX !HARDIN !KENTUCKY !+000003557982!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541611!E! !6! ! ! ! ! !99990909!B

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 $77.9 million.

What is the period of performance?

Start: 2003-06-04. End: 2008-07-31.

What specific administrative and management challenges is this contract intended to address, and how will success be measured?

The contract is for 'Administrative Management and General Management Consulting Services' (NAICS 541611). Success measurement would typically involve defined performance metrics, deliverables, and achievement of objectives outlined in the contract's statement of work. Without the SOW, specific challenges and success metrics remain unclear, but likely relate to improving efficiency, strategic planning, or organizational effectiveness within the Army Contracting Command.

Given the $183M value and $77.9M obligated, what is the risk of cost overruns or inefficient spending over the contract's lifespan?

The risk of cost overruns exists, particularly with consulting contracts that can be susceptible to scope creep. The significant remaining value ($105M+) requires diligent oversight to ensure adherence to the original scope and competitive pricing. Regular performance reviews and budget tracking are essential to mitigate inefficient spending and ensure taxpayer funds are used judiciously.

How effectively did the 'full and open competition' process ensure the government received the best value for these consulting services?

While 'full and open competition' is designed to foster the best value, its effectiveness depends on the specific solicitation details and evaluation criteria. For complex consulting services, ensuring true price discovery and value assessment requires a well-defined SOW and robust evaluation process. A review of the bidding process and award decision would be needed to confirm if the chosen vendor truly offered the best combination of technical capability and cost.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 4803 STONECROFT BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,871,651

Exercised Options: $55,871,651

Current Obligation: $77,907,611

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9814H

IDV Type: FSS

Timeline

Start Date: 2003-06-04

Current End Date: 2008-07-31

Potential End Date: 2008-07-31 00:00:00

Last Modified: 2021-11-25

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