DoD's $40.5M Policy Support Contract with Engility Services Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $40,531,122 ($40.5M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-06-24

End Date: 2025-07-04

Contract Duration: 5,124 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POLICY, GUIDANCE AND HUMAN CAPITAL SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to ENGILITY SERVICES, LLC for work described as: POLICY, GUIDANCE AND HUMAN CAPITAL SUPPORT Key points: 1. Contract awarded via BPA Call, raising questions about the extent of competition. 2. Engineering Services sector sees significant government spending, with benchmarks varying widely. 3. Risk of overpayment exists due to limited price discovery in a BPA Call scenario. 4. Lack of small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: questionable

The $40.5M contract value over its extended period suggests a need for robust price analysis. Without clear benchmarks for similar policy, guidance, and human capital support services, assessing value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under a BPA Call, the competition method implies a pre-competed contract vehicle was utilized. However, the specific competition within the BPA Call itself needs further examination to ensure adequate price discovery and avoid potential price inflation.

Taxpayer Impact: Taxpayer funds are committed to this contract; ensuring competitive pricing and effective service delivery is crucial for maximizing the value of this expenditure.

Public Impact

Government operations rely on policy and human capital support, making this a critical function. The long duration and significant value indicate a substantial, ongoing need for these services. Potential for cost savings through enhanced competition or renegotiation should be explored.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Engineering Services sector (NAICS 541330) is broad, encompassing various specialized fields. Government spending in this area is substantial, but benchmarks are highly dependent on the specific services rendered. This contract's focus on policy, guidance, and human capital support may fall into a niche requiring tailored cost analysis.

Small Business Impact

The contract data indicates no small business participation (SB=false). This suggests that opportunities for small businesses to contribute to this significant contract were either not pursued or not available through the contracting vehicle, potentially limiting economic impact and diversity in contracting.

Oversight & Accountability

Oversight is essential to ensure the services provided meet the Department of Defense's needs effectively and that the pricing remains competitive throughout the contract's extended period. Regular performance reviews and cost audits would be beneficial.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, va, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to ENGILITY SERVICES, LLC. POLICY, GUIDANCE AND HUMAN CAPITAL SUPPORT

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $40.5 million.

What is the period of performance?

Start: 2011-06-24. End: 2025-07-04.

What specific policy, guidance, and human capital support services are included under this contract, and how do they align with current DoD needs?

The contract covers policy, guidance, and human capital support. Detailed service descriptions are necessary to understand the scope and relevance to current Department of Defense requirements. Without this, it's difficult to assess if the services remain critical or if adjustments are needed to meet evolving strategic objectives and operational demands.

How was the pricing determined for this contract, and what mechanisms are in place to ensure it remains fair and reasonable over the contract's lifespan?

As a Firm Fixed Price contract awarded via a BPA Call, initial pricing should have been established during the BPA's competition. However, the extended duration necessitates ongoing vigilance. Mechanisms like periodic reviews, market research updates, and potential for price adjustments based on economic factors or scope changes are crucial for maintaining fairness and reasonableness.

What is the measurable impact of the services provided by Engility Services on DoD's operational effectiveness and efficiency?

Measuring the direct impact of policy, guidance, and human capital support can be challenging. Key Performance Indicators (KPIs) related to policy implementation success rates, human capital development metrics, and efficiency gains in administrative processes would be needed. Quantifying these outcomes is vital for justifying the contract's value and ensuring taxpayer funds are used effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 35 NEW ENGLAND BUSINESS CTR DR STE 200, ANDOVER, MA, 01810

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,531,122

Exercised Options: $40,531,122

Current Obligation: $40,531,122

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,595,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003411A0003

IDV Type: BPA

Timeline

Start Date: 2011-06-24

Current End Date: 2025-07-04

Potential End Date: 2025-07-04 00:00:00

Last Modified: 2024-09-25

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