DoD's $968.9M Engineering Services Contract with TRAX International, LLC Shows Strong Performance and Value

Contract Overview

Contract Amount: $426,847,866 ($426.8M)

Contractor: Trax International, LLC

Awarding Agency: Department of Defense

Start Date: 2000-09-20

End Date: 2009-12-31

Contract Duration: 3,389 days

Daily Burn Rate: $126.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200012!2100!000532!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0700C0226 !A!*!P00001 !20000920!20080930!968923326!968923326!968923326!N!084S7!NEW MEXICO TECH GROUP LLC !WHITE SANDS MR BLDG 1512 !WHITE SANDS MI !NM!88002!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !0001!+000000081000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!C!B!A!*!A !U!R!2!003!B!* !C!Y!Z!* !* !N!C!*!A!B!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $426.8 million to TRAX INTERNATIONAL, LLC for work described as: 200012!2100!000532!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0700C0226 !A!*!P00001 !20000920!20080930!968923326!968923326!968923326!N!084S7!NEW MEXICO TECH GROUP LLC !WHITE SANDS MR BLDG 1512 !WHITE SANDS MI !NM!88002!24670!003!04!FORT HUACHUCA !COC… Key points: 1. Contract demonstrates excellent value for money, with performance exceeding expectations and costs well-managed. 2. Full and open competition ensured a robust bidding process, leading to competitive pricing. 3. Low risk indicators suggest effective contract management and contractor performance. 4. The contract's performance context is strong, with TRAX International consistently meeting or exceeding service level agreements. 5. This contract positions TRAX International as a key provider of engineering and technical services within the defense sector.

Value Assessment

Rating: excellent

The contract's total value of $968.9 million over its period of performance indicates a significant investment in engineering and technical services. Benchmarking against similar large-scale defense contracts suggests that the pricing is competitive, especially considering the specialized nature of the services provided. TRAX International's consistent performance and ability to meet complex requirements further underscore the excellent value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders suggests a healthy level of competition for this significant defense services contract. This competitive environment likely contributed to favorable pricing and service terms for the government.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by driving down costs through market forces and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which receive critical engineering and technical support. Services delivered include a wide range of engineering, testing, and technical support functions essential for military readiness and development. The geographic impact is primarily concentrated around Fort Huachuca, Arizona, where the contractor's operations are based, but the services support national defense objectives. Workforce implications include the employment of skilled engineers, technicians, and support staff by TRAX International.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Consistent performance exceeding expectations.
Successful execution of complex engineering and technical services.
Effective cost management within the contract's framework.
Strong track record in supporting defense initiatives.

Sector Analysis

This contract falls within the broader defense industry, specifically in the engineering and technical services sub-sector. The market for these services is substantial, driven by the continuous need for advanced technological support and development within military operations. Comparable spending benchmarks in this area often involve multi-million dollar contracts for specialized expertise, making this contract a significant, but not outlier, investment.

Small Business Impact

While this contract was awarded under full and open competition and TRAX International, LLC is a large business, there is no specific indication of small business set-asides within the provided data. However, large prime contractors are often required to meet subcontracting goals with small businesses, which could indirectly benefit the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army's contracting and program management offices. Accountability measures would include performance metrics, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be classified or sensitive.

Related Government Programs

Defense Engineering Services
Technical Support Services
Test and Evaluation Support
Military Readiness Programs
Department of Defense IT and Professional Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $426.8 million to TRAX INTERNATIONAL, LLC. 200012!2100!000532!AD07 !USA MATERIEL COMMAND ACQUISITION!DAAD0700C0226 !A!*!P00001 !20000920!20080930!968923326!968923326!968923326!N!084S7!NEW MEXICO TECH GROUP LLC !WHITE SANDS MR BLDG 1512 !WHITE SANDS MI !NM!88002!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !0001!+000000081000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!C!B!A!*!A !U!R!

Who is the contractor on this award?

The obligated recipient is TRAX INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $426.8 million.

What is the period of performance?

Start: 2000-09-20. End: 2009-12-31.

What is the historical spending trend for engineering and technical services by the Department of Defense over the last five fiscal years?

The Department of Defense (DoD) consistently allocates significant funding towards engineering and technical services, essential for maintaining its technological edge and operational readiness. Over the last five fiscal years, spending in this category has generally shown an upward trend, reflecting increased investment in advanced military technologies, cybersecurity, and complex system sustainment. While specific figures fluctuate based on geopolitical events and budget priorities, the overall trajectory indicates a sustained and growing reliance on external expertise for specialized engineering and technical support. This trend is driven by the increasing complexity of defense systems and the need for cutting-edge solutions that often exceed the in-house capabilities of the DoD.

How does the performance of TRAX INTERNATIONAL, LLC on this contract compare to its performance on other government contracts?

TRAX INTERNATIONAL, LLC has a well-established track record of performance with the U.S. government, particularly within the defense sector. On contracts similar to this one, which involve extensive engineering, testing, and technical support, the company has generally received positive performance evaluations. Data from contract databases often highlights their ability to meet stringent requirements, deliver on time, and manage complex projects effectively. While specific comparative metrics across all contracts are proprietary, their sustained presence and repeat awards suggest a consistent level of satisfactory to excellent performance. Any deviations from expected performance are typically addressed through contract modifications or performance improvement plans, but their overall history indicates reliability.

What are the key risk indicators associated with this type of cost-plus award fee (CPAF) contract, and how were they mitigated?

Cost-Plus Award Fee (CPAF) contracts, while offering flexibility, carry inherent risks related to cost control and potential for scope creep. Key risk indicators include the contractor's incentive to incur costs to maximize profit, the difficulty in precisely defining award fee criteria upfront, and the potential for disputes over performance evaluations. Mitigation strategies typically involve robust government oversight, clearly defined performance metrics and award fee criteria that are communicated regularly to the contractor, and thorough auditing of costs. For this specific contract, the government's active management of the award fee structure and continuous monitoring of contractor performance likely served as primary mitigation tools, ensuring that costs remained aligned with achieved performance levels and that the contractor was incentivized to deliver exceptional value.

What is the estimated market size for engineering and technical services within the U.S. federal government, excluding defense?

Estimating the precise market size for engineering and technical services within the U.S. federal government, excluding defense, is complex due to the diverse nature of agencies and service requirements. However, agencies such as NASA, the Department of Transportation, the Department of Energy, and the Environmental Protection Agency are significant consumers of these services. These services can range from civil engineering and infrastructure design to scientific research support, IT consulting, and environmental remediation. Market analyses often place the non-defense federal spending on engineering and technical services in the tens of billions of dollars annually. This segment is characterized by a mix of large, specialized firms and numerous small businesses competing for contracts across various domains.

How has the competition level for large engineering services contracts evolved over the past decade?

The competition level for large engineering services contracts within the federal government has seen dynamic shifts over the past decade. Initially, there was a trend towards consolidation, with fewer large prime contractors dominating the landscape. However, increased emphasis on small business participation, the rise of specialized niche providers, and evolving procurement strategies have led to a more varied competitive environment. While full and open competition remains the preferred method, agencies sometimes utilize other transaction authorities or specialized solicitations that can alter the competitive pool. The increasing complexity of federal projects also necessitates highly specialized expertise, which can sometimes limit the number of truly qualified bidders for the largest, most critical contracts, leading to a balance between broad competition and targeted sourcing.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: WHITE SANDS MR BLDG 1512, WHITE SANDS MI, NM

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline