DoD awards $70M Computer Systems Design Services contract to Engility Services, LLC without competition
Contract Overview
Contract Amount: $70,017,163 ($70.0M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-03-28
End Date: 2009-03-28
Contract Duration: 365 days
Daily Burn Rate: $191.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Official Description: LABOR 2D BN
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $70.0 million to ENGILITY SERVICES, LLC for work described as: LABOR 2D BN Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The $70M award represents a significant investment in IT services for the Department of the Army. 3. Lack of competition limits potential cost savings for taxpayers. 4. The IT sector is highly competitive, making non-competitive awards notable.
Value Assessment
Rating: questionable
The contract value of $70,001,630 for 365 days of service is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates for similar computer systems design services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially leading to higher prices and reduced innovation compared to an open competition.
Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these essential IT services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited visibility into the justification for a sole-source award. Potential for reduced service quality or innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in justification
- Potential for inflated pricing
Positive Signals
- Awarded to a single vendor for specific services
- Contract duration is one year
Sector Analysis
The Department of the Army's reliance on Computer Systems Design Services falls within the broader IT sector. Spending benchmarks for this category can vary widely based on complexity and scope, but non-competitive awards warrant scrutiny.
Small Business Impact
This contract was awarded to Engility Services, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further investigation would be needed to confirm.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing processes. Oversight should focus on the justification for bypassing competition and ensuring fair pricing.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price discovery.
- Potential for overpayment due to lack of competition.
- Limited transparency regarding the justification for non-competition.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.0 million to ENGILITY SERVICES, LLC. LABOR 2D BN
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 $70.0 million.
What is the period of performance?
Start: 2008-03-28. End: 2009-03-28.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification, such as urgency, unique capabilities, or lack of market availability. Adequate documentation is crucial for accountability and to ensure taxpayer funds are used responsibly.
How does the awarded price compare to industry benchmarks for similar computer systems design services, given the lack of competition?
Without competitive bids, directly comparing the awarded price of $70,001,630 to industry benchmarks is challenging. However, the absence of competition inherently raises concerns about potential price inflation. A detailed cost analysis and comparison with publicly available data for similar government or commercial contracts would be needed to assess value for money.
What mechanisms are in place to ensure the effectiveness and quality of services provided by Engility Services, LLC under this sole-source contract?
While competition drives quality, effective oversight is critical for sole-source contracts. The Department of the Army should have performance metrics, regular progress reviews, and clear deliverables outlined in the contract. Mechanisms for addressing deficiencies and ensuring service level agreements are met are paramount to guarantee effectiveness and taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 100 BRICKSTONE SQUARE, ANDOVER, MA, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $70,134,850
Exercised Options: $70,134,850
Current Obligation: $70,017,163
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911W408D0007
IDV Type: IDC
Timeline
Start Date: 2008-03-28
Current End Date: 2009-03-28
Potential End Date: 2009-03-28 00:00:00
Last Modified: 2010-06-21
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