Army's $147M educational support contract awarded to Engility Corporation, a sole-source procurement
Contract Overview
Contract Amount: $14,702,805 ($14.7M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-06
End Date: 2010-03-31
Contract Duration: 1,667 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200512!500904!2100!W912SU!ACA, NRCC - MISSION DIVISION !W912SU05P0042 !A!N! !Y! ! !20050906!20060306!196154405!008898884!008898843!N!SYCOLEMAN CORP !241 18TH ST S STE 900 !ARLINGTON !VA!22202!58660!053!06!PRESIDIO OF MONTEREY!MONTEREY !CALIFORNIA!+000000880588!N!N!000000000000!U009!EDUCATION SERVICES !S1 !SERVICES !000 !* !611710!E! !9! ! ! ! ! !20200930!C! ! !B! !D!N!J!1!001! ! !Z!N!Z! ! !Y!C!N! ! ! !B!B!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MONTEREY, MONTEREY County, CALIFORNIA, 93944
Plain-Language Summary
Department of Defense obligated $14.7 million to ENGILITY CORPORATION for work described as: 200512!500904!2100!W912SU!ACA, NRCC - MISSION DIVISION !W912SU05P0042 !A!N! !Y! ! !20050906!20060306!196154405!008898884!008898843!N!SYCOLEMAN CORP !241 18TH ST S STE 900 !ARLINGTON !VA!22202!58660!053!06!PRESIDIO OF MONTEREY!MONT… Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The duration of the contract (over 4 years) suggests a significant, ongoing need for educational support services. 3. The firm-fixed-price nature of the contract shifts some performance risk to the contractor, Engility Corporation. 4. The contract falls under the 'Educational Support Services' category, indicating a focus on training and development. 5. The geographic location of the contractor in California may have implications for local economic impact and workforce development.
Value Assessment
Rating: questionable
The contract's value of $147 million over its period of performance is substantial for educational support services. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition suggests that the government may not have achieved the best possible value for the funds expended. Further analysis would be needed to determine if the pricing is reasonable given the specific services rendered and the contractor's capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that Engility Corporation was the only vendor considered. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. The absence of a competitive process means that the government did not benefit from multiple bids, which could have driven down prices and spurred innovation. This approach limits the government's ability to ensure it is receiving the most cost-effective solution.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without bids from other qualified vendors, there is less assurance that the negotiated price reflects true market value.
Public Impact
The primary beneficiaries of this contract are likely military personnel and their families who receive educational support services. The services delivered are categorized as 'Educational Support Services,' which could encompass a wide range of training, tutoring, and academic assistance. The contract's geographic impact is primarily tied to the locations where the Army operates and requires these educational services. Workforce implications could include job creation within Engility Corporation and its subcontractors, as well as potential skill development for those receiving the educational support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially leads to higher costs for taxpayers.
- Lack of competition raises concerns about whether the government secured the best value proposition.
- The substantial dollar amount warrants scrutiny to ensure efficient use of funds.
- Contract duration could indicate a long-term reliance on a single provider, potentially hindering future competition.
Positive Signals
- The contract addresses a specific need for educational support services within the Department of the Army.
- The firm-fixed-price contract type transfers some risk to the contractor.
- The contractor, Engility Corporation, has a track record of performing government contracts.
Sector Analysis
Educational Support Services represent a niche but important sector within the broader professional services industry supporting government operations. This contract, valued at $147 million, signifies a significant investment by the Department of the Army in human capital development and readiness. Comparable spending in this sector often involves contracts for training, curriculum development, and academic assistance programs, particularly for military and civilian personnel. The market for these services can be specialized, with a few key players capable of meeting the stringent requirements of defense agencies.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded to Engility Corporation. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on securing the required services, potentially overlooking opportunities to engage and support the small business ecosystem in this specific procurement.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency might be limited due to the sole-source nature of the award, making it harder for the public to scrutinize the justification and pricing. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Training and Education Contracts
- Army Education Services Programs
- Professional Services Contracts
- Sole-Source Procurements
Risk Flags
- Sole-source award raises concerns about competition and potential overpricing.
- Lack of detailed service description hinders comprehensive value assessment.
- Contract performance data (quality, timeliness) is not provided.
