DHS awarded $21.8M for engineering services, with a significant portion spent on time and materials

Contract Overview

Contract Amount: $21,798,978 ($21.8M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2015-08-23

End Date: 2017-12-23

Contract Duration: 853 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF DIRECTORATE: PADD RM: GREG LYTTLE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20071

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.8 million to ENGILITY SERVICES, LLC for work described as: IGF::CL::IGF DIRECTORATE: PADD RM: GREG LYTTLE Key points: 1. The contract utilized a time and materials pricing model, which can increase costs if not closely managed. 2. While the contract was competed fully and openly, the specific performance period and call order structure warrant scrutiny for efficiency. 3. The total value of $21.8M over approximately 2.5 years suggests a moderate annual spend for engineering services. 4. The contract was awarded to Engility Services, LLC, whose past performance and track record should be evaluated in context. 5. The geographic location in Washington D.C. may indicate a focus on federal agency support or specific project needs. 6. The absence of small business set-asides suggests the primary contractor was not a small business, and subcontracting opportunities should be assessed.

Value Assessment

Rating: fair

The contract's value of $21.8 million over 853 days averages to approximately $25,556 per day. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. The use of Time and Materials (T&M) pricing, while common for evolving requirements, carries inherent risks of cost overruns compared to fixed-price contracts. Benchmarking against similar engineering services contracts within DHS or other agencies would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific award type is a BPA Call, suggesting it was made against an existing Blanket Purchase Agreement. The number of bidders and the specific terms of the competition are not detailed in the provided data, but the 'full and open' designation generally implies a robust competitive process.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market-driven pricing and innovation from a wide range of potential providers.

Public Impact

The Department of Homeland Security (DHS) benefits from engineering expertise to support its various missions and operational needs. Services delivered likely include technical analysis, system design, integration, and other engineering support functions critical to DHS operations. The primary geographic impact is within the District of Columbia, suggesting support for federal agency headquarters or related projects. The contract supports a professional workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing structure can lead to cost escalation if not rigorously monitored and controlled.
Lack of specific performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the engineering services.
The contract duration and call order nature might obscure the true cost and scope of work without detailed task order analysis.
Limited information on the competitive landscape beyond 'full and open' prevents a deeper understanding of price discovery and potential savings.
The contractor's specific performance history and adherence to budget on this contract are not detailed, posing a potential risk.

Positive Signals

Awarded through a full and open competition, suggesting a broad market search and potential for competitive pricing.
The contract was a BPA Call, which can streamline procurement for recurring needs and potentially leverage pre-negotiated terms.
The engineering services provided are likely critical to the operational success and mission fulfillment of the Department of Homeland Security.
The contract duration of over two years indicates a sustained need for these services, suggesting a stable requirement.
The contractor, Engility Services, LLC, has experience in government contracting, which can imply familiarity with federal procurement processes.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government operations. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a wide range of activities from civil and mechanical to electrical and systems engineering. Federal spending in this sector is substantial, often driven by complex infrastructure projects, defense systems, and technology development. Benchmarks for engineering services can vary widely based on specialization, project complexity, and security requirements, but typically represent a significant portion of agency budgets for technical support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award was made to a large business or that the competition was open to all, and a large business was the most competitive offeror. Consequently, there may be limited direct subcontracting opportunities for small businesses unless the prime contractor voluntarily includes them in their subcontracting plan. The overall impact on the small business ecosystem for engineering services would depend on the extent to which Engility Services, LLC engages with small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. The Inspector General's office for DHS would have jurisdiction to investigate potential fraud, waste, or abuse related to this award and its execution. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract values, dates, and parties involved. However, detailed oversight of performance and adherence to the Time and Materials pricing structure would require active management and reporting by the contracting agency.

Related Government Programs

Department of Homeland Security - IT Services
Department of Homeland Security - Professional Services
Engineering Services Contracts
Blanket Purchase Agreements (BPAs)
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of detailed performance metrics makes value assessment difficult.
Contract awarded to a large business, potentially limiting small business subcontracting.
Geographic concentration in DC may indicate a narrow scope of impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.8 million to ENGILITY SERVICES, LLC. IGF::CL::IGF DIRECTORATE: PADD RM: GREG LYTTLE

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 $21.8 million.

