DoD's $30.8M contract with Linquest Corporation for digital engineering support awarded via sole-source vehicle
Contract Overview
Contract Amount: $30,781,423 ($30.8M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-08
End Date: 2028-09-07
Contract Duration: 1,095 days
Daily Burn Rate: $28.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PROVIDE A COLLABORATIVE DIGITAL ENGINEERING ECOSYSTEM AND ANALYTICAL AND TECHNICAL DECISION SUPPORT TO ENHANCE THE METHODOLOGIES, PROCESSES, AND OUTCOMES RELATED TO ACQUISITION AND DEPLOYMENT OF INTEGRATED TEST AND TRAINING CAPABILITIES.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to LINQUEST CORPORATION for work described as: PROVIDE A COLLABORATIVE DIGITAL ENGINEERING ECOSYSTEM AND ANALYTICAL AND TECHNICAL DECISION SUPPORT TO ENHANCE THE METHODOLOGIES, PROCESSES, AND OUTCOMES RELATED TO ACQUISITION AND DEPLOYMENT OF INTEGRATED TEST AND TRAINING CAPABILITIES. Key points: 1. Contract focuses on enhancing acquisition and deployment of integrated test and training capabilities through digital engineering. 2. Sole-source award raises questions about potential for competitive pricing and value for money. 3. Long duration of nearly three years suggests a significant, ongoing need for these specialized services. 4. Contract type (Cost Plus Incentive Fee) can incentivize contractor performance but requires careful oversight to manage costs. 5. Performance is located in Colorado, potentially impacting local workforce and economy. 6. The Air Force's reliance on a single vendor for this critical support warrants scrutiny of market alternatives.
Value Assessment
Rating: questionable
The contract's value of $30.8 million over approximately three years for specialized digital engineering and decision support services is substantial. Without a competitive bidding process, it is difficult to benchmark this price against market rates or similar contracts. The Cost Plus Incentive Fee (CPIF) structure, while designed to align contractor and government interests, can lead to cost overruns if not meticulously managed. The lack of competition inherently limits the government's ability to secure the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates the contract was not competed, suggesting that either only one vendor was deemed capable of performing the required services, or there was a specific justification for a sole-source award, such as a follow-on to a previous contract or a unique capability. The lack of competition limits the government's ability to explore a wider range of solutions and potentially achieve better pricing through a competitive process.
Taxpayer Impact: Taxpayers may not be receiving the best value for their money due to the absence of a competitive bidding process. Sole-source awards can sometimes result in higher costs compared to those secured through open competition.
Public Impact
The Department of the Air Force benefits from enhanced methodologies, processes, and outcomes in acquiring and deploying integrated test and training capabilities. The contractor, Linquest Corporation, will deliver analytical and technical decision support services. The contract's geographic impact is centered in Colorado, potentially creating or sustaining jobs in the region. The services provided are critical for modernizing defense acquisition and deployment strategies, impacting national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Cost Plus Incentive Fee contract type requires robust oversight to prevent cost overruns.
- Lack of competition may indicate a limited market for these specialized services or a failure to explore alternatives.
- Long contract duration necessitates sustained monitoring of performance and value.
Positive Signals
- Contract aims to improve critical defense acquisition and training capabilities through advanced digital engineering.
- Linquest Corporation is a known entity in the defense sector, suggesting some level of established capability.
- The CPIF structure, if managed well, can incentivize efficient performance and cost savings.
- The contract duration suggests a stable, long-term need that the contractor is expected to fulfill.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense acquisition and technology. The market for specialized digital engineering, test, and training capabilities is growing as the Department of Defense modernizes its systems and processes. Comparable spending in this niche area can vary widely depending on the specific technologies and services involved, but large-scale support contracts for defense modernization efforts often run into tens or hundreds of millions of dollars.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false) and there is no indication of subcontracting requirements for small businesses (sb: false). This suggests that the primary contractor, Linquest Corporation, is likely a large business, and the services required are specialized, potentially beyond the typical scope or capacity of many small businesses in this domain. Consequently, this contract may not directly contribute to the small business ecosystem through set-asides or mandated subcontracting.
