DoD's $41.5M IT services contract awarded to Engility Services, LLC, for custom computer programming
Contract Overview
Contract Amount: $41,537,346 ($41.5M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2002-06-27
End Date: 2006-12-14
Contract Duration: 1,631 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $41.5 million to ENGILITY SERVICES, LLC for work described as: Key points: 1. Contract awarded under a full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 4 years indicates a significant, long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially benefiting the government. 4. The services fall under custom computer programming, a critical area for defense IT infrastructure. 5. Awarded by the Missile Defense Agency, highlighting its importance to national security initiatives. 6. The contractor, Engility Services, LLC, has secured a substantial federal IT services award.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The $41.5 million total award over approximately 4.5 years suggests an average annual value of around $9.2 million. This figure needs to be assessed against the complexity and criticality of the custom computer programming services provided to the Missile Defense Agency. Without more granular data on the scope of work and deliverables, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition for this requirement. While multiple bidders participated, the specific number (4) doesn't inherently guarantee the most competitive pricing without further analysis of the bid proposals and the agency's evaluation criteria.
Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality services.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which receives critical custom computer programming services. These services are essential for the development, maintenance, and enhancement of missile defense systems. The geographic impact is likely concentrated around the agency's operational and development centers, primarily in Virginia. The contract supports a workforce skilled in specialized IT services, including software development and system integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
- The firm-fixed-price contract, while shifting risk, could lead to contractor inflexibility if requirements change significantly.
- Limited public information on the specific nature of the 'custom computer programming' makes it hard to gauge the true value and necessity.
Positive Signals
- Awarded through full and open competition, indicating a structured and potentially fair procurement process.
- The firm-fixed-price contract type is generally favorable for the government in managing costs.
- The contract duration suggests a stable and ongoing need for these specialized IT services within the MDA.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is vast, with significant spending allocated to software development, system integration, and maintenance. Contracts like this are crucial for agencies like the Missile Defense Agency to maintain and advance complex technological systems. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by defense agencies for similar custom development work.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Engility Services, LLC, is not typically classified as a small business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor's overall subcontracting practices would need further investigation.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Defense and the Missile Defense Agency. Contract performance is typically monitored by contracting officers and technical representatives. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Missile Defense Systems
- Department of Defense IT Services
- Custom Software Development Contracts
- Federal IT Procurement
- Information Technology Professional Services
Risk Flags
- Contract duration exceeds 4 years
- Firm Fixed Price contract type
- Awarded by Missile Defense Agency
Tags
it, defense, missile-defense-agency, engility-services-llc, firm-fixed-price, full-and-open-competition, custom-computer-programming, virginia, information-technology-professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.5 million to ENGILITY SERVICES, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is ENGILITY SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $41.5 million.
What is the period of performance?
Start: 2002-06-27. End: 2006-12-14.
What was the specific nature of the custom computer programming services provided under this contract?
The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511) awarded to Engility Services, LLC by the Missile Defense Agency. However, the specific details of the programming services are not elaborated in the summary data. Typically, such services could encompass software design, development, integration, testing, and maintenance for complex systems. Given the awarding agency, it is highly probable that these services were related to the development or enhancement of software for missile defense systems, potentially including command and control, sensor data processing, or simulation and modeling.
How does the $41.5 million award compare to other similar IT services contracts awarded by the DoD?
Comparing the $41.5 million total award value requires context regarding the contract's duration and scope. This contract spanned approximately 4.5 years (June 2002 - December 2006), averaging about $9.2 million annually. The Department of Defense awards numerous IT services contracts, many of which are significantly larger, especially those involving large-scale system modernization or enterprise-wide solutions. However, for specialized custom programming services supporting a critical program like missile defense, this value could be considered substantial. A more precise comparison would necessitate analyzing contracts with similar NAICS codes, agencies, and service complexities.
What are the key risks associated with a firm-fixed-price contract for custom computer programming?
Firm-fixed-price (FFP) contracts are generally preferred by the government for cost control as they place the cost risk on the contractor. However, for custom computer programming, FFP contracts carry specific risks. If the scope of work is not precisely defined or if requirements evolve significantly during development, the contractor may face financial losses, potentially leading to disputes, reduced quality, or even contract termination. Conversely, if the contractor underestimates the effort, they might cut corners to maintain profitability. The government's risk lies in ensuring the initial scope is well-defined and managing any necessary changes through formal modification processes.
What is Engility Services, LLC's track record with federal IT contracts, particularly with the DoD?
Engility Services, LLC (and its predecessor/successor entities) has a significant history of performing federal IT and professional services contracts, particularly with defense agencies. While this specific award dates back to the mid-2000s, the company has been a notable contractor in the federal space. Their track record generally involves providing a wide range of services including IT support, systems engineering, software development, and mission support. Performance reviews and past performance evaluations on specific contracts would offer a more detailed insight into their capabilities and reliability with the DoD.
How has federal spending on custom computer programming services evolved since this contract was awarded?
Federal spending on custom computer programming services has generally increased significantly since this contract was awarded in 2002. The increasing reliance on technology across all government functions, coupled with the growing complexity of IT systems, has driven demand. Trends include a greater emphasis on agile development, cloud computing integration, cybersecurity enhancements, and data analytics. While specific figures for 'custom computer programming' fluctuate based on classification and agency priorities, the overall trajectory points towards sustained or growing investment in these specialized IT capabilities to meet evolving mission requirements.
What does the 'Missile Defense Agency' designation imply about the criticality of this contract?
The designation of the Missile Defense Agency (MDA) as the awarding agency underscores the critical nature of this contract. The MDA is responsible for developing and deploying a layered missile defense system to protect the United States, its forces, and its allies from ballistic missile attacks. Contracts awarded by the MDA typically involve highly specialized, cutting-edge technology and complex systems integration. Therefore, custom computer programming services for the MDA are likely essential for the functioning, maintenance, and advancement of national security assets, implying a high degree of importance and stringent performance expectations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 55 WALKERS BROOK DRIVE, READING, VA
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ000601A0065
IDV Type: IDC
Timeline
Start Date: 2002-06-27
Current End Date: 2006-12-14
Potential End Date: 2006-12-14 00:00:00
Last Modified: 2010-09-02
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