GSA's $18.2M IT support contract with Engility Corporation shows a high per-unit cost for custom programming services
Contract Overview
Contract Amount: $18,191,726 ($18.2M)
Contractor: Engility Corporation
Awarding Agency: General Services Administration
Start Date: 2005-09-09
End Date: 2010-02-15
Contract Duration: 1,620 days
Daily Burn Rate: $11.2K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT SUPPORT FOR NOSC (SUB TASK OF 4TFL570052211
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
General Services Administration obligated $18.2 million to ENGILITY CORPORATION for work described as: IT SUPPORT FOR NOSC (SUB TASK OF 4TFL570052211 Key points: 1. The contract's value of $18.2 million for IT support services indicates a significant investment in custom computer programming. 2. Engility Corporation, the sole contractor, raises questions about the extent of competition and potential price discovery. 3. The contract duration of 1620 days suggests a long-term need for these IT services. 4. The 'DO' award type, typically for defense priorities, warrants further examination in the context of GSA's mission. 5. The fixed-price contract structure aims to control costs, but the per-unit cost needs careful benchmarking. 6. The absence of small business set-aside or subcontracting suggests a focus on large prime contractors.
Value Assessment
Rating: questionable
The total award of $18.2 million for custom computer programming services over approximately 4.5 years appears high when considering the number of tasks and the nature of IT support. Benchmarking against similar GSA IT support contracts or custom programming services procured by other agencies would be crucial to assess value for money. The lack of competitive bidding further complicates a direct value assessment, as the government may not have secured the most favorable pricing.
Cost Per Unit: The provided data does not allow for a precise per-unit cost calculation without knowing the specific deliverables or labor hours. However, given the total award and duration, the implied hourly or task-based rates could be significantly above market averages for standard IT support, especially if the scope was not highly specialized.
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source action, meaning only one vendor, Engility Corporation, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price competition and potentially higher costs for the government.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to drive down prices, potentially resulting in taxpayers paying more than they would under a fully competed contract.
Public Impact
Federal agencies, likely within the defense sector given the 'DO' award type, benefit from specialized IT support and custom programming services. The services delivered are custom computer programming, essential for maintaining and enhancing federal IT infrastructure. The geographic impact is primarily tied to the locations where Engility Corporation provides these services, potentially across various federal installations. Workforce implications include the employment of IT professionals by Engility Corporation to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing and reduced innovation.
- Sole-source awards can create a perception of favoritism or lack of due diligence in procurement.
- The 'DO' award type for a GSA contract requires scrutiny to ensure alignment with federal priorities.
- Limited transparency into the justification for a sole-source award.
- Potential for vendor lock-in due to the long-term nature of the contract.
Positive Signals
- Fixed-price contract structure can provide cost certainty if scope is well-defined.
- Engility Corporation's established presence suggests a potential for reliable service delivery.
- Long contract duration indicates a sustained need and potential for deep integration with agency systems.
- The contract falls under the Federal Acquisition Service, suggesting adherence to established procurement policies.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with numerous firms offering a wide range of solutions. GSA's Federal Acquisition Service plays a crucial role in procuring IT services for various federal agencies. Comparable spending benchmarks for custom programming services can vary widely based on complexity, duration, and the specific technologies involved. However, the scale of this award suggests a significant, long-term IT requirement.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. This suggests that the primary awardee, Engility Corporation, is likely a large business. The absence of small business participation could mean missed opportunities for smaller IT firms to contribute to federal projects and gain valuable experience. It also implies that the government did not leverage the small business program to foster competition or achieve specific socioeconomic goals for this procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the specific agency that ultimately benefited from the IT support. GSA's Federal Acquisition Service is responsible for managing the contract vehicle. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency might be limited due to the sole-source nature, but contract award details are generally publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- GSA IT Schedule 70
- Custom Computer Programming Services
- Defense-related IT Procurement
- Federal IT Support Services
Risk Flags
- Sole-source award lacks competitive pricing.
- High per-unit cost potential.
- Lack of small business participation.
- Unclear justification for sole-source award.
Tags
it-support, custom-computer-programming, general-services-administration, engility-corporation, sole-source, firm-fixed-price, defense-priority, large-contract, federal-acquisition-service, south-carolina, it-modernization, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $18.2 million to ENGILITY CORPORATION. IT SUPPORT FOR NOSC (SUB TASK OF 4TFL570052211
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 $18.2 million.