Tags
department-of-defense, department-of-the-army, educational-support-services, sole-source, firm-fixed-price, large-contract, professional-services, california, engility-corporation, training-and-education
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to ENGILITY CORPORATION. 200512!500904!2100!W912SU!ACA, NRCC - MISSION DIVISION !W912SU05P0042 !A!N! !Y! ! !20050906!20060306!196154405!008898884!008898843!N!SYCOLEMAN CORP !241 18TH ST S STE 900 !ARLINGTON !VA!22202!58660!053!06!PRESIDIO OF MONTEREY!MONTEREY !CALIFORNIA!+000000880588!N!N!000000000000!U009!EDUCATION SERVICES !S1 !SERVICES !000 !* !611710!E! !9! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2005-09-06. End: 2010-03-31.
What specific educational services were provided under this contract, and how did they align with Army readiness goals?
The contract, W912SU05P0042, was for 'EDUCATION SERVICES' under the PSC code 611710. While the specific details of the educational services are not fully elaborated in the provided data, this category typically encompasses a broad range of support aimed at enhancing the skills, knowledge, and academic qualifications of military personnel and potentially their dependents. These services could include, but are not limited to, academic advising, tutoring, test preparation, distance learning support, and vocational training. The alignment with Army readiness goals would stem from ensuring that personnel possess the necessary competencies and educational backgrounds to effectively perform their duties, adapt to evolving technological and strategic landscapes, and prepare for future roles within and beyond their military careers. The substantial value and duration suggest a significant contribution to the Army's human capital development strategy.
What was the justification for awarding this contract on a sole-source basis to Engility Corporation?
The provided data indicates the contract was awarded as 'NOT COMPETED' (CT=N) and has a competition status of 'A' (likely meaning Awarded). The specific justification for this sole-source award is not detailed in the abbreviated data. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, there is a compelling urgency, or the agency has entered into a strategic partnership. Without the official justification document (e.g., a Justification and Approval or J&A), it is impossible to definitively state why a competitive process was bypassed for this $147 million contract awarded to Engility Corporation.
How does the per-unit cost or overall value of this contract compare to similar educational support services contracts awarded by other federal agencies?
Benchmarking the value of this $147 million contract for educational support services against similar contracts is challenging without more specific details on the scope of work, service levels, and geographic coverage. The provided data categorizes the service under 'Educational Support Services' (ND=Educational Support Services) and lists the PSC as 611710. However, the exact nature of the 'services' is broad. To perform a meaningful comparison, one would need to identify contracts with comparable service descriptions, contract types (firm-fixed-price), and performance periods from agencies like the Department of Education, Department of Veterans Affairs, or other branches of the Department of Defense. Given the sole-source nature of this award, it is particularly difficult to assess if the pricing achieved is competitive. A thorough value analysis would require access to more detailed contract line item data and market research reports.
What is Engility Corporation's track record with federal contracts, particularly in the educational support services domain?
Engility Corporation (CO=ENGILITY CORPORATION) has a history of performing federal contracts. While the provided data snippet focuses on a single contract (W912SU05P0042), Engility has been a significant contractor across various government agencies, often in areas related to IT, engineering, and professional services. Their involvement in 'Educational Support Services' suggests a capability in this domain. However, assessing their overall track record requires a broader review of their contract history, including past performance evaluations, any contract disputes or terminations, and their success in delivering similar services to other government entities. Without a comprehensive review of their federal contract portfolio, it's difficult to provide a definitive assessment of their specific expertise and reliability in educational support services beyond this single award.
What were the historical spending patterns for educational support services within the Department of the Army prior to this contract award?
The provided data snippet pertains to a single contract awarded in 2005. To understand historical spending patterns for educational support services within the Department of the Army, a much larger dataset encompassing multiple fiscal years and various contract awards would be necessary. This would involve analyzing spending trends for relevant Product Service Codes (PSCs) like 611710 (Educational Support Services) and potentially others related to training and education. Examining this historical data would reveal whether spending in this category has been consistent, increasing, or decreasing, and whether reliance on sole-source awards has been a common practice or an exception. Without access to this broader historical context, it is impossible to characterize the spending patterns leading up to or following this specific $147 million contract.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 241 18TH ST S STE 900, ARLINGTON, VA, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Timeline
Start Date: 2005-09-06
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2012-09-21
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