NASA's $265M Logistics Contract with TRAX International Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $265,234,087 ($265.2M)

Contractor: Trax International Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2012-08-01

End Date: 2017-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $145.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS GODDARD LOGISTICS AND TECHNICAL INFORMATION SERVICES--TO SUPPORT THE MISSION FOR THE INFORMATION AND LOGISTICS MANAGEMENT DIVISION BY PROVIDING LOGISTICS SERVICES SUPPORT, TECHNICAL INFORMATION MANAGEMENT AND OTHER SERVICES TO GODDARD SPACE FLIGHT CENTER (GSFC) AT ITS GREENBELT, MD AND WALLOPS ISLAND, VA LOCATIONS AND TO NASA HEADQUARTERS. THESE SERVICES SHALL BE PROVIDED TO BOTH INSTITUTIONAL AND TECHNICAL PROGRAMS/PROJECTS, AND INCLUDE: PROJECT SUPPORT, SUPPLY MANAGEMENT, TRANSPORTATION, EQUIPMENT MANAGEMENT, MANAGEMENT SERVICES, CREATIVE SERVICES, AND AUDIO VISUAL SERVICES.

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $265.2 million to TRAX INTERNATIONAL CORPORATION for work described as: IGF::OT::IGF OTHER FUNCTIONS GODDARD LOGISTICS AND TECHNICAL INFORMATION SERVICES--TO SUPPORT THE MISSION FOR THE INFORMATION AND LOGISTICS MANAGEMENT DIVISION BY PROVIDING LOGISTICS SERVICES SUPPORT, TECHNICAL INFORMATION MANAGEMENT AND OTHER SERVICES TO GODDARD SPACE FLIGHT CEN… Key points: 1. The contract awarded to TRAX International for logistics and technical information services at GSFC and NASA HQ represents a significant investment. 2. While awarded under full and open competition, the specific pricing and value proposition require deeper analysis given the broad scope of services. 3. Potential risks include ensuring consistent service quality across diverse locations and program types, and managing cost overruns on a cost-plus contract. 4. The sector is IT and professional services, with a focus on logistics and management support for a major federal agency.

Value Assessment

Rating: fair

The contract's cost-plus fixed fee structure necessitates careful oversight to ensure costs remain reasonable and aligned with services provided. Benchmarking against similar logistics support contracts for federal agencies is crucial for assessing value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting bids. However, the effectiveness of price discovery and the final negotiated price depend on the thoroughness of the evaluation and the competitive landscape at the time of award.

Taxpayer Impact: Taxpayers are impacted by the total contract value of $265M, with the expectation that these funds are used efficiently to support NASA's mission objectives.

Public Impact

Supports critical NASA operations at multiple locations, ensuring mission continuity. Provides a wide range of services from supply chain to audiovisual, impacting various internal functions. The contract's duration and value indicate a long-term commitment to these support services. Potential for cost efficiencies if services are consolidated and managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics and management support. Spending benchmarks in this area vary widely based on the complexity and scope of services, but a $265M contract for a federal agency like NASA is substantial.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract, as it was awarded to TRAX INTERNATIONAL CORPORATION and the 'sb' field is false. Further investigation would be needed to determine if any subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight of this contract would primarily fall under NASA's contracting officers and program managers. Ensuring accountability for performance and cost control is critical, especially given the cost-plus contract type and the broad range of services provided across multiple locations.

Related Government Programs

Risk Flags

Tags

process-physical-distribution-and-logist, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $265.2 million to TRAX INTERNATIONAL CORPORATION. IGF::OT::IGF OTHER FUNCTIONS GODDARD LOGISTICS AND TECHNICAL INFORMATION SERVICES--TO SUPPORT THE MISSION FOR THE INFORMATION AND LOGISTICS MANAGEMENT DIVISION BY PROVIDING LOGISTICS SERVICES SUPPORT, TECHNICAL INFORMATION MANAGEMENT AND OTHER SERVICES TO GODDARD SPACE FLIGHT CENTER (GSFC) AT ITS GREENBELT, MD AND WALLOPS ISLAND, VA LOCATIONS AND TO NASA HEADQUARTERS. THESE SERVICES SHALL BE PROVIDED TO BOTH INSTITUTIONAL AND TECHNICAL PROGRAMS/PROJECTS, AND INCLUDE: PROJECT SUPPORT, SUPPLY MANA

Who is the contractor on this award?

The obligated recipient is TRAX INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $265.2 million.

What is the period of performance?

Start: 2012-08-01. End: 2017-07-31.

What specific performance metrics were established to measure the effectiveness and efficiency of the logistics and technical information services provided under this contract?

The provided data does not detail specific performance metrics. Effective oversight would require clearly defined KPIs related to service delivery timeliness, accuracy, cost-effectiveness, and client satisfaction. Without these, assessing the true value and effectiveness of the services rendered is challenging and relies heavily on qualitative assessments and potential post-contract reviews.

How did the agency ensure that the 'full and open competition' process resulted in the most cost-effective solution for the government, given the cost-plus fixed fee structure?

While 'full and open competition' suggests a broad solicitation, the cost-plus fixed fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee. The agency would need robust cost analysis, negotiation, and ongoing monitoring to ensure the contractor's costs are reasonable and the fixed fee adequately compensates for the work without incentivizing excessive spending. Benchmarking against industry standards and prior contracts is essential.

What is the potential risk of service degradation or cost escalation given the contract's broad scope and multi-location service delivery?

The broad scope encompassing logistics, technical information management, creative services, and more, across GSFC and NASA HQ, presents a significant risk. Maintaining consistent quality and control across such diverse functions and locations requires strong contractor management and clear communication channels. Cost escalation is a inherent risk with CPFF contracts, especially if unforeseen issues arise or if the initial cost estimates were not sufficiently detailed.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesProcess, Physical Distribution, and Logistics Consulting 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: NNG11294404R

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8337 W SUNSET RD STE 250, LAS VEGAS, NV, 89113

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $436,798,789

Exercised Options: $436,798,789

Current Obligation: $265,234,087

Actual Outlays: $197,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-08-01

Current End Date: 2017-07-31

Potential End Date: 2017-07-31 00:00:00

Last Modified: 2023-08-24

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