DoD's $83M Graphic Design Services Contract with Engility Corporation: A Time and Materials Approach
Contract Overview
Contract Amount: $83,084,632 ($83.1M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2004-09-29
End Date: 2009-12-31
Contract Duration: 1,919 days
Daily Burn Rate: $43.3K/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 $83.1 million to ENGILITY CORPORATION for work described as: Key points: 1. Contract awarded to Engility Corporation for Graphic Design Services. 2. Totaling $83,084,631.93 over 5 years, this contract represents significant spending in the design services sector. 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. The Time and Materials pricing structure warrants scrutiny for potential cost overruns. 5. The Department of the Army is the primary agency involved.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed closely. Benchmarking T&M contracts for graphic design services is challenging due to variability in scope and labor rates, but the total value suggests a need for robust oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process to solicit bids from all qualified sources. This method generally promotes competitive pricing, but the T&M structure still requires careful monitoring to ensure value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the T&M pricing model introduces a risk of increased costs if not effectively managed and monitored by the agency.
Public Impact
Taxpayers funded $83 million for graphic design services over five years. The contract supported the Department of the Army's visual communication needs. Engility Corporation, the contractor, provided these services across multiple locations. The duration of the contract allowed for long-term planning and execution of design projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific Product Service Code (PSC)
- Contract duration of 5 years
Positive Signals
- Full and open competition
- Awarded to a single entity, potentially indicating specialized capabilities
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically graphic design. Spending benchmarks for this category can vary widely based on the complexity and scale of services required. The $83 million total over five years suggests a substantial, ongoing need for design support within the Department of the Army.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Time and Materials pricing structure necessitates strong government oversight to ensure that costs are reasonable and allocable to the contract's objectives. Regular reviews of labor hours, rates, and material costs are crucial for accountability.
Related Government Programs
- Graphic Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Time and Materials pricing structure can lead to cost overruns.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep in T&M contracts.
- Limited insight into small business participation.
- Contract duration of 5 years may not reflect current needs.
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 $83.1 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 $83.1 million.
What is the period of performance?
Start: 2004-09-29. End: 2009-12-31.
What specific graphic design services were rendered under this contract, and how did they align with the Army's strategic communication goals?
The contract likely encompassed a broad range of graphic design services, including but not limited to, creating visual concepts, developing layouts for publications, designing digital graphics for websites and social media, and producing materials for presentations and events. These services would support the Army's need for clear, impactful communication with various audiences, including personnel, the public, and policymakers, thereby aligning with strategic communication objectives.
How effectively was the Time and Materials pricing managed to control costs and ensure value for the taxpayer, given the contract's significant value?
Effective management of T&M contracts hinges on rigorous oversight of labor hours, rates, and direct costs. The agency would need to implement strict controls, conduct regular audits, and ensure that all expenditures are directly linked to contract deliverables. Without detailed performance data, it's difficult to definitively assess cost control, but the substantial award amount underscores the importance of vigilant monitoring to prevent cost overruns and ensure taxpayer value.
What was the competitive landscape for graphic design services at the time of award, and did full and open competition yield the best possible outcome?
Full and open competition generally aims to maximize the pool of potential bidders, fostering a competitive environment that can lead to better pricing and quality. The specific competitive landscape for graphic design services at the time of award would involve assessing the number of qualified firms, their capabilities, and market dynamics. While competition is a positive indicator, the ultimate 'best outcome' also depends on the specific technical requirements and the contractor's ability to meet them efficiently under the T&M structure.
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
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: 2004-09-29
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2014-10-06
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