DoD's $16.2M JEMS Support Contract with Engility LLC: R&D Spending Analysis

Contract Overview

Contract Amount: $16,223,236 ($16.2M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-05

End Date: 2012-05-05

Contract Duration: 1,338 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JEMS SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to ENGILITY LLC for work described as: JEMS SUPPORT Key points: 1. The contract awarded to Engility LLC for JEMS Support represents a significant R&D investment. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. Spending falls within the R&D sector, specifically Research and Development in Physical, Engineering, and Life Sciences. 5. The contract duration of 1338 days indicates a long-term need for these services.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully, as contractor incentives may not align perfectly with cost efficiency. Benchmarking CPFF contracts in R&D is complex due to unique project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific sources were initially excluded. This method aims for broad competition while potentially focusing on specialized capabilities, impacting price discovery by limiting the initial pool of bidders.

Taxpayer Impact: The total award value of $16.2M represents taxpayer funds allocated to research and development. The effectiveness of this spending in achieving its R&D objectives will ultimately determine the true taxpayer impact.

Public Impact

Taxpayers funded over $16 million for research and development services. The contract supported advancements in physical, engineering, and life sciences. The duration of the contract suggests a sustained effort in a specific R&D area. The specific nature of 'JEMS Support' is not detailed, limiting public understanding of the direct benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure can incentivize higher spending.
  • Limited transparency on specific 'JEMS Support' deliverables.
  • Exclusion of sources in competition requires justification.

Positive Signals

  • Full and open competition was pursued.
  • Contract awarded to a single entity, potentially for specialized expertise.
  • Long-term commitment to R&D.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but can be subject to cost overruns due to the inherent uncertainties of research. Benchmarks are difficult due to the bespoke nature of R&D projects.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The CPFF structure necessitates robust oversight to ensure costs are reasonable and allocable to the contract's objectives.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for cost overruns.
  • Limited transparency on specific project deliverables.
  • Competition method involved exclusion of sources.

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to ENGILITY LLC. JEMS SUPPORT

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 $16.2 million.

What is the period of performance?

Start: 2008-09-05. End: 2012-05-05.

What specific R&D advancements or outcomes were achieved through the JEMS Support contract, and how do they align with the initial objectives and taxpayer investment?

The provided data lacks specifics on the 'JEMS Support' deliverables and outcomes. To assess value, a review of project reports, milestone achievements, and final deliverables against the contract's Statement of Work is necessary. Understanding the tangible advancements in physical, engineering, or life sciences resulting from the $16.2M investment is crucial for determining if the taxpayer funds yielded proportionate benefits and met the intended R&D goals.

Given the Cost Plus Fixed Fee structure and the exclusion of certain sources, what were the primary risks related to cost control and fair market pricing for this contract?

The CPFF structure inherently carries a risk of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee, potentially reducing the incentive for strict cost management. The 'exclusion of sources' in the competition phase also poses a risk to achieving the best possible price, as it limits the bidder pool. Effective oversight and robust negotiation are critical to mitigate these risks and ensure fair market pricing.

How effective was the 'Full and Open Competition After Exclusion of Sources' method in ensuring the government secured the best value for the JEMS Support R&D services?

The effectiveness hinges on the justification for excluding sources and the subsequent competitive process. If the excluded sources were essential for achieving optimal value, the method might be less effective. However, if the remaining pool still provided robust competition and the selected contractor offered superior technical merit and fair pricing, the method could be deemed effective. A detailed review of the source selection justification and evaluation criteria is needed.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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: 4803 STONECROFT BLVD, 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: $16,247,240

Exercised Options: $16,247,240

Current Obligation: $16,223,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2008-09-05

Current End Date: 2012-05-05

Potential End Date: 2012-05-05 00:00:00

Last Modified: 2025-12-31

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