DoD's $15.5M Contract for Communications Equipment with Engility Corporation: A Deep Dive
Contract Overview
Contract Amount: $15,531,896 ($15.5M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2007-01-11
End Date: 2015-04-10
Contract Duration: 3,011 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: CLS-CENTAF
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.5 million to ENGILITY CORPORATION for work described as: CLS-CENTAF Key points: 1. The contract awarded to Engility Corporation for communications equipment totaled $15.5 million. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration was 3011 days, indicating a long-term commitment. 4. The specific product code (NAICS 334290) falls under 'Other Communications Equipment Manufacturing'.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which is unusual and warrants further investigation into how costs were managed and if value was achieved without a fee structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which typically allows for a broad range of bidders and can lead to better price discovery. However, the 'COST NO FEE' contract type might have influenced the bidding dynamics and ultimate cost-effectiveness.
Taxpayer Impact: The total taxpayer impact was $15.5 million over the contract's lifespan. The lack of a fee structure makes assessing the precise value for money challenging.
Public Impact
Taxpayers funded $15.5 million for communications equipment over nearly 8.5 years. The Department of the Air Force procured essential communication hardware. The long contract duration suggests a sustained need for these specific equipment types.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unusual 'COST NO FEE' contract type raises questions about cost control and contractor incentive.
- Lack of specific performance metrics or award values makes assessing effectiveness difficult.
- The contract was awarded in 2007, and data may not reflect current market conditions or technological advancements.
Positive Signals
- Full and open competition was used, promoting a potentially fair marketplace.
- The contract served a clear need within the Department of the Air Force for communications equipment.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector. Spending in this sector can vary widely based on technological advancements and defense needs. Benchmarks are difficult without more specific product details.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'COST NO FEE' structure suggests a need for robust oversight to ensure costs were reasonable and necessary, as the contractor had no direct financial incentive tied to profit.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to lack of contractor profit incentive.
- Risk of equipment obsolescence over the long contract duration.
- Difficulty in assessing true value for money due to 'COST NO FEE' structure.
- Limited transparency on cost validation and oversight processes.
Tags
other-communications-equipment-manufactu, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to ENGILITY CORPORATION. CLS-CENTAF
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 Air Force).
What is the total obligated amount?
The obligated amount is $15.5 million.
What is the period of performance?
Start: 2007-01-11. End: 2015-04-10.
What was the rationale behind the 'COST NO FEE' contract type for this significant procurement, and how were costs validated?
The 'COST NO FEE' contract type is highly unusual, as it removes the primary profit incentive for the contractor. Typically, such contracts are used in specific, often non-commercial, situations where profit is difficult to define or where the government assumes significant risk. Understanding the rationale requires examining the specific circumstances of this procurement and the government's cost validation processes.
Given the long duration and 'COST NO FEE' structure, what mechanisms were in place to ensure the equipment remained relevant and effective throughout the contract period?
With a contract spanning over eight years and lacking a profit motive, ensuring continued relevance and effectiveness is challenging. Mechanisms likely included periodic reviews, potential contract modifications for upgrades, or reliance on the Air Force's internal technical assessments. However, without specific data on these processes, it's difficult to ascertain their adequacy in preventing obsolescence or performance degradation.
How did the 'full and open competition' process interact with the 'COST NO FEE' structure to influence the final price and the overall value delivered?
The interaction is complex. Full and open competition theoretically drives down prices by maximizing bidder participation. However, the 'COST NO FEE' structure shifts the focus from profit maximization to cost minimization (or justification). It's possible bidders factored in the lack of profit into their cost proposals, or that the government's negotiation strategy heavily influenced the final 'cost' without a profit margin. Assessing the true value requires comparing the incurred costs against industry benchmarks for similar equipment and services.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 3750 CENTERVIEW DRIVE, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,626,308
Exercised Options: $30,626,308
Current Obligation: $15,531,896
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F1962803D0021
IDV Type: IDC
Timeline
Start Date: 2007-01-11
Current End Date: 2015-04-10
Potential End Date: 2015-04-10 00:00:00
Last Modified: 2016-12-16
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