DoD's $107M JITC Mission Contract Awarded to Engility Services, LLC for Engineering Support

Contract Overview

Contract Amount: $106,928,008 ($106.9M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2013-02-28

Contract Duration: 1,612 days

Daily Burn Rate: $66.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: JITC MISSION CONTRACT

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85670

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $106.9 million to ENGILITY SERVICES, LLC for work described as: JITC MISSION CONTRACT Key points: 1. Contract value represents a significant investment in engineering services for the Defense Information Systems Agency. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of over 1600 days indicates a long-term need for these engineering services. 4. Fixed Price Award Fee contract type implies performance incentives tied to cost and quality. 5. The geographic location of the contractor in Arizona may have implications for local economic impact. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this $106.9 million contract is challenging without specific performance metrics or comparable engineering service contracts from the same period. The fixed-price award fee structure suggests an attempt to control costs while incentivizing performance. However, the lack of detailed cost breakdowns or comparisons to industry standards makes a definitive value assessment difficult. Further analysis would require understanding the specific engineering tasks performed and their criticality to the JITC mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders suggests a competitive marketplace for these engineering services. A high number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario, maximizing the value derived from the awarded funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Information Systems Agency, receiving critical engineering support. Services delivered likely include technical analysis, system design, integration, and testing to support the JITC mission. The geographic impact is primarily centered in Arizona, where the contractor is located, potentially creating local jobs and economic activity. Workforce implications include the employment of engineers and technical specialists by Engility Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on specific performance metrics tied to the award fee.
Potential for cost overruns if award fee criteria are not strictly managed.
Limited visibility into subcontracting opportunities for small businesses.
The long contract duration could lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Fixed Price Award Fee structure provides some cost control and performance incentives.
Contractor has a track record of performance, though specific details are not provided here.
The contract supports a critical defense mission, implying strategic importance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing professional services related to the design, development, and application of engineering sciences. The defense sector often represents a significant portion of spending in this area due to the complex technological requirements of military systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies for similar mission-critical functions.

Small Business Impact

The contract data indicates that small business set-asides were not utilized for this award (sb: false). Furthermore, the contractor is not listed as a small business (ss: false). This suggests that the primary contract was awarded to a large business. An analysis of subcontracting plans would be necessary to determine the extent to which small businesses may have participated in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Accountability measures are embedded in the Fixed Price Award Fee structure, linking payment to performance. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed operational oversight is internal to the agency.

Related Government Programs

JITC Mission Support
Defense Information Systems Agency Contracts
Engineering Services Contracts
Department of Defense IT Support
Fixed Price Award Fee Contracts

Risk Flags

Potential for cost overruns due to fixed-price award fee structure.
Risk of technological obsolescence over the contract's long duration.
Need for robust oversight to ensure performance meets award fee criteria.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.9 million to ENGILITY SERVICES, LLC. JITC MISSION CONTRACT

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $106.9 million.

What is the period of performance?

Start: 2008-09-30. End: 2013-02-28.

What specific engineering services were provided under this contract, and how did they contribute to the JITC mission?

While the provided data does not detail the specific engineering services, contracts like this typically encompass a range of activities crucial for the Joint Information Environment (JIE) and other critical defense communication and IT infrastructure. This could include system design, integration, testing, cybersecurity engineering, network architecture development, and technical support for command and control systems. These services are fundamental to ensuring the operational readiness, security, and interoperability of the DoD's information systems, directly supporting the JITC's mandate to provide resilient and secure IT capabilities for warfighters and national leadership.

How does the $106.9 million contract value compare to other engineering services contracts awarded by DISA or the DoD during the 2008-2013 period?

The $106.9 million value for this contract, awarded between 2008 and 2013, represents a substantial investment. During that period, the DoD, and specifically DISA, were heavily engaged in modernizing and securing its vast IT infrastructure. Large-scale engineering support contracts were common, often ranging from tens to hundreds of millions of dollars, reflecting the complexity and scale of defense IT requirements. Without specific comparative data for similar engineering services contracts from that exact timeframe, it's difficult to definitively state if this was high or low, but it aligns with the typical magnitude of major defense IT support awards.

What were the key performance indicators (KPIs) or criteria used to determine the 'award fee' for Engility Services, LLC?

The 'Award Fee' component of a Fixed Price Award Fee (FPAF) contract is designed to incentivize contractor performance beyond basic requirements. While the specific KPIs for this contract are not detailed in the provided data, they typically relate to factors such as technical performance, schedule adherence, cost control, quality of deliverables, and customer satisfaction. For a contract supporting the JITC mission, KPIs might include system uptime, successful integration of new technologies, security compliance metrics, and responsiveness to urgent operational needs. The contracting officer or a designated representative would evaluate performance against these criteria to determine the amount of the award fee.

Given the contract's duration (1612 days) and value, what were the potential risks associated with this engagement for the DoD?

A long-duration contract like this, valued at over $100 million, presents several potential risks for the DoD. These include the risk of cost growth if not managed tightly, potential for scope creep if requirements evolve without proper change control, and the possibility of technological obsolescence if the services or systems supported become outdated over the contract's life. There's also a risk of vendor lock-in, making it difficult to switch providers if performance degrades or better solutions emerge. Ensuring continuous oversight, robust performance management, and proactive risk mitigation strategies are crucial to managing these potential downsides.

What is Engility Services, LLC's overall track record with the federal government, particularly within the DoD, prior to and during this contract period?

Engility Services, LLC (and its predecessor entities) has historically been a significant contractor for the U.S. government, particularly within the defense and intelligence sectors. Prior to and during the 2008-2013 period of this contract, Engility (often operating under different names or through acquisitions) was involved in a wide array of IT, engineering, and professional services for agencies like DISA, the Air Force, and others. Their track record generally involved supporting complex systems, C4ISR capabilities, and enterprise IT services. While specific performance details for individual contracts vary, Engility was recognized as a major player in the federal contracting space during this era.

How did the 'full and open competition' with 8 bidders impact the final negotiated price and overall value for the taxpayer?

The 'full and open competition' involving eight bidders is a strong indicator that the government likely achieved a competitive price. With multiple companies vying for the contract, each bidder is incentivized to offer their most competitive pricing and best technical solution to win the award. This level of competition typically drives down prices compared to sole-source or limited competition scenarios. For the taxpayer, this means the $106.9 million invested was likely procured at a price reflecting market dynamics, maximizing the value obtained for the engineering services rendered and reducing the risk of overpayment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 100 BRICKSTONE SQUARE, 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: $341,807,658

Exercised Options: $309,610,059

Current Obligation: $106,928,008

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline