Missile Defense Agency contract for engineering services awarded to Engility Corporation for over $72.6 million
Contract Overview
Contract Amount: $72,659,327 ($72.7M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2003-09-16
End Date: 2013-02-28
Contract Duration: 3,453 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200312!000343!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0214K !C!N! !N!HQ000603F0017 !20030916!20040729!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DRIVE !CHANTILLY !VA!20151!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000001500000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541690!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!Y!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $72.7 million to ENGILITY CORPORATION for work described as: 200312!000343!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0214K !C!N! !N!HQ000603F0017 !20030916!20040729!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DRIVE !CHANTILLY !VA!20151!03000!013!51!ARLINGTON !ARLIN… Key points: 1. Contract awarded for program management and support services related to ballistic missile defense systems. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is substantial, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The services provided fall under Engineering Services, a critical sector for defense operations. 6. The geographic location of the contractor is in Virginia, but the work may be performed elsewhere.
Value Assessment
Rating: fair
The awarded amount of over $72.6 million for engineering services appears significant. Benchmarking against similar contracts for ballistic missile defense system support is crucial for a precise value assessment. Without direct comparisons, it's difficult to definitively state if this represents excellent or questionable value. The firm fixed-price nature of the contract suggests an attempt to control costs, but the overall value depends on the quality and effectiveness of the services delivered over its duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these specialized engineering services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to lower overall costs for the government.
Public Impact
The Missile Defense Agency benefits from specialized engineering and program management support. Services delivered are critical for the development and sustainment of ballistic missile defense systems. The contract supports the national security infrastructure by ensuring the readiness of defense systems. Workforce implications include employment for engineers and program managers within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of work expands beyond initial estimates.
- Dependence on a single contractor for critical program management and support services.
- Risk associated with the long duration of the contract and potential for contractor performance degradation over time.
Positive Signals
- Firm Fixed Price contract structure helps to cap costs and manage budget predictability.
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- The contract addresses a critical national security need, ensuring the continuity of vital defense programs.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related programs. The Missile Defense Agency (MDA) is a significant entity within the Department of Defense, and its spending on program management and support services is substantial. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the MDA or similar defense agencies for complex system development and sustainment.
Small Business Impact
The 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 set-aside provision. The primary contractor, Engility Corporation, is likely a large business, and any subcontracting opportunities would be at their discretion.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Ballistic Missile Defense Program
- Aerospace Engineering Services
- Defense Program Management
- Government Contracting
Risk Flags
- Long contract duration may increase risk of performance degradation or scope creep.
- Firm Fixed Price contracts can sometimes lead to contractor cutting corners if not adequately overseen.
- Lack of specific bidder count makes it hard to fully assess competitive pressure.
Tags
defense, missile-defense, engineering-services, program-management, support-services, ballistic-missile-defense, firm-fixed-price, full-and-open-competition, department-of-defense, missile-defense-agency, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.7 million to ENGILITY CORPORATION. 200312!000343!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0214K !C!N! !N!HQ000603F0017 !20030916!20040729!177153319!008898884!008898843!N!L-3 COMMUNICATIONS GOVERNMENT !3750 CENTERVIEW DRIVE !CHANTILLY !VA!20151!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000001500000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541690!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $72.7 million.
What is the period of performance?
Start: 2003-09-16. End: 2013-02-28.
What is the track record of Engility Corporation in performing similar defense contracts?
Engility Corporation, and its predecessor entities, have a history of performing various defense and government contracting services. While specific details on past performance for this exact type of missile defense program management and support are not provided in this data snippet, Engility has been involved in a range of IT, engineering, and professional services for federal agencies. A comprehensive review would require examining past performance evaluations, any contract disputes, and the successful completion of similar-sized and scoped contracts within the Department of Defense and other agencies. Their track record would be a key factor in the initial award decision and ongoing oversight.
How does the awarded amount compare to similar engineering services contracts for missile defense?
The awarded amount of over $72.6 million for engineering services for ballistic missile defense systems is substantial. To benchmark this value effectively, one would need to compare it against other contracts awarded by the Missile Defense Agency or similar defense organizations for program management, systems engineering, and technical support for complex defense platforms. Factors such as contract duration, scope of work, specific deliverables, and the level of technical expertise required would influence these comparisons. Without access to a database of comparable contracts with detailed scope and pricing, it is challenging to definitively assess if this represents a competitive price point or an outlier.
What are the primary risks associated with this contract for the government?
The primary risks for the government in this contract include potential cost overruns if the scope of work expands beyond the initial estimates, especially given the long duration. There's also a risk related to contractor performance; if Engility Corporation fails to deliver the required program management and support services effectively, it could impact the readiness and development of critical missile defense systems. Dependence on a single contractor for specialized services can also pose a risk if the contractor faces financial difficulties or strategic shifts. Finally, ensuring continued alignment with evolving defense requirements over the contract's lifespan is a perpetual risk.
How effective are the services provided under this contract in supporting the Missile Defense Agency's mission?
The effectiveness of the services provided is directly tied to the Missile Defense Agency's ability to develop, test, and deploy effective missile defense capabilities. As this contract is for program management and support services, its effectiveness would be measured by how well it facilitates the MDA's overall mission execution. This includes aspects like efficient resource allocation, timely project completion, adherence to technical specifications, and successful integration of various defense components. Performance metrics within the contract, such as on-time delivery of reports, successful milestone achievements, and positive feedback from government program managers, would be key indicators of service effectiveness.
What has been the historical spending pattern for similar engineering services by the Missile Defense Agency?
Historical spending patterns for the Missile Defense Agency on engineering services, particularly for program management and support, are generally significant due to the complexity and critical nature of its mission. The MDA consistently requires specialized technical expertise to manage and advance its sophisticated defense systems. Analyzing past fiscal years would likely reveal substantial investments in contracts similar to this one, reflecting the ongoing need for engineering support in areas like systems integration, testing, research, and development oversight. Fluctuations in spending may correlate with specific program phases, technological advancements, or shifts in national defense priorities.
What is the potential impact of this contract on the broader defense engineering services market?
A contract of this magnitude awarded through full and open competition can have a notable impact on the defense engineering services market. It signals continued government investment in missile defense capabilities, potentially encouraging other firms to develop or enhance their expertise in this niche. The award to Engility Corporation validates their capabilities and may influence future competitive bidding. Furthermore, it can create a benchmark for pricing and service expectations within this segment of the defense industry. The success or challenges encountered in executing this contract could also shape future procurement strategies for similar services.
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
Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $77,972,033
Exercised Options: $76,403,766
Current Obligation: $72,659,327
Parent Contract
Parent Award PIID: GS23F0214K
IDV Type: FSS
Timeline
Start Date: 2003-09-16
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2013-12-12
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