DoD's $31M AE&I SETA Support Services Task Order awarded to Engility Services, LLC

Contract Overview

Contract Amount: $31,171,884 ($31.2M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-12-21

End Date: 2016-06-23

Contract Duration: 1,646 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AE&I SETA SUPPORT SERVICES TASK ORDER

Place of Performance

Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to ENGILITY SERVICES, LLC for work described as: AE&I SETA SUPPORT SERVICES TASK ORDER Key points: 1. Value for money appears fair given the firm-fixed-price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period potentially introducing scope creep. 4. Performance context shows a significant contract value over a multi-year period. 5. Sector positioning is within engineering services for the Department of Defense.

Value Assessment

Rating: fair

The contract's total value of approximately $31.17 million over roughly 1646 days (4.5 years) suggests an average annual spend of around $6.9 million. Without specific deliverables or comparable contracts for AE&I SETA support services, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure generally provides cost certainty for the government. Benchmarking against similar engineering support services contracts would be necessary for a more robust evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders participating. The presence of multiple bidders typically fosters a more competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders suggests a healthy level of interest in this requirement.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award.

Public Impact

The Department of Defense benefits from specialized engineering and technical support services. Services delivered likely include program management, systems engineering, and technical assistance. Geographic impact is centered in California, where the contractor is located. Workforce implications include employment for engineers, analysts, and support staff within Engility Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases the risk of cost escalation or scope creep if not managed effectively.
Potential for vendor lock-in if specialized knowledge becomes deeply embedded with Engility Services, LLC.
Dependence on a single contractor for critical support services could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Multiple bidders (6) indicate a healthy market for these services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the defense industrial base. The market for defense engineering support services is substantial, with numerous firms competing for government contracts. This specific task order likely supports a particular program or initiative within the Air Force, contributing to the overall technological advancement and operational readiness of defense systems. Comparable spending benchmarks would require analysis of other SETA support contracts within the DoD.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not detailed, but it is unlikely to have a dedicated set-aside component.

Oversight & Accountability

Oversight mechanisms would typically involve the Department of the Air Force contracting officers and program managers responsible for monitoring contractor performance against the terms of the task order. Accountability measures are inherent in the firm-fixed-price contract, linking payment to successful delivery. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Engineering Services
SETA Support Contracts
Air Force Program Support
Systems Engineering Services

Risk Flags

Long contract duration
Potential for scope creep
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to ENGILITY SERVICES, LLC. AE&I SETA SUPPORT SERVICES TASK ORDER

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, 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 $31.2 million.

What is the period of performance?

Start: 2011-12-21. End: 2016-06-23.

What was Engility Services, LLC's track record prior to this award?

Prior to this award, Engility Services, LLC (which later became part of SAIC) had a significant history of performing government contracts, particularly within the defense sector. They were known for providing a range of services including engineering, IT, and program management. Their track record would have been assessed by the Air Force during the procurement process, likely involving past performance evaluations. A review of their contract history in FPDS would reveal the types and values of previous awards, as well as any performance issues or accolades. This specific task order, valued at over $31 million, indicates a level of trust and capability recognized by the awarding agency.

How does the $31.17 million value compare to similar AE&I SETA support contracts?

The $31.17 million total value for this task order, spanning approximately 4.5 years, represents an average annual value of roughly $6.9 million. To benchmark this effectively, one would need to compare it against other 'Acquisition, Engineering & Integration (AE&I) SETA Support Services' contracts awarded by the Department of Defense or similar agencies. Factors such as the specific scope of work, the complexity of the systems supported, and the duration of the contract are crucial for a fair comparison. Without access to a detailed database of comparable contracts with similar scopes, it's difficult to definitively state if this value is high, low, or average. However, for a multi-year, specialized engineering support role, this value range is not uncommon within the defense sector.

What are the primary risks associated with this contract?

The primary risks associated with this contract include: 1. **Scope Creep:** Given the long performance period (over 4 years), there's a risk that the scope of work could expand beyond the original intent without adequate adjustments to cost or schedule, especially if requirements are not clearly defined and managed. 2. **Technical Obsolescence:** If the AE&I support relates to rapidly evolving technologies, the services provided might become outdated before the contract ends, requiring significant adaptation. 3. **Contractor Performance:** While Engility Services, LLC had a history, any contractor can experience performance issues, impacting critical support functions for the Air Force. 4. **Key Personnel Dependence:** Reliance on specific skilled personnel within Engility could pose a risk if those individuals leave the company. 5. **Budgetary Uncertainty:** Future year funding for such contracts can be subject to congressional appropriations and shifting defense priorities.

How effective was this contract in delivering AE&I SETA support services?

Assessing the effectiveness of this specific task order requires detailed performance metrics and feedback that are not publicly available in the provided data. Effectiveness would be measured by Engility Services, LLC's ability to meet the defined requirements, deliver services on time, within budget (as per the firm-fixed-price), and to the satisfaction of the Air Force program office. Key performance indicators (KPIs) likely included adherence to schedules, quality of technical documentation, successful integration support, and responsiveness to Air Force needs. Without access to performance reports or post-award reviews, a definitive statement on effectiveness cannot be made. However, the fact that the contract was awarded and completed suggests a baseline level of effectiveness was achieved.

What were historical spending patterns for AE&I SETA support services by the Air Force?

Historical spending patterns for AE&I SETA support services by the Air Force are generally substantial, reflecting the complexity and scale of defense acquisition programs. The Air Force consistently invests heavily in engineering, acquisition, and technical support to manage its vast array of aircraft, weapons systems, and IT infrastructure. Spending in this category can fluctuate year-to-year based on program lifecycles, new development initiatives, and budget allocations. This $31 million task order represents a portion of that broader historical spending. Analyzing trends over multiple fiscal years would reveal patterns in the types of services procured, the average contract values, and the primary contractors receiving these awards, indicating a sustained need for such specialized support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 35 NEW ENGLAND BUSINESS CTR DR STE 200, ANDOVER, MA, 01810

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

Financial Breakdown

Contract Ceiling: $37,812,779

Exercised Options: $34,033,158

Current Obligation: $31,171,884

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $4,902,111

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0008K

IDV Type: FSS

Timeline