DoD's $71.5M Space Systems Contract Awarded to LinQuest Corporation for R&D Services

Contract Overview

Contract Amount: $71,480,504 ($71.5M)

Contractor: Linquest Corporation

Awarding Agency: Department of Defense

Start Date: 2015-05-08

End Date: 2021-11-26

Contract Duration: 2,394 days

Daily Burn Rate: $29.9K/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 SPACE AND MISSILE SYSTEMS CENTER SPACE SUPERIORITY DIRECTORATE TECHNICAL SERVICES 2 TASK ORDER

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90056

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $71.5 million to LINQUEST CORPORATION for work described as: IGF::CT::IGF SPACE AND MISSILE SYSTEMS CENTER SPACE SUPERIORITY DIRECTORATE TECHNICAL SERVICES 2 TASK ORDER Key points: 1. Contract awarded for specialized research and development in physical, engineering, and life sciences. 2. The contract duration spans nearly 2,000 days, indicating a long-term project. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost No Fee, which shifts risk to the government. 5. This award falls under the Research and Development sector, focusing on advanced technologies. 6. The contractor, LinQuest Corporation, has secured a significant portion of the contract value. 7. The task order is for technical services related to space superiority.

Value Assessment

Rating: fair

The contract's Cost No Fee (CNF) structure places the financial risk on the government, which is a less favorable arrangement for taxpayers compared to fixed-price contracts. Without specific benchmarks for similar R&D services in space superiority, it is difficult to definitively assess value for money. However, the absence of a fee suggests that the contractor's profit is tied to achieving specific objectives rather than direct cost recovery, which can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources were initially excluded before the final award. This suggests a potentially complex procurement process. The presence of multiple bidders (3 indicated) is positive, but the 'after exclusion of sources' clause warrants further investigation into the reasons for exclusion and their impact on the competitive landscape.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers by fostering lower prices, the exclusion of sources could potentially limit the number of competitive bids and may not have resulted in the most cost-effective outcome.

Public Impact

The primary beneficiaries are likely the Department of Defense and its space superiority initiatives. Services delivered include research and development in advanced physical, engineering, and life sciences. The geographic impact is primarily within the United States, with potential implications for national security. Workforce implications may include specialized engineers and scientists employed by LinQuest Corporation and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type increases government financial risk.
Complexity of 'Full and Open Competition After Exclusion of Sources' requires scrutiny.
Long contract duration (2394 days) could lead to scope creep or cost escalation if not managed effectively.

Positive Signals

Awarded through a competitive process, suggesting potential for fair pricing.
Focus on critical R&D for space superiority aligns with national security objectives.
Contractor LinQuest Corporation is a known entity in the aerospace and defense sector.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for space superiority. The market for such specialized R&D is often characterized by a limited number of highly qualified contractors. Comparable spending benchmarks are difficult to establish without more specific details on the R&D scope, but significant government investment in space-related technologies is a consistent trend.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As this is a task order for specialized R&D services, it is possible that small businesses may be involved as subcontractors if they possess niche expertise required for the project. However, without specific data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight mechanisms would typically involve the Department of the Air Force's contracting officers and potentially program managers. Accountability measures are inherent in the Cost No Fee structure, where the contractor's performance directly impacts their ability to achieve objectives without guaranteed profit. Transparency would depend on the agency's public reporting practices regarding contract performance and any associated Inspector General reviews.

Related Government Programs

Space Systems Command Contracts
Department of Defense Research and Development
Air Force Advanced Technology Programs
National Security Space Initiatives

Risk Flags

Cost No Fee contract type
Long contract duration
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.5 million to LINQUEST CORPORATION. IGF::CT::IGF SPACE AND MISSILE SYSTEMS CENTER SPACE SUPERIORITY DIRECTORATE TECHNICAL SERVICES 2 TASK ORDER

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 $71.5 million.

What is the period of performance?

Start: 2015-05-08. End: 2021-11-26.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' being conducted under this contract?