Oversight & Accountability
Oversight for this Cost Plus Incentive Fee contract will likely be managed by the Department of the Air Force's contracting and program management offices. Accountability measures will be tied to the incentive fee structure, requiring Linquest Corporation to meet specific performance targets. Transparency may be limited due to the sole-source nature of the award, but contract performance reviews and financial audits are standard oversight mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Digital Service
- Test and Evaluation Management Agency
- Acquisition and Sustainment Programs
- Advanced Technology Development Programs
Risk Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of explicit small business subcontracting requirements
- Potential for limited competition in specialized engineering services
Tags
defense, department-of-defense, department-of-the-air-force, engineering-services, digital-engineering, test-and-training, sole-source, cost-plus-incentive-fee, large-contract, colorado, acquisition-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to LINQUEST CORPORATION. PROVIDE A COLLABORATIVE DIGITAL ENGINEERING ECOSYSTEM AND ANALYTICAL AND TECHNICAL DECISION SUPPORT TO ENHANCE THE METHODOLOGIES, PROCESSES, AND OUTCOMES RELATED TO ACQUISITION AND DEPLOYMENT OF INTEGRATED TEST AND TRAINING CAPABILITIES.
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 $30.8 million.
What is the period of performance?
Start: 2025-09-08. End: 2028-09-07.
What is Linquest Corporation's track record with the Department of Defense, particularly in providing digital engineering and decision support services?
Linquest Corporation has a history of contracting with the Department of Defense, often in areas related to engineering, IT, and systems integration. While specific details on their performance for this exact type of 'collaborative digital engineering ecosystem' and 'analytical and technical decision support' are not provided in the summary data, their presence in the defense sector suggests familiarity with government contracting processes and requirements. A deeper dive into past performance reviews, contract awards, and any reported issues or successes would be necessary to fully assess their track record for this specific requirement. Their ability to secure a sole-source award of this magnitude implies a perceived capability or a pre-existing relationship that the Air Force deemed essential.
How does the $30.8 million contract value compare to similar digital engineering support contracts awarded by the DoD or other federal agencies?
Benchmarking the $30.8 million value requires identifying comparable contracts for 'collaborative digital engineering ecosystems' and 'analytical and technical decision support' within the defense sector. Contracts of this scale, especially those involving long-term support and specialized expertise, are common within large defense modernization initiatives. However, the 'sole-source' nature of this award makes direct price-to-price comparison challenging. If this were a competed contract, one would expect to see a range of bids reflecting different approaches and cost structures. Without competitive data, it's difficult to definitively state if $30.8 million represents excellent, fair, or inflated pricing. The duration (nearly three years) suggests a significant scope of work, making the annual value approximately $10.2 million, which aligns with the cost of specialized engineering teams and advanced analytical tools.
What are the primary risks associated with a sole-source award for critical defense engineering support, and how are they mitigated in this contract?
The primary risks of a sole-source award include potential overpricing due to lack of competition, limited innovation from a single provider, and vendor lock-in. For this contract, the risk of overpricing is partially addressed by the Cost Plus Incentive Fee (CPIF) structure, which aims to incentivize Linquest Corporation to control costs while meeting performance objectives. However, effective mitigation relies heavily on robust government oversight, including detailed cost analysis, performance monitoring, and clear definition of incentive targets. Vendor lock-in is a persistent risk; mitigation would involve the Air Force actively seeking to develop internal capabilities or explore alternative solutions for future requirements to reduce long-term dependence on a single contractor.
How effective is the Cost Plus Incentive Fee (CPIF) structure likely to be in ensuring value for money and successful delivery of test and training capabilities?
The CPIF structure is designed to balance cost control with performance incentives. It sets a target cost and a target profit, with provisions for increasing or decreasing the contractor's profit based on performance against pre-defined metrics. For this contract, its effectiveness hinges on the clarity and measurability of these metrics related to 'enhancing methodologies, processes, and outcomes' in digital engineering for test and training. If the incentives are well-aligned with desired outcomes and the government rigorously monitors performance and costs, CPIF can drive efficiency and value. However, poorly defined metrics or inadequate oversight can lead to cost overruns or a focus on easily achievable, less impactful goals, thereby diminishing the value for money.
What is the historical spending pattern for digital engineering and test/training support within the Department of the Air Force, and how does this contract fit?
The Department of the Air Force, like the broader DoD, has been increasing its investment in digital engineering, simulation, and advanced training capabilities to maintain technological superiority. Historical spending patterns show a trend towards integrating digital tools throughout the acquisition lifecycle, from design and development to testing and sustainment. This $30.8 million contract represents a specific investment in enhancing these digital processes for test and training capabilities. It fits within a larger strategic push to modernize defense systems and improve readiness through more efficient, data-driven approaches. Understanding the total budget allocated to digital transformation and simulation within the Air Force would provide context for the significance of this particular award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 2551 DULLES VIEW DR STE 200, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $98,715,100
Exercised Options: $98,715,100
Current Obligation: $30,781,423
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA255325DB001
IDV Type: IDC
Timeline
Start Date: 2025-09-08
Current End Date: 2028-09-07
Potential End Date: 2028-09-07 00:00:00
Last Modified: 2025-11-18
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