TRAX INTERNATIONAL CORPORATION awarded $29.7M contract for engineering services, spanning over 9 years

Contract Overview

Contract Amount: $29,755,115 ($29.8M)

Contractor: Trax International Corporation

Awarding Agency: Department of Defense

Start Date: 2001-11-15

End Date: 2011-06-30

Contract Duration: 3,514 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89120

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to TRAX INTERNATIONAL CORPORATION for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 9 years indicates a long-term need for these engineering services. 3. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control by the contractor. 4. The award was made by the Department of the Army, a significant component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded in Nevada, potentially indicating a specific geographic focus for the services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The CPFF structure can sometimes lead to higher costs if not managed carefully, but it also allows for flexibility in complex projects. Comparing it to similar long-term engineering service contracts within the Department of Defense would provide better context for its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the contract, potentially leading to a more competitive price. The number of bidders is not specified, which would offer further insight into the level of competition.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors.

Public Impact

The Department of the Army benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, testing, and technical support for military systems or infrastructure. The geographic impact is centered in Nevada, where the contractor is based and services are likely performed. The contract supports a workforce skilled in engineering and technical disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract (over 9 years) presents a risk of scope creep or evolving requirements not being adequately managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance objectively.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair process.
The contractor, TRAX INTERNATIONAL CORPORATION, has secured a significant, long-term contract, suggesting a level of trust and capability.
The CPFF structure, while carrying risks, can be effective for complex projects requiring flexibility and innovation.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports government and defense initiatives. The market size for engineering services supporting the federal government is substantial, with significant spending allocated to R&D, defense, and infrastructure projects. This contract represents a portion of that broader spending, likely supporting specific defense-related engineering needs.

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 set-aside provision. However, the prime contractor, TRAX INTERNATIONAL CORPORATION, may still engage small businesses as subcontractors, depending on the project's needs and their own subcontracting policies. The absence of a small business set-aside means the primary competition was open to all eligible firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases, though detailed cost and performance data may be subject to confidentiality. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Engineering Services Contracts
Army Research, Development, and Engineering Command Contracts
Cost-Plus-Fixed-Fee Contracts
Long-Term Government Service Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of scope creep over the long contract duration
Need for robust oversight to ensure performance and value
Limited transparency on specific performance metrics and bidder numbers

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to TRAX INTERNATIONAL CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is TRAX INTERNATIONAL 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 $29.8 million.

What is the period of performance?

Start: 2001-11-15. End: 2011-06-30.

What is the track record of TRAX INTERNATIONAL CORPORATION with the Department of Defense, particularly on similar engineering service contracts?

TRAX INTERNATIONAL CORPORATION has a substantial history of contracting with the Department of Defense. While specific details on past performance for this exact contract are not provided, their ability to secure a long-term, high-value contract like this suggests a positive track record. Further analysis would involve examining their performance ratings on previous DoD contracts, any past disputes or contract terminations, and their overall financial stability. Companies with a consistent record of successful contract completion and positive performance reviews are generally considered reliable partners for complex government projects.

How does the awarded amount of $29.7 million compare to similar engineering service contracts awarded by the Department of the Army?

The $29.7 million award for engineering services over approximately 9 years represents a significant but not exceptionally large contract within the Department of the Army's portfolio. The average value of engineering service contracts can vary widely based on scope, duration, and specialization. For long-term, comprehensive engineering support, this figure is within a reasonable range. However, a more precise comparison would require analyzing contracts with similar NAICS codes (541330), contract types (CPFF), and durations awarded by the Army or other DoD branches over the past decade. Benchmarking against these specific parameters would reveal if this contract's value is competitive or an outlier.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude and duration include potential cost overruns and contractor inefficiency. While the fixed fee provides the contractor with a profit incentive, the 'cost plus' element means the government ultimately bears the cost of performance. If the contractor's costs escalate beyond initial estimates due to poor management, unforeseen technical challenges, or scope creep, the total expenditure for the government could be significantly higher than anticipated. The long duration (over 9 years) exacerbates these risks, as it increases the window for potential cost increases and the complexity of managing evolving requirements and maintaining contractor focus on efficiency.

How effective is 'full and open competition' in ensuring value for money for long-term engineering service contracts?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for long-term contracts. It maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. For engineering services, this means multiple firms can propose solutions, allowing the government to select the best combination of technical capability and cost. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to manage the contract post-award to ensure performance aligns with the competitive promises made during bidding. Without adequate oversight, even a competitively awarded contract can fail to deliver optimal value.

What are the historical spending patterns for engineering services by the Department of the Army, and how does this contract fit?

The Department of the Army consistently allocates substantial funds to engineering services, essential for maintaining its vast infrastructure, developing new technologies, and supporting global operations. Historical spending patterns show a significant and often increasing reliance on external contractors for specialized engineering expertise across various domains, including R&D, logistics, and facilities management. This $29.7 million contract for engineering services fits within this pattern as a long-term commitment to secure ongoing technical support. It likely represents a specific program or operational need that the Army has deemed critical enough to warrant a multi-year, competitively awarded contract, aligning with broader trends of outsourcing specialized functions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 3120 E POST RD, LAS VEGAS, NV, 89120

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline