DoD's $20.4M contract for computer systems design services awarded to Engenius Consulting Group Inc

Contract Overview

Contract Amount: $20,395,083 ($20.4M)

Contractor: Engenius Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-16

End Date: 2026-08-15

Contract Duration: 1,460 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COST ESTIMATION AND BUSINESS ANALYSIS

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to ENGENIUS CONSULTING GROUP INC for work described as: COST ESTIMATION AND BUSINESS ANALYSIS Key points: 1. Value for money appears reasonable given the scope of computer systems design services. 2. The contract was awarded under full and open competition, suggesting a competitive market. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overruns. 4. Performance context is within the Defense Information Systems Agency (DISA) for IT support. 5. Sector positioning is within IT services, a critical area for defense operations.

Value Assessment

Rating: good

The contract value of approximately $20.4 million over four years for computer systems design services is within a typical range for this type of specialized IT support within the Department of Defense. Benchmarking against similar contracts for system design and integration services for federal agencies suggests that the pricing is competitive. The firm fixed-price contract type provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for essential IT services.

Public Impact

The primary beneficiaries are the Department of Defense and its components, receiving enhanced computer systems design and support. Services delivered include crucial IT infrastructure design, integration, and maintenance. The geographic impact is primarily within Maryland, where the contractor is based and likely where services are rendered or managed. Workforce implications include the employment of skilled IT professionals by Engenius Consulting Group Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Awarded under full and open competition, indicating a competitive market and potentially better pricing.
Contract duration of four years allows for continuity of services and knowledge retention.

Sector Analysis

The IT services sector, particularly within defense, is characterized by high demand for specialized expertise in areas like computer systems design, cybersecurity, and network infrastructure. This contract fits within the broader market for IT support services to government agencies, which is a significant portion of federal IT spending. Comparable spending benchmarks for similar system design contracts within DoD agencies often range from several million to tens of millions of dollars annually, depending on complexity and scope.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though Engenius Consulting Group Inc. may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, which incentivizes the contractor to meet defined deliverables. Transparency is facilitated through contract award databases, though detailed performance metrics are usually internal.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Department of Defense Computer Systems Design Services
Federal IT Services Procurement
Information Technology Professional Services

Risk Flags

Potential for scope creep
Contractor performance risk
Data security during system design

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to ENGENIUS CONSULTING GROUP INC. COST ESTIMATION AND BUSINESS ANALYSIS

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 $20.4 million.

What is the period of performance?

Start: 2022-08-16. End: 2026-08-15.

What is Engenius Consulting Group Inc.'s track record with the Department of Defense?

Engenius Consulting Group Inc. has a history of performing contracts with the Department of Defense. While the provided data focuses on this specific award, a deeper analysis would involve reviewing their past performance ratings, any past performance issues or successes on similar DoD contracts, and their overall experience in providing computer systems design services. Their ability to secure this $20.4 million contract suggests a level of trust and demonstrated capability in meeting DoD requirements. Further investigation into their contract history, including contract values, durations, and agencies served, would provide a more comprehensive understanding of their track record.

How does the $20.4 million cost compare to similar computer systems design contracts?

The $20.4 million cost for this four-year contract (approximately $5.1 million per year) for computer systems design services appears to be within a reasonable range for specialized IT support within the Department of Defense. Benchmarking against similar contracts awarded by agencies like DISA or other DoD components for system design, integration, and IT consulting services reveals that contracts of this nature can range from a few million to tens of millions of dollars annually, depending on the complexity, scope, and duration. The firm fixed-price nature of this award also suggests a degree of cost control, making it a potentially good value proposition if the delivered services meet expectations.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential scope creep, where the project's requirements may expand beyond the initial agreement, leading to cost overruns or delays, although the firm fixed-price structure aims to mitigate this. Another risk is contractor performance; if Engenius Consulting Group Inc. fails to deliver the required services effectively, it could impact DISA's IT operations. Dependence on a single contractor for critical systems design also presents a risk if the contractor faces financial instability or significant operational issues. Finally, ensuring the security of sensitive defense data handled during the design process is a constant risk that requires robust cybersecurity measures.

How effective is the competition level in ensuring value for taxpayers?

The competition level for this contract, with 7 bidders under full and open competition, is generally effective in ensuring value for taxpayers. A higher number of bidders typically leads to more competitive pricing as companies vie for the award. This process encourages vendors to offer their best possible prices and solutions. The firm fixed-price contract type further enhances value by capping the government's financial exposure. However, the ultimate effectiveness also depends on the quality of the services delivered and whether they meet the intended objectives, which requires ongoing performance monitoring.

What is the historical spending pattern for computer systems design services by DISA?

Historical spending patterns for computer systems design services by DISA indicate a consistent and significant investment in IT infrastructure and support. DISA, as a major provider of IT services to the DoD, regularly procures these types of services to maintain and modernize its vast network and systems. Annual spending can fluctuate based on specific modernization initiatives, cybersecurity upgrades, and operational demands. Analyzing past contract awards for similar services would reveal trends in contract values, types of services procured (e.g., cloud migration, network design, software development support), and the primary contractors involved, providing context for the current $20.4 million award.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

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: $29,738,273

Exercised Options: $20,439,233

Current Obligation: $20,395,083

Actual Outlays: $6,080,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00DP

IDV Type: FSS

Timeline