DHS awarded over $2.3M in engineering services, with a significant portion in FY2012

Contract Overview

Contract Amount: $23,773,920 ($23.8M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2012-05-24

End Date: 2015-08-23

Contract Duration: 1,186 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FY 2012 PADD SPEND PLAN RS0860: REF. LINE 7 - $430,005 REF. LINE 24 - $884,880 REF. LINE 43 - $630,675 REF. LINE 68 - $430,004 REF. LINE 82 - $763,454 REF. LINE 101 - $269,603 REF. LINE 123 - $477,389 REF. LINE 142 - $444,716 AH0862: REF. LINE 42 - $370,000 AR0862: REF. LINE 8 - $309,914 FY2011 PADD SPEND PLAN RS0860: REF. LINE 61, 61B, 62 AND 125 - $167,253 FY2012 OSD SPEND PLAN: RJ0860: REF. LINE 121 - $165,147 REF. LINE 137 - $223,084

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.8 million to ENGILITY SERVICES, LLC for work described as: FY 2012 PADD SPEND PLAN RS0860: REF. LINE 7 - $430,005 REF. LINE 24 - $884,880 REF. LINE 43 - $630,675 REF. LINE 68 - $430,004 REF. LINE 82 - $763,454 REF. LINE 101 - $269,603 REF. LINE 123 - $477,389 REF. LINE 142 - $444,716 AH0862: REF. LINE 42 - $370,000 AR0862: REF. LINE 8 - … Key points: 1. The contract value of over $2.3M for engineering services indicates a substantial investment in specialized technical support. 2. The majority of spending occurred in FY2012, suggesting a peak in demand or project initiation during that period. 3. The contract was awarded through full and open competition, implying a robust bidding process. 4. The use of a BPA Call award mechanism suggests a pre-negotiated framework agreement was leveraged. 5. The Time and Materials contract type carries inherent risks of cost overruns if not closely managed. 6. The contract duration of approximately 3.2 years allowed for sustained support but also extended potential exposure to cost fluctuations.

Value Assessment

Rating: fair

The total award of over $2.3 million for engineering services is a significant sum. Without specific benchmarks for similar engineering support contracts within DHS or across the federal government for FY2012, a precise value-for-money assessment is challenging. However, the Time and Materials pricing structure, while common, can lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. The breakdown of spending across various reference lines within the PADD SPEND PLAN suggests a distributed allocation of funds for different engineering tasks or projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The specific number of bidders is not provided, but the open competition method is generally favorable for price discovery and ensuring a fair market price is achieved.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages competitive pricing and potentially leads to lower overall costs for the government compared to sole-source or limited competition awards.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving engineering services to support its mission. The services delivered likely encompass a range of engineering disciplines crucial for the operational needs of DHS. The contract's impact is primarily concentrated within the District of Columbia, where the agency's operations are often centered. The contract supported specialized engineering roles, contributing to the federal workforce in technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The contract was awarded in 2012, and current market rates or technological advancements may have changed significantly since then.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract duration allowed for sustained engineering support over a multi-year period.
The use of a BPA Call indicates potential efficiencies gained from a pre-established contracting vehicle.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant sector within federal procurement. This sector encompasses a wide range of specialized technical expertise, from civil and mechanical to electrical and systems engineering. Federal spending in this area supports critical infrastructure, defense systems, research and development, and operational support across various agencies. The market is characterized by a mix of large, established engineering firms and smaller, specialized consultancies. Benchmarking this contract's value requires comparison against similar engineering support contracts awarded by agencies like the Department of Defense or the General Services Administration during the same period.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Engility Services, LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting goals that can benefit small and disadvantaged businesses.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Homeland Security's Office of Procurement Operations. As a Time and Materials contract, rigorous oversight would be crucial to monitor labor hours, rates, and material costs to ensure cost-effectiveness and prevent overruns. Transparency is facilitated by the contract being publicly awarded through full and open competition. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or audits initiated by DHS.

Related Government Programs

DHS Engineering Support Services
Federal Engineering Consulting Contracts
IT and Technical Services Procurement
Defense Engineering Services
Professional Services Schedule (PSS) Contracts

Risk Flags

Time and Materials Contract Type Risk
Limited Bidder Information
Potential for Cost Overruns
Aging Contract Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.8 million to ENGILITY SERVICES, LLC. FY 2012 PADD SPEND PLAN RS0860: REF. LINE 7 - $430,005 REF. LINE 24 - $884,880 REF. LINE 43 - $630,675 REF. LINE 68 - $430,004 REF. LINE 82 - $763,454 REF. LINE 101 - $269,603 REF. LINE 123 - $477,389 REF. LINE 142 - $444,716 AH0862: REF. LINE 42 - $370,000 AR0862: REF. LINE 8 - $309,914 FY2011 PADD SPEND PLAN RS0860: REF. LINE 61, 61B, 62 AND 125 - $167,253 FY2012 OSD SPEND PLAN: RJ0860: REF. LINE 121 - $165,147 REF. LINE 137 - $223,084

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 $23.8 million.

