DoD awards $24.3M Engineering Services contract to Engility Services, LLC without competition

Contract Overview

Contract Amount: $24,303,314 ($24.3M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2012-06-08

End Date: 2014-06-01

Contract Duration: 723 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR ENGINEERING SUPORT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to ENGILITY SERVICES, LLC for work described as: LABOR ENGINEERING SUPORT Key points: 1. Significant contract value of $24.3 million awarded. 2. Lack of competition raises questions about price discovery. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. Engineering Services sector sees substantial government spending.

Value Assessment

Rating: questionable

The $24.3 million award for engineering services lacks a clear benchmark due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing is optimal or if taxpayers received the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs compared to a competitive process.

Taxpayer Impact: The lack of competition for this $24.3 million contract means taxpayers may have paid more than necessary, as there was no market pressure to drive down costs.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency in the procurement process. Potential for reduced innovation by not engaging a wider market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency

Positive Signals

Contract awarded to a specific company for services.

Sector Analysis

The Engineering Services sector (NAICS 541330) is critical for government projects, encompassing design, consulting, and project management. Spending in this sector is substantial, making competitive procurement essential for cost efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was considered or subcontracted.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the fixed fee component was appropriately determined.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source procurement
Cost-plus contract type
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to ENGILITY SERVICES, LLC. LABOR ENGINEERING SUPORT

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 $24.3 million.

What is the period of performance?

Start: 2012-06-08. End: 2014-06-01.

What was the justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications would involve reasons like unique capabilities, urgent needs, or lack of available sources. A thorough review would require accessing the contract file and associated documentation to understand the rationale behind bypassing the competitive bidding process.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

CPFF contracts carry risks for the government, primarily the potential for cost overruns if the contractor's costs exceed estimates. While the fixed fee provides some incentive for efficiency, the government bears the risk of increased costs. This structure can be less cost-effective than fixed-price contracts if not managed diligently.

How does the lack of competition impact the overall effectiveness and value for money in this contract?

The absence of competition significantly hinders the government's ability to secure the best value and ensure maximum effectiveness. Without competing offers, there's no market validation of price or performance. This can lead to paying a premium for services and potentially receiving less innovative solutions than might emerge from a competitive environment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042112R0041

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation (UEI: 078745061)

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: $24,745,846

Exercised Options: $24,745,846

Current Obligation: $24,303,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline