DoD's $637.6M R&D Contract with Engility Services: Limited Competition Raises Concerns
Contract Overview
Contract Amount: $63,760,712 ($63.8M)
Contractor: Engility Services, LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-14
End Date: 2015-10-14
Contract Duration: 1,034 days
Daily Burn Rate: $61.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LSMA FINAL BRIDGE IGF::OT::IGF
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $63.8 million to ENGILITY SERVICES, LLC for work described as: LSMA FINAL BRIDGE IGF::OT::IGF Key points: 1. Significant spending on R&D services. 2. Engility Services, LLC is the sole awardee. 3. Contract duration is over 1000 days. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for R&D can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables and comparable projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a large contract may result in suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration suggests critical, ongoing R&D needs for the Department of Defense. Lack of small business involvement could miss opportunities for innovation and economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Supports critical R&D needs
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
The contract does not indicate any provisions or participation for small businesses. This is a missed opportunity to foster innovation and support smaller entities within the R&D landscape.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and managing costs effectively. Accountability for R&D outcomes is paramount.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of bidding.
- No small business participation.
- Cost-plus-fixed-fee can incentivize cost overruns.
- Limited transparency on specific R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.8 million to ENGILITY SERVICES, LLC. LSMA FINAL BRIDGE IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is ENGILITY SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $63.8 million.
What is the period of performance?
Start: 2012-12-14. End: 2015-10-14.
What specific R&D objectives were pursued under this contract, and how do they align with DoD's strategic goals?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. While specific objectives are not detailed, such R&D typically aims to advance technological capabilities, enhance national security, and maintain military superiority. Alignment with strategic goals would depend on the precise nature of the research conducted and its contribution to long-term defense objectives.
Given the sole-source nature, what mechanisms were in place to ensure fair and reasonable pricing?
For sole-source contracts, agencies typically rely on cost analysis, technical evaluations, and sometimes independent government cost estimates to determine fair and reasonable pricing. However, without competition, the inherent pressure to offer the lowest price is absent, making robust internal review and negotiation critical to mitigate potential overpricing.
How was the effectiveness of the R&D outcomes measured and validated?
Effectiveness of R&D outcomes is usually measured through technical reviews, prototype demonstrations, performance metrics, and successful integration into systems or operational use. For this contract, the agency would need to have established clear milestones and deliverables, with rigorous testing and validation processes to confirm the value and applicability of the research conducted.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Science Applications International Corporation (UEI: 078745061)
Address: 35 NEW ENGLAND BUSINESS CENTER 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: $131,884,587
Exercised Options: $68,021,832
Current Obligation: $63,760,712
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-14
Current End Date: 2015-10-14
Potential End Date: 2015-10-14 00:00:00
Last Modified: 2021-02-24
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