GSA awards $17M IT services contract to Engility Corp, raising questions on value and competition

Contract Overview

Contract Amount: $16,966,148 ($17.0M)

Contractor: Engility Corporation

Awarding Agency: General Services Administration

Start Date: 2005-02-10

End Date: 2010-08-09

Contract Duration: 2,006 days

Daily Burn Rate: $8.5K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY AND ENGINEERING SERVICES, SYSTEM ANALYSIS AND TEST SERVICES, CONFIGURATION MANAGEMENT SERVICES AND PROJECT OFFICE SUPPORT

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $17.0 million to ENGILITY CORPORATION for work described as: INFORMATION TECHNOLOGY AND ENGINEERING SERVICES, SYSTEM ANALYSIS AND TEST SERVICES, CONFIGURATION MANAGEMENT SERVICES AND PROJECT OFFICE SUPPORT Key points: 1. Contract awarded for IT, system analysis, and project support. 2. Engility Corporation is the sole awardee. 3. Contract duration spans over 5 years. 4. NAICS code 541511 indicates custom computer programming services.

Value Assessment

Rating: questionable

The contract's value of $16.96 million over five years for IT and engineering services appears high without clear benchmarks. Further analysis is needed to determine if this pricing is competitive for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, limiting competitive bidding. This approach may have resulted in a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for this significant IT services contract potentially means taxpayers did not receive the best possible value.

Public Impact

Citizens may be impacted by the quality and cost of IT services provided. Government efficiency could be affected by the chosen vendor's performance. Transparency in government contracting is a concern with sole-source awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming and related services. Benchmarks for similar IT services contracts are crucial for assessing value.

Small Business Impact

The contract data indicates that small businesses were not involved in this award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

Oversight is needed to ensure Engility Corporation delivers quality services within the awarded budget and contract terms, especially given the sole-source nature of the award.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, general-services-administration, va, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.0 million to ENGILITY CORPORATION. INFORMATION TECHNOLOGY AND ENGINEERING SERVICES, SYSTEM ANALYSIS AND TEST SERVICES, CONFIGURATION MANAGEMENT SERVICES AND PROJECT OFFICE SUPPORT

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 $17.0 million.

What is the period of performance?

Start: 2005-02-10. End: 2010-08-09.

What was the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves specific circumstances, such as a unique capability or urgent need. Without this justification, it's difficult to assess the fairness of the price. A thorough review of the procurement file is necessary to understand the rationale and the price negotiation process.

How does the per-unit cost of these IT services compare to industry benchmarks for similar contracts?

Comparing the per-unit cost to industry benchmarks is essential for evaluating value. Without specific cost breakdowns and access to comparative data for custom computer programming and system analysis services, it's challenging to definitively state if the pricing is competitive. Further investigation into market research conducted by GSA is required.

What performance metrics are in place to ensure the effectiveness of Engility Corporation's services?

Effective oversight requires clear performance metrics. The contract should outline specific deliverables, quality standards, and timelines. Regular performance reviews by the General Services Administration are crucial to ensure Engility Corporation is meeting its obligations and delivering value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $45,068,307

Exercised Options: $36,829,835

Current Obligation: $16,966,148

Parent Contract

Parent Award PIID: GS07T00BGD0023

IDV Type: GWAC

Timeline

Start Date: 2005-02-10

Current End Date: 2010-08-09

Potential End Date: 2010-08-09 00:00:00

Last Modified: 2012-05-07

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