DoD's $106M Law Enforcement Program Awarded to Engility Services, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $106,098,857 ($106.1M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-12-11

End Date: 2012-11-28

Contract Duration: 353 days

Daily Burn Rate: $300.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LAW ENFORCEMENT PROFESSIONAL PROGRAM

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $106.1 million to ENGILITY SERVICES, LLC for work described as: LAW ENFORCEMENT PROFESSIONAL PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was 353 days, indicating a relatively short-term engagement. 4. The award was a delivery order, suggesting it was part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', indicating a broad scope. 6. The contract was managed by the Defense Contract Management Agency. 7. The base contract value was $300,563, with the delivery order significantly increasing the total obligation.

Value Assessment

Rating: fair

Benchmarking the value for this specific delivery order is challenging without knowing the underlying contract and the specific services rendered. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While the total obligation reached over $106 million, the base contract value was significantly lower, suggesting this delivery order represented a substantial expansion or tasking. Further analysis would require understanding the scope of work and comparing the labor rates and overhead applied to similar professional services contracts within the DoD.

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 a bid. The presence of 4 bidders (no) suggests a degree of competition, though the specific number of bids received is not detailed. This competitive approach is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

The primary beneficiary is the Department of Defense, which receives professional, scientific, and technical services for its law enforcement programs. The services delivered likely support various aspects of law enforcement operations, training, or technical assistance within the military. The geographic impact is likely within areas where DoD law enforcement activities are conducted, potentially global. Workforce implications could include the employment of specialized professionals in scientific, technical, and law enforcement support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to incur more costs than necessary to maximize profit.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The significant increase from the base contract value to the delivery order value warrants scrutiny regarding scope creep or initial underestimation.
The broad NAICS code suggests a wide range of potential services, making it harder to pinpoint specific areas of potential inefficiency without more detail.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The existence of multiple bidders (4) suggests market interest and potential for competitive pricing.
The contract was managed by the Defense Contract Management Agency, implying oversight and quality control measures are in place.

Sector Analysis

This contract falls under the Professional, Scientific, and Technical Services sector, specifically within the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This broad category encompasses a wide array of services that do not fit into more specific industry classifications. Spending in this sector by the federal government is substantial, supporting various agency missions. Comparable spending benchmarks would depend heavily on the specific nature of the law enforcement support services provided, which are not detailed here.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Engility Services, LLC, is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contract compliance and performance. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting of costs and progress. Transparency is facilitated through contract award databases, but specific details on performance and cost breakdowns would require deeper access to contract files.

Related Government Programs

Department of Defense Law Enforcement Support Programs
Professional and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Defense Contract Management Agency Oversight

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Broad NAICS code limits understanding of specific services and associated value.
Lack of detailed performance metrics hinders effectiveness assessment.
Significant increase from base contract value to delivery order value requires explanation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.1 million to ENGILITY SERVICES, LLC. LAW ENFORCEMENT PROFESSIONAL PROGRAM

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 $106.1 million.

What is the period of performance?

Start: 2011-12-11. End: 2012-11-28.

What specific law enforcement professional services were provided under this contract?

The provided data indicates the contract was for 'LAW ENFORCEMENT PROFESSIONAL PROGRAM' under NAICS code 541990 ('All Other Professional, Scientific, and Technical Services'). However, the specific nature of these services is not detailed. This broad classification could encompass a wide range of activities such as training, technical support, intelligence analysis, program management, or specialized consulting related to law enforcement functions within the Department of Defense. Without further documentation, it is impossible to ascertain the precise services rendered.

How does the $106 million award compare to typical spending for similar DoD law enforcement programs?

Comparing the $106 million award requires context on the specific services and duration. If this represents a single year's spending for a comprehensive program, it might be within a typical range for large-scale DoD support contracts. However, if it's for a short duration or a narrowly defined service, it could be considered high. Benchmarking against similar contracts for law enforcement support, program management, or technical services within the DoD would be necessary. The fact that it was a delivery order under a larger contract vehicle also complicates direct comparison, as the total value of the parent contract might be much larger.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract, especially one totaling $106 million, is the potential for cost overruns. While the contractor is paid their actual costs plus a fixed fee, there's less incentive for them to control costs aggressively compared to fixed-price contracts. The government bears the risk of cost increases. For the DoD, this means careful monitoring of expenditures, rigorous auditing of contractor costs, and strong program management to ensure the services delivered align with the budget. Scope creep is another significant risk, where the project's requirements expand beyond the initial agreement, leading to increased costs.

What was the track record of Engility Services, LLC in managing similar large-scale DoD contracts prior to this award?

Information on Engility Services, LLC's track record prior to this specific award is not provided in the data. However, Engility (which later merged with SAIC) was a known government contractor. A thorough analysis would involve reviewing their past performance on similar CPFF contracts, their history of cost control, on-time delivery, and overall client satisfaction with the Department of Defense or other federal agencies. Examining past performance evaluations and any documented issues or successes would be crucial for assessing their capability to manage this $106 million program effectively.

How did the number of bidders (4) influence the final pricing and value for the taxpayer?

Having four bidders in a full and open competition generally suggests a healthy level of market interest and competition. This number typically provides sufficient pressure on bidders to offer competitive pricing to secure the contract. While more bidders could theoretically lead to even lower prices, four is often considered a reasonable number to ensure that the government is not overly reliant on a single source and that pricing reflects market conditions. The specific impact on taxpayer value would depend on the negotiation process and the final agreed-upon costs relative to the estimated value of the services.

What is the significance of this contract being a 'Delivery Order' rather than a standalone contract?

The fact that this award is a 'Delivery Order' signifies that it was issued under a pre-existing, larger contract vehicle, often referred to as an 'Indefinite Delivery/Indefinite Quantity' (IDIQ) contract or a 'Master Agreement'. This approach allows agencies to procure services or supplies more efficiently over time without needing to conduct a full competitive procurement for each individual task. For taxpayers, this can mean faster delivery of services and potentially better pricing due to pre-negotiated terms. However, it also means the total spending under the parent contract could be significantly higher than this single delivery order.

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: W91CRB08R0002

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation

Address: 35 NEW ENGLAND BUSINESS CTR 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: $119,208,228

Exercised Options: $119,208,228

Current Obligation: $106,098,857

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB08D0049

IDV Type: IDC

Timeline