DoD's $79.9M professional services contract with Engility Services, LLC awarded under full and open competition

Contract Overview

Contract Amount: $79,935,106 ($79.9M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2004-12-13

End Date: 2016-12-31

Contract Duration: 4,401 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $79.9 million to ENGILITY SERVICES, LLC for work described as: Key points: 1. Contract awarded for 'All Other Professional, Scientific, and Technical Services' indicates a broad scope of support. 2. The definitive contract structure suggests a long-term relationship for ongoing services. 3. Awarded in 2004 and ending in 2016, this contract spans a significant period, allowing for performance trend analysis. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The contract was not set aside for small businesses, implying larger prime contractors were expected. 6. Virginia is the primary state associated with this contract, potentially indicating a geographic concentration of work.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, a $79.9 million spend over approximately 12 years (4401 days) suggests an average annual spend of roughly $6.66 million. This figure needs to be compared against the complexity and criticality of the services provided. Given the broad NAICS code (541990), it's difficult to ascertain if this represents good or poor value without understanding the specific tasks performed. The fixed-price nature is generally favorable for cost control if well-defined.

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 offers. This suggests a competitive bidding process was utilized. With two bids received, the level of competition was limited, which could potentially impact price discovery and lead to less aggressive pricing compared to a scenario with numerous bidders.

Taxpayer Impact: A full and open competition, even with only two bidders, generally provides a better opportunity for taxpayers to receive competitive pricing than a sole-source or limited competition scenario.

Public Impact

The primary beneficiary is the Department of the Army, receiving professional, scientific, and technical services. The services delivered likely supported various operational, analytical, or research functions within the Army. The contract's performance was likely concentrated in Virginia, based on the associated state information. The workforce implications would involve personnel employed by Engility Services, LLC, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in higher costs than a more robust bidding environment.
The broad NAICS code makes it difficult to assess if the services were appropriately priced without detailed task orders.
Long contract duration could lead to scope creep or outdated service definitions if not actively managed.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Fixed-price contract shifts performance risk to the contractor.
Contractor (Engility Services, LLC) has a track record of performing federal contracts, suggesting some level of capability.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of the federal contracting landscape. This contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' which is a broad category encompassing a wide array of specialized support. Federal spending in this sector is often driven by the need for expertise in areas such as research, analysis, engineering, and management consulting. Comparable spending benchmarks would depend heavily on the specific services rendered, but the annual spend of approximately $6.66 million is moderate within the context of large federal service contracts.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary award was made to a large business, Engility Services, LLC. There is no explicit information on subcontracting plans or performance related to small businesses within the provided data. The absence of a small business set-aside suggests that the scope or nature of the services was deemed more suitable for larger prime contractors, or that the competition was structured to attract bids from established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Accountability measures would be tied to the terms and conditions of the fixed-price definitive contract, including performance standards and delivery schedules. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Professional Services Contracts
Army IT and Technical Support Services
Federal Consulting Services
Long-Term Government Contracts
Definitive Contracts

Risk Flags

Limited Competition
Broad Service Category
Lack of Specific Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.9 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $79.9 million.

What is the period of performance?

Start: 2004-12-13. End: 2016-12-31.

What was the specific nature of the 'All Other Professional, Scientific, and Technical Services' provided under this contract?

The provided data uses the broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This category is a catch-all for services not classified elsewhere, potentially including areas like research and development support, technical consulting, program management, specialized analysis, or other expert services. Without access to the contract's statement of work or task orders, the precise nature of the services remains unspecified. This lack of specificity makes it difficult to fully assess the contract's value, performance, or impact. Future analysis would benefit from examining detailed contract documentation to understand the specific deliverables and objectives.

How does the $79.9 million total award compare to similar contracts for professional services within the Department of the Army during the 2004-2016 period?

Comparing this $79.9 million contract to similar ones requires access to a broader dataset of Department of the Army contracts awarded between 2004 and 2016 under NAICS code 541990 or related professional services codes. The total award value suggests a significant, long-term engagement. If other contracts of similar duration and scope for comparable services were awarded in the range of $50-$100 million, then this contract's value might be considered typical. However, if comparable services were procured for substantially less, or if this contract represents a higher-than-average spend for its category, it could indicate potential issues with pricing or competition. The limited competition (2 bidders) also suggests the price might not have been as optimized as it could have been with more offers.

What were the key performance indicators (KPIs) and how did Engility Services, LLC perform against them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance ratings for this contract. As a definitive contract with a fixed-price structure, performance would likely be evaluated based on adherence to the statement of work, delivery schedules, and quality standards outlined in the contract documents. Without access to contract performance reports, award fee determinations (if applicable), or termination details, it is impossible to assess Engility Services, LLC's performance objectively. A thorough review would necessitate examining contract close-out documentation or performance evaluations, if they exist and are accessible.

What is the historical spending trend for Engility Services, LLC with the Department of Defense, and how does this contract fit into that pattern?

To analyze the historical spending trend for Engility Services, LLC with the Department of Defense (DoD), one would need to query federal procurement databases for all contracts awarded to this entity across all agencies and years. This specific $79.9 million contract, awarded in 2004 and ending in 2016, represents a substantial portion of their potential DoD business during that period, given its size and duration. Understanding if Engility was a frequent or infrequent contractor, and whether this contract was typical or an outlier in terms of value and scope, would provide context. It's important to note that Engility Services, LLC later merged with SAIC, so historical data might need to account for corporate changes.

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

The provided data does not explicitly list risks or mitigation strategies for this contract. However, potential risks inherent in a large, long-term, fixed-price contract for professional services include scope creep, contractor underperformance, changes in government requirements, and potential cost overruns if the fixed price was not adequately estimated. The limited competition (2 bidders) could also be seen as a risk factor, potentially leading to less favorable pricing. Mitigation strategies typically involve robust contract management, clear definition of scope, regular performance reviews, and proactive communication between the government and the contractor. Without specific documentation, these remain general assumptions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

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, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline