DoD's $23.1M Army Management Consulting Contract Awarded to Engility LLC Raises Oversight Questions
Contract Overview
Contract Amount: $23,115,535 ($23.1M)
Contractor: Engility LLC
Awarding Agency: Department of Defense
Start Date: 2015-03-13
End Date: 2017-06-30
Contract Duration: 840 days
Daily Burn Rate: $27.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::OT::IGF LMP PROGRAM OFFICE SUPPORT SERVICES
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $23.1 million to ENGILITY LLC for work described as: IGF::OT::IGF LMP PROGRAM OFFICE SUPPORT SERVICES Key points: 1. Significant spending on administrative and management consulting services. 2. Contract awarded via 'not competed' method, limiting price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on management consulting suggests potential for efficiency gains or risks of scope creep.
Value Assessment
Rating: questionable
The contract value of $23.1M over approximately 2.7 years is substantial for management consulting. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'not competed,' indicating a limited competition approach. This method can lead to higher prices as there is no market pressure to offer the most competitive bid.
Taxpayer Impact: The lack of full and open competition may result in taxpayers paying more than necessary for these consulting services.
Public Impact
Taxpayers may be overpaying for management consulting services due to a lack of competitive bidding. The Army's reliance on a single vendor for extensive management support warrants scrutiny. Transparency in contract modifications and task orders is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Time and Materials contract type
- Potential for cost overruns
Positive Signals
- Contract supports administrative and management functions
- Established contract vehicle (MASSACHUSETTS)
Sector Analysis
Spending on administrative management and general management consulting services (NAICS 541611) is common across government agencies. Benchmarks vary widely based on the complexity and duration of the services required.
Small Business Impact
The data does not indicate if small businesses were involved in subcontracting opportunities for this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The 'not competed' award raises questions about the justification for avoiding full and open competition. Robust oversight is needed to ensure the necessity and cost-effectiveness of such contracts.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification for sole-source award
- Risk of scope creep with T&M contract type
- Unclear return on investment
Tags
administrative-management-and-general-ma, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to ENGILITY LLC. IGF::OT::IGF LMP PROGRAM OFFICE SUPPORT SERVICES
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 Army).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2015-03-13. End: 2017-06-30.
What was the specific justification for not competing this contract, and were alternative competitive strategies considered?
The justification for not competing this contract is not provided in the data. Typically, agencies must demonstrate specific circumstances, such as urgent needs or the unavailability of qualified sources, to justify limiting competition. Without this information, it's impossible to assess if the decision was appropriate or if alternative competitive strategies were explored to ensure the best value for taxpayers.
How was the 'Time and Materials' pricing structure managed to prevent cost overruns, given the lack of competition?
Time and Materials (T&M) contracts can be susceptible to cost overruns, especially when not competitively bid. Effective management would involve stringent oversight of labor hours, rates, and material costs, along with clear performance metrics and regular reviews. The absence of competition makes it harder to benchmark these costs, increasing the risk of inefficiency and higher overall expenditure.
What specific administrative and management improvements were achieved through this $23.1M contract, and can their effectiveness be quantified?
The provided data does not detail the specific outcomes or quantifiable improvements resulting from the administrative and management consulting services. To assess effectiveness, a review of performance reports, deliverables, and documented achievements against stated objectives would be necessary. Without this, it's difficult to determine if the significant investment yielded tangible benefits for the Department of the Army.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Science Applications International Corporation
Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,304,527
Exercised Options: $23,115,535
Current Obligation: $23,115,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-03-13
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 12:06:00
Last Modified: 2024-05-07
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