DoD's $127M engineering services contract with Engility LLC awarded under full and open competition
Contract Overview
Contract Amount: $127,009,019 ($127.0M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2004-10-04
End Date: 2011-07-31
Contract Duration: 2,491 days
Daily Burn Rate: $51.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $127.0 million to ENGILITY LLC for work described as: Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 2491 days suggests a long-term requirement for these services. 3. Awarded to Engility LLC, a significant player in the government contracting space. 4. The contract type 'COST PLUS FIXED FEE' can lead to cost overruns if not managed carefully. 5. The absence of small business set-aside suggests the primary contractor is expected to handle the scope. 6. The contract was awarded by the Department of Defense, a major federal spender. 7. The North American Industry Classification System (NAICS) code 541330 points to engineering services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D or uncertain scope projects, carries inherent risks of cost escalation. Comparing this to similar engineering services contracts would require detailed analysis of the scope of work, labor categories, and geographic locations. The fixed fee component provides some cost certainty for the contractor's profit, but the overall cost to the government is variable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was intended.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to vie for the contract, which can drive down costs and improve service quality.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its complex operations and systems. Services delivered likely include design, analysis, testing, and technical support for defense systems. The geographic impact is likely concentrated around DoD facilities and contractor locations, primarily in Virginia. Workforce implications include employment for engineers, technicians, and support staff within Engility LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Long contract duration (2491 days) increases the risk of scope creep and evolving requirements.
- Lack of specific performance metrics in the provided data makes it difficult to assess value for money.
- No indication of small business subcontracting goals, potentially limiting opportunities for smaller firms.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Contractor Engility LLC has a history of performing government contracts.
- The contract addresses a clear need for engineering services within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by high technical expertise and often supports government agencies with complex project management and specialized knowledge. The total federal spending on engineering services is substantial, with the Department of Defense being a primary consumer. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by DoD and other federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). This suggests that the scope of work was deemed too large or specialized for small business participation as the prime contractor. There is no explicit information on subcontracting plans, but for a contract of this magnitude, it is common for prime contractors to engage small businesses for specific components or services, though this is not guaranteed.
Oversight & Accountability
Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are typically embedded within the contract terms, including reporting requirements and performance standards. Transparency is facilitated through contract databases like FPDS, although detailed performance reports may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Support Contracts
- Professional, Scientific, and Technical Services
- Department of Defense IT and Systems Engineering
- Government Engineering Consulting
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
- Long contract duration increases potential for scope creep and requirement changes.
- Lack of detailed performance metrics in provided data hinders value assessment.
- No explicit small business subcontracting requirements noted.
Tags
department-of-defense, engineering-services, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-contract, professional-scientific-technical-services, virginia, defense-contract-management-agency, engility-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $127.0 million to ENGILITY LLC. See the official description on USAspending.
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 $127.0 million.
What is the period of performance?
Start: 2004-10-04. End: 2011-07-31.
What is the historical spending trend for engineering services by the Department of Defense?
The Department of Defense is consistently one of the largest federal agencies for procuring engineering services. Historical data shows a significant and often increasing trend in spending on these services, driven by the need to maintain, upgrade, and develop complex military systems and infrastructure. Factors influencing this trend include geopolitical events, technological advancements, and the lifecycle of existing defense platforms. While specific figures fluctuate year-to-year, engineering services represent a substantial portion of the DoD's overall contracting budget, reflecting the critical role these services play in national security.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements in terms of cost efficiency for the government?
Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or involves significant research and development, making it difficult to estimate costs accurately upfront. In a CPFF contract, the government pays the contractor's actual costs plus a predetermined fixed fee representing profit. While this allows for flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the brunt of cost uncertainties. Fixed-price contracts generally offer better cost certainty for the government but may require a more defined scope and can incentivize contractors to cut corners if not properly monitored. Therefore, CPFF can be less cost-efficient if not managed with rigorous oversight.
What are the typical performance metrics used to evaluate engineering services contracts for the Department of Defense?
Performance metrics for DoD engineering services contracts are diverse and tailored to the specific scope of work. Common metrics include adherence to project schedules, meeting technical specifications and quality standards, successful completion of milestones, and effective risk management. For design and development contracts, metrics might involve the number of design iterations, successful prototype testing, and compliance with engineering best practices. For support services, metrics could include response times, issue resolution rates, and customer satisfaction. Key Performance Indicators (KPIs) are crucial for ensuring the contractor delivers the required technical expertise and value, and they are typically detailed in the contract's Performance Work Statement (PWS).
What is Engility LLC's track record with Department of Defense contracts?
Engility LLC, prior to its acquisition by SAIC, had a substantial track record with the Department of Defense, performing a wide array of services including engineering, IT, and mission support. They were a significant prime contractor on numerous large-scale programs across various military branches. Their history includes both successes and challenges, as is common with large government contractors. Analyzing their past performance often involves reviewing contract awards, past performance evaluations (if publicly available), and any reported issues or disputes. Their extensive experience suggests a deep understanding of DoD requirements and processes.
How does the $127 million contract value compare to the average size of engineering services contracts awarded by the DoD?
A $127 million contract value for engineering services is substantial, falling into the large-dollar category for federal procurements. The Department of Defense awards numerous engineering services contracts annually, ranging from small, specialized task orders to multi-billion dollar programs. While $127 million is significant, it is not uncommon for major defense programs or long-term support requirements. The average size can vary greatly depending on the specific sub-sector of engineering (e.g., aerospace, civil, electrical) and the nature of the requirement (e.g., R&D, sustainment, new development). This particular contract's duration of nearly seven years suggests it represents a significant, ongoing need.
What are the potential risks associated with a 'definitive contract' award for engineering services?
A 'definitive contract' is a contract that is fixed in price and is not subject to modification. In the context of engineering services, awarding a definitive contract implies that the scope, specifications, and price are clearly defined and agreed upon at the outset. The primary risk for the government is that if unforeseen technical challenges arise or requirements evolve, the fixed nature of the contract can make it difficult or impossible to adapt without potentially terminating and re-competing, which is costly and time-consuming. For the contractor, the risk lies in underestimating the effort required, potentially leading to reduced profit margins or losses if they cannot meet the fixed price.
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: Science Applications International Corporation
Address: 35 NEW ENGLAND BUSINESS CENTER 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
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-10-04
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2023-09-28
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