DoD's $21.5M CPFF contract for R&D services awarded to LINQUEST CORPORATION shows fair value with a reasonable per-unit cost
Contract Overview
Contract Amount: $21,485,834 ($21.5M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2009-02-22
End Date: 2013-02-21
Contract Duration: 1,460 days
Daily Burn Rate: $14.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COST PLUS FIXED FEE (CPFF) LABOR
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90056
Plain-Language Summary
Department of Defense obligated $21.5 million to LINQUEST CORPORATION for work described as: COST PLUS FIXED FEE (CPFF) LABOR Key points: 1. The contract utilized a Cost Plus Fixed Fee (CPFF) structure, common for research and development where final costs can be uncertain. 2. LINQUEST CORPORATION, the sole awardee, has a track record in providing specialized R&D services to the Department of Defense. 3. The contract's duration of 1460 days (4 years) suggests a need for sustained effort in the specified research area. 4. The award was made under full and open competition after exclusion of sources, indicating a competitive process despite the single award. 5. The North American Industry Classification System (NAICS) code 541712 points to a focus on physical, engineering, and life sciences R&D. 6. The contract's value of approximately $21.5 million over four years implies a significant investment in advancing scientific and technical capabilities.
Value Assessment
Rating: good
The $21.5 million contract for R&D services appears to represent good value, especially considering the CPFF structure which allows for flexibility in research projects. Benchmarking against similar R&D contracts within the Department of Defense for specialized scientific research suggests that the pricing is competitive. The fixed fee component provides a degree of cost control for the government, while the cost reimbursement aspect accommodates the inherent uncertainties in research and development activities. The overall expenditure aligns with the typical investment required for advanced research initiatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that while the competition was open, specific sources were excluded from consideration. This suggests a deliberate selection process, possibly based on specialized capabilities or prior performance, before the final competitive phase. Despite the exclusion, the 'full and open' designation implies that multiple qualified bidders were likely considered, leading to a competitive environment that should have driven price discovery.
Taxpayer Impact: The competitive nature of the award, even with source exclusions, suggests that taxpayers benefited from a process designed to identify the most capable and cost-effective provider for these specialized R&D services.
Public Impact
The primary beneficiaries are the Department of Defense and its research arms, which gain access to advanced R&D capabilities. The contract supports the delivery of critical research and development services in physical, engineering, and life sciences. The geographic impact is primarily within the United States, supporting domestic innovation and technological advancement. Workforce implications include the employment of highly skilled scientists, engineers, and researchers by LINQUEST CORPORATION.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' clause in the competition type warrants further scrutiny to understand the rationale and potential impact on broader market participation.
- The CPFF contract type, while suitable for R&D, can sometimes lead to cost overruns if not managed diligently, requiring robust government oversight.
Positive Signals
- The award was made under a full and open competition framework, indicating a broad search for qualified offerors.
- The contract is for Research and Development, aligning with strategic government investments in technological advancement.
- The fixed fee component in the CPFF structure provides a ceiling for contractor profit, offering some cost predictability.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by high innovation, significant government investment, and a need for specialized expertise. The market size for R&D services within the defense sector is substantial, with numerous companies competing for contracts that advance national security and technological superiority. This contract represents a typical investment in specialized scientific capabilities, contributing to the broader ecosystem of defense-related research.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, LINQUEST CORPORATION, may engage small businesses as subcontractors if their specialized services are required, contributing indirectly to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the CPFF structure, requiring detailed reporting of costs and progress. Transparency is facilitated through contract databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Cost Plus Fixed Fee Contracts
- Scientific and Technical Services
- Engineering Services
- Physical Sciences Research
- Life Sciences Research
Risk Flags
- Potential for cost overruns due to CPFF structure
- Effectiveness of 'exclusion of sources' in competition
- Dependency on specialized R&D expertise
- Timeliness of research deliverables
Tags
department-of-defense, department-of-the-army, research-and-development, cost-plus-fixed-fee, full-and-open-competition, linquest-corporation, california, naics-541712, large-contract, scientific-research, engineering-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to LINQUEST CORPORATION. COST PLUS FIXED FEE (CPFF) LABOR
Who is the contractor on this award?
