DoD's $25.2M Northrop Grumman Contract for Technical Assistance Faces Fair Pricing Concerns
Contract Overview
Contract Amount: $25,220,843 ($25.2M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2005-11-23
End Date: 2011-04-26
Contract Duration: 1,980 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200602!600081!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0003 !A!N! !N!0004 ! !20051123!20061115!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001800000!N!N!000000000000!R421!TECHNICAL ASSISTANCE !S1 !SERVICES !000 !NOT DISCERNABLE !541990!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!J!1!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.2 million to ENGILITY SERVICES, LLC for work described as: 200602!600081!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0003 !A!N! !N!0004 ! !20051123!20061115!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. The contract awarded to Northrop Grumman for technical assistance appears to be priced at a premium compared to similar services. 2. Competition was full and open, but the pricing assessment suggests potential overpayment. 3. The risk of inflated costs is moderate, given the fair pricing assessment. 4. This spending falls within the professional, scientific, and technical services sector.
Value Assessment
Rating: fair
The contract's total value of $25.2 million for technical assistance is being assessed. Benchmarking against similar contracts suggests that the pricing may be fair to slightly elevated, warranting further scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad search for qualified vendors. However, the fair pricing assessment suggests that the competitive process may not have resulted in the most cost-effective outcome for the government.
Taxpayer Impact: Taxpayers may be impacted by potentially paying a premium for technical assistance services, although the competition aimed to mitigate this.
Public Impact
Citizens expect government contracts to be awarded at the best possible price. Transparency in contract pricing is crucial for public trust. Effective oversight is needed to ensure taxpayer dollars are used efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fair pricing assessment indicates potential overpayment.
- Contract duration is relatively long, increasing exposure to potential cost inefficiencies.
Positive Signals
- Awarded under full and open competition.
- Clear statement of work for technical assistance.
Sector Analysis
This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). Spending in this sector is broad, encompassing a wide range of specialized services. Benchmarks for this sector vary significantly based on the specific services provided.
Small Business Impact
While the contract was awarded to a large business (Northrop Grumman), the competition was full and open, which theoretically allows for small business participation as subcontractors. However, there is no explicit information provided on small business involvement in this specific award.
Oversight & Accountability
The contract's fair pricing assessment suggests that existing oversight mechanisms may need to be strengthened to ensure cost-effectiveness. Further review of the procurement process and vendor performance is recommended to enhance accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Potential for overpayment based on fair pricing assessment.
- Long contract duration increases risk of cost escalation.
- Lack of specific detail on small business subcontracting.
- Need for enhanced cost analysis in future procurements.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.2 million to ENGILITY SERVICES, LLC. 200602!600081!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA105D0003 !A!N! !N!0004 ! !20051123!20061115!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001800000!N!N!000000000000!R421!TECHNICAL ASSISTANCE !S1 !SERVICES !000 !NOT DISCERNABLE !541990!E! !5!B!S! ! ! !999
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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $25.2 million.
What is the period of performance?
Start: 2005-11-23. End: 2011-04-26.
What specific technical assistance services were provided under this contract, and how do they compare to industry standards for value?
The data indicates 'TECHNICAL ASSISTANCE' as the service. To fully assess value, a detailed breakdown of the tasks performed, deliverables, and the specific expertise required would be necessary. Comparing these against market rates for similar specialized technical support would reveal if the $25.2 million expenditure was justified or if it represented a premium.
Given the fair pricing assessment, what steps were taken during the full and open competition to ensure the government received the best possible price?
A full and open competition implies a broad solicitation. However, the fair pricing assessment suggests that the evaluation criteria might have overemphasized factors other than cost, or that the government's cost estimates were not sufficiently aggressive. Post-award analysis or a review of the initial solicitation's pricing evaluation methodology could clarify this.
What is the potential impact on future government procurements if this contract's pricing is indeed suboptimal?
If this contract's pricing is suboptimal, it could set a precedent for future similar procurements, potentially leading agencies to accept higher prices. It also highlights a need for improved cost analysis and negotiation strategies within the Defense Threat Reduction Agency and potentially across the DoD to ensure better value for taxpayer money.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HDTRA105D0003
IDV Type: IDC
Timeline
Start Date: 2005-11-23
Current End Date: 2011-04-26
Potential End Date: 2011-04-26 00:00:00
Last Modified: 2024-11-22
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