DoD's $22.2M Naval Surveillance Radar System contract awarded to Engility Services, LLC

Contract Overview

Contract Amount: $22,245,058 ($22.2M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2011-03-18

End Date: 2012-11-15

Contract Duration: 608 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: NAVAL SURVEILLANCE RADARS DETECTION&TRACKING SYSTEM

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23450

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to ENGILITY SERVICES, LLC for work described as: NAVAL SURVEILLANCE RADARS DETECTION&TRACKING SYSTEM Key points: 1. Value for money appears fair given the cost-plus award fee structure, which incentivizes performance but can lead to cost overruns. 2. Competition dynamics were full and open, suggesting a competitive bidding process that should have driven a reasonable price. 3. Risk indicators include the cost-plus award fee contract type, which carries inherent cost escalation risks. 4. Performance context is a 608-day delivery order for engineering services related to surveillance radar systems. 5. Sector positioning places this contract within the broader defense engineering services market, a critical area for national security.

Value Assessment

Rating: fair

The contract's total value of $22.2 million for engineering services over approximately two years suggests a moderate investment. Benchmarking against similar defense engineering contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure implies that the final cost could vary based on performance, making a direct price comparison difficult. The award fee component aims to ensure value by incentivizing contractor performance, but it also introduces uncertainty in the final cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific number of bidders does not inherently guarantee the most optimal outcome without further analysis of the bidding landscape.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential bidders and encourages competitive pricing, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the Department of Defense, specifically naval operations requiring advanced surveillance capabilities. The services delivered are engineering support for detection and tracking systems, crucial for maritime security and intelligence. The geographic impact is likely focused on naval bases and operational areas where these surveillance systems are deployed. Workforce implications include employment for engineers and technical specialists within Engility Services, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to higher final costs than fixed-price contracts if not managed diligently.
The duration of the contract (608 days) is substantial, requiring ongoing oversight to ensure milestones are met.
Limited public information on the specific technical requirements makes it difficult to fully assess the value proposition.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract includes an award fee, which incentivizes contractor performance and potentially higher quality service delivery.
Engility Services, LLC's involvement indicates a reliance on established defense contractors with relevant expertise.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the defense industrial base. The market for defense engineering services is characterized by specialized expertise, long-term relationships, and substantial government spending. Comparable spending benchmarks would typically involve other contracts for radar systems, electronic warfare, or command and control systems, often running into tens or hundreds of millions of dollars.

Small Business Impact

There is no indication that this contract included a small business set-aside. Engility Services, LLC is a large business. The contract does not explicitly mention subcontracting goals for small businesses, though large prime contractors often utilize small businesses for specialized support. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the Cost Plus Award Fee structure, linking payment to performance outcomes. Transparency is facilitated through contract awards databases, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

Naval Radar Systems
Defense Engineering Services
Surveillance Technology
Department of Defense Procurement
Command and Control Systems

Risk Flags

Cost-plus award fee contract type carries inherent risk of cost escalation.
Limited public detail on specific performance metrics makes value assessment challenging.
Contract duration requires sustained government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to ENGILITY SERVICES, LLC. NAVAL SURVEILLANCE RADARS DETECTION&TRACKING SYSTEM

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2011-03-18. End: 2012-11-15.

What is Engility Services, LLC's track record with similar defense contracts?

Engility Services, LLC, prior to its acquisition by SAIC, had a significant history of performing complex engineering and technical services for the Department of Defense and other federal agencies. Their portfolio often included work on radar systems, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and other advanced defense technologies. Analyzing their past performance on similar contracts, including any past performance issues or commendations, would provide valuable context for assessing their capability and reliability in executing this specific naval surveillance radar project. Specific data on past performance ratings or contract modifications would be needed for a comprehensive evaluation.

How does the $22.2 million cost compare to similar naval surveillance radar system contracts?

Directly comparing the $22.2 million cost is challenging without detailed specifications of the 'Naval Surveillance Radars Detection & Tracking System' and the scope of engineering services provided. Naval radar systems vary widely in complexity, range, and capability, significantly impacting cost. However, for a two-year engineering services contract supporting such systems, this figure appears within a reasonable range for specialized defense contracts. Broader benchmarks for radar system development or integration can range from tens to hundreds of millions of dollars, depending on the system's sophistication and scale. The Cost Plus Award Fee structure also introduces variability, meaning the final cost could differ from the initial estimate.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for engineering services?

The primary risks associated with a CPAF contract for engineering services include potential cost overruns and a less predictable final price compared to fixed-price contracts. While the 'award fee' component incentivizes performance, the 'cost plus' element means the contractor is reimbursed for allowable costs plus a fee that is a percentage of those costs, potentially leading to higher expenditures if costs are not tightly controlled. There's also a risk that the contractor might focus on achieving the award fee criteria at the expense of other important, but less incentivized, aspects of performance. Effective government oversight and clear definition of performance metrics are crucial to mitigate these risks.

How effective are naval surveillance radar systems in enhancing maritime security?

Naval surveillance radar systems are critical components for enhancing maritime security by providing early warning, situational awareness, and tracking capabilities. They enable naval forces to detect and monitor surface vessels, low-flying aircraft, and other potential threats in vast maritime areas, including territorial waters and international shipping lanes. Effective radar systems contribute to force protection, anti-piracy operations, illegal fishing interdiction, and overall maritime domain awareness. The specific effectiveness of any given system depends on its technological sophistication, range, resolution, integration with other sensor systems, and the operational context in which it is employed.

What has been the historical spending trend for naval surveillance radar systems by the DoD?

Historical spending trends for naval surveillance radar systems by the Department of Defense (DoD) generally show consistent investment, reflecting the ongoing need for advanced maritime surveillance capabilities. While specific figures for 'naval surveillance radar systems' as a distinct category can fluctuate based on modernization cycles and new platform procurements, the overall defense budget allocates significant resources to radar technology, electronic warfare, and C4ISR systems. Spending often increases during periods of heightened geopolitical tension or when new technological threats emerge. Analyzing broader categories like 'shipboard radar systems' or 'maritime surveillance platforms' within DoD budget documents would reveal longer-term spending patterns and priorities.

What is the significance of the 'Detection & Tracking System' aspect of this contract?

The 'Detection & Tracking System' aspect signifies that this contract is focused on the core functionality of identifying and following targets within a defined area, likely the maritime domain. This implies the engineering services provided are crucial for the system's ability to accurately sense, classify, and maintain a continuous record of the movement of objects. Such capabilities are vital for naval operations, including threat assessment, navigation safety, and engagement planning. The effectiveness of the detection and tracking functions directly impacts the overall mission readiness and situational awareness of the naval assets employing the system.

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

Solicitation ID: N0002411R3147

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 35 NEW ENGLAND BUSINESS CENTER 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: $22,836,273

Exercised Options: $22,836,273

Current Obligation: $22,245,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017810D6332

IDV Type: IDC

Timeline