EOP awarded $53.8M for IT operations and support to Engility Corporation over 5 years
Contract Overview
Contract Amount: $53,808,843 ($53.8M)
Contractor: Engility Corporation
Awarding Agency: Executive Office of the President
Start Date: 2008-07-17
End Date: 2013-08-27
Contract Duration: 1,867 days
Daily Burn Rate: $28.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY OPERATIONS AND SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503
Plain-Language Summary
Executive Office of the President obligated $53.8 million to ENGILITY CORPORATION for work described as: INFORMATION TECHNOLOGY OPERATIONS AND SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. Competition dynamics for this contract require further investigation. 3. Performance risk appears moderate given the contract type and duration. 4. This contract supports core IT functions within the Executive Office of the President. 5. The IT services sector is characterized by rapid technological change and high demand.
Value Assessment
Rating: fair
The total award of $53.8 million over five years for IT operations and support appears within a reasonable range for a contract of this scope and duration. However, without specific benchmarks for comparable IT operations and support contracts within the Executive Office of the President or similar federal agencies, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for flexibility but necessitates careful monitoring of performance to ensure costs are controlled and value is maximized. Further analysis of the award fee criteria and achieved fees would provide a clearer picture of cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that taxpayer funds are used efficiently by leveraging market forces to drive down costs.
Public Impact
The Executive Office of the President benefits from enhanced IT operations and support. Essential IT services, including custom computer programming, are delivered. The contract's impact is concentrated within the District of Columbia. The contract supports a workforce skilled in IT operations and custom programming.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- The duration of the contract (over 5 years) may not fully account for rapidly evolving IT needs.
- Specific performance metrics and award fee criteria are not detailed, making performance assessment difficult.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract supports critical IT infrastructure for the Executive Office of the President.
- The contractor, Engility Corporation, has a track record in federal IT services.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT operations and custom computer programming services. The IT services market is highly dynamic, driven by continuous innovation and increasing demand for sophisticated digital solutions. Federal spending in this area is substantial, supporting everything from basic network maintenance to complex software development. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies, considering factors like scope of services, contract type, and duration.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside. However, the prime contractor, Engility Corporation, may engage small businesses as subcontractors to fulfill portions of the contract requirements, depending on their own subcontracting plans and the nature of the services delivered. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting agency, the Executive Office of the President, and potentially the relevant Inspector General's office. The Cost Plus Award Fee (CPAF) structure implies performance-based oversight, where the contractor's achievement of specific award-fee criteria is evaluated to determine additional fee payments. Transparency would be enhanced through contract award databases and reporting requirements. Accountability measures are embedded in the CPAF structure, incentivizing the contractor to meet or exceed performance expectations.
Related Government Programs
- IT Operations Support Services
- Custom Computer Programming Services
- Federal IT Infrastructure Contracts
- Executive Office of the President IT Spending
Risk Flags
- Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
- Contract duration may not align with rapid IT advancements.
- Specific performance metrics for award fee determination are not publicly detailed.
Tags
it-operations, custom-computer-programming, executive-office-of-the-president, cost-plus-award-fee, competitive-delivery-order, district-of-columbia, engility-corporation, information-technology, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Executive Office of the President awarded $53.8 million to ENGILITY CORPORATION. INFORMATION TECHNOLOGY OPERATIONS AND SUPPORT
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Executive Office of the President (Executive Office of the President).
What is the total obligated amount?
The obligated amount is $53.8 million.
What is the period of performance?
Start: 2008-07-17. End: 2013-08-27.
What is Engility Corporation's track record with federal IT contracts, particularly those similar to this award?
Engility Corporation has a significant history of performing federal IT contracts across various agencies. Prior to its acquisition by SAIC in 2019, Engility held numerous contracts related to IT operations, software development, systems engineering, and professional services. Their experience often involved supporting complex government missions requiring robust IT infrastructure and specialized technical expertise. Analyzing their past performance on similar Cost Plus Award Fee (CPAF) contracts, especially those involving IT operations and custom programming, would be crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to meet cost and schedule targets on previous engagements. A review of federal procurement data (like FPDS or USASpending) would reveal the breadth and depth of their federal IT portfolio.
How does the $53.8 million award compare to similar IT operations and support contracts within the Executive Office of the President or comparable agencies?
Benchmarking the $53.8 million award requires comparing it against IT operations and support contracts of similar scope, duration, and complexity within the Executive Office of the President (EOP) or closely related agencies (e.g., White House Military Office, National Security Council). Factors such as the number of users supported, the criticality of the systems, the specific services included (e.g., network management, cybersecurity, application development, help desk), and the contract type (CPAF in this case) are essential for a meaningful comparison. Without access to detailed contract data for comparable EOP contracts, it's difficult to definitively state if this award represents excellent, fair, or questionable value. However, for a five-year contract supporting a high-profile entity like the EOP, a total value in the tens of millions is not unusual, provided the scope of work is commensurate.
What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract for IT operations?
The primary risks associated with this CPAF contract revolve around cost control and performance management. For the government, the risk is that the 'cost plus' nature could lead to higher-than-expected expenditures if the contractor's costs are not rigorously scrutinized and managed. The 'award fee' component introduces the risk that the government may not effectively define or measure performance criteria, leading to inflated award fees being paid for mediocre results. For the contractor, the risk lies in not meeting the performance standards required to earn the maximum award fee, thus impacting their overall profit margin. Additionally, the inherent complexity of IT operations means that unforeseen technical challenges or scope creep can increase costs and complicate performance evaluations, posing a risk to both parties.
How effective has the competition level (6 bidders) been in ensuring competitive pricing for this contract?
Having six bidders for this competitive delivery order suggests a healthy level of market interest and competition. Generally, a higher number of bidders correlates with increased pressure on pricing, as companies vie to offer the most attractive terms to win the contract. This competitive environment allows the government to leverage market forces to achieve better price discovery. While the specific pricing outcomes are not detailed here, the presence of multiple bidders implies that the government likely received a range of proposals, enabling them to select an offer that represented good value. However, the true effectiveness can only be assessed by analyzing the proposed prices against independent government estimates or historical pricing data for similar services.
What are the historical spending patterns for IT operations and support within the Executive Office of the President?
Historical spending patterns for IT operations and support within the Executive Office of the President (EOP) would likely show a consistent and significant investment over time, reflecting the critical role of technology in supporting the core functions of the presidency. Spending would typically fluctuate based on modernization initiatives, cybersecurity threats, and the overall IT infrastructure needs of various EOP components. Analyzing past contract awards for IT services, including help desk support, network infrastructure, software development, and cybersecurity, would reveal trends in spending levels, dominant contract types (e.g., FFP, T&M, CPAF), and key contractors. This historical data is crucial for understanding budget allocation, identifying potential cost efficiencies, and forecasting future IT requirements and expenditures within the EOP.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 3750 CENTERVIEW DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $58,766,648
Exercised Options: $55,516,648
Current Obligation: $53,808,843
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07T00BGD0023
IDV Type: GWAC
Timeline
Start Date: 2008-07-17
Current End Date: 2013-08-27
Potential End Date: 2013-08-27 00:00:00
Last Modified: 2016-09-29
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