GSA's $24.2M contract for automation support to Engility Corporation shows fair value with a moderate per-unit cost

Contract Overview

Contract Amount: $24,215,016 ($24.2M)

Contractor: Engility Corporation

Awarding Agency: General Services Administration

Start Date: 2005-02-15

End Date: 2010-08-14

Contract Duration: 2,006 days

Daily Burn Rate: $12.1K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE REGIONAL AUTOMATION SUPPORT.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $24.2 million to ENGILITY CORPORATION for work described as: PROVIDE REGIONAL AUTOMATION SUPPORT. Key points: 1. The contract's value of $24.2 million over its period of performance suggests a moderate annual spend. 2. Engility Corporation, a known entity in federal contracting, was awarded this contract. 3. The contract was awarded under a firm-fixed-price structure, indicating predictable costs for the government. 4. The duration of the contract, spanning over five years, allowed for sustained support. 5. The services provided fall under custom computer programming, a common IT service category. 6. The contract was awarded by the General Services Administration, a key procurement agency.

Value Assessment

Rating: fair

The total contract value of $24.2 million spread over approximately 5.5 years results in an average annual spend of around $4.4 million. This figure appears reasonable for a contract of this nature, providing custom computer programming services. Benchmarking against similar contracts for IT support services suggests that this level of expenditure is within expected ranges for federal agencies requiring specialized automation and programming assistance. The firm-fixed-price nature of the contract helps in managing budgetary expectations and avoiding cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Without details on whether it was competed openly, through limited sources, or awarded sole-source, it is difficult to assess the effectiveness of the procurement process. A fully and openly competed contract typically fosters better price discovery and potentially lower costs for the government due to a wider range of offers. Conversely, limited or sole-source awards may indicate specific circumstances or a lack of available qualified bidders.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Strong competition generally leads to more competitive pricing, ensuring that federal funds are used efficiently. If this contract was not competitively bid, taxpayers may have paid a premium.

Public Impact

Federal agencies requiring custom computer programming and automation support benefited from this contract. The services delivered likely enhanced operational efficiency and technological capabilities within the General Services Administration. The geographic impact is primarily within Virginia, where the contract was administered. The contract supported roles within the IT and programming sectors, potentially impacting the federal workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under custom computer programming services. The IT services market for the federal government is substantial, with agencies consistently seeking support for modernization, automation, and cybersecurity. Contracts like this are crucial for maintaining and upgrading the technological infrastructure that supports government operations. Comparable spending benchmarks in this area often vary widely based on the complexity of the services, the specific technologies involved, and the duration of the engagement.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to a larger entity like Engility Corporation suggests that opportunities for small businesses would likely arise through subcontracting if Engility chose to engage them, but this is not guaranteed or mandated by the contract's structure.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance and performance. Accountability measures would typically involve performance reviews, adherence to contract terms, and financial audits. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Risk Flags

Tags

it-services, custom-computer-programming, general-services-administration, engility-corporation, firm-fixed-price, large-contract, virginia, federal-acquisition-service, automation-support

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.2 million to ENGILITY CORPORATION. PROVIDE REGIONAL AUTOMATION 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 $24.2 million.

What is the period of performance?

Start: 2005-02-15. End: 2010-08-14.

What was the specific nature of the 'automation support' provided under this contract?

The contract description states 'PROVIDE REGIONAL AUTOMATION SUPPORT.' While the exact nature of the automation is not detailed in the provided data, it typically refers to the use of technology to perform tasks that were previously done manually or to improve the efficiency of existing processes. This could encompass a wide range of activities, such as developing software to automate data entry, implementing workflow management systems, creating scripts for system administration, or integrating different software applications to streamline operations within a specific region served by the General Services Administration. The 'regional' aspect suggests the support was tailored to the needs of a particular geographic area or set of field offices.

How does the per-unit cost, if calculable, compare to industry benchmarks for custom computer programming?

Calculating a precise per-unit cost is challenging without knowing the specific units of service delivered (e.g., hours, lines of code, completed modules). However, the total contract value of $24.2 million over approximately 66 months (February 2005 to August 2010) yields an average monthly cost of roughly $367,000. If we assume a team of programmers, this would translate to a blended hourly rate that needs to be benchmarked against prevailing rates for custom computer programming services during that period. Federal IT contracting rates can vary significantly based on skill sets, security clearances, and geographic location. Without more granular data on deliverables and labor mix, a definitive comparison is difficult, but the overall contract value suggests a substantial, ongoing support engagement.

What is Engility Corporation's track record with similar federal IT contracts?

Engility Corporation (and its predecessor entities like TASC, which was acquired by Engility) has a significant history of performing federal IT services contracts across various agencies. Their portfolio typically includes areas such as systems engineering, software development, cybersecurity, and IT infrastructure support. Prior to its acquisition by SAIC, Engility held numerous large contracts involving complex IT solutions for defense, intelligence, and civilian agencies. Their track record generally indicates experience in delivering large-scale IT programs, though like any large contractor, they would have faced performance reviews and potential challenges on specific contracts. This particular contract with GSA would have been part of their broader IT service offerings.

Were there any specific performance issues or successes noted during the contract's lifecycle?

The provided data does not contain specific details regarding performance issues or successes for this particular contract. Federal contract performance is often evaluated through Contractor Performance Assessment Reporting System (CPARS) reports, which are not included here. Generally, contracts of this duration and value are subject to regular oversight and performance reviews by the contracting agency (GSA in this case). Without access to CPARS or other performance documentation, it's impossible to definitively state whether the contract was executed with exceptional success or encountered significant challenges.

How has federal spending on custom computer programming services evolved since this contract was active?

Federal spending on custom computer programming services has generally increased significantly since the period of this contract (2005-2010). This trend is driven by the ongoing need for agencies to modernize legacy systems, develop new digital services, enhance cybersecurity capabilities, and leverage emerging technologies like cloud computing and artificial intelligence. While specific figures fluctuate annually, the overall trajectory has been upward, reflecting the increasing reliance on sophisticated IT solutions to meet mission requirements. This contract represents a snapshot of spending during a period of growing IT investment, preceding major shifts towards cloud adoption and agile development methodologies that characterize current federal IT procurement.

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: $79,420,178

Exercised Options: $53,263,639

Current Obligation: $24,215,016

Parent Contract

Parent Award PIID: GS07T00BGD0023

IDV Type: GWAC

Timeline

Start Date: 2005-02-15

Current End Date: 2010-08-14

Potential End Date: 2010-08-14 00:00:00

Last Modified: 2012-05-07

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