DoD's $11.8M Digital Material Management Contract Awarded to LINQUEST CORPORATION
Contract Overview
Contract Amount: $11,818,109 ($11.8M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-20
End Date: 2026-05-20
Contract Duration: 607 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DIGITAL MATERIAL MANAGEMENT AND MULTI-CRITERIA DECISION MAKING SERVICES (DM3DS)
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $11.8 million to LINQUEST CORPORATION for work described as: DIGITAL MATERIAL MANAGEMENT AND MULTI-CRITERIA DECISION MAKING SERVICES (DM3DS) Key points: 1. Contract focuses on engineering services for digital material management, a critical area for defense modernization. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 607 days indicates a medium-term engagement for specific project needs. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. The specific NAICS code (541330) points to specialized engineering expertise required. 6. The contract is not set aside for small businesses, implying larger firms were expected to compete. 7. Performance period spans from September 2024 to May 2026.
Value Assessment
Rating: good
The contract value of $11.8 million for approximately two years of service appears reasonable for specialized engineering support in digital material management. Benchmarking against similar contracts for complex engineering services within the Department of Defense suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This 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 procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The Air Force's decision to use this method suggests confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider pool of talent.
Public Impact
The Department of Defense, specifically the Department of the Air Force, will benefit from enhanced digital material management capabilities. Services delivered will likely improve the efficiency and accuracy of tracking and managing critical defense materials. The geographic impact is primarily within the operational areas of the Air Force, potentially nationwide or global. Workforce implications may include the need for specialized engineers and IT professionals within LINQUEST CORPORATION and potentially supporting roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not clearly defined.
- Dependence on contractor expertise could create knowledge transfer challenges.
- Integration with existing DoD systems may present technical hurdles.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition suggests a competitive market for these services.
- Focus on digital material management aligns with modernization efforts.
Sector Analysis
The engineering services sector, particularly within defense, is characterized by high demand for specialized expertise in areas like digital transformation and complex system management. The market size for such services supporting the DoD is substantial, with significant annual spending. This contract fits within the broader trend of defense agencies seeking to modernize their logistical and material management systems through advanced digital solutions. Comparable spending benchmarks for similar engineering support contracts within the DoD often range from several million to tens of millions of dollars annually, depending on scope and duration.
Small Business Impact
This contract was not set aside for small businesses, and the 'NM' (Not Material) designation for small business status suggests it was awarded based on qualifications and price without specific small business targets. This implies that the competition was likely dominated by larger, established firms with the capacity to handle complex engineering services. There is no explicit mention of subcontracting requirements for small businesses, which could limit their direct participation in this specific contract's execution.
Oversight & Accountability
Oversight for this definitive contract will likely be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price structure, requiring LINQUEST CORPORATION to deliver specified services within budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) IT and Engineering Support
- Air Force Materiel Command (AFMC) Systems Engineering
- Department of Defense Digital Modernization Initiatives
- Naval Sea Systems Command (NAVSEA) Engineering Services
Risk Flags
- Potential for integration challenges with legacy systems.
- Definition of 'multi-criteria decision making' needs clarity for performance metrics.
- Contract duration may be insufficient for full system lifecycle support.
Tags
defense, department-of-the-air-force, engineering-services, digital-material-management, linquest-corporation, firm-fixed-price, full-and-open-competition, definitive-contract, new-mexico, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to LINQUEST CORPORATION. DIGITAL MATERIAL MANAGEMENT AND MULTI-CRITERIA DECISION MAKING SERVICES (DM3DS)
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 $11.8 million.
What is the period of performance?
Start: 2024-09-20. End: 2026-05-20.
What is LINQUEST CORPORATION's track record with the Department of Defense for similar engineering services?
LINQUEST CORPORATION has a history of providing various services to the Department of Defense, including engineering, IT, and program management support. While specific details on past digital material management contracts are not provided in this data, their general experience with DoD contracts suggests familiarity with the agency's procurement processes and operational requirements. A deeper dive into their contract history, including past performance evaluations and any awards or penalties, would offer a more comprehensive understanding of their reliability and expertise in delivering complex engineering solutions for defense applications. Their ability to secure this current contract indicates they met the DoD's criteria for technical capability and past performance.
How does the $11.8 million contract value compare to similar digital material management or engineering services contracts within the DoD?
The $11.8 million contract value for approximately two years of service appears to be within a reasonable range for specialized engineering support in digital material management for a major defense agency like the Air Force. Contracts for similar complex engineering services, system integration, or advanced logistics support within the DoD can often range from several million to tens of millions of dollars, depending on the scope, duration, and criticality of the services. Factors such as the specific technologies involved, the level of expertise required, and the number of personnel deployed significantly influence pricing. Without more specific contract details or benchmarks for precisely comparable DM3DS services, it's challenging to provide a definitive value-for-money assessment, but the amount is not inherently indicative of over or under-spending for this type of specialized support.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks for this contract include potential technical challenges in integrating new digital management systems with existing DoD infrastructure, the possibility of scope creep if requirements are not precisely defined, and reliance on LINQUEST CORPORATION's specialized expertise. Mitigation strategies likely involve robust project management, clear definition of deliverables and performance metrics within the firm fixed-price contract, and potentially phased implementation to allow for adjustments. The Air Force's oversight and the contractor's own quality assurance processes are crucial for managing these risks. Furthermore, the full and open competition process may have screened out contractors with a history of performance issues, indirectly mitigating risk.
How effective is the firm fixed-price (FFP) contract type in ensuring program effectiveness and cost control for this digital material management service?
The Firm Fixed Price (FFP) contract type is generally effective in ensuring cost control because it shifts the risk of cost overruns to the contractor, LINQUEST CORPORATION. This incentivizes the contractor to manage their expenses efficiently to maintain profitability. For program effectiveness, FFP works best when the scope of work is well-defined and unlikely to change significantly. In this case, for digital material management services, if the requirements are clearly articulated and stable, FFP can drive effectiveness by focusing the contractor on meeting those specific, pre-agreed-upon outcomes. However, if the project involves significant research, development, or evolving requirements, FFP might stifle innovation or lead to disputes if changes are necessary.
What are the historical spending patterns for digital material management or similar engineering services within the Department of the Air Force?
Historical spending patterns for digital material management and related engineering services within the Department of the Air Force typically show a consistent and significant investment. Agencies like the Air Force allocate substantial budgets towards modernizing their logistical, inventory, and operational systems, often through engineering and IT support contracts. Spending in this area has likely increased over recent years due to the emphasis on digital transformation, data analytics, and improved supply chain visibility across the DoD. While specific figures for 'Digital Material Management and Multi-Criteria Decision Making Services (DM3DS)' are not detailed here, broader categories of engineering services, IT support, and logistics modernization contracts within the Air Force often amount to hundreds of millions or even billions of dollars annually, reflecting the scale of their operations and modernization needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA942224R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2551 DULLES VIEW DR STE 200, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,309,779
Exercised Options: $12,576,114
Current Obligation: $11,818,109
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-20
Current End Date: 2026-05-20
Potential End Date: 2029-05-20 00:00:00
Last Modified: 2025-11-25
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