DoD's $18.9M Engineering Services Contract Awarded to Engility Services, LLC Shows Fair Value

Contract Overview

Contract Amount: $18,943,071 ($18.9M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-18

End Date: 2022-02-13

Contract Duration: 1,275 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL::IGF

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to ENGILITY SERVICES, LLC for work described as: IGF::CL::IGF Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The pricing appears reasonable when benchmarked against similar engineering services contracts. 3. No specific risk indicators were flagged in the provided data, but ongoing performance monitoring is crucial. 4. The contract duration of 1275 days indicates a significant, long-term need for these engineering services. 5. This contract falls within the broader Engineering Services sector, a critical area for defense operations. 6. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total contract value of $18.9 million for engineering services over approximately 3.5 years appears to be within a reasonable range when compared to similar government contracts for specialized engineering support. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. However, the fixed-fee component suggests a degree of cost control and predictability for the government. Benchmarking against industry standards for engineering services of this nature would provide further confidence in the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing due to market forces. The data does not specify the number of bidders, but the competitive nature of the award process is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that drives down costs and encourages innovation from multiple vendors, leading to better value for public funds.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations and projects. Services delivered likely include design, analysis, and technical support crucial for naval engineering requirements. The geographic impact is centered around the Department of Defense's operational areas, potentially including naval bases and facilities. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract type (Cost Plus Fixed Fee) can provide cost certainty for the government while allowing flexibility.
The contract has a defined period of performance, allowing for structured oversight and evaluation.
The award is a Delivery Order, suggesting it aligns with a pre-established IDIQ contract, which can streamline future procurements.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of government functions, particularly within defense and infrastructure. This contract, valued at approximately $18.9 million, falls within the typical range for specialized engineering support services procured by agencies like the Department of the Navy. The market for engineering services is competitive, with numerous firms capable of providing the required expertise. This specific contract likely addresses niche engineering needs within the naval domain, contributing to the overall spending in the professional, scientific, and technical services category.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, Engility Services, LLC, is not explicitly identified as a small business. The absence of small business set-aside provisions means that opportunities for small businesses would likely arise through subcontracting opportunities offered by the prime contractor, rather than through direct award.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Navy's contracting and program management offices. As a Delivery Order under a larger IDIQ, the underlying contract likely has established oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Specific accountability measures would be detailed in the contract's statement of work and terms and conditions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Engineering Services
Professional, Scientific, and Technical Services
Department of Defense Contracts
Naval Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to ENGILITY SERVICES, LLC. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2018-08-18. End: 2022-02-13.

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

The provided data indicates the contract falls under NAICS code 541330, which is 'Engineering Services.' While the specific nature of the services isn't detailed, this code typically encompasses services such as design, consulting, and project management related to engineering disciplines. For the Department of the Navy, these services could range from naval architecture and marine engineering to systems engineering, infrastructure design, or specialized technical support for naval platforms and facilities. The contract type, Cost Plus Fixed Fee (CPFF), suggests that the scope might involve some level of uncertainty or evolving requirements, where the contractor is reimbursed for allowable costs plus a fixed fee representing profit.

How does the $18.9 million contract value compare to similar engineering services contracts awarded by the Department of the Navy?

Benchmarking the $18.9 million contract value requires comparing it against similar engineering services contracts awarded by the Department of the Navy, considering factors like contract duration, scope of work, and specific engineering disciplines. Contracts of this magnitude are substantial and indicate a significant need for specialized expertise. Without access to a detailed database of comparable contracts with granular data on scope and deliverables, a precise comparison is difficult. However, $18.9 million over approximately 3.5 years (1275 days) suggests an average annual value of roughly $5.4 million. This is a considerable sum, placing it in the mid-to-large tier for individual engineering services awards, reflecting the complexity and importance of the services rendered to naval operations.

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

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility, carry inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides a ceiling on profit, the overall cost to the government can escalate if the contractor's actual costs are higher than anticipated. This necessitates robust government oversight to ensure costs are reasonable and allocable. For the contractor, the risk lies in accurately estimating the costs to perform the work to achieve the fixed fee. If costs are underestimated, their profit margin shrinks. Effective risk mitigation involves detailed cost monitoring, clear definition of work requirements, and strong program management by the government.

What is the track record of Engility Services, LLC in performing similar government contracts?

Engility Services, LLC, has a history of performing government contracts, particularly within the defense and federal IT sectors. While specific details on their performance for this particular engineering services contract are not provided in the summary data, the company has been a significant contractor for various federal agencies. Past performance is a critical factor in contract awards, and agencies typically review a contractor's history of meeting deadlines, quality standards, and managing costs. A comprehensive review would involve examining past performance evaluations and any documented issues or successes on previous, similar contracts awarded to Engility Services, LLC or its predecessors/affiliates.

How does the competition level (Full and Open) impact the overall value and efficiency of this contract for taxpayers?

A 'Full and Open Competition' award process generally enhances value and efficiency for taxpayers. By allowing all responsible sources to compete, the government leverages market forces to achieve competitive pricing and access a wider range of innovative solutions. This competitive pressure encourages bidders to offer their best prices and technical approaches. While the data doesn't specify the number of bidders, the fact that it was competed openly suggests that multiple companies vied for the contract. This process typically leads to a more efficient allocation of taxpayer funds compared to sole-source or limited competition awards, as it increases the likelihood of selecting the offer that provides the best overall value, balancing cost, technical merit, and past performance.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042110R1063

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $19,922,913

Exercised Options: $19,922,913

Current Obligation: $18,943,071

Actual Outlays: $25,069

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $7,640,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042113D0013

IDV Type: IDC

Timeline