Engility Corporation awarded $50.18M for IT support, highlighting custom computer programming services
Contract Overview
Contract Amount: $50,183,195 ($50.2M)
Contractor: Engility Corporation
Awarding Agency: General Services Administration
Start Date: 2005-09-08
End Date: 2010-02-15
Contract Duration: 1,621 days
Daily Burn Rate: $31.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT SUPPORT FOR NETWORK OPERATION AND SECURITY CENTER USCENTAF
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
General Services Administration obligated $50.2 million to ENGILITY CORPORATION for work described as: IT SUPPORT FOR NETWORK OPERATION AND SECURITY CENTER USCENTAF Key points: 1. Value for money appears fair given the 5-year duration and scope of IT support. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is within network operation and security for USCENTAF, a critical function. 5. Sector positioning is within IT services, specifically custom computer programming. 6. The contract was awarded by the General Services Administration (GSA), a common procurement channel.
Value Assessment
Rating: fair
The total award of over $50 million for a 5-year IT support contract for network operations and security centers is substantial. Benchmarking against similar GSA IT support contracts of comparable duration and scope would be necessary for a precise value assessment. However, the Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation if not meticulously managed and monitored for efficiency. Without specific performance metrics or comparison data, it's challenging to definitively state if this represents excellent value, but it falls within a reasonable range for complex IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, implying it was competed under a broader indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle that allowed for full and open competition. The term 'competitive delivery order' suggests that multiple vendors were likely considered or bid on, leading to a more robust price discovery process. The specific number of bidders is not provided, but the competitive nature generally fosters better pricing outcomes compared to sole-source or limited competition scenarios.
Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs through vendor rivalry. This ensures that the government is receiving services at a more market-aligned price, maximizing the utility of public funds allocated for IT support.
Public Impact
The primary beneficiaries are the United States Central Command Air Forces (USCENTAF), receiving essential IT support for their network operations and security. Services delivered include custom computer programming, network operations, and security maintenance, crucial for military command and control. The geographic impact is likely concentrated around USCENTAF operational areas, potentially including bases in South Carolina where the contract was registered. Workforce implications include the creation or sustainment of jobs for IT professionals, programmers, and network security specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- The duration of the contract (over 5 years) increases the risk of technology obsolescence or changing requirements.
- Dependence on a single contractor for critical network operations and security could pose a risk if performance degrades.
Positive Signals
- Awarded through a competitive process, suggesting potential for good pricing.
- Contract supports critical network operations and security for a major military command.
- General Services Administration (GSA) oversight can provide a layer of established procurement and contract management expertise.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and IT support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. Comparable spending benchmarks would involve analyzing other GSA IT support contracts or similar large-scale IT service procurements for defense agencies. The market size for federal IT services is in the tens of billions annually, making this contract a notable, but not exceptionally large, component.
Small Business Impact
The data indicates that small business participation (sb) was false and the contract was not set aside for small businesses (ss). This suggests that the primary award was likely made to a large business (Engility Corporation). There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though large prime contractors often utilize small businesses for subcontracting opportunities.
Oversight & Accountability
The contract was awarded by the General Services Administration (GSA), which has established oversight mechanisms for federal procurements. As a competitive delivery order, it likely falls under the purview of GSA's Federal Acquisition Service. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would typically reside with the agency receiving the services (e.g., Department of Defense, if USCENTAF is under DoD) or potentially GSA's OIG.
Related Government Programs
- GSA IT Schedule Contracts
- Defense Information Technology Contracting
- Network Operations and Security Services
- Custom Computer Programming Services
- Federal Civilian IT Spending
Risk Flags
- Time and Materials Pricing Risk
- Potential for Scope Creep
- Long-Term IT Infrastructure Dependence
Tags
it-services, custom-computer-programming, network-operations, security-services, uscentaf, general-services-administration, gsa, competitive-delivery-order, time-and-materials, defense, south-carolina, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $50.2 million to ENGILITY CORPORATION. IT SUPPORT FOR NETWORK OPERATION AND SECURITY CENTER USCENTAF
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $50.2 million.
What is the period of performance?
Start: 2005-09-08. End: 2010-02-15.
What was the specific nature of the 'Custom Computer Programming Services' provided under this contract?
The provided data indicates the contract falls under NAICS code 541511, 'Custom Computer Programming Services'. This typically involves writing, modifying, testing, and supporting software to meet the specific needs of a client, rather than providing off-the-shelf software. For USCENTAF's network operations and security center, these services could have included developing custom security protocols, specialized network management tools, data analysis software for threat detection, or integrating disparate systems. The 'IT SUPPORT FOR NETWORK OPERATION AND SECURITY CENTER' description suggests the programming was likely geared towards enhancing the functionality, security, and efficiency of the existing network infrastructure and security operations.
How does the $50.18 million award compare to typical spending on similar IT support contracts for military commands?
The $50.18 million award over approximately five years (September 2005 to February 2010) averages around $10 million per year. This figure is substantial but not extraordinary for supporting the complex IT infrastructure of a major military command like USCENTAF. Comparable contracts for similar services (network operations, security, custom programming) for entities like Air Force commands or other branches can range from several million to tens or even hundreds of millions of dollars annually, depending on the scope, scale, and criticality of the operations supported. Factors such as the number of users, geographic spread of facilities, and the sophistication of the required security measures heavily influence contract values. This award appears to be within the expected range for its stated purpose and duration.
What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?
The primary risk associated with a Time and Materials (T&M) contract type, like the one used here (PT: TIME AND MATERIALS), is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used. This structure provides flexibility, which can be beneficial when the scope of work is not well-defined or is expected to change. However, it places a significant burden on the government to closely monitor contractor hours, material costs, and overall efficiency. Without stringent oversight, contractors may be incentivized to extend labor hours or use more expensive materials than necessary, leading to costs exceeding initial estimates. This necessitates robust government project management and surveillance to ensure value for money.
What does the contract's duration of 1621 days (approx. 4.4 years) imply about the stability of IT needs for USCENTAF?
A contract duration of 1621 days, approximately 4.4 years, suggests a relatively stable and ongoing requirement for IT support within the USCENTAF network operations and security center. Such a duration indicates that the services provided are not considered short-term or project-specific but rather essential for the continuous functioning of critical military IT infrastructure. This stability allows for deeper integration of the contractor's services and potentially more specialized development (as suggested by the custom programming aspect). However, it also increases the risk of technological obsolescence if the contract is not regularly reviewed and updated to reflect evolving IT standards and security threats.
How does the award of this contract by the General Services Administration (GSA) impact its oversight and execution?
When the General Services Administration (GSA) awards a contract, particularly through its Federal Acquisition Service (FAS), it leverages its expertise in government-wide procurement. GSA often manages large IDIQ vehicles or schedules under which individual delivery orders, like this one, are placed. This means oversight typically involves both GSA's contract management functions and the agency that ultimately benefits from the service (USCENTAF in this case). GSA's involvement suggests adherence to established federal acquisition regulations and best practices. The agency placing the order (USCENTAF) would be responsible for day-to-day performance monitoring, acceptance of services, and ensuring the contractor meets the requirements outlined in the delivery order. GSA provides the framework and initial award, while the end-user agency manages the ongoing performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 4TFL57052211
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, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,821,564
Exercised Options: $50,183,195
Current Obligation: $50,183,195
Parent Contract
Parent Award PIID: GS07T00BGD0023
IDV Type: GWAC
Timeline
Start Date: 2005-09-08
Current End Date: 2010-02-15
Potential End Date: 2010-02-15 00:00:00
Last Modified: 2014-03-11
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