DoD's $41.8M Naval Air Systems Command technical support contract awarded to Engility Services, LLC

Contract Overview

Contract Amount: $41,785,749 ($41.8M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-05-23

End Date: 2020-06-02

Contract Duration: 1,471 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF FUNDING FOR TAT DT-15-1204 "NAVAL AIR SYSTEMS COMMAND (NAVAIR) AIRWORTHINESS PROGRAM OFFICE (AIR-4.0P) TECHNICAL SUPPORT AND ANALYSIS"

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to ENGILITY SERVICES, LLC for work described as: IGF::CT::IGF FUNDING FOR TAT DT-15-1204 "NAVAL AIR SYSTEMS COMMAND (NAVAIR) AIRWORTHINESS PROGRAM OFFICE (AIR-4.0P) TECHNICAL SUPPORT AND ANALYSIS" Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1471 days indicates a significant, long-term need for these services. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a focus on advanced technical analysis. 4. The contract type is Cost Plus Fixed Fee, which can incentivize contractors to control costs while ensuring a profit. 5. The presence of two bidders indicates a moderate level of competition for this requirement. 6. The contract was awarded to Engility Services, LLC, a known entity in the defense contracting space.

Value Assessment

Rating: fair

Benchmarking the value of this $41.8 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully. However, it also provides flexibility for R&D projects where costs may be uncertain. The number of bidders (2) suggests some competition, but it's not exceptionally robust, which could impact price negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. With two bidders identified, the competition level was moderate. While this indicates that the government sought a broad range of potential contractors, a higher number of bidders typically leads to more aggressive pricing and a greater likelihood of achieving best value for the government.

Taxpayer Impact: The moderate competition suggests that taxpayers may not have received the most aggressive pricing possible, though the full and open nature ensures a baseline level of market engagement.

Public Impact

The primary beneficiaries are the Naval Air Systems Command (NAVAIR) and its Airworthiness Program Office, receiving critical technical support. Services delivered include technical support and analysis essential for maintaining the airworthiness of naval aircraft. The geographic impact is primarily within Virginia, where the contract is managed and likely where services are performed. The contract supports specialized technical and analytical roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not closely monitored for efficiency.
Moderate competition (2 bidders) may not have driven the most cost-effective pricing for taxpayers.
The long duration of the contract could present risks if requirements change significantly over time.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified contractors.
The contract addresses a critical need for technical support and analysis within naval aviation.
Engility Services, LLC has a track record in supporting government technical requirements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense industry heavily relies on R&D for technological advancement and maintaining military superiority. Spending in this area is crucial for developing next-generation capabilities. Comparable spending benchmarks would typically be found within other large, complex R&D contracts supporting defense agencies, often running into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Engility Services, LLC, may engage small businesses as subcontractors depending on their own business strategy and the specific technical requirements of the contract.

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 award databases like FPDS. Accountability measures are inherent in the CPFF contract type, where the fixed fee is contingent on meeting performance standards, and the cost reimbursement is subject to audit. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Operations
Airworthiness Certification Programs
Defense R&D Contracts
Aerospace Engineering Services
Technical Support Services

Risk Flags

Moderate competition level may impact price optimization.
CPFF contract type requires diligent cost oversight.
Potential for scope creep in R&D environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to ENGILITY SERVICES, LLC. IGF::CT::IGF FUNDING FOR TAT DT-15-1204 "NAVAL AIR SYSTEMS COMMAND (NAVAIR) AIRWORTHINESS PROGRAM OFFICE (AIR-4.0P) TECHNICAL SUPPORT AND ANALYSIS"

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 $41.8 million.

What is the period of performance?

Start: 2016-05-23. End: 2020-06-02.

What is Engility Services, LLC's track record with similar contracts, particularly within NAVAIR?

Engility Services, LLC, and its subsequent parent companies (like SAIC after acquisition), have a substantial history of performing technical support and engineering services for various Department of Defense agencies, including NAVAIR. Their portfolio often includes complex R&D, systems engineering, and program management support. Analyzing their past performance on similar Cost Plus Fixed Fee contracts would reveal their ability to manage costs, meet deadlines, and deliver quality technical analysis. Specific contract databases and past performance reviews would provide deeper insights into their reliability and expertise in supporting naval aviation requirements.

How does the $41.8 million value compare to other technical support contracts for naval aviation?

The $41.8 million value for a multi-year technical support and analysis contract for NAVAIR is within a common range for such specialized services. Large defense agencies frequently award contracts of this magnitude, and sometimes significantly higher, for critical R&D and engineering support. To provide a precise comparison, one would need to analyze the scope, duration, and specific technical requirements of other NAVAIR technical support contracts. However, in the context of major defense procurements, this figure represents a substantial but not extraordinary investment in maintaining naval airworthiness and technological capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks with a CPFF contract for R&D services revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If costs escalate beyond initial estimates due to unforeseen technical challenges inherent in R&D, or if the scope of work expands without proper modification, the total contract value can increase significantly. Effective government oversight, clear definition of allowable costs, and robust change management processes are crucial to mitigate these risks and ensure value for the taxpayer.

How effective is the 'full and open competition' process in ensuring value for this type of specialized R&D contract?

Full and open competition is generally the most effective method for ensuring value, as it maximizes the pool of potential offerors and encourages competitive pricing. For specialized R&D contracts like this one, it allows the government to solicit innovative approaches and technical solutions from a wide range of companies. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the number of qualified bidders that actually respond. In this case, with only two bidders, the competitive pressure might have been less intense than if more firms had participated, potentially impacting the final price achieved.

What is the historical spending trend for technical support and analysis within NAVAIR?

Historical spending trends for technical support and analysis within NAVAIR are generally characterized by consistent, significant investment. As a major naval aviation hub, NAVAIR requires ongoing R&D, engineering, and sustainment support to maintain its fleet and develop new technologies. Spending in these areas often fluctuates based on defense budgets, specific program needs (e.g., new aircraft development, modernization efforts), and the contracting strategies employed. Analyzing multi-year spending data for NAVAIR's technical services would reveal patterns of investment, highlighting areas of sustained focus and potential shifts in priorities over time.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 35 NEW ENGLAND BUSINESS CENTER DR STE 200, 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: $45,891,367

Exercised Options: $45,891,367

Current Obligation: $41,785,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0023

IDV Type: IDC

Timeline