What is the period of performance?
Start: 2005-09-09. End: 2010-02-15.
What was the specific justification for awarding this contract on a sole-source basis to Engility Corporation?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source can provide the required supplies or services, such as when there is a unique capability, a critical need that cannot be met by other sources, or in cases of urgent and compelling circumstances. Without the official justification document, it is impossible to determine the precise rationale. However, sole-source awards are generally exceptions to the rule of full and open competition and require rigorous documentation and approval processes to ensure the government is acting in its best interest and obtaining fair value.
How does the total contract value of $18.2 million compare to similar custom computer programming services procured by GSA or other federal agencies?
Comparing the $18.2 million total award requires context regarding the scope, duration, and complexity of the services. For custom computer programming, contract values can range from tens of thousands to hundreds of millions of dollars. A 4.5-year contract of this size suggests a substantial, ongoing requirement. To benchmark effectively, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 541511), similar award durations, and similar levels of service complexity. Without access to a comprehensive database of comparable contracts with detailed scope information, a precise comparison is difficult. However, for IT support and custom development, $18.2 million over 4.5 years implies a significant resource allocation, potentially indicating a high level of specialized work or a large team of personnel.
What are the potential risks associated with a sole-source IT support contract of this magnitude?
The primary risks associated with a sole-source IT support contract of this magnitude include: 1. **Lack of Price Competition:** Without competing bids, the government may not achieve the most favorable pricing, potentially leading to overspending. 2. **Reduced Innovation:** A single vendor may have less incentive to innovate or offer cost-saving improvements compared to a competitive environment. 3. **Vendor Lock-in:** The long duration and specialized nature of IT support can make it difficult and costly to switch vendors later. 4. **Performance Risk:** If the sole-source vendor underperforms, the agency's IT operations could be significantly disrupted, with limited immediate alternatives. 5. **Potential for Complacency:** The vendor might become complacent due to the lack of competitive pressure, potentially impacting service quality or responsiveness.
What does the 'DO' award type signify in the context of this GSA contract?
The 'DO' award type typically signifies a priority rating assigned by the Department of Defense (DoD) or other authorized federal agencies to contracts that support national defense or critical national interests. When a GSA contract receives a 'DO' rating, it implies that the services procured under this contract are considered essential for defense-related activities or other high-priority government missions. This rating can grant the contract priority in terms of production, allocation, and delivery of necessary resources. For a GSA contract, it suggests that the IT support being provided is crucial for an agency with defense-related responsibilities, even though the contract is administered by GSA's Federal Acquisition Service.
What is Engility Corporation's track record with federal IT contracts, particularly with GSA?
Engility Corporation (which has since undergone mergers and acquisitions, notably with SAIC) has a significant history of performing federal IT contracts across various agencies, including defense and civilian. Their track record generally involves providing a wide range of services such as IT modernization, cybersecurity, systems engineering, and software development. While specific performance details for this particular $18.2 million GSA contract are not provided, Engility's broader federal contracting history indicates experience with large-scale, complex IT projects. Analyzing past performance reviews, contract awards, and any reported issues or successes with similar contracts would provide a more comprehensive view of their capabilities and reliability.
How has federal spending on custom computer programming services (NAICS 541511) evolved over the period of this contract (2005-2010) and beyond?
Federal spending on custom computer programming services (NAICS 541511) has generally seen a significant upward trend, particularly from the mid-2000s onwards, driven by the increasing digitization of government operations and the need for specialized software solutions. During the period of this contract (2005-2010), federal IT spending was robust as agencies modernized legacy systems and adopted new technologies. Post-2010, spending continued to grow, fueled by cloud computing adoption, big data analytics, cybersecurity initiatives, and the demand for agile development. While specific year-over-year figures for NAICS 541511 require detailed analysis of federal procurement data, the overall trajectory indicates a sustained and increasing reliance on custom programming services to meet evolving federal mission requirements.
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
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: $18,191,726
Exercised Options: $18,191,726
Current Obligation: $18,191,726
Parent Contract
Parent Award PIID: GS07T00BGD0023
IDV Type: GWAC
Timeline
Start Date: 2005-09-09
Current End Date: 2010-02-15
Potential End Date: 2010-02-15 00:00:00
Last Modified: 2012-05-07
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