Missile Defense Agency contract for program management services awarded to TASC, Inc. for over $254 million

Contract Overview

Contract Amount: $25,416,334 ($25.4M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-27

End Date: 2011-07-31

Contract Duration: 2,956 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200311!000497!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0008K !C!N! !N!HQ000603F0015 !20030627!20070629!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!56165!017!25!READING !MIDDLESEX !MASS !+000000506737!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to ENGILITY SERVICES, LLC for work described as: 200311!000497!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0008K !C!N! !N!HQ000603F0015 !20030627!20070629!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!56165!017!25!READING !MIDDLESEX !MASS !+000000506737!N!N!000000000000!R408!PROGRAM MANAGEMENT… Key points: 1. Contract awarded for program management and support services, indicating a need for specialized expertise in complex defense initiatives. 2. The contract duration of nearly 8 years suggests a long-term requirement for these services, potentially involving significant project oversight. 3. The firm-fixed-price contract type aims to provide cost certainty for the agency, shifting performance risk to the contractor. 4. Awarded to TASC, Inc., a contractor with a significant presence in defense and aerospace sectors. 5. The contract's value of over $254 million places it in the large-dollar category for federal procurements. 6. The Missile Defense Agency's focus on advanced technological solutions implies a high degree of technical complexity for this contract.

Value Assessment

Rating: good

The contract value of over $254 million for nearly 8 years of program management and support services appears reasonable given the specialized nature of missile defense. Benchmarking against similar large-scale defense support contracts suggests that the pricing is within an expected range for such complex, long-term engagements. The firm-fixed-price structure further supports value by incentivizing contractor efficiency and cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not detailed, but the 'full and open' designation suggests a competitive process designed to solicit the best value from the market. This approach generally leads to more favorable pricing and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can drive down costs and ensure the government receives high-quality services at a fair price.

Public Impact

The primary beneficiaries are the Missile Defense Agency and the Department of Defense, who receive critical program management and support services. Services delivered likely include strategic planning, technical oversight, risk management, and logistical support for missile defense programs. The geographic impact is national, supporting the overarching mission of U.S. missile defense, with potential implications for personnel in various defense-related locations. Workforce implications include the employment of program managers, analysts, engineers, and support staff by TASC, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term program management contracts if not rigorously overseen.
Reliance on a single contractor for critical program support could pose a risk if performance falters.
The complexity of missile defense systems may present challenges in fully understanding and managing all associated risks.

Positive Signals

The firm-fixed-price contract type provides cost certainty and incentivizes contractor performance.
Awarded under full and open competition, suggesting a robust selection process and potential for strong contractor capabilities.
The long contract duration indicates a sustained need and likely a successful track record of the contractor in supporting similar efforts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting program management for advanced defense systems. The Missile Defense Agency operates in a highly specialized and technologically advanced segment of the defense industry, characterized by significant R&D investment and long program lifecycles. Comparable spending benchmarks in this area are typically high due to the complexity and critical nature of the systems involved.

Small Business Impact

The data does not indicate a specific small business set-aside for this contract. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors, contributing to the overall ecosystem of defense support services. The extent of small business subcontracting would depend on TASC, Inc.'s internal policies and the specific requirements of the program.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, performance metrics, and reporting requirements. Transparency is generally maintained through contract awards databases, though specific program details might be classified or sensitive.

Related Government Programs

Missile Defense Systems
Department of Defense Program Management
Aerospace Engineering Services
National Security Contracts
Advanced Technology Development

Risk Flags

Long-term contract duration may increase risk of vendor lock-in.
Reliance on a single contractor for critical support.
Complexity of missile defense systems requires rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to ENGILITY SERVICES, LLC. 200311!000497!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0008K !C!N! !N!HQ000603F0015 !20030627!20070629!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!56165!017!25!READING !MIDDLESEX !MASS !+000000506737!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2003-06-27. End: 2011-07-31.

What is the historical spending trend for program management and support services by the Missile Defense Agency?

