DoD's $28M IT contract for JRE/JTEP requirements awarded to Engility LLC, lasting five years

Contract Overview

Contract Amount: $28,083,690 ($28.1M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2008-04-01

End Date: 2013-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: JRE/JTEP REQUIREMENT

Place of Performance

Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to ENGILITY LLC for work described as: JRE/JTEP REQUIREMENT Key points: 1. Contract value appears reasonable for a five-year IT services engagement. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Long contract duration (5 years) may introduce performance and obsolescence risks. 4. Services align with standard IT system design and integration needs. 5. Contracting for a specific requirement (JRE/JTEP) suggests a focused need. 6. Lack of competition raises questions about the necessity of a sole-source approach.

Value Assessment

Rating: fair

The contract's total value of approximately $28 million over five years averages to about $5.6 million annually. Without specific details on the scope of JRE/JTEP requirements, direct comparison is difficult. However, for IT system design services, this annual spend is within a plausible range for a government contract of this duration. The 'COST NO FEE' contract type suggests that the government reimburses allowable costs plus a fixed fee, which can sometimes lead to higher overall costs if not tightly managed, but it also allows for flexibility in evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Engility LLC, was considered. The data indicates it was 'NOT COMPETED.' This approach is typically used when only one source is capable of meeting the requirement, or in cases of urgent need or follow-on work to a previous contract. The lack of competition means there was no opportunity for multiple vendors to bid, which can limit price negotiation and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium as competitive pressures are absent. This limits the government's ability to secure the best possible price through market forces.

Public Impact

The Department of Defense (specifically the Air Force) benefits from these IT services. Services delivered likely support the Joint Readiness/Joint Training Engagement Program (JRE/JTEP). The contract is geographically located in New Jersey (NJ). Workforce implications include employment for IT professionals at Engility LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential savings.
Long contract duration may not adapt well to rapidly changing IT needs.
Cost-plus contract type can incentivize spending if not closely monitored.
Lack of competition raises concerns about market research and justification.

Positive Signals

Contract addresses a specific, defined requirement (JRE/JTEP).
Engility LLC is a known entity in the government contracting space.
Fixed fee component provides some cost predictability within the reimbursement model.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated annually to system design, integration, and maintenance. Contracts like this are crucial for maintaining and upgrading complex defense systems. Benchmarking against similar IT system design contracts would require more detailed scope information, but the overall value aligns with typical federal IT procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The prime contractor, Engility LLC, is likely a large business, and any subcontracting would be at their discretion, not driven by a set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a cost-plus contract, rigorous financial oversight and auditing of expenses would be expected to ensure compliance with the contract terms and prevent cost overruns. Transparency is generally facilitated through contract award databases, but detailed performance metrics and spending breakdowns may be less publicly accessible.

Related Government Programs

IT Services
Computer Systems Design
Defense IT Procurement
Software Development Services
Information Technology Support

Risk Flags

Sole-source award
Long contract duration
Cost-reimbursement elements (implied by 'COST NO FEE')

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to ENGILITY LLC. JRE/JTEP REQUIREMENT

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 Air Force).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2008-04-01. End: 2013-03-31.

What is the specific nature of the JRE/JTEP requirements this contract supports?

The Joint Readiness/Joint Training Engagement Program (JRE/JTEP) is a Department of Defense initiative aimed at enhancing joint training and readiness across different military branches. Contracts supporting JRE/JTEP typically involve the development, integration, and maintenance of complex IT systems that facilitate realistic training scenarios, data sharing, and performance analysis for joint military operations. This could include simulation software, communication platforms, data management tools, and associated technical support services. The specific services provided by Engility LLC under this $28 million contract would detail the exact IT system design and integration tasks required to meet the evolving needs of joint training exercises.

How does the $28 million contract value compare to similar IT system design contracts awarded by the DoD?

Comparing the $28 million total contract value requires context on the specific services and duration. This contract spans five years (2008-2013), averaging approximately $5.6 million annually. For IT system design and computer systems design services, this annual figure is moderate. Larger, more complex system integrations or development projects can easily reach tens or hundreds of millions annually. Smaller, more focused support contracts might be in the low millions. Without knowing the precise deliverables and scope for JRE/JTEP, a direct benchmark is challenging, but the value appears consistent with a significant, multi-year IT support and design engagement for a specialized program.

What are the potential risks associated with a five-year sole-source IT contract?

A five-year sole-source IT contract carries several risks. Firstly, the lack of competition means the government may not be achieving the best possible price, as there's no market pressure to drive down costs. Secondly, technology evolves rapidly; a five-year commitment to a specific vendor or solution might lead to obsolescence or the inability to adopt newer, more efficient technologies during the contract term. Thirdly, sole-source awards can sometimes indicate a lack of adequate market research or a failure to properly plan for competition. Finally, performance risks are concentrated with a single vendor, and if Engility LLC underperforms, the government has limited immediate alternatives without re-competing or modifying the contract significantly.

What is Engility LLC's track record with similar DoD IT contracts?

Engility LLC (and its predecessor entities before mergers/acquisitions) has a substantial history of performing IT and technical services contracts for the Department of Defense and other federal agencies. They have been involved in various aspects of system engineering, software development, cybersecurity, and IT infrastructure support. While this specific $28 million contract for JRE/JTEP is one data point, Engility's broader portfolio indicates experience in managing complex government IT programs. A deeper analysis would involve reviewing past performance evaluations (e.g., CPARS) for this contractor on similar DoD contracts to assess their reliability, quality of work, and adherence to schedule and budget.

How has federal spending on IT system design services trended over the period of this contract (2008-2013)?

Federal spending on IT services, including system design, generally saw fluctuations during the 2008-2013 period, influenced by factors like the 2008 recession, stimulus spending (like the HITECH Act for healthcare IT), and evolving defense technology needs. While overall IT spending remained robust, there was also increasing pressure to achieve efficiencies and consolidate contracts. Agencies focused on modernization efforts, cloud computing adoption (in its early stages), and cybersecurity. This contract's value of ~$5.6M/year fits within the broader trend of significant, but scrutinized, IT investments by the DoD during that timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 4803 STONECROFT BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,104,463

Exercised Options: $31,019,260

Current Obligation: $28,083,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline