Engility Services LLC contract for IT services awarded by DoD, valued at over $51.7 million

Contract Overview

Contract Amount: $51,763,612 ($51.8M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2002-06-25

End Date: 2011-09-15

Contract Duration: 3,369 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $51.8 million to ENGILITY SERVICES, LLC for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is substantial, spanning over 3300 days, indicating a long-term need. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was awarded by the Defense Contract Management Agency, a key component of the Department of Defense. 6. The contract's value of over $51.7 million places it in the mid-to-large tier for federal IT procurements.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed service descriptions and performance metrics. However, a Cost Plus Fixed Fee contract can sometimes lead to higher costs compared to fixed-price contracts if not managed rigorously. The duration suggests a sustained need, and the total value over its lifespan needs to be assessed against the delivered outcomes and market rates for similar IT services.

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 a bid. The presence of 4 bids suggests a moderate level of competition for this requirement. While competition is present, the specific number of bidders can influence price discovery; more bidders generally lead to better price competition.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it tends to drive down prices and encourage efficiency from contractors.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring IT support services. Services delivered likely encompass a wide array of computer-related functions, potentially including system maintenance, development, and support. The geographic impact is likely concentrated within areas where the Department of Defense operates and requires IT infrastructure. Workforce implications could include the employment of IT professionals by Engility Services, LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The long duration of the contract may not adapt well to rapidly changing IT landscapes.
The broad NAICS code could mask specific service areas where expertise might be lacking.
Reliance on a single contractor for an extended period can reduce flexibility.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract has a defined end date, providing a natural point for re-evaluation.
The fixed fee component provides some level of cost certainty for the government.
The contractor, Engility Services, LLC, has experience in federal contracting.

Sector Analysis

This contract falls within the Information Technology sector, specifically under IT services. The federal IT services market is vast, with agencies consistently procuring services for infrastructure, software development, cybersecurity, and data management. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by the Department of Defense and other federal agencies for similar scope and duration.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information regarding subcontracting plans for small businesses. The absence of these elements suggests that small businesses may not have been a primary focus in the contract's structure, potentially limiting their direct participation or subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed performance data may be limited.

Related Government Programs

Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Support Services for Government Agencies
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
Long contract duration may lead to technological obsolescence.
Broad NAICS code lacks specificity for detailed performance benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.8 million to ENGILITY SERVICES, LLC. See the official description on USAspending.

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 $51.8 million.

What is the period of performance?

Start: 2002-06-25. End: 2011-09-15.

What specific IT services were provided under this contract?

The contract's NAICS code (541519) indicates 'Other Computer Related Services,' which is a broad category. Without more specific contract line item numbers (CLINs) or a detailed statement of work, it's difficult to pinpoint the exact services. However, this typically includes a range of IT support, such as system administration, network management, software maintenance, help desk support, and potentially IT consulting or project management. Given the duration and value, it likely encompassed significant operational support and possibly system integration or modernization efforts for the Department of Defense.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT services?

Cost Plus Fixed Fee contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty. The government pays the contractor's actual costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. It can be more expensive than FFP if costs are not well-controlled. For IT services, FFP is often preferred for well-defined projects, while CPFF might be used for research, development, or long-term sustainment where requirements evolve.

What is the typical performance expectation for a contract of this duration and value?

A contract spanning over 3300 days (approximately 9 years) with a value exceeding $51 million suggests a requirement for sustained, critical IT support. Performance expectations would likely include high levels of system availability, timely issue resolution, adherence to security protocols, and potentially contributions to larger IT modernization initiatives. Key performance indicators (KPIs) would typically be established to measure service levels, such as response times for help desk tickets, uptime percentages for critical systems, and successful completion of maintenance cycles. Failure to meet these KPIs could result in penalties or contract termination.

What are the potential risks associated with a long-term IT services contract like this?

Long-term IT contracts carry several risks. Technological obsolescence is a major concern; the technology landscape can change dramatically over 9 years, potentially making the contracted services or systems outdated. Contractor performance degradation is another risk; initial high performance may decline over time, especially if incentives are not structured effectively. Furthermore, the government's needs may evolve, and a rigid, long-term contract might hinder adaptation. There's also the risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if better solutions become available.

How does the 'Other Computer Related Services' NAICS code impact the analysis of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is very broad. This means the contract could cover a wide spectrum of IT activities beyond standard software development or hardware maintenance, such as IT consulting, data processing, disaster recovery services, or IT project management. This breadth makes it challenging to benchmark against highly specific IT service contracts. It suggests the Department of Defense had a flexible requirement that didn't fit neatly into more specialized categories, potentially requiring a versatile contractor capable of handling diverse IT needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4801 STONECROFT BLVD, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline