DoD awards $101.6M Engineering Services contract to Engility LLC under full and open competition

Contract Overview

Contract Amount: $101,605,083 ($101.6M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2004-11-04

End Date: 2010-10-31

Contract Duration: 2,187 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $101.6 million to ENGILITY LLC for work described as: Key points: 1. Contract awarded to Engility LLC for engineering services. 2. Significant value of $101.6 million over its duration. 3. Procured via full and open competition, suggesting market availability. 4. Contract type is Cost Plus Award Fee, which incentivizes performance. 5. Sector is Engineering Services, a critical component of defense procurement.

Value Assessment

Rating: good

The contract value of $101.6 million over approximately 6 years suggests a substantial but potentially reasonable annual spend for specialized engineering services. Benchmarking against similar large-scale engineering support contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, fostering a competitive environment. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential engineering services.

Public Impact

Supports critical Department of the Navy engineering and technical requirements. Engility LLC, a significant contractor, provides services across various government agencies. Long-term contract duration suggests ongoing need for these specialized services. Cost Plus Award Fee structure aims to align contractor performance with government objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Award Fee contracts can sometimes lead to higher costs if award fees are consistently met without strict cost controls.
  • Lack of specific small business participation noted.
  • Contract duration is lengthy, requiring continuous monitoring for relevance and efficiency.

Positive Signals

  • Full and open competition promotes market fairness and potentially better pricing.
  • Award fee structure incentivizes contractor performance and quality.
  • Significant investment in engineering services indicates a commitment to critical defense capabilities.

Sector Analysis

Engineering services are crucial for the Department of Defense, encompassing design, development, testing, and sustainment of complex systems. Spending in this sector is often substantial due to the technical expertise and specialized knowledge required, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). This suggests the primary focus was on securing specialized engineering capabilities from larger, established firms.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Department of Defense to ensure performance standards are met and costs remain justified. Regular reviews of award fee criteria and contractor performance are essential for accountability.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns in Cost Plus Award Fee contracts.
  • Lack of explicit small business participation.
  • Long contract duration may lead to scope creep or evolving requirements.
  • Dependence on a single contractor for critical engineering services.

Tags

engineering-services, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $101.6 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $101.6 million.

What is the period of performance?

Start: 2004-11-04. End: 2010-10-31.

How does the final award fee payout compare to the target fee, and what specific performance metrics drove the award fee determination?

Analyzing the final award fee payout against the target fee is crucial for understanding the contractor's actual performance. The specific metrics used to determine the award fee, such as technical execution, schedule adherence, and cost management, provide insight into the government's priorities and the contractor's success in meeting them. This information helps assess whether the incentive structure effectively achieved desired outcomes and value for money.

What were the key technical challenges or risks identified during the competition, and how did Engility LLC's proposal address them?

Understanding the key technical challenges and risks is vital for assessing the contract's inherent complexity and the contractor's capability. Examining how Engility LLC's proposal addressed these specific issues reveals their technical acumen and strategic approach. This analysis helps determine if the chosen contractor was best equipped to navigate potential hurdles and deliver successful outcomes, thereby mitigating risks to the program's objectives.

What is the long-term strategic value of this engineering services contract to the Department of the Navy's mission readiness and technological advancement?

The long-term strategic value hinges on how effectively these engineering services contribute to the Navy's operational capabilities and future technological edge. Assessing whether the contract supports critical platform development, modernization efforts, or innovative solutions provides insight into its contribution to mission readiness. Ultimately, its value is measured by its impact on maintaining and enhancing the Navy's effectiveness in a dynamic geopolitical landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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 ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2004-11-04

Current End Date: 2010-10-31

Potential End Date: 2010-10-31 00:00:00

Last Modified: 2022-05-06

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