DoD's $46.6M Intelligence Services Contract Awarded to Engility Corporation in 2007
Contract Overview
Contract Amount: $46,564,340 ($46.6M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2007-07-01
End Date: 2007-10-31
Contract Duration: 122 days
Daily Burn Rate: $381.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: INTELLIGENCE SERVICES, IRAQ
Plain-Language Summary
Department of Defense obligated $46.6 million to ENGILITY CORPORATION for work described as: INTELLIGENCE SERVICES, IRAQ Key points: 1. Contract awarded via full and open competition, suggesting a robust bidding process. 2. The contract duration was short (122 days), potentially indicating a specific, time-bound need. 3. Awarded as a Time and Materials contract, which can carry higher cost risks if not managed closely. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 5. The contract was not set aside for small businesses, and no subcontracting information was provided. 6. The award was made by the Department of the Army, a component of the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the lack of detailed performance metrics and the specific nature of intelligence services. The Time and Materials pricing structure, while common for certain service types, can lead to cost overruns if not meticulously monitored. Without comparable contract data for similar intelligence support services during that period, assessing whether the $46.6 million represents excellent value is difficult. The relatively short duration might suggest a contained project, but the total cost still warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. However, the specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided, limiting a deeper analysis of its effectiveness.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. This approach increases the likelihood that the government secures services at a fair market price.
Public Impact
Intelligence support services were delivered to the Department of the Army, likely enhancing national security operations. The specific geographic impact is not detailed but is presumed to be within areas of U.S. military intelligence operations. The contract supported professional, scientific, and technical services, potentially involving a specialized workforce. Beneficiaries include military intelligence analysts and decision-makers who rely on the services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not managed effectively.
- Limited transparency on specific deliverables and performance outcomes makes value assessment difficult.
- Lack of small business subcontracting data may indicate missed opportunities for small business engagement.
Positive Signals
- Awarded through full and open competition, suggesting a fair and broad bidding process.
- Multiple bids received (5) indicate market interest and potential for competitive pricing.
- Contract supported critical intelligence services for the Department of Defense.
Sector Analysis
Intelligence services fall under the broad category of professional, scientific, and technical services. The market for these services is often specialized, with a mix of large defense contractors and niche providers. Spending in this sector is driven by national security needs and geopolitical factors. Comparable spending benchmarks are difficult to establish due to the classified or sensitive nature of many intelligence contracts.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements or performance. This suggests that the primary award went to a larger entity, and opportunities for small businesses to participate in this specific contract were either limited or non-existent based on the provided data.
Oversight & Accountability
Oversight mechanisms for intelligence services contracts can vary, with some aspects potentially subject to classification. Standard contract oversight by the Department of the Army would apply, focusing on performance, deliverables, and financial accountability. Transparency is often limited in this sector due to national security concerns. Inspector General jurisdiction would likely apply to financial integrity and potential fraud, waste, or abuse.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Services
- Professional and Technical Support Services
- Department of Defense Contract Awards
- Time and Materials Contracts
Risk Flags
- Time and Materials contract type carries inherent cost risk.
- Limited public information on specific deliverables and performance outcomes.
- Intelligence services can be sensitive, potentially limiting transparency.
- Short contract duration may indicate a specific, potentially urgent, need.
Tags
intelligence-services, department-of-defense, department-of-the-army, time-and-materials, full-and-open-competition, professional-scientific-and-technical-services, contract-award, fiscal-year-2007, engility-corporation, iraq-intelligence
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.6 million to ENGILITY CORPORATION. INTELLIGENCE SERVICES, IRAQ
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 $46.6 million.
What is the period of performance?
Start: 2007-07-01. End: 2007-10-31.
What was Engility Corporation's track record with the Department of Defense prior to this award?
Engility Corporation, prior to its acquisition by SAIC in 2019, was a significant government contractor. Before this specific 2007 award, Engility (and its predecessor entities like TASC) had a history of performing various technical, engineering, and support services for the Department of Defense and other federal agencies. Their portfolio often included IT services, systems engineering, and mission support. Assessing their specific track record immediately preceding this contract would require a deeper dive into contract databases for awards made between their inception and July 2007, looking at performance ratings and any documented issues on prior DoD contracts.
How does the $46.6 million value compare to similar intelligence service contracts awarded around 2007?
Direct comparison of this $46.6 million contract is difficult without knowing the precise scope and duration of 'intelligence services.' Intelligence support can range from data analysis and technical support to operational planning. Contracts of this magnitude in 2007 for specialized professional services were not uncommon within the DoD, especially given the ongoing operations in Iraq and Afghanistan. However, without specific benchmarks for comparable intelligence analysis or technical support contracts of similar duration and complexity, it's hard to definitively state if $46.6 million was high or low. The short 122-day duration suggests a high daily burn rate, typical for intensive, short-term support needs.
What were the primary risks associated with a Time and Materials contract for intelligence services?
The primary risk with a Time and Materials (T&M) contract, especially for intelligence services, is cost escalation. Unlike fixed-price contracts, T&M allows the contractor to bill for actual labor hours and material costs incurred. If the scope of work is not tightly defined, or if project management is weak on the government's side, the contractor could incur significant hours or use more expensive resources than anticipated, driving the total cost well beyond initial estimates. For intelligence services, where requirements can be fluid or evolve rapidly, T&M contracts necessitate rigorous oversight, detailed tracking of hours, and strong negotiation skills from the government contracting officer to mitigate cost overruns and ensure value.
How effective was the 'full and open competition' in ensuring a competitive price?
The 'full and open competition' designation indicates that the solicitation was broadly advertised, allowing any qualified vendor to submit a proposal. Receiving 5 bids suggests a reasonable level of market interest. In theory, a larger number of bidders generally leads to more competitive pricing as companies vie for the contract. However, the effectiveness in ensuring a competitive price also depends on the clarity of the solicitation, the evaluation criteria, and the specific capabilities required. Without knowing the details of the proposals submitted, the government's negotiation leverage, or the final price relative to the independent government cost estimate, it's impossible to definitively quantify the price competitiveness achieved solely from the competition type and bid count.
What is the typical spending pattern for 'All Other Professional, Scientific, and Technical Services' within the DoD?
Spending on NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') within the DoD is substantial and diverse, reflecting the wide range of support functions required. This category encompasses services not classified elsewhere, including areas like research and development support, specialized testing, translation services, and various consulting activities. Annual spending can fluctuate significantly based on operational tempo, specific program needs, and budget allocations. While this $46.6 million award represents a notable sum for a short period, the DoD's overall annual expenditure across this broad category likely runs into billions of dollars, supporting a vast array of critical functions beyond direct combat operations.
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
Solicitation ID: W912CM04R0028
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $46,564,340
Exercised Options: $46,564,340
Current Obligation: $46,564,340
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912CM05D0011
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2007-10-31
Potential End Date: 2007-10-31 00:00:00
Last Modified: 2007-12-20
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