DoD's $50M Computer Systems Design Services Contract with Engility Services, LLC awarded under Full and Open Competition
Contract Overview
Contract Amount: $50,272,109 ($50.3M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2001-08-30
End Date: 2014-09-30
Contract Duration: 4,779 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE
Sector: IT
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $50.3 million to ENGILITY SERVICES, LLC for work described as: Key points: 1. Contract awarded to Engility Services, LLC for Computer Systems Design Services. 2. Totaling over $50 million, this contract spans nearly 13 years. 3. Awarded under Full and Open Competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed carefully. 5. This falls under the IT sector, specifically computer systems design.
Value Assessment
Rating: fair
The contract value of $50.3M over nearly 13 years averages around $3.87M annually. Without specific benchmarks for similar computer systems design services contracts of this duration and scope, it's difficult to definitively assess if this pricing is excellent or concerning. The Cost Plus Incentive fee structure introduces variability.
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. This method generally promotes price discovery and competitive pricing, as multiple vendors vie for the contract.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing for taxpayers. However, the Cost Plus Incentive fee type could potentially lead to higher costs than fixed-price contracts if performance incentives are not well-defined or managed.
Public Impact
Taxpayers may benefit from competitive pricing due to the full and open competition. The long duration of the contract raises questions about adaptability to evolving technology. The Cost Plus Incentive fee structure requires careful oversight to control costs. The contract supports critical IT infrastructure for the Department of the Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive fee structure can lead to cost overruns.
- Long contract duration (nearly 13 years) may not keep pace with technological advancements.
- Lack of specific performance metrics or benchmarks makes value assessment difficult.
Positive Signals
- Awarded under Full and Open Competition, promoting competitive pricing.
- Contract supports essential computer systems design services for the Air Force.
- Significant contract value indicates a substantial need and potential for economies of scale.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. Spending in this area is crucial for government modernization and operational efficiency. Benchmarks for IT services vary widely based on complexity, duration, and specific services offered.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct analysis of small business participation or impact from this specific award.
Oversight & Accountability
The 'Cost Plus Incentive' contract type necessitates robust oversight to ensure cost control and effective performance. The Department of Defense and the Air Force would need strong program management and auditing capabilities to monitor expenditures and verify that incentives align with desired outcomes and taxpayer value.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive fee structure carries inherent risk of cost overruns.
- Long contract duration may lead to technological obsolescence.
- Lack of detailed performance metrics in the provided data hinders thorough value assessment.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, al, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to ENGILITY SERVICES, LLC. See the official description on USAspending.
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 Air Force).
What is the total obligated amount?
The obligated amount is $50.3 million.
What is the period of performance?
Start: 2001-08-30. End: 2014-09-30.
What were the specific performance metrics and incentive structures within the Cost Plus Incentive fee agreement, and how effectively were they managed to control costs and ensure value for the Air Fo
The provided data does not detail the specific performance metrics or incentive structures of the Cost Plus Incentive fee. This information is crucial for a thorough value assessment. Effective management would involve clear, measurable objectives tied to the incentives, regular performance reviews, and rigorous financial oversight to prevent cost overruns and ensure the contractor's efforts align with the Air Force's needs and budget.
Given the nearly 13-year duration, what mechanisms were in place to ensure the computer systems design remained current with technological advancements and did not become obsolete?
The long duration of this contract, spanning from 2001 to 2014, raises concerns about technological relevance. Without specific contract clauses for technology refresh, adaptation, or phased obsolescence planning, the systems designed may have become outdated. The Air Force would have needed proactive management and potentially contract modifications to ensure the services remained effective and aligned with evolving IT landscapes.
How did the 'Full and Open Competition' process translate into actual cost savings or superior service quality compared to other potential contracting methods for this type of IT service?
Full and Open Competition generally aims to achieve cost savings and optimal service quality by leveraging market competition. While this method suggests a competitive bidding environment, the ultimate impact on cost savings and quality is contingent on the specific bids received, the negotiation process, and the chosen contract type (Cost Plus Incentive). Without comparative data or post-award performance analysis, it's difficult to quantify the precise benefits realized solely from the competition method.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Address: 55 WALKERS BROOK DRIVE, READING, MA, 06
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,382,854
Exercised Options: $60,983,164
Current Obligation: $50,272,109
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2001-08-30
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-10-07
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