The contract data indicates the task order is for 'IGF SPACE AND MISSILE SYSTEMS CENTER SPACE SUPERIORITY DIRECTORATE TECHNICAL SERVICES 2'. This suggests the R&D is highly specialized and focused on enhancing space superiority capabilities. While the broad category is 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)', the specific application is within the domain of space and missile systems. This could encompass areas such as advanced materials for spacecraft, novel propulsion systems, sensor technology development, or advanced command and control systems for space assets. The 'Cost No Fee' structure implies that the contractor is incentivized to meet technical objectives rather than maximize cost recovery, suggesting a focus on innovation and performance.

How does the 'Cost No Fee' (CNF) contract type compare to other contract types in terms of risk and value for money?

The 'Cost No Fee' (CNF) contract type is characterized by the government reimbursing the contractor's allowable costs but providing no fee or profit. This structure places the majority of the financial risk on the government, as the contractor has less incentive to control costs beyond what is necessary to achieve the contract's objectives. In contrast, fixed-price contracts shift more risk to the contractor and are generally preferred for well-defined scopes of work where cost certainty is paramount. For R&D efforts, CNF can be used when the scope is highly uncertain or when the government wants to incentivize the contractor to focus solely on achieving technical milestones. However, it can lead to higher overall government expenditure if cost control is weak. Value for money in CNF contracts is harder to benchmark as profit is not a direct factor, making performance against technical requirements the primary measure.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' indicates a procurement process that began with the intent of full and open competition but subsequently involved the exclusion of certain potential sources before the final award. This could occur for various reasons, such as specific technical requirements that only a limited number of contractors could meet, national security concerns, or prior performance issues with certain entities. While the final award was made under competitive conditions, the exclusion of sources might have limited the overall pool of bidders. This could potentially impact price discovery and the breadth of innovative solutions considered. Further analysis would be needed to understand the justification for the exclusion and its effect on the final contract price and terms.

What is LinQuest Corporation's track record with similar government contracts, particularly in R&D and space systems?

LinQuest Corporation is a known entity in the aerospace and defense sector, often providing systems engineering, integration, and technical support services to government agencies, including the Department of Defense. Their portfolio typically includes work on space systems, satellite technology, and command and control systems. While specific details on their track record with 'Cost No Fee' R&D contracts for space superiority are not provided in this data snippet, their general experience in the sector suggests they possess the requisite technical capabilities. A deeper dive into their contract history, past performance evaluations, and any reported issues would be necessary for a comprehensive assessment of their track record on this specific type of engagement.

How does the $71.5 million award compare to historical spending on similar space superiority R&D initiatives?

Without specific historical spending data for comparable 'space superiority R&D' initiatives, it is challenging to provide a direct comparison. However, $71.5 million represents a significant investment, indicative of the complexity and strategic importance of the work. Government spending on space-related technologies, particularly those enhancing national security and defense capabilities, has been substantial and is generally increasing. This award likely fits within broader trends of investment in advanced space capabilities. To provide a precise benchmark, one would need to identify similar contracts awarded over recent years, considering factors like contract duration, scope of work, and the specific technologies involved.

What are the potential risks associated with the 2,394-day duration of this contract?

A contract duration of 2,394 days (approximately 6.5 years) presents several potential risks. Firstly, the longer the contract, the greater the opportunity for scope creep, where the project's objectives expand beyond the original intent, potentially leading to cost overruns. Secondly, technological advancements in the rapidly evolving field of space systems could render the initial R&D objectives obsolete or require significant adaptation, impacting the contract's relevance and value. Thirdly, managing a long-term project requires sustained oversight and adaptability from both the government and the contractor to ensure continued alignment with strategic goals and efficient resource utilization. Finally, economic fluctuations or changes in government priorities over such a long period could affect funding and project continuity.

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: 5140 W GOLDLEAF CIR, LOS ANGELES, CA, 90056

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

Financial Breakdown

Contract Ceiling: $72,025,739

Exercised Options: $72,025,739

Current Obligation: $71,480,504

Actual Outlays: $3,135,473

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $8,108,673

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