DoD's $42.8M Integrated Base Defense Security System contract awarded to Xator LLC for Eastern Region

Contract Overview

Contract Amount: $42,765,943 ($42.8M)

Contractor: Xator LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-06

End Date: 2027-08-19

Contract Duration: 1,686 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTEGRATED BASE DEFENSE SECURITY SYSTEM (IBDSS) NEXT - EASTERN REGION

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20109

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to XATOR LLC for work described as: INTEGRATED BASE DEFENSE SECURITY SYSTEM (IBDSS) NEXT - EASTERN REGION Key points: 1. Contract value represents a significant investment in base security infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns. 4. Security Systems Services sector is critical for national defense operations. 5. Contract duration of over 4 years indicates a long-term need. 6. Awarded to Xator LLC, a single contractor, highlighting potential specialization or market concentration.

Value Assessment

Rating: fair

The contract's value of $42.8 million over approximately 4 years for security systems services appears substantial. Benchmarking against similar large-scale base defense contracts is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher final costs compared to fixed-price contracts if not managed rigorously. The absence of a specific per-unit cost makes direct value-for-money assessment challenging.

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. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The Air Force's decision to use this procurement method suggests confidence in the market's ability to provide the required security systems.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the chosen contractor was selected from a pool of qualified bidders, reducing the risk of overpayment due to limited options.

Public Impact

Benefits Department of Defense installations in the Eastern Region by enhancing base security. Delivers integrated base defense security systems, likely encompassing surveillance, access control, and alarm systems. Geographic impact is focused on military bases within the Eastern Region of the United States. Workforce implications may include the need for specialized security technicians and system installers. Enhances force protection measures for military personnel and assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost escalations if not closely monitored.
Lack of specific per-unit cost data hinders granular value assessment.
Long contract duration may present risks if technology or security needs evolve rapidly.
Concentration of a large contract with a single provider warrants monitoring for performance and potential future dependencies.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on integrated base defense addresses critical security requirements.
Contract duration indicates a stable, long-term commitment to security infrastructure.
Clear definition of service area (Eastern Region) allows for focused deployment.

Sector Analysis

The security systems services sector is a vital component of the broader defense industrial base, providing essential technologies and services for protecting military installations and critical infrastructure. This contract falls within the government's ongoing efforts to modernize and maintain robust physical security measures across its facilities. Spending in this sector is often driven by evolving threat landscapes and the need for advanced technological solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Xator LLC, will likely manage the majority of the work, potentially limiting opportunities for small businesses to participate directly unless they are part of Xator's supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, performance metrics, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are typically internal.

Related Government Programs

Base Security Modernization Programs
Physical Security Systems Procurement
Department of Defense Force Protection Initiatives
Integrated Surveillance and Access Control Systems

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration
Limited public data on bidder numbers

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to XATOR LLC. INTEGRATED BASE DEFENSE SECURITY SYSTEM (IBDSS) NEXT - EASTERN REGION

Who is the contractor on this award?

The obligated recipient is XATOR 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 $42.8 million.

What is the period of performance?

Start: 2023-01-06. End: 2027-08-19.

What is Xator LLC's track record with similar Department of Defense contracts, particularly in base defense systems?

Xator LLC has a history of performing security-related services for government agencies. While specific details on their involvement in large-scale 'Integrated Base Defense Security Systems' are not immediately available from this data alone, their past performance on contracts related to physical security, access control, and surveillance systems would be a key factor in their selection. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a clearer picture of their capabilities and reliability for this significant DoD award. Examining their experience with similar system integration projects and their ability to manage complex, multi-year projects is crucial for assessing their suitability.

How does the $42.8 million contract value compare to similar base defense security system procurements by the DoD or other federal agencies?

The $42.8 million value for an Integrated Base Defense Security System (IBDSS) over approximately 4 years is substantial, reflecting the complexity and scope of securing military installations. To benchmark this effectively, one would need to compare it against other large-scale contracts for similar services, such as integrated physical security systems, access control, surveillance, and intrusion detection for military bases or critical federal facilities. Factors like the specific technologies deployed, the geographic scope (e.g., single base vs. regional), and the contract type (CPFF vs. fixed-price) significantly influence cost. Without access to a broader dataset of comparable contracts, it's challenging to definitively state if this represents excellent, fair, or concerning value, but it indicates a significant investment in a critical capability.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for security systems, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to incur costs exceeding initial estimates, as the government agrees to cover allowable costs plus a predetermined fixed fee. This can lead to budget overruns if cost controls are not robust. For security systems, risks include scope creep, unforeseen technical challenges during integration, and potential delays. Mitigation strategies typically involve stringent oversight by the contracting officer and technical representatives, detailed cost tracking and auditing, clear definition of allowable costs, and performance incentives or penalties. The fixed fee itself acts as a ceiling on the contractor's profit, but the total cost to the government can still escalate.

What is the expected effectiveness of the Integrated Base Defense Security System (IBDSS) Next - Eastern Region in enhancing base security?

The IBDSS Next program aims to enhance base security by integrating various security technologies and systems into a cohesive operational framework. Its effectiveness hinges on the successful implementation of components such as advanced surveillance (CCTV, sensors), access control systems, intrusion detection, communication networks, and potentially command and control software. By providing a unified view of security posture and enabling faster response times, the system is expected to improve situational awareness, deter threats, and protect personnel and assets more effectively than disparate, non-integrated systems. The specific effectiveness will depend on the quality of the technology deployed, the training of personnel operating the system, and the ongoing maintenance and updates provided under the contract.

How has federal spending on security systems services, particularly for defense applications, trended in recent years?

Federal spending on security systems services, especially within the defense sector, has generally trended upwards in recent years, driven by evolving geopolitical threats, the need to modernize aging infrastructure, and the increasing reliance on technology for security. Agencies like the Department of Defense consistently allocate significant resources to physical security, cybersecurity, and integrated systems to protect personnel, facilities, and sensitive information. This includes investments in surveillance, access control, alarm systems, and command and control platforms. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the overall demand for advanced security solutions within the federal government, particularly for defense applications, remains strong.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 1835 ALEXANDER BELL DR, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,127,980

Exercised Options: $52,297,264

Current Obligation: $42,765,943

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $134,577

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA873020D0007

IDV Type: IDC

Timeline