DHS awarded Engility Corporation $10.2M for power generation equipment, a sole-source contract
Contract Overview
Contract Amount: $10,262,271 ($10.3M)
Contractor: Engility Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2006-09-29
End Date: 2010-06-30
Contract Duration: 1,370 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: PROCURE POWER GENERATION EQUIPMENT
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $10.3 million to ENGILITY CORPORATION for work described as: PROCURE POWER GENERATION EQUIPMENT Key points: 1. The contract's value of $10.2M for power generation equipment appears to be a significant investment. 2. The sole-source nature of this award warrants scrutiny regarding the justification for limited competition. 3. The duration of 1370 days suggests a long-term need for the procured equipment. 4. The contract was awarded by the Department of Homeland Security, indicating a focus on national security or critical infrastructure. 5. The specific North American Industry Classification System (NAICS) code 335311 points to the manufacturing of power, distribution, and specialty transformers. 6. The absence of a specific Product Service Code (PSC) might indicate a less standardized or highly specialized procurement.
Value Assessment
Rating: fair
Benchmarking the value of this $10.2M contract for power generation equipment is challenging without specific details on the equipment procured and its intended use. However, given the sole-source nature, it's difficult to assess if competitive pricing was achieved. The contract duration of over three years suggests a substantial need, but the value-for-money proposition is unclear without comparison to similar sole-source awards or market research conducted by the agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. The justification for this limited competition is not provided in the data. Typically, sole-source awards occur when only one vendor can meet the specific requirements, often due to proprietary technology, urgent needs, or unique capabilities. The lack of multiple bidders means that price discovery through competitive bidding was not utilized, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government received the best possible price for the power generation equipment.
Public Impact
The Department of Homeland Security benefits from the acquisition of critical power generation equipment, potentially enhancing operational resilience and continuity. The services delivered likely involve the supply and possibly installation or maintenance of power generation equipment, such as transformers. The geographic impact is primarily within the operational areas of the Federal Emergency Management Agency (FEMA), which falls under DHS. Workforce implications could include roles in manufacturing, logistics, installation, and maintenance of the specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
- The sole-source award necessitates a strong justification from the agency to ensure necessity and prevent potential abuse.
- Limited transparency into the procurement process due to its non-competitive nature.
Positive Signals
- The contract addresses a critical need for power generation equipment within a major federal agency.
- The long contract duration suggests a stable and predictable supply chain for essential equipment.
- The award to Engility Corporation, if they possess specialized capabilities, could ensure high-quality equipment delivery.
Sector Analysis
The procurement of power generation equipment falls within the manufacturing sector, specifically related to electrical equipment. The NAICS code 335311 indicates a focus on transformers. This contract represents a specific instance of federal spending within this industrial category, supporting the production and supply of essential infrastructure components. Comparable spending benchmarks would involve analyzing other federal contracts for similar power generation equipment, particularly those awarded to manufacturers in this sub-sector.
Small Business Impact
The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and Engility Corporation, the awardee, is likely a larger entity. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is unknown but likely minimal for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement oversight mechanisms and potentially the Federal Emergency Management Agency (FEMA) as the specific agency. Inspector General jurisdiction would likely reside with the DHS Office of Inspector General. Transparency is limited due to the sole-source nature of the award, making detailed public scrutiny of the procurement process challenging.
Related Government Programs
- Department of Homeland Security Procurement
- Federal Emergency Management Agency Operations
- Power Generation Equipment Procurement
- Sole-Source Contract Awards
- Electrical Equipment Manufacturing
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for non-competitive pricing.
- Limited transparency in procurement process.
Tags
dhs, fema, sole-source, power-generation-equipment, transformer-manufacturing, large-contract, non-competitive, critical-infrastructure, engility-corporation, virginia, combination-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $10.3 million to ENGILITY CORPORATION. PROCURE POWER GENERATION EQUIPMENT
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2006-09-29. End: 2010-06-30.
