VA's $9.9M IT support contract with Engility Services, LLC, awarded in 2007, aimed to bolster enterprise systems

Contract Overview

Contract Amount: $9,898,878 ($9.9M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-08-06

End Date: 2009-02-05

Contract Duration: 549 days

Daily Burn Rate: $18.0K/day

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: ENTERPRISE SYSTEMS MANAGEMENT SERVICES SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.9 million to ENGILITY SERVICES, LLC for work described as: ENTERPRISE SYSTEMS MANAGEMENT SERVICES SUPPORT Key points: 1. The contract focused on custom computer programming services, indicating a need for specialized IT support. 2. Awarded as a fixed-price level of effort, the contract structure aimed to control costs for defined tasks. 3. The duration of 549 days suggests a project of moderate length, requiring sustained support. 4. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The small business indicators are false, suggesting this was not specifically set aside for small businesses. 6. The contract was awarded to Engility Services, LLC, a significant player in the federal IT services market.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without knowing the specific scope of 'enterprise systems management services support' and the underlying IDIQ contract it was part of. However, a $9.9 million contract over approximately 1.5 years for custom programming services falls within a typical range for federal IT support. The fixed-price level of effort structure suggests an attempt to manage costs, but the ultimate value depends on the efficiency of service delivery and the accuracy of the initial effort estimation. Without more detailed performance metrics or comparisons to similar custom programming efforts, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific delivery order is not explicitly detailed in the provided data. Delivery orders under IDIQ contracts can vary in their competitive nature, ranging from full and open competition to limited competition or even sole-source awards, depending on the terms of the parent IDIQ. Without information on whether this delivery order was competed among multiple awardees of the parent IDIQ or if it was a directed award, it's impossible to assess the extent of competition.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to better pricing and more innovative solutions, as contractors vie for the business. Limited or sole-source awards may result in higher costs for taxpayers if effective price negotiation or market pressure is absent.

Public Impact

The primary beneficiaries of this contract were likely the Department of Veterans Affairs (VA) personnel who relied on stable and functional enterprise systems. The services delivered were custom computer programming and IT support, crucial for maintaining and potentially enhancing the VA's internal operational systems. The geographic impact was primarily within the VA's operational footprint, likely concentrated where Engility Services, LLC provided on-site or remote support. Workforce implications would include the IT professionals employed by Engility Services, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information for the delivery order makes it difficult to assess if taxpayers received the best possible value.
The fixed-price level of effort structure can sometimes lead to inefficiencies if not closely managed, potentially increasing costs.
Without performance data, it's hard to gauge the effectiveness of the enterprise systems management support provided.

Positive Signals

The contract was awarded to a known entity, Engility Services, LLC, suggesting a degree of pre-qualification.
The fixed-price structure, if well-defined, provides cost certainty for the government.
The contract duration indicates a sustained effort to support critical enterprise systems.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services (NAICS code 541511). The federal IT services market is vast, with agencies consistently investing in software development, system integration, and maintenance to support their missions. Comparable spending benchmarks would involve analyzing other IT support contracts awarded by the VA or other large federal agencies for similar custom programming and enterprise system support, considering factors like contract duration, scope, and pricing models.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely open to a broader range of contractors, including large businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's own subcontracting plans or the nature of the work requiring specialized small business capabilities.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Veterans Affairs. As a delivery order under a larger contract vehicle, oversight would likely involve contract officers, program managers, and potentially technical points of contact within the VA. Accountability measures would be tied to the terms of the fixed-price level of effort contract, focusing on the delivery of specified services within the agreed-upon timeframe and budget. Transparency would be facilitated through contract databases like FPDS, which record award details, though detailed performance reports are often not publicly available.

Related Government Programs

Enterprise Resource Planning (ERP) Systems Support
IT Infrastructure Modernization
Custom Software Development Services
IT Operations and Maintenance Contracts

Risk Flags

Potential for scope creep in custom programming.
Reliance on a single contractor for critical enterprise systems.
Uncertainty regarding competition level for the delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.9 million to ENGILITY SERVICES, LLC. ENTERPRISE SYSTEMS MANAGEMENT SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2007-08-06. End: 2009-02-05.

What was the specific nature of the 'enterprise systems management services support' provided under this contract?

The provided data categorizes this contract under NAICS code 541511, 'Custom Computer Programming Services.' This indicates that the support likely involved the development, modification, integration, and maintenance of software and computer systems critical to the Department of Veterans Affairs' operations. 'Enterprise systems' typically refer to large-scale software solutions that manage core business processes, such as financial management, human resources, supply chain, and patient care systems. Therefore, the services probably encompassed tasks like coding, debugging, system testing, and potentially the implementation of new features or updates to existing VA enterprise software.

How does the $9.9 million award compare to similar IT support contracts awarded by the VA during the 2007-2009 period?

Comparing this $9.9 million contract to similar VA IT support contracts awarded between 2007 and 2009 requires access to a comprehensive database of federal contract awards. However, as a fixed-price level of effort contract for custom programming services, it represents a moderate investment for a roughly 1.5-year engagement. Larger, more complex IT modernization projects or enterprise-wide system implementations could easily run into tens or hundreds of millions of dollars. Conversely, smaller, task-specific IT support contracts might be in the hundreds of thousands or low millions. This contract appears to be in the mid-range for specialized IT support, suggesting a significant but not massive scope of work.

What were the key performance indicators (KPIs) used to assess the success of Engility Services, LLC in delivering these services?

The provided data does not specify the key performance indicators (KPIs) used to assess the success of Engility Services, LLC. For a fixed-price level of effort contract, KPIs would typically focus on the timely completion of defined tasks, adherence to technical specifications, quality of deliverables (e.g., bug rates, system uptime), and potentially customer satisfaction. Without access to the contract's statement of work or performance reports, it is impossible to detail the specific metrics used. However, common IT service KPIs include system availability, response times for issue resolution, and successful deployment of new software versions.

What is the track record of Engility Services, LLC with the Department of Veterans Affairs prior to and following this contract?

Engility Services, LLC, and its predecessor companies, have a significant history of contracting with the federal government, including the Department of Veterans Affairs (VA). Prior to this 2007 contract, Engility (or its legacy entities) likely held other contracts with the VA, given its established presence in the federal IT space. Following this contract's completion in 2009, Engility continued to secure numerous other awards across various federal agencies, including the VA, for a wide range of IT and engineering services. Their extensive portfolio suggests a generally positive working relationship and capability to meet federal requirements, although specific performance details for individual contracts are often not publicly detailed.

Were there any identified risks associated with this contract, and how were they mitigated?

The provided data does not explicitly list risks associated with this specific contract. However, common risks in custom computer programming and enterprise system support contracts include scope creep, technical challenges, contractor performance issues, and schedule delays. For a fixed-price level of effort contract, risks also include the contractor underestimating the effort required, leading to reduced profitability, or the government overestimating, leading to paying for unused capacity. Mitigation strategies typically involve robust contract management, clear definition of tasks and deliverables, regular progress reviews, and contingency planning. The VA's contract management office would have been responsible for identifying and mitigating these risks throughout the contract's lifecycle.

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

Contractor Details

Address: 35 NEW ENGLAND BUSINESS CTR DR STE 200, ANDOVER, MA, 01810

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,898,878

Exercised Options: $9,898,878

Current Obligation: $9,898,878

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0333P

IDV Type: FSS

Timeline