DoD's $177M Engineering Services Contract with AXIENT LLC Awarded via Full and Open Competition
Contract Overview
Contract Amount: $177,340,677 ($177.3M)
Contractor: Axient LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-16
End Date: 2020-09-30
Contract Duration: 1,659 days
Daily Burn Rate: $106.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF RANGE TASK ORDER
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $177.3 million to AXIENT LLC for work described as: IGF::CT::IGF RANGE TASK ORDER Key points: 1. Significant contract value of $177.3 million for engineering services. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Contract duration spans over 4 years, from March 2016 to September 2020. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can pose cost control challenges. 5. The primary sector is Engineering Services, a critical component of defense operations.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. Benchmarking against similar CPFF engineering services contracts is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated but may have had specific exclusions. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.
Public Impact
Supports critical Department of the Air Force engineering and technical services. The large contract value indicates a significant investment in defense capabilities. Long-term nature of the contract suggests ongoing support requirements for defense systems. Potential for follow-on work or similar contracts in the engineering services domain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
- The 'exclusion of sources' clause in the competition method warrants further review.
- Contract duration of 1659 days is substantial, requiring ongoing oversight.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market.
- Engineering services are vital for defense readiness and modernization.
- The contract supports a key agency within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is crucial for defense agencies requiring specialized technical expertise. Spending benchmarks in this sector vary widely based on project complexity and duration, but a $177M contract over four years represents a substantial commitment.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this large contract.
Oversight & Accountability
The contract's duration and cost-plus nature necessitate robust oversight from the Department of Defense to ensure cost efficiency and performance. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for limited competition due to 'exclusion of sources'.
- Long contract duration requires sustained oversight.
- Lack of explicit small business participation data.
Tags
engineering-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $177.3 million to AXIENT LLC. IGF::CT::IGF RANGE TASK ORDER
Who is the contractor on this award?
The obligated recipient is AXIENT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $177.3 million.
What is the period of performance?
Start: 2016-03-16. End: 2020-09-30.
What specific engineering services were provided under this contract, and how did they contribute to the Air Force's mission objectives?
The contract likely encompassed a range of engineering and technical support services essential for the Air Force's operational readiness and modernization efforts. This could include system design, development, testing, integration, and sustainment engineering for various platforms or programs. The specific contributions would align with the Air Force's strategic goals, such as enhancing aircraft performance, improving communication systems, or developing new defense technologies.
Given the CPFF structure, what measures were in place to control costs and ensure the government received fair value for the services rendered?
With a Cost Plus Fixed Fee (CPFF) contract, the government reimburses the contractor for allowable costs plus a predetermined fixed fee. To ensure fair value, robust oversight mechanisms are crucial. This includes detailed cost accounting standards, regular audits of contractor expenditures, performance metrics tied to the fixed fee, and clear limitations on allowable costs. Effective negotiation of the fee and continuous monitoring of project scope and efficiency are key to mitigating cost overruns.
How did the 'exclusion of sources' in the full and open competition impact the overall competitiveness and final pricing of the contract?
The 'exclusion of sources' clause suggests that while the competition was intended to be open, certain potential bidders were deliberately excluded based on specific criteria, possibly related to security, capability, or prior performance. This could limit the number of competitive bids received, potentially impacting the final price and the range of innovative solutions available. A thorough review would be needed to understand the justification for these exclusions and their effect on market competition.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 360A QUALITY CIRCLE, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $203,286,000
Exercised Options: $203,286,000
Current Obligation: $177,340,677
Actual Outlays: $5,560,278
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $452,480,129
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS329
IDV Type: IDC
Timeline
Start Date: 2016-03-16
Current End Date: 2020-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-12-22
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