DoD awards $23.4M for satellite communications engineering, with LINQUEST CORPORATION securing the contract
Contract Overview
Contract Amount: $23,405,791 ($23.4M)
Contractor: Linquest Corporation
Awarding Agency: Department of Defense
Start Date: 2018-05-01
End Date: 2024-04-30
Contract Duration: 2,191 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CODE 34 MILITARY SATELLITE COMMUNICATIONS SYSTEMS ENGINEERING SERVICES
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90056
Plain-Language Summary
Department of Defense obligated $23.4 million to LINQUEST CORPORATION for work described as: CODE 34 MILITARY SATELLITE COMMUNICATIONS SYSTEMS ENGINEERING SERVICES Key points: 1. Contract value of $23.4 million over six years suggests a significant investment in critical defense infrastructure. 2. Full and open competition indicates a potentially robust market for these specialized engineering services. 3. The contract's duration and cost-plus-fixed-fee structure warrant close monitoring for cost overruns and efficiency. 4. Engineering services for military satellite communications are vital for national security and global operations. 5. The award to LINQUEST CORPORATION positions them as a key provider in this high-stakes sector.
Value Assessment
Rating: good
The contract value of $23.4 million over approximately six years averages around $3.9 million annually. Benchmarking this against similar large-scale defense engineering contracts for complex systems like satellite communications, this figure appears within a reasonable range, assuming the scope of work is extensive. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, necessitates careful oversight to ensure costs remain controlled and the fixed fee provides adequate incentive for efficiency. Without specific details on the deliverables and the contractor's historical performance on similar contracts, a definitive value-for-money assessment is challenging, but the competitive award suggests a baseline of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bidders, as indicated by the 'no' field, suggests a degree of competition, though it is not exceptionally high for a contract of this magnitude. A higher number of bidders would typically lead to more aggressive pricing and a wider selection of innovative solutions. However, the fact that it was competed openly is a positive sign for price discovery and ensures that the government is not limited to a single provider.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality. While only two bidders participated, the open nature of the procurement process increases the likelihood that the selected price reflects market value.
Public Impact
The Department of Defense benefits through the acquisition of essential engineering services for its satellite communications systems. This contract supports the operational readiness and technological advancement of military communication networks. The services delivered are critical for maintaining secure and reliable communication channels for U.S. forces globally. The contract is likely to have implications for the specialized engineering workforce, potentially creating or sustaining high-skilled jobs. Geographic impact is primarily within the defense sector's operational footprint, with potential for work to be performed at various defense installations or contractor facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
- Limited competition (two bidders) may not have yielded the most competitive pricing possible.
- The long contract duration (over six years) increases the risk of scope creep or evolving technological requirements not being fully addressed.
Positive Signals
- Awarded under full and open competition, indicating a fair and accessible procurement process.
- The contract supports critical national security infrastructure, aligning with key government priorities.
- LINQUEST CORPORATION's selection suggests they possess the necessary expertise for complex satellite communications engineering.
Sector Analysis
The defense sector, particularly in areas related to space and communications, represents a significant portion of federal spending. This contract falls within the engineering services sub-sector, which is crucial for the design, development, and maintenance of advanced military technologies. The market for satellite communications engineering is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships with government agencies. Comparable spending benchmarks for similar large-scale defense engineering efforts can range from tens to hundreds of millions of dollars, depending on the complexity and scope.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely requiring extensive resources and specialized expertise, it is typical for such awards to go to larger prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to LINQUEST CORPORATION, depending on the prime contractor's subcontracting plan and the specific technical requirements of the work.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and program management oversight to ensure adherence to the contract terms, budget, and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Military Satellite Communications Systems
- Defense Engineering Services
- Department of the Navy Contracts
- Space Systems Engineering
- Information Technology Services for Defense
Risk Flags
- Cost Overrun Risk (CPFF)
- Limited Competition Impact
- Long-Term Contract Management
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, satellite-communications, full-and-open-competition, cost-plus-fixed-fee, california, large-contract, national-security, systems-engineering
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to LINQUEST CORPORATION. CODE 34 MILITARY SATELLITE COMMUNICATIONS SYSTEMS ENGINEERING SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2018-05-01. End: 2024-04-30.
