Engility Corporation awarded $22.8M contract for computer systems design services by the Department of the Air Force
Contract Overview
Contract Amount: $22,821,319 ($22.8M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2002-08-22
End Date: 2009-10-28
Contract Duration: 2,624 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Defense obligated $22.8 million to ENGILITY CORPORATION for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 7 years indicates a long-term need for these services. 3. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 4. The award was made by the Department of the Air Force, a major defense agency. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 6. The contract was awarded in Massachusetts, potentially impacting the local economy and workforce.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $22.8 million over approximately 7 years suggests an average annual value of around $3.2 million. This figure needs to be assessed against the scope and complexity of the computer systems design services provided. Without more granular data on the specific tasks performed and the labor categories involved, it is difficult to definitively assess if the pricing represents excellent value for money. However, the duration and scale indicate a significant investment by the Air Force.
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 two bids suggests a moderate level of competition for this requirement. While two bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, including the evaluation criteria and the number of proposals received, would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The presence of multiple bidders suggests that the government likely received competitive pricing, although the exact number of bidders limits the extent of this benefit.
Public Impact
The Department of the Air Force is the primary beneficiary, receiving computer systems design services. The services delivered are crucial for the operational efficiency and technological advancement of Air Force systems. The geographic impact is primarily in Massachusetts, where the contract was awarded. Workforce implications may include employment opportunities for computer systems designers and related professionals in the Massachusetts area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
- The labor hours contract type can lead to cost overruns if not managed diligently, requiring robust oversight.
- Limited competition (two bidders) may have restricted the potential for achieving the lowest possible price.
- The long contract duration could pose a risk if technology or requirements change significantly over time.
Positive Signals
- Awarded under full and open competition, indicating an effort to maximize the pool of potential offerors.
- The contract addresses a clear need for computer systems design services within a major defense agency.
- The award to Engility Corporation suggests a level of trust and past performance recognized by the Air Force.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design. The IT services market is vast and highly competitive, with significant government spending allocated to systems integration, software development, and IT support. The Department of Defense is a major consumer of these services, often requiring specialized expertise for complex military systems. Benchmarks for similar contracts would typically consider the scope of work, the level of security clearance required, and the specific technologies involved.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Engility Corporation, may still engage small businesses as subcontractors to fulfill portions of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that larger businesses were eligible to compete and potentially win the entire contract.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Air Force. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases, though detailed performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Contracting Office (DITCO) contracts
- Air Force Network Integration Center (AFNIC) support contracts
- General Services Administration (GSA) Federal Supply Schedule (FSS) IT contracts
- IT Professional Services contracts
Risk Flags
- Potential for cost overruns due to labor hours contract type.
- Limited competition (two bidders) may impact price optimization.
- Lack of detailed performance data hinders value assessment.
- Long contract duration could lead to obsolescence risk if not managed.
Tags
it-services, computer-systems-design, department-of-defense, air-force, massachusetts, labor-hours, full-and-open-competition, moderate-value, long-term-contract, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2002-08-22. End: 2009-10-28.
What specific computer systems design services were provided under this contract?
The provided data indicates the contract is for 'Computer Systems Design Services' under NAICS code 541512. However, it does not detail the specific services rendered. Typically, this category includes designing and integrating computer hardware and software systems. This could encompass activities such as requirements analysis, system architecture design, software development and integration, hardware configuration, network design, and testing. Without further documentation, the precise nature of Engility Corporation's contribution to the Air Force's computer systems remains unspecified.
How does the $22.8 million award compare to similar computer systems design contracts awarded by the Air Force?
Comparing this $22.8 million contract to similar ones requires access to a broader dataset of Air Force IT contracts. However, as a 7-year contract (2002-2009), its average annual value is approximately $3.2 million. This falls within a moderate range for IT services contracts, which can vary significantly in value based on scope, duration, and complexity. Larger, more complex system integration projects or enterprise-wide IT overhauls can reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused design tasks might be awarded for less. This contract's value suggests a substantial, but not exceptionally large, engagement.
What is Engility Corporation's track record with the Department of Defense?
Engility Corporation (which later merged with TASC and became part of SAIC) had a significant track record with the Department of Defense prior to its acquisition. They were known for providing a wide range of services, including IT, engineering, and mission support. The award of this $22.8 million contract by the Air Force in 2002 suggests they were a recognized and capable provider at the time. A comprehensive assessment would involve reviewing their historical contract awards, performance evaluations (e.g., CPARS), and any past issues or successes with DoD agencies.
What are the potential risks associated with a labor hours contract for computer systems design?
Labor hours contracts, like this one, offer flexibility by allowing the government to procure services as needed without defining the exact quantity upfront. However, risks include potential cost overruns if the effort required is underestimated or if work is inefficiently performed. The government must implement strong oversight to monitor hours worked, ensure fair labor rates, and verify that the work performed aligns with contract objectives. Without diligent management, the total cost can exceed initial expectations, and the value for money may be diminished compared to a fixed-price contract where the scope and cost are clearly defined.
How has spending on computer systems design services by the Air Force evolved since this contract was awarded?
Spending on computer systems design services by the Air Force has likely increased significantly and evolved in nature since this contract (2002-2009). The period saw a rise in cloud computing adoption, cybersecurity demands, data analytics, and agile development methodologies. While this contract focused on traditional systems design, contemporary Air Force IT spending is heavily influenced by digital transformation initiatives, artificial intelligence, and modernizing legacy systems. The overall budget allocated to IT services by the DoD has grown substantially, reflecting the increasing reliance on technology for mission success.
What was the competitive landscape like for IT services contracts of this size during the early 2000s?
During the early 2000s, the IT services market for government contracts was robust, with a mix of large prime contractors and specialized small businesses. Contracts like this one, awarded under full and open competition, typically attracted multiple bidders. The landscape was characterized by a strong demand for systems integration, software development, and infrastructure support, driven by military modernization efforts and agency IT upgrades. While competition existed, the number of bidders could vary significantly based on the specific requirements, security clearances needed, and the perceived profitability of the contract.
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: 2
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
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: 2002-08-22
Current End Date: 2009-10-28
Potential End Date: 2009-10-28 00:00:00
Last Modified: 2010-09-09
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