AXIENT LLC awarded $57.9M for R&D services, with a 2106-day performance period

Contract Overview

Contract Amount: $57,943,675 ($57.9M)

Contractor: Axient LLC

Awarding Agency: General Services Administration

Start Date: 2021-03-29

End Date: 2027-01-03

Contract Duration: 2,106 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: SMC PORTFOLIO ARCHITECT

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $57.9 million to AXIENT LLC for work described as: SMC PORTFOLIO ARCHITECT Key points: 1. Contract value represents a significant investment in specialized research and development. 2. The contract was competed after excluding other sources, raising questions about the breadth of competition. 3. A long performance period of 2106 days suggests a need for sustained support in this area. 4. The firm fixed-price contract type aims to control costs, but requires careful monitoring of scope. 5. The R&D focus indicates a forward-looking investment in technological advancement. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without more context on the scope of 'SMC PORTFOLIO ARCHITECT' and comparable projects. The firm fixed-price structure suggests an attempt to manage costs upfront. However, the absence of detailed cost breakdowns or comparisons to similar R&D efforts makes a definitive value assessment difficult. Further analysis would require understanding the specific deliverables and the market rates for such specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was initially sought, certain sources were later excluded. The number of bidders is not specified, but the exclusion suggests a potentially narrowed field. This procurement method can sometimes lead to less competitive pricing compared to full and open competition, as it limits the pool of potential offerors.

Taxpayer Impact: The exclusion of sources may limit the potential for the government to secure the most cost-effective solution, potentially leading to higher costs for taxpayers than if a broader competition had been maintained.

Public Impact

The primary beneficiaries are likely the entities or programs that rely on the 'SMC PORTFOLIO ARCHITECT' services, which are expected to advance through this R&D. The contract delivers research and development services crucial for technological innovation and strategic planning within the relevant sector. The geographic impact is centered in California, where the contractor is located, but the ultimate impact of the R&D could be national. Workforce implications may include specialized R&D roles, potentially creating or sustaining high-skilled jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could result in suboptimal pricing.
The long duration of the contract may introduce risks related to evolving technological needs or contractor performance over time.
Lack of detailed public information on the specific R&D objectives makes it difficult to assess true value for money.
The 'delivery order' nature suggests this is part of a larger framework, making it hard to evaluate in isolation.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
The contract is awarded to a specific entity, suggesting a potentially strong fit for the required specialized R&D.
The R&D focus indicates investment in future capabilities, which can yield long-term strategic benefits.
The contract is managed by the General Services Administration (GSA), which often implies adherence to established procurement standards.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market is characterized by innovation, specialized expertise, and often long development cycles. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'SMC PORTFOLIO ARCHITECT' services, but R&D contracts can range widely in value depending on the complexity and criticality of the research.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the focus was on specialized capabilities rather than small business engagement. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the specific agency that issued the delivery order. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified R&D outcomes. Transparency is limited by the 'exclusion of sources' aspect and the proprietary nature of R&D, making detailed public scrutiny challenging.

Related Government Programs

Research and Development Contracts
Information Technology R&D
Aerospace R&D
Defense Research Programs
Engineering Services Contracts

Risk Flags

Limited competition due to source exclusion.
Long contract duration may increase risk of obsolescence or performance decay.
Lack of detailed public scope makes value assessment difficult.
Potential for cost overruns if R&D scope is not perfectly defined.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57.9 million to AXIENT LLC. SMC PORTFOLIO ARCHITECT

Who is the contractor on this award?

The obligated recipient is AXIENT LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2021-03-29. End: 2027-01-03.

What specific R&D activities are encompassed by 'SMC PORTFOLIO ARCHITECT'?

The specific R&D activities under 'SMC PORTFOLIO ARCHITECT' are not detailed in the provided data. This designation likely refers to a portfolio of research and development projects managed or supported by the Space and Missile Systems Center (SMC) or a similar entity. These activities could range from foundational research to applied engineering and system development, potentially in areas like space systems, communications, or advanced materials. Without further documentation or public disclosures, the precise nature of the R&D remains unspecified, making it difficult to assess its direct impact or technological advancements.

How does the $57.9M contract value compare to similar R&D efforts in the defense or aerospace sectors?

Comparing the $57.9 million contract value requires context on the specific R&D domain and the scope of work. Large-scale R&D programs in defense and aerospace can easily reach hundreds of millions or even billions of dollars over their lifecycle. However, for a specific portfolio management or specialized research task order, $57.9 million over approximately 5.8 years (2106 days) is a substantial award. It suggests a significant and ongoing need for the services provided. To benchmark effectively, one would need to identify comparable contracts for similar R&D management or specialized scientific services, considering factors like duration, complexity, and the specific technological areas involved.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The primary risk of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a reduction in the level of competition, which can negatively impact price discovery and potentially lead to higher costs for the government. By excluding certain sources, the government may forgo offers from highly capable or cost-effective providers. This can also raise concerns about fairness and transparency in the procurement process. While there might be justifiable reasons for exclusion (e.g., security, specific technical requirements), it necessitates careful documentation and justification to ensure the government is still achieving the best value. The risk is that the chosen contractor may not have faced sufficient competitive pressure to offer the most advantageous terms.

How effective is the firm fixed-price (FFP) contract type in managing R&D costs for this contract?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For R&D, FFP can incentivize efficiency and innovation, as the contractor bears the risk of cost overruns. However, R&D inherently involves uncertainty, and if the scope proves more complex or requires unforeseen research avenues, the contractor might be disincentivized from exploring critical but costly paths, or conversely, may have built significant contingency into their price. The effectiveness hinges on how accurately the scope was defined and priced initially, and whether the government has robust mechanisms to manage scope creep or changes.

What is the historical spending pattern for similar R&D services under GSA?

Historical spending patterns for similar R&D services under GSA can vary significantly based on the specific National Advanced Services (NAS) codes and the agencies utilizing GSA schedules. GSA's Federal Acquisition Service (FAS) manages numerous IDIQ contracts and schedules that support R&D across various scientific and technical domains. Without knowing the specific GSA schedule or IDIQ vehicle this delivery order falls under, pinpointing historical spending is difficult. However, GSA facilitates billions of dollars in R&D-related services annually through various contract vehicles, supporting agencies like DoD, NASA, and others. Trends often show increasing investment in areas like AI, cybersecurity, and advanced materials research.

What are the implications of the 2106-day performance period for the project's success?

A performance period of 2106 days (approximately 5.8 years) for an R&D contract indicates a long-term commitment to a particular research objective or portfolio. This extended duration allows for in-depth investigation, iterative development, and the potential for significant technological maturation. However, it also introduces risks. The technological landscape can change rapidly, potentially making the initial research goals obsolete or requiring significant pivots. Contractor performance consistency over such a long period can also be a concern. Effective program management, regular reviews, and flexibility to adapt to evolving requirements will be crucial for ensuring the project's success and realizing the intended R&D outcomes within this extended timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFPA21R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 CRYSTAL DR STE 200, ARLINGTON, VA, 22202

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,918,252

Exercised Options: $69,744,823

Current Obligation: $57,943,675

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $31,435,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS609

IDV Type: IDC

Timeline