What is LINQUEST CORPORATION's track record with the Department of Defense, particularly on satellite communications contracts?
LINQUEST CORPORATION has a history of performing services for the Department of Defense. While specific details on their past satellite communications contracts are not provided in this data snippet, their selection for this significant award suggests a demonstrated capability and potentially a positive performance history. Further investigation into their contract awards database (e.g., FPDS) would reveal the scope, value, and performance ratings of their previous DoD engagements. Understanding their experience with similar complex engineering tasks, adherence to schedules, and cost control on prior projects would provide a clearer picture of their reliability for this current contract.
How does the $23.4 million contract value compare to similar satellite communications engineering contracts awarded by the DoD?
The $23.4 million contract value, spread over approximately six years, averages around $3.9 million annually. This figure is moderate for large-scale defense engineering efforts, especially those involving complex systems like satellite communications. Contracts for the development, integration, or sustainment of major satellite programs can easily reach hundreds of millions or even billions of dollars. However, this specific contract is for 'engineering services,' which might imply a more focused scope such as system design, analysis, or technical support rather than full system development. Benchmarking against contracts for similar engineering support services, this value appears reasonable, but a precise comparison would require detailed analysis of the scope of work and the specific technologies involved.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for satellite communications engineering?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fixed fee incentivizes the contractor to control costs to maximize their profit, there's less direct financial incentive to be highly efficient compared to fixed-price contracts. If the project scope expands or unforeseen technical challenges arise, the total cost to the government can increase significantly. Diligent oversight, robust cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.
How does the level of competition (2 bidders) impact the potential effectiveness and cost of this contract?
A competition level of two bidders for a contract of this nature suggests a moderate level of market engagement. While full and open competition is a positive indicator, having only two offers means the government may not have benefited from the full spectrum of potential pricing and innovation available in the market. With more bidders, there is typically greater downward pressure on price and a wider array of technical solutions to choose from. However, for highly specialized services like military satellite communications engineering, the market might naturally be limited to a few qualified firms. The effectiveness and cost are thus influenced by the capabilities and pricing strategies of these two specific competitors, rather than a broader market dynamic.
What are the implications of this contract for the future of military satellite communications technology and sustainment?
This contract signifies continued investment in the sustainment and potential enhancement of existing military satellite communications (MILSATCOM) systems. Engineering services are crucial for maintaining the operational readiness of these vital assets, troubleshooting issues, and potentially integrating upgrades or new technologies. The award to LINQUEST CORPORATION suggests a focus on ensuring the reliability and effectiveness of current MILSATCOM capabilities. Depending on the specific tasks outlined in the contract, it could also contribute to the research and development efforts that inform future generations of military satellite technology, ensuring the U.S. maintains a technological edge in space-based communications.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6660417R3057
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5140 W GOLDLEAF CIR, LOS ANGELES, CA, 90056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,626,997
Exercised Options: $26,626,997
Current Obligation: $23,405,791
Actual Outlays: $2,262,131
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $910,427
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7801
IDV Type: IDC
Timeline
Start Date: 2018-05-01
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-11-17
More Contracts from Linquest Corporation
- Procuring Systems Engineering, Integration,and Test Support for Military Satellite Communication — $642.2M (Department of Defense)
- Systems Engineering&intergration Support Services (SE&I) for the Milsatcom Systems Directorate — $318.1M (Department of Defense)
- 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! ! — $134.8M (Department of Defense)
- Provide Technical Support Services for the Remote Sensing System Directorate — $97.1M (Department of Defense)
- Metis — $84.7M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)