DoD's $86.3M IT Services Contract with Engility Corporation: A Deep Dive

Contract Overview

Contract Amount: $86,344,771 ($86.3M)

Contractor: Engility Corporation

Awarding Agency: Department of Defense

Start Date: 2002-04-09

End Date: 2006-02-28

Contract Duration: 1,421 days

Daily Burn Rate: $60.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200208!000084!5700!GV68 !ESC/ACK !GS35F5396H !C!N! !N!F1962802F8162 !20020409!20040131!081080707!011147928!048341838!N!THE TITAN CORPORATION !1900 CAMPUS COMMONS DRIVE !RESTON !VA!20191!01375!037!24!ANDOVER ESTATES !ST. MARY S !MARYLAND !+000011005449!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $86.3 million to ENGILITY CORPORATION for work described as: 200208!000084!5700!GV68 !ESC/ACK !GS35F5396H !C!N! !N!F1962802F8162 !20020409!20040131!081080707!011147928!048341838!N!THE TITAN CORPORATION !1900 CAMPUS COMMONS DRIVE !RESTON !VA!20191!01375!037!24!ANDOVER ESTATES !ST. M… Key points: 1. Contract awarded for IT services, specifically 'Other Computer Related Services', totaling $86.3M. 2. Competition was 'Full and Open', suggesting a competitive bidding process. 3. The contract utilized a 'Time and Materials' pricing structure, which can pose cost control risks. 4. The sector is IT, with a focus on 'Electronics and Communication'. 5. The contract duration was 1421 days, indicating a significant, long-term engagement.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, while flexible, can lead to cost overruns if not closely monitored. Benchmarking against similar IT service contracts is difficult without more granular data on labor categories and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' indicates a robust bidding process, likely leading to competitive pricing. However, the 'Time and Materials' pricing model introduces potential for cost escalation over the contract's life.

Taxpayer Impact: While competition likely secured a reasonable initial price, the T&M structure necessitates vigilant oversight to ensure taxpayer funds are used efficiently and avoid unnecessary costs.

Public Impact

Significant taxpayer investment in IT services for the Department of Defense. Potential for cost overruns due to Time and Materials pricing model. Impact on the IT services market, particularly for 'Other Computer Related Services'. Long-term engagement suggests critical IT support functions are being outsourced.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Time and Materials pricing model
Lack of specific service details
Potential for cost escalation

Positive Signals

Full and Open Competition
Significant contract value
Long contract duration

Sector Analysis

This contract falls within the IT sector, specifically 'Other Computer Related Services' (NAICS 541519). The value of $86.3M is substantial for a single IT services contract, indicating a significant need within the Department of Defense.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The contract was awarded to Engility Corporation, a large business, suggesting limited direct opportunities for small businesses unless they were subcontractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA). Oversight would focus on ensuring adherence to contract terms, performance standards, and managing the Time and Materials pricing to control costs.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Time and Materials pricing model introduces cost uncertainty.
Lack of detailed service descriptions limits understanding of scope.
Potential for cost escalation over the contract duration.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.3 million to ENGILITY CORPORATION. 200208!000084!5700!GV68 !ESC/ACK !GS35F5396H !C!N! !N!F1962802F8162 !20020409!20040131!081080707!011147928!048341838!N!THE TITAN CORPORATION !1900 CAMPUS COMMONS DRIVE !RESTON !VA!20191!01375!037!24!ANDOVER ESTATES !ST. MARY S !MARYLAND !+000011005449!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !334290!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ENGILITY CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $86.3 million.

What is the period of performance?

Start: 2002-04-09. End: 2006-02-28.

What specific IT services were provided under this contract, and how did they align with DoD's strategic objectives?

The contract broadly covers 'Other Computer Related Services' (NAICS 541519) and 'Electronics and Communication'. Without further detail, it's difficult to ascertain the precise services. These likely included IT support, system maintenance, network management, or specialized technical services crucial for DoD operations. The alignment would depend on the specific projects undertaken, but generally, such services are fundamental to maintaining operational readiness and technological superiority.

What were the key risks associated with the Time and Materials pricing structure, and how were they mitigated?

The primary risk of Time and Materials (T&M) is the potential for cost overruns as contractor labor hours and material costs accumulate without a fixed ceiling. Mitigation strategies typically involve strict monitoring of hours, defined labor categories with capped rates, detailed invoicing, and robust government oversight to ensure efficiency and prevent scope creep. The 'Full and Open Competition' may have helped establish competitive baseline rates, but ongoing vigilance is crucial.

How effective was the 'Full and Open Competition' in ensuring value for money, considering the T&M pricing?

Full and Open Competition is generally effective in driving down initial prices by allowing all qualified vendors to bid. However, its effectiveness in ensuring long-term value for money with a T&M contract is contingent on robust post-award administration. While competition likely secured a favorable starting point, the T&M structure means the final cost is heavily influenced by actual effort. Effective oversight and management are paramount to realizing value and preventing costs from exceeding initial competitive expectations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5396H

IDV Type: FSS

Timeline