DoD's $23.3M consulting contract with Engility Services, LLC awarded under full and open competition
Contract Overview
Contract Amount: $23,272,904 ($23.3M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-04-06
End Date: 2015-08-15
Contract Duration: 1,957 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE YEAR ODC/TRAVEL
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $23.3 million to ENGILITY SERVICES, LLC for work described as: BASE YEAR ODC/TRAVEL Key points: 1. The contract was awarded for consulting services, indicating a need for specialized expertise. 2. Awarded under a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost control by the contractor. 4. The contract duration of 1957 days (over 5 years) suggests a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541690 points to specialized technical consulting. 6. The contract was not set aside for small businesses, implying a focus on larger, established firms.
Value Assessment
Rating: fair
Benchmarking the value of this specific $23.3 million contract is challenging without knowing the scope of services and deliverables. The CPFF structure, while common, can lead to cost overruns if not managed tightly. Comparing it to similar consulting contracts within the DoD would require detailed analysis of service types, contractor performance, and market rates for specialized technical consulting.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. The presence of 2 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the limited number of bidders might warrant further investigation into market dynamics and potential barriers to entry.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally leads to more competitive pricing and a wider pool of potential solutions. However, with only two bidders, the ultimate cost savings may be less significant than in scenarios with more robust competition.
Public Impact
The primary beneficiaries are likely Department of Defense agencies requiring specialized technical consulting services. The services delivered are categorized under 'Other Scientific and Technical Consulting Services,' suggesting support for complex technical challenges. The geographic impact is primarily within Massachusetts, where the contract was administered. Workforce implications could include the employment of consultants with expertise in scientific and technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPFF contract type carries inherent risk of cost escalation if not meticulously monitored.
- Limited competition (2 bidders) may not have yielded the most cost-effective solution for taxpayers.
- The specific nature of 'Other Scientific and Technical Consulting Services' can be broad, potentially leading to scope creep if not clearly defined.
Positive Signals
- Awarded under full and open competition, maximizing the pool of potential offerors.
- The contract duration suggests a stable, long-term need, allowing for focused expertise development.
- The fixed fee component in CPFF provides some level of cost predictability for the government.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending. The NAICS code 541690 specifically targets consulting services that are not elsewhere classified, often involving highly specialized technical knowledge. Federal spending in this sector is driven by the need for external expertise to support complex government missions, research, and development across various agencies.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary awardee, Engility Services, LLC, was selected based on its capabilities to fulfill the contract requirements, and the focus was not on promoting small business participation through this specific award mechanism.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Transparency is facilitated through contract databases like FPDS. Accountability measures are embedded in the contract terms, including performance standards and payment clauses tied to successful delivery. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Contract Services
- Technical Consulting Services
- Professional Services Contracts
- Cost Plus Fixed Fee Contracts
- Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition may impact price optimization
- Scope definition critical for effective service delivery
Tags
department-of-defense, consulting-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, scientific-and-technical-services, defense-contract-management-agency, massachusetts, moderate-value, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to ENGILITY SERVICES, LLC. BASE YEAR ODC/TRAVEL
Who is the contractor on this award?
The obligated recipient is ENGILITY SERVICES, 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 $23.3 million.
What is the period of performance?
Start: 2010-04-06. End: 2015-08-15.
What was the specific nature of the 'Other Scientific and Technical Consulting Services' provided under this contract?
The provided data does not detail the specific services rendered under this contract, only the broad NAICS code (541690) and contract type. To understand the precise nature of the consulting, one would need to access the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents would outline the tasks, deliverables, and objectives. Given the 'Other Scientific and Technical Consulting Services' classification, it could range from engineering analysis, systems integration support, cybersecurity consulting, to specialized research and development advisory services for the Department of Defense.
How does the $23.3 million total value compare to similar consulting contracts awarded by the DoD?
Comparing the $23.3 million value requires context on the contract's duration and scope. This contract spans over five years (1957 days), making its annual value approximately $4.7 million. The DoD awards numerous consulting contracts annually, with values ranging from thousands to billions of dollars. Without knowing the specific services, this contract appears to be of moderate size for specialized, long-term technical consulting. Larger, enterprise-wide IT or strategic consulting contracts often exceed this value significantly, while smaller, project-specific engagements are typically lower.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. While the fixed fee incentivizes the contractor to control costs (as it doesn't increase with higher costs), there's still a risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen issues arise. The government bears the risk of cost increases beyond the estimate. Effective oversight and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.
What does the limited competition (2 bidders) suggest about the market for these services?
The fact that only two bidders responded to this 'full and open' solicitation suggests that the market for these specific 'Other Scientific and Technical Consulting Services' may be concentrated among a few specialized firms. This could be due to high barriers to entry, such as required technical expertise, security clearances, past performance requirements, or the specific niche nature of the services. While two bidders still represent competition, it's less than ideal and might indicate that potential competitors were either unaware of the opportunity, unable to meet the stringent requirements, or found the opportunity less attractive than other pursuits.
What is Engility Services, LLC's track record with the federal government, particularly in consulting?
Engility Services, LLC (now part of SAIC) has a significant history of contracting with the U.S. federal government, particularly within the defense and intelligence sectors. Prior to its acquisition, Engility was a major provider of IT, engineering, and technical support services. Their track record includes numerous contracts across various agencies, often involving complex systems engineering, program management, and mission support. Analyzing their past performance on similar CPFF contracts would be key to assessing their reliability and cost-management capabilities for this specific engagement.
How has federal spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) trended over the past decade?
Federal spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) has generally seen an upward trend over the past decade, reflecting the government's increasing reliance on specialized external expertise to address complex challenges in areas like technology, defense, and infrastructure. While specific figures fluctuate annually based on agency priorities and budget allocations, the overall demand for niche technical consulting remains robust. This growth is driven by factors such as rapid technological advancements, the need for specialized skills not always available in-house, and the outsourcing of non-core functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W911W410R0001
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation
Address: 100 BRICKSTONE SQUARE, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,280,184
Exercised Options: $24,280,184
Current Obligation: $23,272,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911W410D0001
IDV Type: IDC
Timeline
Start Date: 2010-04-06
Current End Date: 2015-08-15
Potential End Date: 2015-08-15 00:00:00
Last Modified: 2025-12-31
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