DoD Awards $177M for Intelligence Services to Engility Corporation, Raising Value Concerns
Contract Overview
Contract Amount: $65,703,272 ($65.7M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-09
End Date: 2009-09-22
Contract Duration: 1,474 days
Daily Burn Rate: $44.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!504576!2100!W912CM!WIESBADEN CONTRACTING CENTER !W912CM05D0011 !A!N! !N!0002 !02 !20050909!20060919!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DR !CHANTILLY !VA!20151!00000! !IZ!* !* !IRAQ !+000046501125!N!N!000000000000!R423!INTELLIGENCE SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S!C! ! !20200930!B! ! !B! !A!U!Y!2!005!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $65.7 million to ENGILITY CORPORATION for work described as: 200512!504576!2100!W912CM!WIESBADEN CONTRACTING CENTER !W912CM05D0011 !A!N! !N!0002 !02 !20050909!20060919!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DR !CHANTILLY !VA!20151!00000! !IZ!* !* … Key points: 1. The contract awarded to Engility Corporation for intelligence services is substantial at $177 million. 2. Competition for this contract was full and open, suggesting a competitive bidding process. 3. The high value and duration of the contract present a potential risk for cost overruns. 4. The sector is professional, scientific, and technical services, specifically intelligence. 5. The contract was awarded as a delivery order under a larger indefinite-delivery/indefinite-quantity contract.
Value Assessment
Rating: questionable
The contract value of $177 million appears high for intelligence services, especially considering the duration. Benchmarking against similar contracts is needed to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the significant value and potential for follow-on work warrant scrutiny to ensure sustained price discovery.
Taxpayer Impact: The substantial award amount indicates significant taxpayer investment. Ensuring competitive pricing throughout the contract lifecycle is crucial for maximizing taxpayer value.
Public Impact
Taxpayers are funding critical intelligence services, impacting national security operations. The large contract value could influence market dynamics within the intelligence services sector. The duration of the contract suggests a long-term need for these services, potentially affecting future budget allocations.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- High contract value
- Long contract duration
- Potential for cost creep
Positive Signals
- Full and open competition
- Clear service category
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically intelligence services. Spending in this sector can vary widely based on national security needs and technological advancements.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. This contract appears to have been awarded to a large corporation, potentially limiting opportunities for small businesses in this specific procurement.
Oversight & Accountability
As a Department of Defense contract, it is subject to oversight from various DoD agencies and potentially congressional committees. The large value necessitates robust oversight to ensure proper execution and fiscal responsibility.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value may indicate potential for overspending.
- Long contract duration increases risk of scope creep and changing requirements.
- Lack of specific service details makes value assessment difficult.
- Potential for contractor performance issues over an extended period.
- Reliance on a single contractor for critical intelligence services.
Tags
all-other-professional-scientific-and-te, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.7 million to ENGILITY CORPORATION. 200512!504576!2100!W912CM!WIESBADEN CONTRACTING CENTER !W912CM05D0011 !A!N! !N!0002 !02 !20050909!20060919!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DR !CHANTILLY !VA!20151!00000! !IZ!* !* !IRAQ !+000046501125!N!N!000000000000!R423!INTELLIGENCE SERVICES !S1 !SERVICES !000 !* !541990!E! !5!B!S!C! ! !202
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $65.7 million.
What is the period of performance?
Start: 2005-09-09. End: 2009-09-22.
What specific intelligence services are being procured, and how do they align with current national security priorities?
The contract is for 'INTELLIGENCE SERVICES'. Without further details, it's difficult to ascertain the exact nature of these services. However, given the Department of Defense award and the 'IRAQ' location tag, it likely pertains to support for military operations or intelligence gathering related to that region. Alignment with national security priorities would depend on the specific mission objectives and threat assessments at the time of award.
What is the historical performance and cost-effectiveness of Engility Corporation in delivering similar intelligence services?
Assessing Engility Corporation's historical performance and cost-effectiveness requires access to past performance reviews and detailed financial data from previous contracts. A review of their track record with similar intelligence services, particularly for the Department of Defense, would be necessary to determine their reliability and value proposition. This includes examining on-time delivery, quality of service, and adherence to budget.
How will the performance of this contract be monitored to ensure value for taxpayer money, given its significant duration and value?
Performance monitoring will likely involve a combination of contract management oversight by the contracting officer's representative (COR), regular progress reports from Engility Corporation, and potentially independent government assessments of deliverables. Key performance indicators (KPIs) should be established to track service quality, timeliness, and cost adherence. Periodic reviews and audits will be crucial to ensure accountability and prevent cost overruns throughout the contract's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W912CM05D0011
IDV Type: IDC
Timeline
Start Date: 2005-09-09
Current End Date: 2009-09-22
Potential End Date: 2009-09-22 08:22:19
Last Modified: 2018-10-17
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