Air Force awards $54.4M engineering support contract to Axient LLC for ISR/SOF operations

Contract Overview

Contract Amount: $54,435,561 ($54.4M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2020-05-17

End Date: 2025-05-16

Contract Duration: 1,825 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE/SPECIAL OPERATIONS FORCES (ISR/SOF) DIRECTORATE (AFLCMC/WI), SOF PERSONNEL RECOVERY AND ROTARY DIVISION (AFLCMC/WIU)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $54.4 million to AXIENT LLC for work described as: SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE/SPECIAL OPERATIONS FORCES (ISR/SOF) DIRECTORATE (AFLCMC/WI), SOF PERSONNEL RECOVERY AND ROTARY DIVISION (AFLCMC/WIU) Key points: 1. Contract provides critical engineering and administrative support for intelligence, surveillance, and reconnaissance (ISR) and special operations forces (SOF). 2. The contract duration of 1825 days (5 years) indicates a long-term need for these specialized services. 3. The award was made under a full and open competition, suggesting a robust market for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility. 5. The geographic location of performance in Alabama aligns with significant defense sector presence. 6. The total award value of $54.4M over five years suggests a substantial but not excessive annual spend for specialized support.

Value Assessment

Rating: good

The contract value of $54.4M over five years averages approximately $10.88M annually. Benchmarking this against similar engineering support services for defense agencies is challenging without more specific service details. However, the CPFF contract type suggests that costs will be scrutinized, and the fixed fee component provides a degree of predictability for the contractor's profit. The competition level indicates that pricing should be market-driven.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources. This implies that multiple potential bidders were considered, and the selection process aimed to identify the best value. The presence of multiple bidders generally leads to more competitive pricing and a wider range of technical solutions. The specific number of bidders is not provided, but the designation suggests a deliberate effort to maximize competition.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the government receives the most advantageous offer.

Public Impact

The primary beneficiaries are the Intelligence, Surveillance, and Reconnaissance/Special Operations Forces (ISR/SOF) Directorate within the Air Force, ensuring they have the necessary engineering and administrative support. Services delivered include critical engineering and administrative support, likely encompassing technical analysis, system integration, and program management. The geographic impact is centered in Alabama, where the contractor is located and likely where the primary performance will occur, potentially supporting the local economy. Workforce implications include the creation or sustainment of highly skilled engineering and administrative jobs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The specific nature of 'engineering professional and administrative support' is broad and could encompass a wide range of activities, making precise performance evaluation difficult without further detail.

Positive Signals

The contract was awarded through full and open competition, indicating a healthy market and competitive pricing.
The long duration (5 years) suggests a stable and ongoing requirement, providing continuity of essential support services.
The contractor, Axient LLC, is likely experienced in providing these types of specialized engineering services to the Department of Defense.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense intelligence and special operations. The market for such specialized engineering support is often dominated by a few key players with the necessary security clearances and technical expertise. Comparable spending benchmarks would depend on the specific sub-disciplines of engineering and administrative support required, but defense engineering services represent a significant portion of federal R&D and procurement spending.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. This suggests the contract was competed broadly, and while Axient LLC may utilize small businesses in its subcontracting, there was no explicit small business set-aside. The focus appears to be on securing specialized engineering expertise, potentially leading to fewer direct opportunities for small businesses unless they are part of Axient's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure allowable costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and any significant issues or fraud could fall under the jurisdiction of the Department of Defense's Inspector General.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Special Operations Forces (SOF) Support
Aerospace Engineering Services
Defense Contractor Support Services
Air Force Materiel Command Contracts

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for robust government oversight to manage costs and performance.
Broad definition of 'engineering professional and administrative support' requires clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.4 million to AXIENT LLC. SCAT 1 ENGINEERING PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE/SPECIAL OPERATIONS FORCES (ISR/SOF) DIRECTORATE (AFLCMC/WI), SOF PERSONNEL RECOVERY AND ROTARY DIVISION (AFLCMC/WIU)

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 $54.4 million.

What is the period of performance?

Start: 2020-05-17. End: 2025-05-16.

What is Axient LLC's track record with similar Department of Defense contracts?

Axient LLC has a history of securing and performing on various Department of Defense contracts, often in areas related to engineering, test and evaluation, and advanced technology solutions. Their portfolio includes work with multiple branches of the military, including the Air Force, Army, and Navy. Specific to ISR and SOF, Axient has demonstrated capabilities in providing technical expertise, system integration, and support services. Their past performance on similar contracts would have been a key factor in the evaluation for this award, suggesting a level of trust and proven capability in meeting the demanding requirements of these specialized defense sectors. Reviewing their contract history can reveal patterns in contract types, values, and performance ratings.

How does the annual cost of this contract compare to similar engineering support services for ISR/SOF programs?

The annual cost for this contract averages approximately $10.88 million ($54.4M / 5 years). Comparing this directly to similar contracts is complex due to the unique nature of ISR/SOF requirements and the specific blend of engineering and administrative support. However, for specialized, high-security engineering services within the defense sector, this annual figure appears to be within a reasonable range. Contracts for advanced systems engineering, cybersecurity, and specialized technical support for critical defense programs often command significant budgets. Without detailed service breakdowns and specific contract vehicles, a precise benchmark is difficult, but the competitive award process suggests the pricing is market-aligned for this level of specialized support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as they are reimbursed for all allowable costs. While the fixed fee provides a profit ceiling, the government bears the risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen complexities arise. For the government, effective oversight is crucial to ensure that all costs incurred are reasonable, allocable, and directly related to the contract's objectives. This requires diligent monitoring of expenditures and performance by the contracting officer's representative (COR) and program management team to prevent unnecessary spending and ensure the project stays within budget expectations.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' method is generally effective in ensuring value for taxpayers. This approach allows the government to solicit proposals from all responsible sources but provides a mechanism to exclude specific sources if necessary (e.g., due to past performance issues or specific technical requirements). By maximizing the pool of potential bidders while maintaining necessary controls, it fosters a competitive environment that drives down prices and encourages innovation. The government can then select the offer that represents the best overall value, considering factors beyond just price, such as technical approach, past performance, and management capability, ultimately leading to better resource utilization for taxpayer funds.

What is the historical spending trend for engineering support services within the Air Force's ISR/SOF directorates?

Historical spending trends for engineering support services within the Air Force's ISR/SOF directorates have generally shown a consistent and significant investment. These areas are critical to national security, requiring continuous technological advancement and operational support. Spending typically fluctuates based on program lifecycles, modernization efforts, and evolving threat landscapes. While specific directorate-level historical data requires deep dives into federal procurement databases (like FPDS or USASpending), the overall trend indicates sustained funding for specialized engineering, analysis, and technical support to maintain and enhance ISR and SOF capabilities. This particular contract's value aligns with the ongoing need for such expertise.

What are the potential implications of this contract on the broader defense engineering services market?

This contract award to Axient LLC has several implications for the broader defense engineering services market. Firstly, it reinforces Axient's position as a key provider in the ISR/SOF support domain, potentially influencing future contract awards. Secondly, the use of full and open competition suggests a healthy market with multiple capable firms, encouraging other companies to develop similar expertise to compete. Thirdly, the CPFF contract type highlights the government's willingness to use flexible pricing models for complex, evolving requirements. Finally, the sustained, multi-year nature of the award indicates a stable demand for these specialized services, signaling opportunities for growth and investment within this niche of the defense industrial base.

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

Solicitation ID: FA862220R8239

Offers Received: 3

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: $86,488,219

Exercised Options: $64,390,113

Current Obligation: $54,435,561

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $30,843,485

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS135

IDV Type: IDC

Timeline