Army ROTC functional support contract awarded to Engility Services, LLC for over $165 million
Contract Overview
Contract Amount: $165,769,068 ($165.8M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2011-08-31
End Date: 2014-10-27
Contract Duration: 1,153 days
Daily Burn Rate: $143.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARMY ROTC FUNCTIONAL SUPPORT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $165.8 million to ENGILITY SERVICES, LLC for work described as: ARMY ROTC FUNCTIONAL SUPPORT Key points: 1. Contract value suggests a significant need for specialized support services within the Army ROTC program. 2. The duration of the contract (over 3 years) indicates a long-term requirement for these services. 3. The award was made under full and open competition, implying a robust bidding process. 4. The North American Industry Classification System (NAICS) code 541612 points to management consulting services. 5. The contract's focus on functional support implies services critical to the day-to-day operations of ROTC. 6. The firm fixed-price contract type suggests that cost risks are largely borne by the contractor.
Value Assessment
Rating: good
The contract value of over $165 million for functional support services to Army ROTC over approximately three years appears substantial. Benchmarking against similar contracts for large-scale program support within the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests a degree of cost certainty for the government. The specific services rendered and their impact on ROTC program effectiveness would further inform the value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive sign for ensuring that the selected contractor offers the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives services at a competitive rate.
Public Impact
The primary beneficiaries are the Army ROTC programs nationwide, which receive essential functional support. Services delivered likely include administrative, logistical, and potentially training support to enhance ROTC operations. The geographic impact is nationwide, supporting ROTC units across various universities and colleges. Workforce implications include the creation of jobs for individuals providing these specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if functional support requirements are not clearly defined and managed.
- Reliance on a single contractor for critical functional support could pose a risk if performance falters.
- Ensuring consistent service quality across all supported ROTC units may be challenging.
Positive Signals
- Awarded through full and open competition, suggesting a competitive and fair selection process.
- Firm fixed-price contract type provides cost predictability for the government.
- The substantial contract value indicates a recognized and ongoing need for these services by the Army.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The Department of Defense is a major consumer of such services to support its vast operational and administrative needs. The market for these services is competitive, with numerous firms capable of providing specialized support. The size of this contract suggests it represents a significant portion of the functional support budget for Army ROTC.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless significant subcontracting opportunities arise.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.
Related Government Programs
- Army ROTC Program Management
- Department of Defense Training Support Contracts
- Federal Management Consulting Services
- Defense Human Resources Support
Risk Flags
- Contract Duration
- Contract Value
- Competition Level
Tags
defense, department-of-defense, department-of-the-army, army-rotc, functional-support, management-consulting, full-and-open-competition, firm-fixed-price, delivery-order, engility-services-llc, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $165.8 million to ENGILITY SERVICES, LLC. ARMY ROTC FUNCTIONAL SUPPORT
Who is the contractor on this award?
The obligated recipient is ENGILITY SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $165.8 million.
What is the period of performance?
Start: 2011-08-31. End: 2014-10-27.
What specific functional support services were included under this contract?
While the NAICS code 541612 indicates Human Resources Consulting Services, the term 'functional support' is broad. It likely encompassed a range of services critical to the operational efficiency of the Army ROTC program. This could include administrative support, logistical coordination, curriculum support, cadet support services, data management, and potentially advisory services related to program management and improvement. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. Understanding the specific deliverables is key to assessing the contract's true value and impact.
How does the $165.7 million contract value compare to historical spending on Army ROTC functional support?
The provided data shows a total award of $165,769,067.61 for this specific contract, which ran from August 2011 to October 2014. To compare this to historical spending, one would need to examine annual or multi-year spending reports for Army ROTC functional support over several preceding and subsequent fiscal years. This contract represents a significant investment over its ~3-year period. Without access to historical budget allocations and expenditures for similar support services, it's difficult to definitively state if this represents an increase, decrease, or stable level of spending. However, the magnitude suggests it was a substantial contract for its time.
What were the key performance indicators (KPIs) used to evaluate Engility Services, LLC's performance?
The provided data does not specify the Key Performance Indicators (KPIs) used for this contract. Typically, for functional support contracts, KPIs would relate to service delivery timeliness, accuracy, responsiveness, customer satisfaction (e.g., feedback from ROTC units), adherence to program requirements, and potentially cadet retention or program participation metrics influenced by the support. The contracting officer's representative (COR) would monitor these KPIs, and performance would be documented in contract performance reports. Failure to meet KPIs could lead to contract modifications, penalties, or non-renewal.
Were there any challenges or disputes encountered during the performance of this contract?
Information regarding specific challenges or disputes during the performance of this contract is not available in the provided data. Contract performance issues can range from minor delivery delays to significant disagreements over scope, quality, or payment. Such disputes are often documented in contract modification histories, claims files, or agency Inspector General reports. Without access to these internal records or public dispute dockets, it is impossible to determine if any significant challenges arose during the execution of this $165.7 million award to Engility Services, LLC.
What is the typical profit margin for companies providing similar functional support services to the DoD?
Profit margins for companies providing functional support services to the Department of Defense can vary significantly based on the type of service, contract structure (e.g., cost-plus vs. fixed-price), level of competition, and the contractor's overhead and efficiency. For firm-fixed-price contracts like this one, where the contractor assumes more risk, profit margins might be targeted higher than cost-reimbursable contracts. Industry averages for professional and management consulting services often fall in the range of 10-20% net profit, but this is a broad estimate. Specific margins are proprietary and depend heavily on the contractor's business strategy and negotiation outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation (UEI: 783837672)
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: $165,769,068
Exercised Options: $165,769,068
Current Obligation: $165,769,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW11D0014
IDV Type: IDC
Timeline
Start Date: 2011-08-31
Current End Date: 2014-10-27
Potential End Date: 2014-10-27 00:00:00
Last Modified: 2017-06-29
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