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
- Limited visibility into competition within BPA Call.
- Potential for price creep over contract duration.
- Lack of small business participation.
Positive Signals
- Contract supports essential government functions.
- Firm Fixed Price contract provides cost certainty.
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
- Engineering Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for uncompetitive pricing due to BPA Call award.
- Lack of transparency in competition within the BPA Call.
- Extended contract duration may lead to price escalation.
- No small business participation noted.
- Difficulty in quantifying direct service impact.
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 Services › Architectural, Engineering, and Related Services › Engineering 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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