DoD's $163M JITC Mission Contract with Engility Services: A Fixed-Price Award Fee Analysis
Contract Overview
Contract Amount: $163,003,244 ($163.0M)
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: $101.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIXED PRICE AWARD FEE
Sector: Engineering Services
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 $163.0 million to ENGILITY SERVICES, LLC for work described as: JITC MISSION CONTRACT Key points: 1. The contract awarded to Engility Services, LLC for the JITC Mission reached $163 million. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Fixed Price Award Fee, which links payment to performance. 4. The sector is Engineering Services (NAICS 541330), a critical area for defense operations.
Value Assessment
Rating: fair
The contract's fixed-price award fee structure aims to balance cost control with performance incentives. Without specific award fee data, it's difficult to definitively assess value, but the total award suggests significant service delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the final award fee component adds complexity.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best possible price for services rendered.
Public Impact
Ensures critical mission support for the Defense Information Systems Agency. The fixed-price award fee structure incentivizes contractor performance. Competition may have driven down costs compared to sole-source options. Long contract duration (over 4 years) implies sustained operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Award fee structure complexity can obscure true cost-effectiveness.
- Lack of specific performance metrics makes value assessment challenging.
- Contract duration might exceed current operational needs if not managed.
Positive Signals
- Full and open competition utilized.
- Fixed-price award fee structure provides some cost certainty.
- Contract supports essential defense information systems.
Sector Analysis
Engineering services are vital for maintaining and developing complex defense systems. Benchmarks for similar large-scale engineering contracts within the DoD can vary significantly based on scope and duration.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's fixed-price award fee structure implies performance monitoring by the agency. However, the extent of oversight and accountability mechanisms requires a deeper review of contract documentation.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns if award fee targets are not met efficiently.
- Contract duration may not align with evolving technological needs.
- Lack of transparency on award fee payouts hinders value assessment.
- Reliance on a single contractor for an extended period can create vendor lock-in.
Tags
engineering-services, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.0 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 $163.0 million.
What is the period of performance?
Start: 2008-09-30. End: 2013-02-28.
What was the average award fee percentage paid over the contract's life, and how did it compare to the target?
The average award fee percentage is not provided in the data. To assess the true value and contractor performance, analyzing the actual award fees paid against the potential maximum would be crucial. This would reveal if the contractor consistently met or exceeded performance expectations, justifying the total expenditure.
Were there any performance issues or disputes that impacted the award fee or contract duration?
The provided data does not detail any performance issues or disputes. A comprehensive risk assessment would require examining contract performance reports, any modifications, and any formal or informal disputes that may have arisen during the contract's lifecycle. Such information is critical for understanding potential risks and contractor reliability.
How did the final cost compare to initial bids, considering the award fee structure?
The data shows the total award amount but not a direct comparison to initial bids after accounting for the award fee. While full and open competition suggests competitive initial pricing, the award fee component means the final cost could fluctuate based on performance. Understanding the range of initial bids and the final negotiated price is key to assessing cost-effectiveness.
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: $472,559,305
Exercised Options: $455,313,533
Current Obligation: $163,003,244
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2021-06-25
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