DoD's $74M Engineering Services Contract with Engility Corporation Awarded Without Competition
Contract Overview
Contract Amount: $74,096,337 ($74.1M)
Contractor: Engility Corporation
Awarding Agency: Department of Defense
Start Date: 2011-03-14
End Date: 2012-12-23
Contract Duration: 650 days
Daily Burn Rate: $114.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MANAGEMENT, ENGINEERING, INTEGRATION, LOGISTICAL STAFF&LIAISON SUPPORT SERVICES
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.1 million to ENGILITY CORPORATION for work described as: MANAGEMENT, ENGINEERING, INTEGRATION, LOGISTICAL STAFF&LIAISON SUPPORT SERVICES Key points: 1. Significant spending on engineering and logistical support services. 2. Sole-source award to Engility Corporation raises questions about price discovery. 3. Contract duration of 650 days suggests a substantial, ongoing need. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks from similar competitively awarded contracts, it's hard to determine if $74 million represents a fair price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits the government's ability to ensure the best possible price and value, as potential savings from competitive bidding were forgone.
Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of a competitive bidding process.
Public Impact
Essential support services for Department of Defense operations. Engility Corporation received a substantial contract without facing competition. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
Positive Signals
- Provides critical management, engineering, and logistical support
Sector Analysis
This contract falls under Engineering Services, a sector vital for government operations, particularly in defense. Spending benchmarks for this category can vary widely based on complexity and scope, but competitive awards typically drive better pricing.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in subcontracting opportunities for this contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure that the Defense Contract Management Agency adequately justified the lack of competition and negotiated the best possible terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited oversight on value for money
- Cost-plus contract type can lead to cost uncertainty
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.1 million to ENGILITY CORPORATION. MANAGEMENT, ENGINEERING, INTEGRATION, LOGISTICAL STAFF&LIAISON SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ENGILITY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $74.1 million.
What is the period of performance?
Start: 2011-03-14. End: 2012-12-23.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. A thorough review of the contract file would be necessary to ascertain the specific rationale provided by the Department of Defense.
How does the cost-plus-fixed-fee structure impact potential cost overruns?
A Cost-Plus-Fixed-Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can vary. This structure can incentivize contractors to control costs to maximize their profit margin, but it also places the risk of cost overruns primarily on the government if not carefully managed and monitored.
What is the potential impact of the lack of competition on the quality of services provided?
While a sole-source award doesn't inherently guarantee lower quality, the absence of competition can reduce the incentive for a contractor to continuously improve service delivery or offer innovative solutions. Without the pressure of competing for future work or facing alternative providers, there's a risk that service quality might stagnate or not meet the highest possible standards.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 300 CONCORD RD STE 400, BILLERICA, MA, 01821
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $92,780,806
Exercised Options: $92,780,806
Current Obligation: $74,096,337
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-14
Current End Date: 2012-12-23
Potential End Date: 2012-12-23 00:00:00
Last Modified: 2018-02-14
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