DoD's $38.7M Facilities Operations Contract Awarded to Engility Services, LLC for Engineering Services in Virginia

Contract Overview

Contract Amount: $38,734,016 ($38.7M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2003-12-01

End Date: 2007-03-02

Contract Duration: 1,187 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: TAS::21 2020::TAS 200408!000040!2100!W9132V!* !GS23F0008K !C!N! !Y!W9132V04F0001! !20031201!20041130!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000005526827!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E! !6! ! ! ! ! !99990909!B!A!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! !W90B03!0001! !

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to ENGILITY SERVICES, LLC for work described as: TAS::21 2020::TAS 200408!000040!2100!W9132V!* !GS23F0008K !C!N! !Y!W9132V04F0001! !20031201!20041130!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!01000!510!51!ALEXAND… Key points: 1. Contract value of $38.7M over its period of performance. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract type is Fixed Price Level of Effort, which aims to control costs while ensuring specific service levels. 4. Performance period spans over 3 years, suggesting a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded by the Department of Defense, managed by the Defense Contract Management Agency. 7. The contract was issued as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The total award amount of $38.7 million for facilities operations support services over approximately three years appears to be within a reasonable range for a large-scale federal contract of this nature. However, without specific benchmarks for similar facilities operations contracts within the Department of Defense or comparable agencies, a precise value-for-money assessment is challenging. The fixed-price level-of-effort structure suggests an attempt to manage costs, but the ultimate cost-effectiveness will depend on the efficiency of service delivery and the actual effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order implies that Engility Services, LLC was selected from a pool of potential offerors. The level of competition is not explicitly detailed in terms of the number of bids received, but the 'full and open' designation generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government's investment.

Public Impact

The primary beneficiaries are the Department of Defense facilities requiring operations support. Services delivered include a broad range of facilities operations and engineering support. The geographic impact is concentrated in Virginia, where the services are likely performed. The contract supports a workforce involved in maintaining and operating federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'level of effort' is not well-defined or managed.
Dependence on a single contractor for critical facilities operations could pose a risk if performance falters.
Limited transparency on the specific performance metrics and quality control measures employed.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Fixed-price contract type provides some cost certainty for the government.
The contract duration of over three years indicates a stable, long-term need for these services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to facilities operations and maintenance. The federal government is a significant consumer of such services to maintain its vast infrastructure. Benchmarking this contract's value against other large-scale facilities management or engineering support contracts within the DoD or other federal agencies would provide further context on its relative size and cost.

Small Business Impact

There is no explicit indication that this contract included a small business set-aside. As a large contract awarded under full and open competition, the primary contractor, Engility Services, LLC, would be responsible for any subcontracting. Analysis of subcontracting plans and actual awards to small businesses would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the fixed-price level-of-effort structure, which ties payment to defined service levels. Transparency would be enhanced by public contract data and reporting, though specific performance details may be sensitive.

Related Government Programs

Facilities Engineering Services
Base Operations Support
Department of Defense Contracts
Engineering Services Contracts
Fixed-Price Contracts

Risk Flags

Contract awarded as a Delivery Order, suggesting it might be part of a larger IDIQ contract.
Fixed Price Level of Effort contract type requires careful monitoring of effort expended.
No explicit mention of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to ENGILITY SERVICES, LLC. TAS::21 2020::TAS 200408!000040!2100!W9132V!* !GS23F0008K !C!N! !Y!W9132V04F0001! !20031201!20041130!069341972!008255408!016435559!N!TASC, INC !55 WALKERS BROOK DRIVE !READING !VA!01867!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000005526827!N!N!000000000000!S216!FACILITIES OPERATIONS SUPPORT SERVICES !S1 !SERVICES !000 !* !541330!E

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 $38.7 million.

What is the period of performance?

Start: 2003-12-01. End: 2007-03-02.

What is the historical spending pattern for facilities operations support services by the Department of Defense?

