DHS awarded $16.8M for computer systems design, with Engility Services, LLC as the contractor

Contract Overview

Contract Amount: $16,813,529 ($16.8M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-21

End Date: 2014-11-23

Contract Duration: 1,524 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS SOW DESCRIBES SERVICES REQUIRED BY THE DEPARTMENT OF HOMELAND SECURITY (DHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), ENTERPRISE ARCHITECTURE PROGRAM MANAGEMENT OFFICE (EA PMO).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.8 million to ENGILITY SERVICES, LLC for work described as: THIS SOW DESCRIBES SERVICES REQUIRED BY THE DEPARTMENT OF HOMELAND SECURITY (DHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), ENTERPRISE ARCHITECTURE PROGRAM MANAGEMENT OFFICE (EA PMO). Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract is over 4 years, indicating a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 4. The agency is the Department of Homeland Security (DHS), Office of the Chief Information Officer (OCIO). 5. The North American Industry Classification System (NAICS) code is 541512, indicating computer systems design services. 6. The place of performance is Washington D.C.

Value Assessment

Rating: fair

The total award amount of $16.8 million for computer systems design services over approximately four years appears to be within a reasonable range for a federal contract of this nature. However, without specific benchmarks for the exact services rendered under this Delivery Order, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely monitored for efficiency and necessity of hours billed. Comparing this to similar DHS OCIO IT support contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bids indicates a moderate level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors. The fact that multiple companies vied for this work suggests that the opportunity was attractive and the requirements were clearly defined.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and ensure the government receives the best value. The presence of multiple bidders suggests that taxpayer dollars were likely used efficiently in this procurement.

Public Impact

The primary beneficiary of this contract is the Department of Homeland Security's Office of the Chief Information Officer. The services delivered are related to computer systems design, likely supporting the agency's IT infrastructure and enterprise architecture. The geographic impact is concentrated in Washington D.C., the location of the agency's headquarters and place of performance. The contract supports federal IT operations and potentially the workforce involved in managing and designing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
The specific deliverables and performance metrics are not detailed in the provided summary, making it difficult to assess performance outcomes.
Limited information on the contractor's specific past performance on similar DHS contracts.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract has a defined duration, providing a clear timeframe for service delivery.
The contractor, Engility Services, LLC, is a known entity in the federal contracting space.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their technological infrastructure. Contracts like this are crucial for supporting the operational needs of government entities. Benchmarking this $16.8 million award would involve comparing it to other IT services contracts awarded by DHS or similar large federal agencies for system design and integration, considering factors like contract duration, scope of work, and competition level.

Small Business Impact

The provided 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 small business set-aside. However, the prime contractor, Engility Services, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Without specific subcontracting goals or reports, the direct impact on the small business ecosystem is not quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's Office of the Chief Information Officer (OCIO) and its contracting officers. The contract's Time and Materials (T&M) nature necessitates close monitoring of labor hours, rates, and the necessity of the work performed to ensure cost control and prevent overruns. Transparency would be facilitated through contract reporting mechanisms and potentially through public contract databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

DHS IT Modernization Programs
Enterprise Architecture Development
Federal Civilian IT Services
Computer Systems Design Contracts
Department of Homeland Security IT Support

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.8 million to ENGILITY SERVICES, LLC. THIS SOW DESCRIBES SERVICES REQUIRED BY THE DEPARTMENT OF HOMELAND SECURITY (DHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), ENTERPRISE ARCHITECTURE PROGRAM MANAGEMENT OFFICE (EA PMO).

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2010-09-21. End: 2014-11-23.

What specific computer systems design services were performed under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS 541512) awarded to Engility Services, LLC by the DHS OCIO. However, the specific nature of these services is not detailed. Typically, computer systems design services can encompass a wide range of activities, including analyzing user needs, designing system architecture, developing software, integrating hardware and software components, and providing technical consulting. For this particular contract, the services likely supported the Enterprise Architecture Program Management Office (EA PMO) within DHS OCIO, focusing on the design and potentially implementation of IT systems aligned with the agency's enterprise architecture strategy. Further details would require reviewing the Statement of Work (SOW) or contract modifications.

How does the $16.8 million award compare to similar DHS IT contracts?

Comparing the $16.8 million award requires context regarding the contract's duration and scope. This contract spans approximately four years (2010-2014), equating to an average annual value of roughly $4.2 million. This figure is moderate for large federal IT contracts, especially those supporting major agencies like DHS. For instance, larger enterprise-wide IT modernization or sustainment contracts can run into hundreds of millions or even billions of dollars. However, for specific system design projects or support for a particular program office like the EA PMO, $4.2 million annually could be commensurate with the required expertise and effort. A more precise comparison would involve analyzing contracts with similar NAICS codes, agency components, and service complexities within DHS.

What are the primary risks associated with a Time and Materials (T&M) contract of this size?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $16.8 million, is the potential for cost overruns due to the contractor billing for actual labor hours and materials used. Unlike fixed-price contracts, T&M contracts offer less upfront cost certainty for the government. Key risks include: 1) Inefficient performance: The contractor may have less incentive to complete tasks quickly if paid by the hour. 2) Scope creep: Unclear requirements or poorly managed changes can lead to an indefinite increase in billable hours. 3) Inaccurate labor hour estimation: If the government underestimates the effort required, the total cost could exceed initial projections. Effective oversight, clear task definitions, and diligent monitoring of labor hours and rates are crucial to mitigate these risks.

What is Engility Services, LLC's track record with DHS?

Engility Services, LLC (and its predecessor entities) has a significant history of contracting with the Department of Homeland Security across various IT and professional services. While this specific contract was awarded in 2010, Engility has been a prominent contractor for DHS in subsequent years, often winning large, complex IT support and systems engineering contracts. Their track record generally involves providing a broad range of services, including IT infrastructure, cybersecurity, software development, and program management support. Performance reviews and specific contract outcomes can vary, but their continued presence as a major federal contractor suggests a generally acceptable performance history, though specific contract successes or failures would require detailed analysis of individual contract data.

How has DHS spending on computer systems design services evolved since this contract?

DHS spending on computer systems design services (NAICS 541512) has likely seen fluctuations and overall growth since this contract, which was awarded in 2010. Federal IT spending, in general, has increased over the years, driven by the need for modernization, cybersecurity enhancements, cloud migration, and data analytics capabilities. DHS, as a large and complex agency, continually invests in its IT infrastructure to support its diverse missions. While specific year-over-year spending data for this NAICS code at DHS would require detailed analysis of federal procurement databases (like USASpending.gov), it's reasonable to assume that spending in this category has remained substantial, potentially increasing as technology evolves and new threats emerge. The trend is likely towards more integrated systems, cloud-based solutions, and agile development methodologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Solicitation ID: HSHQDC-10-R-00088

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,643,033

Exercised Options: $16,813,529

Current Obligation: $16,813,529

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $835,682

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0026

IDV Type: GWAC

Timeline