DoD's $17.4M Engineering Services Contract with Engility LLC: A Cost Plus Fixed Fee Award
Contract Overview
Contract Amount: $17,420,401 ($17.4M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2007-03-23
End Date: 2012-03-31
Contract Duration: 1,835 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LABOR
Place of Performance
Location: NATIONAL PARK, GLOUCESTER County, NEW JERSEY, 08063
Plain-Language Summary
Department of Defense obligated $17.4 million to ENGILITY LLC for work described as: LABOR Key points: 1. The contract awarded to Engility LLC for engineering services represents a significant investment by the Department of Defense. 2. The 'NOT COMPETED' status raises questions about the procurement process and potential missed opportunities for competitive pricing. 3. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not carefully managed, posing a risk to taxpayer funds. 4. The engineering services sector is critical for defense, but the lack of competition here warrants scrutiny.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, while allowing flexibility, can incentivize higher costs. Without competitive benchmarks, assessing the value for money is difficult, especially given the $17.4M total value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely resulted in a higher price for taxpayers than could have been achieved through a competitive bidding process.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding for essential engineering services. The long duration (2007-2012) of a non-competed contract raises concerns about sustained value and market responsiveness. The Department of Defense's reliance on non-competed contracts can impact overall budget efficiency and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fixed Fee Structure
- Potential for Overpricing
- Long Contract Duration
Positive Signals
- Awarded to a specific company for engineering services
- Contract duration aligns with project needs
Sector Analysis
The engineering services sector is vital for government projects, particularly in defense. Spending benchmarks vary widely based on specialization, but non-competed contracts often deviate from market-driven pricing.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This award appears to have bypassed opportunities for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential lapse in robust oversight mechanisms that would ensure competitive sourcing. Further review is needed to understand the justification for this approach and its accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of Competition
- Potential for Cost Overruns (CPFF)
- Limited Price Discovery
- No Small Business Participation Indicated
- Lack of Transparency on Justification
Tags
engineering-services, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to ENGILITY LLC. LABOR
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 Navy).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2007-03-23. End: 2012-03-31.
What was the specific justification for awarding this engineering services contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. A thorough review would require access to the contract file to ascertain the specific justification, such as unique capabilities or urgent needs. Without this, it's difficult to definitively state if alternative competitive strategies were considered or deemed infeasible.
How did the final costs compare to initial estimates, and what mechanisms were in place to control costs under the Cost Plus Fixed Fee structure?
The data shows a total award amount of $17.4M, but does not provide a breakdown of initial estimates versus final costs or details on cost control mechanisms. Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns, and the absence of this detail raises concerns about the government's ability to manage expenses effectively throughout the contract's lifecycle.
What was the impact of this non-competed contract on the overall availability and cost of similar engineering services within the Department of Defense?
Awarding a significant contract like this without competition can reduce market pressure on pricing for similar services. It may also limit opportunities for other capable firms to enter the market or expand their government contracting base, potentially leading to less competitive pricing and innovation in the long run for the DoD.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation (UEI: 783837672)
Address: 4 GREENTREE CENTER STE 400, MARLTON, NJ, 08053
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,783,010
Exercised Options: $17,783,010
Current Obligation: $17,420,401
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-03-23
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2022-02-09
More Contracts from Engility LLC
- Federal Contract — $363.5M (Department of Defense)
- Labor Worldwide Linguist Support Service — $363.0M (Department of Defense)
- Labor/Worldwide Linguist Support Service TAS::21 2020::TAS — $331.7M (Department of Defense)
- 200612!008781!2100!w15p7t!usa Communications-Electronics !daab0702dp001 !A!N! !Y!0107 ! !20060923!20061031!849594288!849594288!849594288!N!L-3 Communications Ilex System!1413 Cantillon Blvd !mays Landing !nj!08330!24480!025!34!fort Monmouth !monmouth !NEW Jersey!+000005082039!n!n!000000000000!r425!engineering Technical Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!004!b! !C!N!Z! ! !N!C!N! ! ! !d!d!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $325.2M (Department of Defense)
- 200211!004228!2100!AB07 !USA Communications-Electronics !daab0702dp001 !A!N! !Y!0018 !20020801!20061031!939131665!939131665!939131665!n!itel Solutions, an Ilex Telos !1413 Cantillion Blvd !mays Landing !nj!08330!24670!003!04!fort Huachuca !cochise !arizona !+000008312053!n!n!000000000000!r425!engineering Technical Services !A7 !electronics and Communication !1000!NOT Discernable or Classified !513310!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!004!b! !C!N!Z! ! !N!C!N! ! ! !d!d!a!a!000!a!c!n! ! ! ! ! !gy0hk8!0001! — $219.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)