What specific type of power generation equipment was procured under this contract, and what was its intended application?
The provided data indicates the North American Industry Classification System (NAICS) code as 335311, which pertains to 'Power, Distribution, and Specialty Transformer Manufacturing.' This suggests the procured equipment likely includes various types of transformers, such as power transformers, distribution transformers, or specialty transformers designed for specific applications. The contract was awarded by the Federal Emergency Management Agency (FEMA) under the Department of Homeland Security (DHS). Given FEMA's mission, the equipment was likely intended for critical infrastructure protection, disaster response, or ensuring power continuity for essential facilities managed or supported by FEMA, particularly in emergency situations or for hardening infrastructure against threats.
What was the justification for awarding this contract on a sole-source basis to Engility Corporation?
The provided data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is often synonymous with a sole-source award. However, the specific justification for this sole-source determination is not detailed in the data. Typically, sole-source contracts are justified under circumstances such as: only one responsible source exists to satisfy agency requirements (e.g., unique capabilities, proprietary technology), an urgent and compelling need that would result in unacceptable delays if competed, or when the contract is for a follow-on effort to a previously competed contract where only the original contractor can provide the necessary services or supplies. Without further documentation from DHS or FEMA, the precise rationale remains unknown.
How does the contract value of $10.2 million compare to similar procurements for power generation equipment by federal agencies?
Directly comparing the $10.2 million contract value for power generation equipment is difficult without knowing the exact specifications, quantity, and type of equipment procured. However, the contract duration of 1370 days (approximately 3.75 years) suggests a significant, long-term acquisition. For context, federal spending on electrical equipment manufacturing (NAICS 3353) can range widely. Larger, complex power generation systems or large quantities of high-capacity transformers could easily reach multi-million dollar figures. Conversely, smaller, standard distribution transformers would represent a much lower unit cost. The sole-source nature also complicates direct price comparisons, as competitive bidding often drives prices down.
What is Engility Corporation's track record with federal contracts, particularly within DHS or FEMA?
Engility Corporation (which has since been acquired by SAIC) has a history of holding numerous federal contracts across various agencies, including the Department of Defense and civilian agencies like DHS. Their portfolio often included IT services, engineering support, and technical services. While specific details on their performance for this particular power generation equipment contract are not provided, their general track record as a large government contractor suggests they possess the capacity to manage significant federal awards. However, the nature of sole-source contracts means that performance evaluation might be less rigorously scrutinized in a competitive context.
What are the potential risks associated with a sole-source contract for critical equipment like power generation systems?
Sole-source contracts carry inherent risks, primarily related to cost and accountability. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to overspending by the government. There's also a risk that the chosen contractor may not possess the absolute best technology or solution available, as alternatives were not explored through a competitive process. Furthermore, the justification for sole-sourcing must be robust to prevent potential favoritism or inefficient use of taxpayer funds. Oversight becomes even more critical to ensure the contractor meets all contractual obligations and delivers value.
What historical spending patterns exist for power generation equipment procurement by the Federal Emergency Management Agency (FEMA)?
Analyzing historical spending patterns for power generation equipment by FEMA requires access to detailed procurement databases beyond the scope of this single contract's data. However, FEMA's mission involves disaster response and recovery, which often necessitates robust power infrastructure. It is reasonable to assume that FEMA would procure power generation equipment, including generators and transformers, to support its operations, temporary facilities, and aid to affected communities. Spending would likely fluctuate based on the frequency and severity of natural disasters and the agency's strategic investments in preparedness and resilience. Sole-source awards might be more common in urgent post-disaster scenarios.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Power, Distribution, and Specialty Transformer Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFEMW06R0030
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 11955 FREEDOM DRIVE, RESTON, VA, 11
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,708,813
Exercised Options: $30,708,813
Current Obligation: $10,262,271
Timeline
Start Date: 2006-09-29
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2010-03-18
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