The Department of Defense (DoD) consistently allocates substantial funding towards facilities operations and maintenance, essential for supporting its global mission. Historical spending data reveals a significant and ongoing investment in services such as infrastructure upkeep, utility management, environmental services, and engineering support. These expenditures are often managed through a combination of direct contracts, task orders under larger IDIQ vehicles, and internal resources. Analyzing trends over the past decade shows a general increase in outsourcing for these services, driven by a focus on core military functions and leveraging private sector expertise. Specific figures fluctuate annually based on budget appropriations, operational tempo, and infrastructure modernization needs. For instance, spending can surge during periods of base realignment and closure (BRAC) or major construction projects, while steady-state operations represent a consistent baseline expenditure. The $38.7 million awarded to Engility Services, LLC for this specific contract in Virginia aligns with the typical scale of such support services required by the DoD.

How does the pricing structure of this contract compare to similar facilities operations contracts?

This contract utilizes a Fixed Price Level of Effort (FPLE) pricing structure. In an FPLE contract, the government agrees to pay a fixed price for a specified level of effort (e.g., hours of labor, specific tasks) to be expended by the contractor. This structure aims to provide cost certainty for the government while ensuring that the contractor is compensated for the work performed. Compared to other facilities operations contracts, FPLE can be advantageous when the scope of work is well-defined but the exact quantity of work is uncertain. However, it differs from Firm Fixed Price (FFP) contracts, where a fixed price is paid for a defined scope of work regardless of the effort expended, and Cost-Plus contracts, where costs are reimbursed plus a fee. The effectiveness of the FPLE structure hinges on accurate estimation of the required effort and robust monitoring by the government to ensure that the contractor is not over-resourcing the tasks. Without access to detailed pricing breakdowns and comparable contract data, a precise benchmark is difficult, but the FPLE model suggests a balance between cost control and ensuring adequate service delivery.

What is Engility Services, LLC's track record with federal government contracts, particularly in facilities operations?

Engility Services, LLC, prior to its acquisition by SAIC in 2019, had a significant track record with federal government contracts. The company was known for providing a wide range of services, including IT, engineering, and mission support, to various federal agencies, notably the Department of Defense. While specific contract performance details for facilities operations are not immediately available in this dataset, Engility's overall portfolio indicated substantial experience in managing large, complex service contracts. Post-acquisition, the capabilities and contracts previously held by Engility are now part of SAIC's offerings. Evaluating Engility's historical performance would involve reviewing past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes in delivering similar services. Their presence as a large government contractor suggests a capacity to handle significant federal requirements, including those related to facilities management and engineering support.

What are the potential risks associated with a 'full and open competition' award for facilities operations?

While 'full and open competition' is generally favored for promoting value and access to a broad market, potential risks can still exist. One risk is that the lowest bidder, selected through competition, may not always be the best value in terms of long-term performance or quality, especially in complex service contracts like facilities operations. There's a possibility that the winning contractor may lack specialized expertise or sufficient resources to consistently meet the demanding requirements, leading to performance issues. Furthermore, the administrative burden of managing a highly competitive bidding process can be substantial for the government. If the solicitation is not meticulously crafted, ambiguities could lead to protests or disputes. For facilities operations, ensuring the contractor maintains adequate staffing, adheres to safety protocols, and manages subcontractors effectively are critical areas where risks can materialize even after a competitive award.

How does the geographic location (Virginia) influence the contract's scope and potential costs?

The contract's focus on Virginia is significant, as the state hosts a substantial concentration of federal government facilities and military installations, particularly within the Department of Defense. This geographic concentration likely means the contract supports one or more key installations or a portfolio of facilities within the region. Operating in Virginia can influence costs due to local labor rates, cost of living, and proximity to major government decision-making centers. Labor costs for skilled facilities operations and engineering personnel in the Northern Virginia/DC metropolitan area tend to be higher than in many other parts of the country. Additionally, the presence of numerous federal agencies and defense contractors in the region fosters a competitive market for both talent and services, which could have driven down the bid price during the full and open competition. The specific location also implies adherence to state and local regulations regarding facilities management, environmental compliance, and workforce practices.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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

Parent Contract

Parent Award PIID: GS23F0008K

IDV Type: FSS

Timeline