DoD's $18.5M IT support contract awarded to Engenius Consulting Group Inc. for Computer Systems Design Services

Contract Overview

Contract Amount: $18,526,718 ($18.5M)

Contractor: Engenius Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-27

End Date: 2026-01-26

Contract Duration: 1,521 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IE FINANCIAL SUPPORT SERVICES

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to ENGENIUS CONSULTING GROUP INC for work described as: IE FINANCIAL SUPPORT SERVICES Key points: 1. Contract value of $18.5M over 1521 days suggests a significant investment in IT support. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract is a firm-fixed-price delivery order, which helps manage cost certainty for the government. 4. The duration of over 4 years points to a long-term need for these services. 5. The primary service category is Computer Systems Design Services, a critical area for defense operations. 6. The awardee, Engenius Consulting Group Inc., has secured a substantial contract from the Defense Information Systems Agency.

Value Assessment

Rating: good

The contract's total value of $18.5M over approximately 4 years translates to an average annual value of around $4.6M. Without specific benchmarks for similar Computer Systems Design Services contracts within the Department of Defense, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an effort to control costs. Further analysis would require comparing the scope of services and deliverables to other contracts of similar size and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all eligible sources were permitted to submit bids. The presence of 13 bids indicates a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition suggests that taxpayer dollars are likely being used efficiently, as multiple companies vied to provide the best value. This reduces the risk of overpayment and encourages competitive pricing.

Public Impact

The Department of Defense benefits from enhanced IT support, crucial for its operational effectiveness. Services delivered likely include design, implementation, and maintenance of computer systems. The geographic impact is centered around Maryland, where the contract is stated to be performed. The contract supports the workforce within the IT services sector, potentially creating or sustaining jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies or proprietary solutions are implemented.
Dependence on a single contractor for critical IT systems could pose a risk if performance falters.
Scope creep could lead to cost overruns if not managed tightly, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration allows for stable support and potential for deep integration and understanding of DoD systems.

Sector Analysis

The IT services sector, particularly within defense, is a large and complex market. This contract for Computer Systems Design Services falls under the broader category of IT professional services, which are essential for maintaining and modernizing government technology infrastructure. Spending in this area is consistently high across federal agencies, with significant portions allocated to system design, integration, and support. Benchmarks for similar contracts often range from millions to tens of millions of dollars annually, depending on the scope and criticality of the systems involved.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct indication of subcontracting requirements for small businesses within the provided data, large IT contracts often include provisions for small business participation. The absence of a small business set-aside suggests that the primary awardee is likely a larger entity, and the impact on the small business ecosystem would depend on any subcontracting opportunities that may arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting Office
IT Services for Federal Agencies
Computer Systems Design and Related Services
Department of Defense IT Modernization Programs

Risk Flags

Potential for performance issues impacting critical IT systems.
Risk of scope creep despite firm-fixed-price structure.
Technological obsolescence in a rapidly evolving IT landscape.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to ENGENIUS CONSULTING GROUP INC. IE FINANCIAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ENGENIUS CONSULTING GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2021-11-27. End: 2026-01-26.

What is the track record of Engenius Consulting Group Inc. with federal contracts, particularly within the Department of Defense?

Engenius Consulting Group Inc. has a history of securing federal contracts, including those with the Department of Defense. While the provided data highlights this specific $18.5M award, a comprehensive review of their contract history would involve examining past performance on similar IT services contracts. This includes analyzing their success in meeting performance requirements, adherence to schedules, and overall client satisfaction reported in past contract performance evaluations. Understanding their prior experience with large-scale IT projects and their financial stability as a contractor is crucial for assessing their capability to successfully execute this current delivery order.

How does the per-unit cost or overall value of this contract compare to similar Computer Systems Design Services contracts awarded by the DoD?

Benchmarking the value of this $18.5M contract requires detailed comparison with similar Computer Systems Design Services contracts. Key comparison points would include the scope of services (e.g., system architecture, software development, network design), the complexity of the systems supported, the duration of the contract, and the specific deliverables. Without access to a detailed breakdown of the services provided under this contract and comparable contract data, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature and the competitive bidding process suggest an effort to achieve fair market value. Further analysis would involve identifying contracts with similar service categories, agency focus, and contract values to establish a relevant benchmark.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential performance issues from the contractor, leading to delays or subpar IT system functionality. There's also a risk of scope creep, where the requirements may expand beyond the initial agreement, potentially straining resources or leading to disputes, even within a fixed-price structure. Technological obsolescence is another concern in the fast-paced IT sector, requiring continuous adaptation. Mitigation strategies likely involve robust contract oversight by DISA, clear performance metrics and deliverables, regular progress reviews, and strong change management processes. The firm-fixed-price nature itself acts as a cost control measure, incentivizing the contractor to manage resources efficiently.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific IT services requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For Computer Systems Design Services, FFP incentivizes the contractor to control costs and manage resources efficiently to maximize profit. This shifts much of the cost risk to the contractor. However, its effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). If the SOW is ambiguous or if unforeseen technical challenges arise, the contractor might struggle to meet requirements within the fixed price, potentially leading to performance compromises or requests for contract modifications. Regular oversight is still crucial to ensure the contractor is meeting all performance standards.

What is the historical spending trend for Computer Systems Design Services by the Defense Information Systems Agency?

Historical spending data for Computer Systems Design Services by the Defense Information Systems Agency (DISA) would likely show a consistent and significant investment in this area. DISA is responsible for providing, operating, and assuring information systems for the Department of Defense, making IT services a core component of its budget. Trends would typically reflect increasing demand for advanced IT solutions, cybersecurity, cloud computing, and data management. Spending patterns are influenced by evolving military requirements, technological advancements, and modernization initiatives. Analyzing multi-year spending data would reveal fluctuations based on specific program needs, budget allocations, and strategic priorities within the DoD's overall IT landscape.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1525 PERIMETER PKWY #265, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,009,015

Exercised Options: $19,009,015

Current Obligation: $18,526,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00DP

IDV Type: FSS

Timeline