DoD's $58M Space Superiority R&D Contract Awarded to Engility Services, LLC

Contract Overview

Contract Amount: $58,082,263 ($58.1M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-05-01

End Date: 2015-08-31

Contract Duration: 2,313 days

Daily Burn Rate: $25.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE SUPERIORITY ARCH DEVELOPMENT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $58.1 million to ENGILITY SERVICES, LLC for work described as: SPACE SUPERIORITY ARCH DEVELOPMENT Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Engility Services, LLC secured the $58M definitive contract. 3. The contract was not competed, raising potential concerns about price discovery. 4. Spending falls under the R&D sector, specifically related to space superiority. 5. The contract duration was 2313 days.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to benchmark pricing against similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for this $58M contract may result in taxpayers paying more than necessary for the research and development services.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The focus on space superiority R&D could have significant national security implications. The long contract duration (2313 days) suggests a substantial and ongoing project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money, especially when not competed.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded to Engility Services, LLC as a sole-source definitive contract.

Oversight & Accountability

The lack of competition warrants close oversight to ensure the contractor is delivering on objectives efficiently and that costs are reasonable. Accountability for performance and spending is critical given the sole-source nature.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.1 million to ENGILITY SERVICES, LLC. SPACE SUPERIORITY ARCH DEVELOPMENT

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 $58.1 million.

What is the period of performance?

Start: 2009-05-01. End: 2015-08-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's impossible to ascertain the specific rationale. However, sole-source contracts often bypass competitive processes, potentially leading to higher costs and reduced transparency for taxpayers.

What specific space superiority technologies were developed under this contract?

The contract details do not specify the exact technologies developed. However, 'Space Superiority' implies research into systems and capabilities designed to ensure dominance in the space domain, which could include satellite technology, anti-satellite measures, space situational awareness, or command and control systems.

How was the fixed fee determined in this Cost Plus Fixed Fee contract?

In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee is negotiated at the outset and represents the contractor's profit. It's typically a percentage of the estimated cost or a fixed dollar amount. The negotiation process aims to set a fee that is fair compensation for the contractor's effort and risk, but without competition, the benchmark for fairness is less clear.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

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

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: $123,114,044

Exercised Options: $65,831,899

Current Obligation: $58,082,263

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2009-05-01

Current End Date: 2015-08-31

Potential End Date: 2015-08-31 00:00:00

Last Modified: 2022-04-02

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