DoD's $134.8M Linquest Systems Engineering Contract: Research & Development Focus
Contract Overview
Contract Amount: $134,800,735 ($134.8M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2005-10-01
End Date: 2012-03-31
Contract Duration: 2,373 days
Daily Burn Rate: $56.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200608!000043!5700!FA8808!SMC/MLK !FA880806C0002 !A!N! !Y! !P00005!20060112!20110930!140389763!140389763!140389763!N!LINQUEST CORPORATION !6701 CENTER DRIVE WEST, SU!LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000000583000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! !C! ! !99990909!B!F!N!A! !D!N!R!1!001!N!1G!Z!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $134.8 million to LINQUEST CORPORATION for work described as: 200608!000043!5700!FA8808!SMC/MLK !FA880806C0002 !A!N! !Y! !P00005!20060112!20110930!140389763!140389763!140389763!N!LINQUEST CORPORATION !6701 CENTER DRIVE WEST, SU!LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS … Key points: 1. Contract awarded to Linquest Corporation for systems engineering services. 2. Significant spending in the Research and Development sector (NAICS 541710). 3. Contract was not competed, raising potential concerns about price discovery. 4. Long contract duration of 2373 days suggests a substantial, ongoing need. 5. Award type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight.
Value Assessment
Rating: questionable
The contract value of $134.8M over approximately 6.6 years is substantial. Without specific benchmarks for similar systems engineering contracts in R&D, it's difficult to definitively assess pricing. The Cost Plus Award Fee structure allows for flexibility but necessitates robust performance metrics to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process. The rationale for sole-sourcing is not provided but is a key area for scrutiny.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract suggests a critical need for these specialized R&D services. Potential for cost overruns exists with Cost Plus Award Fee contracts if not managed tightly. The specific R&D focus could impact technological advancements and national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- Long contract duration
- Unclear justification for sole-source award
Positive Signals
- Addresses critical R&D needs
- Potential for high performance through award incentives
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this sector is crucial for innovation and national security, but often involves complex, high-risk projects where cost control can be challenging.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure requires diligent oversight to ensure that award fees are earned based on objective performance metrics and that costs remain reasonable. The contracting agency (DCMA) and the requiring agency (DoD) must maintain strong oversight to prevent waste and ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition limits price discovery.
- Cost Plus Award Fee structure requires robust oversight.
- Long contract duration may indicate potential for cost creep.
- Sole-source justification is not provided.
- Potential for contractor lock-in due to specialized services.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $134.8 million to LINQUEST CORPORATION. 200608!000043!5700!FA8808!SMC/MLK !FA880806C0002 !A!N! !Y! !P00005!20060112!20110930!140389763!140389763!140389763!N!LINQUEST CORPORATION !6701 CENTER DRIVE WEST, SU!LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000000583000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! !C! ! !999
Who is the contractor on this award?
The obligated recipient is LINQUEST CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $134.8 million.
What is the period of performance?
Start: 2005-10-01. End: 2012-03-31.
What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives explored?
The provided data indicates the contract was 'NOT COMPETED'. Without further documentation, the specific justification remains unclear. Typically, sole-source awards require a documented justification, such as the unique capability of the contractor or the urgency of the requirement. Exploring alternatives is a standard part of procurement, and the absence of competition suggests that either no viable alternatives were found or the justification for a sole-source award was deemed sufficient by the procuring agency.
How does the Cost Plus Award Fee structure impact the overall cost-effectiveness and risk of this contract?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing for additional profit based on achieving specific performance goals. While this can drive efficiency and quality, it also introduces risk. The government pays the incurred costs plus a base fee, with the potential for an award fee. Effective management requires clearly defined, measurable performance metrics to ensure the award fee is truly earned and that costs remain controlled, preventing potential overspending.
What is the potential long-term impact of this significant R&D investment on technological advancement and national security?
This $134.8M contract for systems engineering in R&D suggests a substantial investment in critical technologies. Such long-term funding can foster innovation, lead to breakthroughs, and enhance national security capabilities by developing advanced systems. However, the effectiveness hinges on the strategic direction of the R&D efforts and the successful translation of research into deployable solutions. The 'Research and Development in the Physical, Engineering, and Life Sciences' category implies a broad scope that could yield significant, albeit potentially uncertain, future benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5140 W GOLDLEAF CIR, LOS ANGELES, CA, 90056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $187,518,311
Exercised Options: $39,353,760
Current Obligation: $134,800,735
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-10-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2023-10-06
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