DoD's $51.3M Graphic Design Contract with Engility Corporation: A Decade of Spending
Contract Overview
Contract Amount: $51,333,696 ($51.3M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2004-05-25
End Date: 2010-01-03
Contract Duration: 2,049 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $51.3 million to ENGILITY CORPORATION for work described as: Key points: 1. The contract, valued at $51.3 million, was awarded to Engility Corporation for graphic design services. 2. Awarded by the Department of the Army, it spanned from 2004 to 2010, indicating a long-term need. 3. The contract type was Time and Materials, which can sometimes lead to cost overruns if not managed carefully. 4. Competition was full and open, suggesting a robust market for these services at the time of award.
Value Assessment
Rating: fair
The Time and Materials pricing structure, coupled with a 6-year duration, presents a risk for cost control. Without detailed performance metrics and strict oversight, the final cost could exceed initial expectations compared to fixed-price contracts for similar graphic design services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Time and Materials (T&M) pricing model may have limited the extent of price discovery and potential savings compared to a firm-fixed-price award.
Taxpayer Impact: While competition was present, the T&M structure could have resulted in higher overall costs for taxpayers than a fixed-price contract, depending on the actual labor hours expended.
Public Impact
Taxpayers funded over $51 million for graphic design services over a six-year period. The long duration suggests a sustained demand for these specialized design capabilities within the Army. The use of Time and Materials pricing raises questions about cost efficiency and potential for overspending. Engility Corporation, the sole awardee, benefited from this significant, long-term contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Long contract duration (6 years)
- Lack of specific performance metrics mentioned
Positive Signals
- Full and open competition
- Significant contract value indicating demand
Sector Analysis
Graphic design services fall under professional, scientific, and technical services. Government spending in this sector can vary widely based on agency needs, with significant investments often tied to public outreach, training materials, and operational documentation.
Small Business Impact
The data does not indicate whether small businesses participated in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business impact.
Oversight & Accountability
The long duration and T&M pricing necessitate robust oversight to ensure cost control and adherence to scope. Without specific details on reporting and accountability mechanisms, the effectiveness of oversight is difficult to ascertain.
Related Government Programs
- Graphic Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to T&M pricing
- Lack of detailed performance metrics
- Long contract duration may indicate lack of flexibility
- Limited insight into specific services provided
- Unclear small business participation
Tags
graphic-design-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.3 million to ENGILITY CORPORATION. See the official description on USAspending.
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 $51.3 million.
What is the period of performance?
Start: 2004-05-25. End: 2010-01-03.
What was the average annual spending on graphic design services under this contract, and how does it compare to industry benchmarks for similar government contracts?
The average annual spending was approximately $8.56 million ($51.3M / 6 years). Benchmarking this requires detailed analysis of comparable government contracts for graphic design, considering factors like scope, complexity, and specific services rendered. Without such comparative data, it's difficult to definitively assess if this spending was aligned with market rates or represented a premium.
What specific graphic design services were rendered, and were there any performance issues or cost overruns reported during the contract's lifecycle?
The provided data lacks specifics on the exact services performed beyond 'Graphic Design Services' and does not detail any performance issues or cost overruns. The Time and Materials (T&M) contract type inherently carries a risk of cost escalation if not meticulously managed and monitored against defined deliverables and labor rates.
How effective was the full and open competition in ensuring the best value for the government, given the Time and Materials pricing structure?
Full and open competition is designed to solicit the best value. However, the T&M pricing structure can complicate value assessment, as the final cost is not fixed upfront. While competition likely drove a competitive initial bid, the T&M model relies heavily on effective contract management to prevent costs from exceeding the value derived from the services provided.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Graphic Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 700 TECHNOLOGY PARK DRIVE, BILLERICA, MA, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB1501A1024
IDV Type: IDC
Timeline
Start Date: 2004-05-25
Current End Date: 2010-01-03
Potential End Date: 2010-01-03 00:00:00
Last Modified: 2011-05-09
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