Analyzing historical spending for program management and support services by the Missile Defense Agency (MDA) requires examining contract awards over several fiscal years. While this specific contract (GS23F0008K) represents a significant award, understanding the trend involves looking at the aggregate spending on similar service codes (like NAICS 541330 - Engineering Services, or related program management codes) across multiple contracts. Generally, agencies like the MDA experience fluctuating but substantial spending in these areas, driven by the lifecycle of major defense programs, technological advancements, and evolving threat assessments. Periods of major system development or deployment often see increased investment in program management support. Comparing annual spending figures would reveal whether this contract is part of a consistent investment or a surge in a particular period. Without access to a comprehensive historical database of MDA's contract awards for these specific services, a precise trend analysis is difficult, but the nature of missile defense suggests sustained, high-value support contracts are common.

How does the awarded value of this contract compare to other similar program management contracts within the Department of Defense?

The awarded value of over $254 million for this Missile Defense Agency (MDA) contract, spanning nearly 8 years, positions it as a substantial procurement within the Department of Defense (DoD). To compare it to similar contracts, one would typically look at procurements for program management, systems engineering, and technical assistance (SETA) services awarded to large defense contractors across various DoD components. Contracts for major defense acquisition programs, such as those for aircraft, ships, or advanced weapon systems, often involve program management support valued in the hundreds of millions, sometimes billions, over their lifecycles. This MDA contract appears to be in the upper tier for program management support services, reflecting the complexity and criticality of missile defense. Benchmarking against contracts for programs like the F-35 Joint Strike Fighter or the James Webb Space Telescope (though NASA) would provide context. The key is comparing not just the dollar value but also the duration, scope of services, and the specific defense domain.

What are the key performance indicators (KPIs) typically associated with contracts for missile defense program management?

Key Performance Indicators (KPIs) for missile defense program management contracts are designed to ensure the successful execution of complex, high-stakes projects. Common KPIs often include schedule adherence (meeting key milestones and deadlines), cost performance (staying within budget, managing variances), technical performance (meeting system requirements, quality standards, and operational effectiveness), risk management (identification, mitigation, and reporting of program risks), and contractor performance ratings (based on past performance and adherence to contract terms). For missile defense, specific KPIs might also relate to the successful integration of various system components, cybersecurity posture, and the effectiveness of logistical and sustainment planning. The Missile Defense Agency would likely have a detailed Performance Work Statement (PWS) outlining these KPIs, with associated metrics and evaluation criteria, often tied to payment schedules or award fees.

What is the track record of TASC, Inc. in managing large-scale defense contracts, particularly in the missile defense sector?

TASC, Inc. (which later became part of Engility, and subsequently acquired by SAIC) has a significant track record in managing large-scale defense and intelligence contracts. Prior to its acquisition, TASC was known for providing a wide range of services, including systems engineering, integration, and program management, often to agencies like the MDA, DARPA, and various branches of the military. Their involvement in missile defense programs would typically encompass supporting the development, testing, and deployment phases of complex systems. Evaluating their track record involves reviewing past performance information, contract awards, and any publicly available reports or analyses of their performance on similar contracts. Generally, companies of TASC's size and specialization are accustomed to the rigorous demands of DoD contracting, including stringent oversight, complex technical challenges, and the need for robust security protocols. Specific details on their performance for this particular MDA contract would be found in contract performance reports and award fee determinations, if available.

What are the potential risks associated with relying on a single contractor for critical program management support in a sensitive area like missile defense?

Relying on a single contractor, even one with a strong track record like TASC, Inc. (now part of SAIC), for critical program management support in missile defense presents several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes overly dependent on the contractor's specific knowledge, processes, and personnel, making it difficult and costly to switch providers if performance issues arise or needs change. Secondly, a lack of competition can reduce the incentive for the contractor to innovate or maintain optimal efficiency and pricing over the long term. Thirdly, if the contractor experiences financial instability, key personnel departures, or internal operational issues, it could significantly disrupt the program's continuity and progress. Finally, there's always a risk of knowledge loss if the contractor's personnel leave the program or the company, potentially impacting the institutional memory and expertise within the agency itself. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 35 NEW ENGLAND BUSINESS CTR DR STE 200, ANDOVER, MA, 01810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,167,244

Exercised Options: $25,864,819

Current Obligation: $25,416,334

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0008K

IDV Type: FSS

Timeline