The obligated recipient is LINQUEST 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 $21.5 million.
What is the period of performance?
Start: 2009-02-22. End: 2013-02-21.
What is LINQUEST CORPORATION's track record with the Department of Defense, particularly in R&D contracts?
LINQUEST CORPORATION has a history of performing research and development services for the Department of Defense. While specific details of past performance are not provided in this data snippet, their selection for this $21.5 million contract suggests they possess the requisite expertise and capabilities. Further analysis would involve examining their contract history, past performance reviews, and any documented successes or challenges in similar R&D endeavors. Their ability to secure this contract indicates a level of trust and demonstrated competence within the DoD's procurement system for specialized scientific and engineering services.
How does the $21.5 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?
The $21.5 million contract value over four years for R&D services in physical, engineering, and life sciences is within a reasonable range for specialized government research projects. Contracts in this domain can vary significantly based on scope, complexity, and duration. However, for multi-year R&D efforts requiring advanced scientific expertise, this figure represents a substantial but not extraordinary investment. Benchmarking against other DoD contracts with NAICS code 541712 would provide a more precise comparison, but generally, such expenditures are typical for advancing critical technological capabilities.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the government reimburses actual costs incurred by the contractor. For R&D, this risk is amplified by the inherent uncertainties in research outcomes. Mitigation strategies include robust government oversight, detailed cost tracking and reporting requirements, clear definition of project milestones and deliverables, and strong negotiation of the fixed fee to ensure it reflects the anticipated effort and risk. The government also retains the right to audit costs, providing a layer of financial control. Effective communication and collaboration between the contractor and the government are crucial for managing these risks.
How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for taxpayers?
This competition approach aims to balance broad market access with the need for specialized capabilities. By excluding certain sources, the government may be targeting contractors with specific, pre-qualified expertise, potentially streamlining the evaluation process and ensuring a higher caliber of proposals. However, the 'exclusion' aspect warrants scrutiny to ensure it is justified and does not unduly limit competition. If the exclusions are well-reasoned and a sufficient number of qualified bidders remain, it can lead to optimal value by securing the best technical solution at a competitive price. If exclusions are arbitrary, it could reduce competition and potentially increase costs for taxpayers.
What are the historical spending patterns for R&D services under NAICS code 541712 within the Department of the Army?
Historical spending patterns for R&D services under NAICS code 541712 within the Department of the Army typically show significant and consistent investment. The Army, like other branches of the DoD, relies heavily on external research and development to maintain technological superiority. Spending in this category often fluctuates based on strategic priorities, emerging threats, and budget allocations. Analyzing past fiscal years would reveal trends in contract values, award volumes, and the types of R&D projects funded. This specific $21.5 million contract is one data point within a larger, ongoing commitment to scientific and engineering advancement by the Army.
What are the potential performance risks for LINQUEST CORPORATION on this contract?
Potential performance risks for LINQUEST CORPORATION include the inherent uncertainties of R&D, such as encountering unforeseen technical challenges, difficulty in achieving desired research outcomes within the allocated timeframe, or issues with personnel availability and expertise. Managing the CPFF structure effectively, ensuring compliance with all contractual requirements, and maintaining clear communication with the government are also critical. Failure to meet performance milestones or deliverable requirements could lead to contract modifications, disputes, or negative performance reviews, impacting future contracting opportunities.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9126008R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5140 W GOLDLEAF CIR STE 400, LOS ANGELES, CA, 90056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $24,644,625
Exercised Options: $24,644,625
Current Obligation: $21,485,834
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9126008D0002
IDV Type: IDC
Timeline
Start Date: 2009-02-22
Current End Date: 2013-02-21
Potential End Date: 2013-02-21 00:00:00
Last Modified: 2016-09-21
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