Engility Corp. awarded $113.5M for computer systems design services by the Department of Defense
Contract Overview
Contract Amount: $113,463,162 ($113.5M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2002-03-29
End Date: 2007-06-30
Contract Duration: 1,919 days
Daily Burn Rate: $59.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $113.5 million to ENGILITY CORPORATION for work described as: Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 5 years indicates a long-term need for these services. 4. The Time and Materials pricing structure may pose cost control challenges if not managed effectively. 5. The contractor, Engility Corporation, has a history of performing government contracts. 6. The services fall under the broad category of computer systems design, a critical area for defense operations.
Value Assessment
Rating: fair
The contract value of $113.5 million over roughly five years averages to approximately $22.7 million annually. Benchmarking this against similar large-scale IT services contracts within the Department of Defense is challenging without more specific service details. However, the Time and Materials (T&M) pricing model, while common, can lead to higher costs if not closely monitored for scope creep and labor hour efficiency. The absence of a specific contract ceiling or detailed performance metrics makes a definitive value assessment difficult.
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 a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value available in the market for computer systems design services.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to vie for government work, potentially leading to cost savings.
Public Impact
The Department of Defense benefits from enhanced computer systems design and support, crucial for its operational effectiveness. Military personnel and civilian employees relying on these IT systems will experience improved functionality and reliability. The contract supports the modernization and maintenance of critical defense IT infrastructure. The geographic impact is likely nationwide, supporting DoD operations across various installations. The contract may indirectly support a workforce skilled in computer systems design and IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can lead to cost overruns if not rigorously managed.
- Lack of specific performance metrics makes it difficult to assess contractor efficiency.
- The broad nature of 'Computer Systems Design Services' could lead to scope creep if not clearly defined.
- Reliance on a single contractor for a significant duration may limit future flexibility.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
- The contract addresses a core IT need for a major federal agency.
- The contractor, Engility Corporation, has experience in government contracting.
- The contract duration indicates a stable, long-term requirement being met.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies like the Department of Defense being major consumers. This contract represents a portion of the broader spending on IT support, which includes software development, system integration, network management, and cybersecurity. Comparable spending benchmarks would typically be found within IT services categories for large federal agencies, often measured in billions annually across the government.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Engility Corporation, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's terms, which are not detailed here. The primary impact is on large system integrators rather than the small business IT ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. They are responsible for ensuring contractor performance, compliance with contract terms, and proper payment. Transparency is generally facilitated through contract databases like FPDS-NG, where award details are published. However, specific oversight mechanisms like regular performance reviews or independent audits are not detailed in the provided data.
Related Government Programs
- Department of Defense IT Services Contracts
- Computer Systems Design and Related Services
- Time and Materials Contracts
- Large Federal IT Procurements
Risk Flags
- Time and Materials Pricing
- Potential for Scope Creep
- Long Contract Duration
Tags
it-services, computer-systems-design, department-of-defense, engility-corporation, time-and-materials, full-and-open-competition, large-contract, defense-contract-management-agency, virginia, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.5 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $113.5 million.
What is the period of performance?
Start: 2002-03-29. End: 2007-06-30.
What is Engility Corporation's track record with the Department of Defense?
Engility Corporation, prior to its acquisition by SAIC in 2018, had a substantial track record with the Department of Defense. They were a significant provider of IT and engineering services across various defense agencies. Their portfolio included work in areas such as enterprise IT, C4ISR systems, mission support, and professional services. The provided data shows a specific award from 2002, indicating their involvement during that period. A comprehensive review would involve examining their contract history for performance ratings, past performance evaluations, and any instances of contract disputes or terminations to fully assess their reliability and capability in fulfilling defense requirements.
How does the $113.5 million value compare to similar IT services contracts awarded by the DoD during that period?
The $113.5 million award to Engility Corporation for computer systems design services, awarded in 2002 and ending in 2007, represents a significant but not extraordinary sum for large-scale IT support contracts within the Department of Defense. During the early to mid-2000s, the DoD was heavily investing in IT modernization, network infrastructure, and systems integration to support its global operations. Contracts of this magnitude were common for providing comprehensive IT solutions, including system design, implementation, and maintenance. Without specific details on the scope of services, it's difficult to make a precise comparison, but it aligns with the typical range for major IT service contracts awarded to prime contractors during that era.
What are the primary risks associated with a Time and Materials (T&M) contract of this size?
The primary risk with a Time and Materials (T&M) contract of this magnitude ($113.5 million) is the potential for cost overruns due to a lack of a fixed ceiling on the total price. The government pays for the actual labor hours expended and the cost of materials used. This pricing model can incentivize contractors to extend project timelines or increase labor hours if not managed meticulously. Key risks include scope creep, where the project's requirements expand beyond the initial agreement without a corresponding adjustment in price controls, and potential inefficiencies in labor utilization. Effective oversight, detailed tracking of hours and materials, and strong program management are crucial to mitigate these risks and ensure value for taxpayer money.
How effective are 'full and open competition' awards in ensuring value for money in IT services?
Awards made under 'full and open competition' are generally considered effective in ensuring value for money for IT services. This procurement method allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and encourages innovation. The agency can evaluate proposals based on a combination of price and technical merit, selecting the offer that provides the best overall value. However, the effectiveness is contingent on the clarity of the solicitation, the rigor of the evaluation process, and the government's ability to accurately define its needs. In IT services, where requirements can be complex and evolve, robust source selection criteria and diligent contract administration are vital to realizing the full value promised by open competition.
What is the typical annual spending for computer systems design services within the DoD?
The Department of Defense is one of the largest federal purchasers of IT services, including computer systems design. Annual spending can fluctuate significantly based on strategic priorities, technological advancements, and specific program requirements. Historically, the DoD's IT budget runs into the tens of billions of dollars annually. Within this, spending on computer systems design, integration, and related services constitutes a substantial portion. While the $113.5 million award to Engility represents a specific contract, the DoD's overall annual expenditure in this category is likely in the billions, reflecting the vast scale of its IT infrastructure and operational needs.
What are the implications of the contract ending in 2007 for current DoD IT infrastructure?
The contract ending in 2007 implies that the specific systems or services provided by Engility Corporation under this award were either completed, transitioned to another contractor, or absorbed into different ongoing contracts. For the current DoD IT infrastructure, this means that the systems supported by this particular contract have long since been subject to updates, replacements, or re-competition. The technologies and methodologies prevalent in 2002-2007 have largely been superseded by advancements in cloud computing, cybersecurity, artificial intelligence, and agile development practices. Therefore, the direct relevance of this specific 2002 award to today's DoD IT infrastructure is minimal, serving more as a historical data point.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 700 TECHNOLOGY PARK DR, BILLERICA, MA, 90
Business Categories: Category Business, Small Business
Parent Contract
Parent Award PIID: GS35F4712G
IDV Type: FSS
Timeline
Start Date: 2002-03-29
Current End Date: 2007-06-30
Potential End Date: 2007-06-30 00:00:00
Last Modified: 2014-09-30
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