DoD's $12.5M R&D contract for emerging tech awarded to Engility Services, LLC
Contract Overview
Contract Amount: $12,525,695 ($12.5M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2009-03-05
End Date: 2010-06-30
Contract Duration: 482 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: U436530 EMERGING TECHNOLOGIES AND NEW CONCEPTS-ASPO/TENCAP
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $12.5 million to ENGILITY SERVICES, LLC for work described as: U436530 EMERGING TECHNOLOGIES AND NEW CONCEPTS-ASPO/TENCAP Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract was competed under full and open competition. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. The contract duration was 482 days. 5. The contract was awarded to a single vendor, Engility Services, LLC. 6. The contract falls under the NAICS code 541712 for R&D in physical sciences.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without robust oversight and clear performance metrics, this structure can lead to spending exceeding initial expectations. Benchmarking CPFF contracts in R&D is challenging due to the inherent uncertainty in research outcomes, but the fee structure itself warrants scrutiny for value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data shows only one award was made to Engility Services, LLC. The level of competition leading to this single award is not detailed, but the initial open competition suggests a broad market search.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate price paid depends on the specific bidding and negotiation process.
Public Impact
This contract supports the Department of the Army's research and development initiatives. It aims to advance emerging technologies and new concepts. The specific services delivered are related to R&D in physical, engineering, and life sciences. The geographic impact is primarily within the Department of Defense's operational scope. Workforce implications would involve scientists, engineers, and researchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Limited information on the specific R&D outcomes and their impact.
- The contract was awarded to a single entity, raising questions about the breadth of competition realized.
Positive Signals
- Awarded under full and open competition, suggesting initial market engagement.
- Supports critical research and development for the Department of the Army.
- The contract addresses emerging technologies, potentially leading to future advancements.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This sector is characterized by innovation and the pursuit of new knowledge and capabilities. Comparable spending in this area within the Department of Defense is substantial, as R&D is crucial for maintaining technological superiority. The market size for R&D services is large and competitive, with many firms specializing in scientific and technical support.
Small Business Impact
The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary bidders and awardees. There is no information on subcontracting plans for small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance reviews. Transparency is generally maintained through contract databases, but specific R&D project details might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Futures Command Initiatives
- Emerging Technology Research Contracts
- Scientific and Technical Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Limited public detail on specific R&D outcomes and technological advancements.
- Single awardee despite full and open competition may warrant further investigation into competition dynamics.
Tags
department-of-defense, department-of-the-army, research-and-development, emerging-technologies, cost-plus-fixed-fee, full-and-open-competition, definitive-contract, massachusetts, engility-services-llc, naics-541712
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to ENGILITY SERVICES, LLC. U436530 EMERGING TECHNOLOGIES AND NEW CONCEPTS-ASPO/TENCAP
Who is the contractor on this award?
The obligated recipient is ENGILITY SERVICES, 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 $12.5 million.
What is the period of performance?
Start: 2009-03-05. End: 2010-06-30.
What was the specific nature of the 'emerging technologies and new concepts' researched under this contract?
The contract, identified as U436530, was for 'EMERGING TECHNOLOGIES AND NEW CONCEPTS-ASPO/TENCAP' and was awarded to Engility Services, LLC by the Department of the Army. The NAICS code 541712 indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the contract title suggests a focus on novel advancements, the specific technical details of the research, the particular emerging technologies explored, and the 'new concepts' developed are not publicly detailed in the provided summary data. Such information is often classified or proprietary due to the nature of R&D and national security interests, especially within defense contexts.
How did Engility Services, LLC's performance compare to other potential contractors during the bidding process?
The contract was awarded under 'FULL AND OPEN COMPETITION,' implying that multiple entities were eligible to bid. However, the data indicates only one award was made to Engility Services, LLC. Without access to the detailed bid evaluation process, it's impossible to definitively compare Engility's performance against other bidders. Typically, in full and open competitions, awards are made based on a combination of technical merit, past performance, price, and other factors outlined in the solicitation. Engility likely presented the most advantageous offer according to the government's evaluation criteria at the time of award.
What are the typical risks associated with a Cost Plus Fixed Fee (CPFF) contract in R&D?
Cost Plus Fixed Fee (CPFF) contracts are common in R&D due to the inherent uncertainty of research outcomes. The primary risk for the government is cost overrun. While the contractor is reimbursed for all allowable costs, the fixed fee provides a profit incentive. If costs escalate significantly beyond initial projections, the total contract value can increase substantially, potentially exceeding the government's budget or perceived value. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin if the fixed fee is insufficient to cover unexpected expenses. Effective oversight, clear scope definition, and robust cost tracking are crucial to mitigate these risks.
What was the historical spending pattern for similar R&D contracts by the Department of the Army?
The provided data focuses on a single contract (U436530) awarded in 2009. To assess historical spending patterns for similar R&D contracts by the Department of the Army, a broader dataset would be required. This would involve analyzing numerous contracts under NAICS code 541712 and related codes over several fiscal years. Key metrics to examine would include the total annual R&D spending, the average contract value, the distribution of contract types (e.g., CPFF, FFP), the number of awards, and the primary contractors receiving these awards. Such an analysis would reveal trends in investment in specific R&D areas and the overall approach to procuring research services.
What is the significance of the contract being awarded in Massachusetts (MA)?
The 'st': 'MA' designation indicates that the contract was awarded to a vendor located in or performing work in Massachusetts. This has implications for the local economy, potentially creating jobs and stimulating business activity within the state. For the Department of Defense, awarding contracts to companies in specific geographic locations can be part of broader strategic sourcing initiatives or may simply reflect the location of the most capable or competitive vendor. Massachusetts has a strong ecosystem for technology and research, making it a common location for defense-related R&D contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation (UEI: 783837672)
Address: 100 BRICKSTONE SQUARE, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,533,452
Exercised Options: $13,533,452
Current Obligation: $12,525,695
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-05
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2016-09-30
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