What is the period of performance?

Start: 2012-05-24. End: 2015-08-23.

What was the specific nature of the engineering services provided under this contract?

The provided data indicates the contract falls under NAICS code 541330, 'Engineering Services.' While the specific nature of the services isn't detailed, this category typically includes a broad spectrum of engineering disciplines such as civil, mechanical, electrical, aerospace, environmental, and systems engineering. Given the contracting agency is the Department of Homeland Security (DHS), these services could have supported a variety of functions, potentially including infrastructure design and maintenance, security system engineering, IT systems integration, or specialized technical consulting related to DHS's diverse operational requirements. The breakdown of spending across multiple reference lines in the PADD SPEND PLAN might suggest different project-specific engineering tasks were undertaken.

How does the total contract value of approximately $2.38 million compare to similar engineering services contracts awarded by DHS in FY2012?

Comparing the $2.38 million total award to other DHS engineering services contracts in FY2012 requires access to a broader dataset of federal contract awards for that fiscal year. However, as a general benchmark, $2.38 million is a moderate-sized contract for specialized engineering services. Larger agencies like DHS often award contracts ranging from hundreds of thousands to tens or even hundreds of millions of dollars for complex engineering projects. This particular contract's value suggests it supported specific projects or ongoing technical needs rather than a large-scale, agency-wide engineering initiative. Without comparative data on the scope, duration, and specific services of other FY2012 DHS engineering contracts, a precise relative value assessment is difficult.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with Time and Materials (T&M) contracts is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure can incentivize contractors to extend project timelines or use more labor hours than strictly necessary, as their profit is often tied to the total cost. For the government, this necessitates robust oversight, diligent monitoring of labor hours and expenses, and clear definition of the level of effort required to ensure the contractor is performing efficiently and that costs remain reasonable and allocable to the contract's objectives. Without strong government oversight, T&M contracts can become significantly more expensive than initially anticipated.

What does the 'BPA CALL' award mechanism signify in terms of efficiency and cost savings?

A 'BPA CALL' signifies that this contract was awarded under a Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods that allow federal agencies to fill anticipated repetitive needs for supplies or services. When a BPA is established, it means that pre-negotiated terms, conditions, and often pricing have already been established with one or more vendors. A 'call' or 'order' is then placed against this BPA for specific requirements. Using a BPA CALL can lead to efficiencies by streamlining the procurement process, reducing administrative burden, and potentially achieving better pricing through pre-negotiated volume discounts or established rates. It implies that the initial competition and vetting of Engility Services, LLC occurred when the BPA was established, making subsequent task orders more rapid.

Given the contract ended in August 2015, what are the implications for assessing its current value or performance?

The contract's completion in August 2015 has several implications for assessing its value and performance. Firstly, it means that direct, real-time performance metrics or cost comparisons are no longer applicable. Any assessment must rely on historical data, final reports, and potentially post-award reviews that may have been conducted. Secondly, comparing its value to current market rates or similar contracts awarded today would be challenging due to inflation, changes in technology, and evolving market dynamics over the past several years. The primary value in analyzing this completed contract lies in understanding historical spending patterns, evaluating the effectiveness of the procurement process used (full and open competition, T&M type), and identifying lessons learned regarding contractor performance and cost management during its lifecycle.

What is the significance of the contract being awarded to 'ENGILITY SERVICES, LLC'?

The award to 'ENGILITY SERVICES, LLC' identifies the specific contractor responsible for delivering the engineering services. Engility was a significant government contractor, particularly in the defense and intelligence sectors, before its acquisition by SAIC in 2019. Knowing the contractor allows for further investigation into their past performance, track record with similar contracts, and overall business stability during the contract period (2012-2015). For a federal spending analyst, this name serves as a key identifier to access performance evaluations, past contract history, and any publicly available information regarding the company's capabilities and reliability in fulfilling government requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

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: $24,316,466

Exercised Options: $24,316,466

Current Obligation: $23,773,920

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,261,840

Parent Contract

Parent Award PIID: HSHQDC12A00004

IDV Type: BPA

Timeline