What is the period of performance?

Start: 2015-08-23. End: 2017-12-23.

What was the specific nature of the engineering services provided under this contract, and how did they contribute to DHS's mission?

The provided data identifies the NAICS code as 541330 (Engineering Services) and the awardee as Engility Services, LLC. While the contract value is $21.8 million, the specific services rendered are not detailed. Typically, engineering services for an agency like DHS could encompass a broad range of support, including but not limited to systems engineering, technical consulting, infrastructure design, cybersecurity engineering, or program management support for complex technological initiatives. These services are crucial for developing, maintaining, and modernizing the systems and infrastructure that enable DHS to fulfill its diverse missions, such as border security, cybersecurity, emergency management, and counter-terrorism. Without task order details, it's impossible to pinpoint the exact contribution, but the significant funding suggests a substantial role in a critical DHS program or operational area.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly during performance, allowing flexibility. For engineering services, T&M can be suitable for research, development, or support roles where the exact effort is uncertain. However, T&M contracts carry a higher risk for the government compared to fixed-price contracts because the final cost is not predetermined. The government pays for the actual labor hours and materials used, plus a fixed fee or labor-hour rate. This necessitates robust oversight by the contracting officer to ensure efficiency, prevent overcharging, and manage the overall cost. If not managed diligently, T&M contracts can become significantly more expensive than initially anticipated, unlike fixed-price contracts where the contractor assumes more cost risk.

What is the track record of Engility Services, LLC in performing similar government contracts, particularly those involving Time and Materials pricing?

Engility Services, LLC (now part of SAIC following a merger) has a substantial history of performing government contracts across various agencies, including the Department of Defense and DHS. Their portfolio often included complex IT, engineering, and mission support services. Information regarding their specific performance on Time and Materials contracts would require a deeper dive into past performance evaluations and contract histories. Generally, large contractors like Engility are expected to have established processes for managing T&M contracts, including detailed timesheet tracking, resource allocation, and reporting. However, the success and cost-effectiveness of T&M engagements are highly dependent on the contractor's internal controls and the government's oversight effectiveness. A review of past performance reviews and any contract disputes or overruns associated with Engility's T&M work would provide a clearer picture of their capabilities in this area.

How does the total contract value of $21.8 million compare to annual spending on engineering services within DHS or similar agencies?

The total contract value of $21.8 million over approximately 2.5 years (853 days) equates to an average annual spend of roughly $8.7 million. This figure represents a moderate level of investment for specialized engineering services within a large agency like DHS. DHS manages a vast array of complex programs and systems, and its total annual spending on engineering and technical services likely runs into hundreds of millions, if not billions, of dollars across all its components (e.g., CBP, ICE, TSA, CISA). Therefore, this specific contract, while significant in its own right, is likely one of many supporting various DHS functions. Comparing it to annual spending requires analyzing DHS's overall budget allocation for engineering support services, which would place this contract within a broader context of agency-wide resource deployment.

What were the key factors that led to the selection of Engility Services, LLC for this contract, given the full and open competition?

In a full and open competition, the selection of a contractor like Engility Services, LLC is typically based on a combination of factors outlined in the solicitation's evaluation criteria. These commonly include technical approach, past performance, management capability, key personnel, and price (or cost). For a services contract, especially one involving engineering expertise, technical qualifications and demonstrated past performance in delivering similar services are often heavily weighted. Engility's ability to propose a technically sound solution, coupled with a competitive price and a proven track record of successful contract execution, would have been crucial. The specific weighting of these factors would have been detailed in the original solicitation document, guiding the evaluation process and ultimately leading to Engility's selection as the best value offeror.

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

Solicitation ID: HSHQDC-15-Q-00058

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: $21,798,978

Exercised Options: $21,798,978

Current Obligation: $21,798,978

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12A00004

IDV Type: BPA

Timeline