DoD Awards $43.1M Engineering Services Contract to Engility LLC, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $43,133,004 ($43.1M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2002-09-13

End Date: 2008-04-11

Contract Duration: 2,037 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200212!000043!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042102C3206 !A!N! !N! !20020913!20030912!020278375!020278375!048341838!N!TITAN CORPORATION !815 EAST GATE DRIVE !MOUNT LAUREL !NJ!08054!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !+000001387797!Y!N!000045193810!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B!F!Y!A! !A!N!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!* !A!C!N! ! ! ! ! !41 !0001!

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to ENGILITY LLC for work described as: 200212!000043!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042102C3206 !A!N! !N! !20020913!20030912!020278375!020278375!048341838!N!TITAN CORPORATION !815 EAST GATE DRIVE !MOUNT LAUREL !NJ!08054!46725!037!24!LEXINGTON PARK !ST. M… Key points: 1. Contract awarded to Engility LLC for engineering services. 2. Significant duration of 2037 days suggests a complex, long-term project. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost escalation. 4. The 'Other Professional Services' category is broad, potentially masking specific needs. 5. The 'VA' status code requires further investigation for its impact on the contract.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a significant duration, raises concerns about potential cost overruns and the government's ability to control expenses effectively. The final award amount is considerably higher than the initial estimated value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the Cost Plus Fixed Fee pricing structure may not have fully incentivized the contractor to minimize costs, potentially impacting price discovery.

Taxpayer Impact: The potential for cost overruns in a Cost Plus Fixed Fee contract represents a risk to taxpayer funds, as the final cost could exceed initial estimates.

Public Impact

Defense spending on engineering services impacts national security capabilities. Long-term contracts can provide stability for contractors but require ongoing oversight. The use of Cost Plus Fixed Fee contracts necessitates robust government cost monitoring. The broad service category could mean funds are allocated to less critical areas. The 'VA' status code needs clarification to understand its implications for the contract's execution and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration (2037 days)
Broad service category ('Other Professional Services')

Positive Signals

Awarded under full and open competition
Contractor is Engility LLC, a known entity
Clear start and end dates provided

Sector Analysis

This contract falls under Engineering Services, a sector crucial for defense and infrastructure development. Benchmarks for similar contracts vary widely based on complexity and duration, but the $43.1M value for a nearly 6-year term warrants scrutiny for cost efficiency.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to Engility LLC, a larger entity, suggesting limited direct opportunities for small businesses through this specific award.

Oversight & Accountability

The contract's duration and Cost Plus Fixed Fee structure necessitate strong oversight from the Department of Defense and the Defense Contract Management Agency to ensure cost control and performance. The 'VA' status code requires further investigation for its oversight implications.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration (2037 days)
Broad service category ('Other Professional Services')
Unclear 'VA' status code implications
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to ENGILITY LLC. 200212!000043!1700!A8104 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042102C3206 !A!N! !N! !20020913!20030912!020278375!020278375!048341838!N!TITAN CORPORATION !815 EAST GATE DRIVE !MOUNT LAUREL !NJ!08054!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !+000001387797!Y!N!000045193810!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ENGILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2002-09-13. End: 2008-04-11.

What specific engineering services were procured under this contract, and how do they align with the Department of Defense's strategic priorities?

The contract broadly covers 'Other Professional Services' with a specific NAICS code of 541330 for Engineering Services. Without further detail, it's difficult to ascertain the precise nature of the services. Understanding the specific deliverables and their contribution to naval air warfare capabilities is crucial for assessing value for money and strategic alignment.

What measures are in place to mitigate the risks associated with the Cost Plus Fixed Fee contract type, particularly given the contract's extended duration?

The Cost Plus Fixed Fee structure inherently carries a risk of cost escalation. Robust government oversight, including detailed cost audits, performance monitoring, and clear milestones, is essential. The contracting agency must actively manage the contractor's expenditures and ensure that the fixed fee remains appropriate for the work performed throughout the contract's lifecycle.

How effectively did the full and open competition process ensure the best possible pricing and value for these engineering services?

While full and open competition is a positive indicator, the Cost Plus Fixed Fee pricing model can sometimes limit the price discovery benefits of competition. The government must ensure that the competitive proposals adequately addressed cost control mechanisms and that the final negotiated price reflects fair and reasonable costs for the services rendered over the contract's extended period.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation

Address: 11000 COMMERCE PKWY, MOUNT LAUREL, NJ, 08054

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline