DoD's $97M contract for remote sensing technical support awarded to Linquest Corporation shows fair value

Contract Overview

Contract Amount: $97,088,537 ($97.1M)

Contractor: Linquest Corporation

Awarding Agency: Department of Defense

Start Date: 2016-04-26

End Date: 2021-11-22

Contract Duration: 2,036 days

Daily Burn Rate: $47.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::CT::IGF PROVIDE TECHNICAL SUPPORT SERVICES FOR THE REMOTE SENSING SYSTEM DIRECTORATE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $97.1 million to LINQUEST CORPORATION for work described as: IGF::CT::IGF PROVIDE TECHNICAL SUPPORT SERVICES FOR THE REMOTE SENSING SYSTEM DIRECTORATE Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 2036 days (over 5 years) indicates a long-term need for these services. 3. The contract type (Cost No Fee) can sometimes lead to cost overruns if not managed tightly. 4. The primary NAICS code (541712) points to R&D in physical sciences, a specialized sector. 5. The award was a delivery order under a larger contract, implying a pre-existing relationship or framework. 6. The contractor, Linquest Corporation, has a history of performing similar government contracts. 7. The contract value of $97M over 5 years suggests a significant investment in remote sensing capabilities.

Value Assessment

Rating: good

The contract value of approximately $97 million over five years for technical support in remote sensing appears reasonable given the specialized nature of the services. Benchmarking against similar R&D support contracts in the defense sector suggests that the pricing is within an expected range. The Cost No Fee (CNF) contract type, while offering flexibility, requires diligent oversight to ensure cost control. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that after an initial exclusion of certain sources, the remaining requirement was competed broadly. The presence of 3 bidders indicates a moderate level of competition. While not a completely unrestricted competition, it suggests that multiple capable firms had the opportunity to bid, which generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of this award, even with initial source exclusions, is beneficial for taxpayers as it likely drove down costs and encouraged innovation among the bidding companies.

Public Impact

The Department of the Air Force benefits from enhanced technical support for its remote sensing systems, crucial for intelligence, surveillance, and reconnaissance (ISR) missions. This contract supports the development and maintenance of advanced remote sensing technologies, contributing to national security. The services delivered are critical for data acquisition, processing, and analysis, enabling informed decision-making. The geographic impact is primarily within the United States, supporting defense operations and research facilities. The contract likely supports a specialized workforce of scientists, engineers, and technical experts in the field of remote sensing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type requires robust government oversight to prevent cost overruns.
The 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure the exclusion was justified and did not unduly limit competition.
Long contract duration (over 5 years) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving needs.

Positive Signals

Awarded through a competitive process, indicating potential for good value and innovation.
Contractor has experience in government contracting, suggesting familiarity with requirements and processes.
Focus on R&D in a critical national security area (remote sensing) aligns with strategic defense priorities.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to remote sensing. This is a highly specialized area within the broader defense technology market. The market for remote sensing technology and associated support services is driven by government demand, particularly from defense and intelligence agencies, for advanced surveillance and data analysis capabilities. Spending in this sector is often characterized by long-term investments in cutting-edge technology and requires contractors with deep technical expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. However, the prime contractor, Linquest Corporation, may choose to subcontract portions of the work to small businesses as part of their overall business strategy or to meet broader socioeconomic goals, though this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost No Fee (CNF) contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs remain reasonable and allocable to the contract's objectives. Transparency is facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed, the DoD IG typically has oversight over defense contracts to investigate fraud, waste, and abuse.

Related Government Programs

DoD Research and Development Contracts
Air Force Information Technology and Support Services
Remote Sensing Technology Development
National Reconnaissance Office (NRO) Support Contracts
Intelligence, Surveillance, and Reconnaissance (ISR) Systems

Risk Flags

Potential for cost overruns due to CNF contract type.
Need for strong government oversight to manage contractor performance and costs.
Complexity of R&D services requires specialized technical expertise for effective management.
Potential for technology obsolescence in a rapidly evolving field like remote sensing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.1 million to LINQUEST CORPORATION. IGF::CT::IGF PROVIDE TECHNICAL SUPPORT SERVICES FOR THE REMOTE SENSING SYSTEM DIRECTORATE

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 $97.1 million.

What is the period of performance?

Start: 2016-04-26. End: 2021-11-22.

What is Linquest Corporation's track record with similar government contracts, particularly in R&D and remote sensing?

Linquest Corporation has a significant history of performing government contracts, including those related to defense, aerospace, and technology services. Their portfolio often includes work in areas such as command and control, intelligence analysis, and systems engineering. While specific details on their remote sensing R&D performance require deeper analysis of past contract performance reports (CPARS) and award histories, their general experience suggests they possess the foundational capabilities to execute contracts of this nature. Examining their past performance on contracts with similar NAICS codes (e.g., 541712) and agencies like the Department of Defense would provide a clearer picture of their specific expertise and reliability in the remote sensing domain.

How does the $97M contract value compare to other similar R&D support contracts for remote sensing systems within the DoD?

The $97 million contract value over approximately five years for remote sensing technical support places it as a substantial, but not exceptionally large, award within the DoD's R&D portfolio. Comparable contracts for specialized scientific and engineering support in areas like satellite technology, sensor development, or data analytics often range from tens to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. Given that remote sensing is a critical but niche capability, this contract's value appears aligned with market rates for long-term, high-expertise support. A precise benchmark would require comparing it to contracts with identical service descriptions, duration, and specific technological focus, which are often sensitive procurement details.

What are the primary risks associated with a Cost No Fee (CNF) contract type for this type of R&D service?

The primary risk with a Cost No Fee (CNF) contract, especially for R&D services, is the potential for cost overruns without a corresponding fee adjustment for the contractor. The government bears the full cost of the effort, and the contractor receives no profit. This can incentivize contractors to be less cost-conscious if they believe the government will ultimately pay for all reasonable costs incurred. For the government, risks include difficulty in precisely estimating the total cost upfront, potential for scope creep if not managed tightly, and the need for robust oversight to ensure costs are necessary, reasonable, and allocable. Effective management and clear performance expectations are crucial to mitigate these risks.

What is the expected program effectiveness or outcome from this contract, and how is it measured?

The expected outcome of this contract is the enhanced technical support for the Department of the Air Force's remote sensing systems. This likely translates to improved capabilities in data acquisition, processing, analysis, and dissemination, which are critical for intelligence, surveillance, and reconnaissance (ISR) missions. Measuring program effectiveness would involve tracking key performance indicators (KPIs) related to system performance, data quality, turnaround times for analysis, and the successful integration of new technologies or upgrades. While the provided data doesn't detail specific KPIs, government contracts typically include performance standards and evaluation criteria within the contract's statement of work (SOW) and performance work statement (PWS).

How has federal spending in the R&D sector, specifically for remote sensing and related technologies, trended over the past 5-10 years?

Federal spending in the R&D sector, particularly for remote sensing and related technologies, has generally seen consistent investment, driven by national security imperatives and advancements in technology. Agencies like the Department of Defense (DoD), NASA, and intelligence agencies are major contributors. Over the past 5-10 years, there has been a notable increase in focus on areas such as space-based ISR, artificial intelligence for data analysis, and resilient sensor technologies. While overall R&D budgets can fluctuate based on fiscal priorities, funding for advanced capabilities like remote sensing often remains a priority due to its strategic importance. Specific trends would show shifts towards more sophisticated data processing and integration capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 2551 DULLES VIEW DR STE 200, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $130,960,090

Exercised Options: $97,533,892

Current Obligation: $97,088,537

Actual Outlays: $4,967,911

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $13,826,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS607

IDV Type: IDC

Timeline