DoD's $45M Space-Based Infrared System Logistics Support contract awarded to Axient LLC

Contract Overview

Contract Amount: $45,097,613 ($45.1M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2017-02-15

End Date: 2025-06-30

Contract Duration: 3,057 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF SPACE BASED INFRARED SYSTEM LOGISTICS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to AXIENT LLC for work described as: IGF::CT::IGF SPACE BASED INFRARED SYSTEM LOGISTICS MANAGEMENT SUPPORT SERVICES Key points: 1. Contract focuses on critical logistics management for space-based infrared systems, essential for national security. 2. Awarded to Axient LLC, a contractor with a track record in aerospace and defense services. 3. The contract duration spans over 8 years, indicating a long-term need for these services. 4. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. This award falls under Research and Development in Physical, Engineering, and Life Sciences. 7. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

Benchmarking the value of this specific delivery order is challenging without knowing the broader IDIQ contract's scope and pricing. However, the firm fixed-price structure is generally favorable for the government, as it caps potential costs. The duration of the contract (over 8 years) suggests a sustained need, and the award to a single entity implies a competitive process that likely yielded a reasonable price for the services rendered. Further analysis would require comparing Axient LLC's pricing against similar logistics support contracts for complex defense systems.

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.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria, possibly related to security clearances or specialized capabilities required for the Space-Based Infrared System. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery.

Taxpayer Impact: A competitive process, even with exclusions, helps ensure that taxpayer funds are used efficiently by driving down prices through bidding.

Public Impact

The primary beneficiaries are the Department of Defense and national security agencies relying on the Space-Based Infrared System (SBIRS) for intelligence and early warning. Services delivered include logistics management, ensuring the operational readiness and sustainment of critical space assets. The geographic impact is national, supporting defense operations across various theaters. Workforce implications include specialized logistics and technical support roles, likely requiring personnel with security clearances.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges or supply chain disruptions.
Dependence on a single contractor for critical logistics support could pose a risk if the contractor faces financial instability or performance issues.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition and potentially increase costs.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Long contract duration suggests a stable, ongoing need for these essential services.
Award to Axient LLC, a known entity in defense contracting, implies a level of established capability and reliability.

Sector Analysis

This contract operates within the aerospace and defense sector, specifically focusing on the sustainment and logistics of advanced satellite systems. The market for space-based defense infrastructure is highly specialized, characterized by significant barriers to entry due to technological complexity and security requirements. Spending in this area is driven by national security priorities and the need for continuous technological advancement. Comparable spending benchmarks would typically involve other large-scale satellite operations and support contracts within the DoD.

Small Business Impact

There is no explicit indication of small business set-asides for this specific delivery order. However, the prime contractor, Axient LLC, may engage small businesses as subcontractors to fulfill certain aspects of the logistics support. The impact on the small business ecosystem would depend on the extent of subcontracting opportunities offered and the ability of small businesses to meet the specialized requirements of the SBIRS program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some inherent accountability by capping costs. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Regular performance reviews and milestone tracking are standard oversight mechanisms.

Related Government Programs

Space-Based Infrared System (SBIRS)
DoD Logistics and Sustainment Contracts
Aerospace and Defense Services
National Security Space Programs
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Firm Fixed Price contracts can sometimes lead to scope creep if not managed tightly.
Long contract duration increases exposure to market volatility and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to AXIENT LLC. IGF::CT::IGF SPACE BASED INFRARED SYSTEM LOGISTICS MANAGEMENT SUPPORT SERVICES

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 $45.1 million.

What is the period of performance?

Start: 2017-02-15. End: 2025-06-30.

What is Axient LLC's track record with similar government contracts, particularly in aerospace logistics?

Axient LLC has a significant history of performing contracts for the U.S. government, particularly within the aerospace and defense sectors. They specialize in areas such as systems engineering, test and evaluation, and mission support. While specific details on their SBIRS logistics performance are proprietary, their general experience suggests a capability to handle complex technical and logistical requirements. Analyzing their past performance on similar large-scale defense programs, including contract values, performance ratings, and any past disputes or challenges, would provide a more comprehensive understanding of their reliability and expertise in this domain. Their presence as a prime contractor on this significant SBIRS contract indicates a level of trust and proven capability by the Department of Defense.

How does the $45 million contract value compare to similar logistics support contracts for major defense systems?

Comparing the $45 million value of this specific delivery order requires context from the broader IDIQ contract and the overall lifecycle costs of major defense systems. Logistics support for complex, high-value assets like the Space-Based Infrared System (SBIRS) is inherently expensive due to the specialized nature of the technology, the need for 24/7 operational readiness, and stringent security requirements. Annual spending on sustainment for major defense platforms can range from tens to hundreds of millions of dollars. This $45 million award, spread over potentially several years within the contract's performance period, appears to be a component of a larger sustainment strategy. Without access to the full IDIQ ceiling and the specific services covered by this order, a precise benchmark is difficult, but it aligns with the expected cost profile for supporting critical national security space assets.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the firm fixed-price contract doesn't fully account for unforeseen technical issues or supply chain volatility, and performance degradation impacting SBIRS operational readiness. Mitigation strategies likely involve robust contract oversight by the Air Force, including regular performance reviews and milestone tracking. The firm fixed-price structure itself mitigates cost risk for the government by capping expenditures. Axient LLC is incentivized to manage costs and performance effectively to ensure profitability. Furthermore, the 'exclusion of sources' in the competition, while potentially limiting, may have been intended to ensure only highly qualified and secure entities participated, thereby reducing risks related to contractor capability and security vulnerabilities.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

This procurement approach aims to balance broad competition with the need for specific, often highly specialized, capabilities. By excluding certain sources, the DoD ensures that bidders possess the necessary security clearances, technical expertise, or infrastructure required for sensitive programs like SBIRS. While potentially reducing the number of bidders compared to pure full-and-open competition, it can lead to a pool of highly qualified offerors. The presence of three bidders suggests that this approach still fostered a competitive environment. The effectiveness for taxpayers hinges on whether the exclusions were justified and whether the resulting competition adequately drove down prices and ensured the best value was obtained, rather than simply selecting from a limited, pre-approved list.

What is the historical spending trend for logistics support of the Space-Based Infrared System?

Historical spending data for the Space-Based Infrared System (SBIRS) logistics support is not publicly detailed at the level of individual delivery orders. However, SBIRS is a multi-billion dollar program with significant sustainment costs due to its critical nature and advanced technology. Overall spending on SBIRS has been substantial over its lifecycle, encompassing development, acquisition, and ongoing operations and maintenance. Logistics and sustainment form a significant portion of these lifecycle costs. Trends likely show increasing or stable spending to maintain the aging satellite constellation and integrate newer capabilities, reflecting the enduring need for missile warning and intelligence capabilities. Analyzing broader DoD space acquisition and sustainment budgets would provide context for this contract's place within historical spending patterns.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 CRYSTAL DR STE 200, ARLINGTON, VA, 22202

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,708,888

Exercised Options: $46,425,165

Current Obligation: $45,097,613

Actual Outlays: $18,500

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $4,445,572

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS609

IDV Type: IDC

Timeline