DoD awards $44.5M contract to Linquest for Space Command advisory services, with no competition
Contract Overview
Contract Amount: $44,496,895 ($44.5M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-21
End Date: 2022-08-21
Contract Duration: 487 days
Daily Burn Rate: $91.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ADVISORY & ASSISTANCE AND KNOWLEDGE BASED SERVICES TO SUPPORT HQ USSPACECOM.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $44.5 million to LINQUEST CORPORATION for work described as: ADVISORY & ASSISTANCE AND KNOWLEDGE BASED SERVICES TO SUPPORT HQ USSPACECOM. Key points: 1. Contract awarded to Linquest Corporation for $44.5M. 2. Services are for HQ USSPACECOM advisory and knowledge-based support. 3. Contract was not competed, raising potential value concerns. 4. The sector is professional services, specifically scientific and technical consulting.
Value Assessment
Rating: questionable
The contract value of $44.5M for advisory and knowledge-based services needs further scrutiny. Benchmarking against similar contracts for specialized consulting within the defense sector is difficult without more detailed service descriptions. The lack of competition may have impacted price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis ('NOT COMPETED'). This significantly limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers. The justification for sole-source procurement is not provided.
Taxpayer Impact: The lack of competition for a $44.5M contract raises concerns about whether the government achieved the best possible value, potentially resulting in suboptimal use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The effectiveness of the advisory services for USSPACECOM is difficult to assess externally. Lack of transparency in the procurement process limits public understanding of the value received.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Supports critical USSPACECOM mission
- Contract awarded to established firm
Sector Analysis
This contract falls under professional services, specifically 'Other Scientific and Technical Consulting Services' (NAICS 541690). Spending in this category within the Department of Defense is substantial, but the lack of competition here is a key concern.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services provided are necessary and that the pricing is reasonable, despite the lack of competition. Accountability for the justification of the sole-source award is crucial.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Cost-plus-fixed-fee structure carries inherent cost risk.
- Limited information on service specifics and effectiveness metrics.
- No small business participation indicated.
Tags
other-scientific-and-technical-consultin, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.5 million to LINQUEST CORPORATION. ADVISORY & ASSISTANCE AND KNOWLEDGE BASED SERVICES TO SUPPORT HQ USSPACECOM.
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 Air Force).
What is the total obligated amount?
The obligated amount is $44.5 million.
What is the period of performance?
Start: 2021-04-21. End: 2022-08-21.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED' and awarded under 'sole-source' terms. A detailed justification for this approach, outlining why only Linquest Corporation could fulfill the requirement and why competition was not feasible or advantageous, would typically be required. Without this justification, it's impossible to assess if taxpayer funds were used efficiently or if alternative competitive strategies were overlooked.
How does the cost-plus-fixed-fee structure impact the overall risk and potential for cost overruns in this advisory services contract?
Cost-plus-fixed-fee (CPFF) contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While this structure can be useful for R&D or services where costs are uncertain, it shifts much of the cost risk to the government. For advisory services, if the scope is not tightly defined, there's a risk of cost overruns as the contractor is incentivized to incur costs to achieve their fixed fee, potentially leading to higher overall expenditure than a fixed-price contract.
What specific knowledge-based services are being provided to HQ USSPACECOM, and how is their effectiveness being measured?
The data provides the contract's purpose broadly as 'ADVISORY & ASSISTANCE AND KNOWLEDGE BASED SERVICES'. Specific deliverables, key performance indicators, and metrics for measuring the effectiveness of these services are not detailed. Understanding the precise nature of the support and the established benchmarks for success is crucial for evaluating the value and impact of this $44.5M investment on the USSPACECOM mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,329,196
Exercised Options: $46,049,626
Current Obligation: $44,496,895
Actual Outlays: $9,951,684
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $10,677,216
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-04-21
Current End Date: 2022-08-21
Potential End Date: 2022-10-21 00:00:00
Last Modified: 2022-09-29
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