DoD's $925M engineering services contract with TRAX INTERNATIONAL, LLC awarded under full and open competition

Contract Overview

Contract Amount: $925,547,489 ($925.5M)

Contractor: Trax International, LLC

Awarding Agency: Department of Defense

Start Date: 2006-11-06

End Date: 2019-08-31

Contract Duration: 4,681 days

Daily Burn Rate: $197.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: WHITE SANDS MISSILE RANGE

Place of Performance

Location: WHITE SANDS MISSILE RANGE, DONA ANA County, NEW MEXICO, 88002

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $925.5 million to TRAX INTERNATIONAL, LLC for work described as: WHITE SANDS MISSILE RANGE Key points: 1. Value for money assessed through cost-plus award fee structure, incentivizing performance. 2. Competition dynamics indicate a robust bidding process for engineering services. 3. Risk indicators include contract type and duration, requiring ongoing oversight. 4. Performance context is tied to support at White Sands Missile Range. 5. Sector positioning within Defense engineering services, a critical support function.

Value Assessment

Rating: good

The contract's cost-plus award fee structure allows for performance-based incentives, aiming to achieve good value. Benchmarking against similar engineering services contracts is challenging without specific performance metrics, but the award fee mechanism suggests a focus on achieving defined objectives. The total award amount of $925.5 million over its life indicates significant investment in specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple bidders vied for the opportunity. The presence of three bidders (no=3) indicates a healthy level of competition for these specialized engineering services. This competitive environment is generally expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: A competitive award process like this typically benefits taxpayers by ensuring the government receives competitive pricing and a wider range of technical solutions, reducing the risk of overpayment.

Public Impact

Benefits the Department of Defense by providing essential engineering and technical support services. Services delivered include test operations, analysis, and engineering support for various defense programs. Geographic impact is primarily focused on White Sands Missile Range, New Mexico. Workforce implications involve skilled engineers, technicians, and support staff contributing to national defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (4681 days) may present challenges in adapting to evolving technological needs.
Cost-plus award fee contracts can sometimes lead to cost overruns if not managed tightly.
Reliance on a single contractor for extensive support at a critical facility warrants close monitoring.

Positive Signals

Award fee structure incentivizes contractor performance and efficiency.
Full and open competition suggests a strong initial selection process.
Contractor's long-term involvement indicates established expertise and operational capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Defense industry. The market for defense engineering services is substantial, driven by the need for specialized technical expertise in areas like testing, simulation, and system development. Comparable spending benchmarks would typically be found within large-scale support contracts for military installations and weapon system development.

Small Business Impact

The contract data indicates that small business participation (sb=false) was not a specific set-aside requirement for this award. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are embedded in the cost-plus award fee structure, which links payment to performance. Transparency is facilitated through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Defense Test and Evaluation Support
Engineering and Technical Services
Missile Range Operations Support
Department of Defense Contract Awards
Cost-Plus Award Fee Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost-plus contracts require diligent oversight to manage spending.
Performance metrics for award fee need clear definition and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $925.5 million to TRAX INTERNATIONAL, LLC. WHITE SANDS MISSILE RANGE

Who is the contractor on this award?

The obligated recipient is TRAX INTERNATIONAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $925.5 million.

What is the period of performance?

Start: 2006-11-06. End: 2019-08-31.

What is the historical spending trend for engineering services at White Sands Missile Range?

Analyzing historical spending trends for engineering services at White Sands Missile Range requires access to detailed historical contract data beyond this single award. However, the significant value of this contract ($925.5 million) suggests a consistent and substantial need for such services over its nearly 13-year duration. Trends would likely reflect fluctuations based on defense budgets, specific testing requirements, and the lifecycle of weapon systems being supported. Without comparative data on prior contracts for similar services at the range, it's difficult to ascertain if this represents an increase, decrease, or stable level of spending. Generally, major military installations require continuous engineering support, implying a sustained expenditure pattern.

How does the performance of TRAX INTERNATIONAL, LLC on this contract compare to industry benchmarks?

Assessing TRAX INTERNATIONAL, LLC's performance against industry benchmarks requires access to specific performance metrics and award fee determinations for this contract, which are not publicly available. The contract's cost-plus award fee (CPAF) structure implies that performance is evaluated against defined criteria, and the 'award fee' component suggests that the contractor has achieved a certain level of success. To benchmark effectively, one would need to compare their performance ratings, cost control, and adherence to schedule against similar engineering support contracts awarded to other companies in the defense sector. Publicly available data often lacks the granularity to make direct, definitive comparisons on performance quality and efficiency.

What are the primary risks associated with a long-duration contract like this for engineering services?

Long-duration contracts, such as this 4681-day (approximately 12.8 years) award, present several primary risks. Firstly, technological obsolescence is a significant concern; the services and systems supported may evolve rapidly, rendering the contractor's expertise or the contract's scope outdated. Secondly, cost escalation can occur over extended periods due to inflation, changes in labor rates, or unforeseen project complexities. Thirdly, maintaining consistent oversight and ensuring continued contractor performance and motivation over such a long timeframe can be challenging for the government. Finally, the risk of contractor lock-in increases, potentially limiting the government's flexibility to adopt newer technologies or seek more competitive solutions if needs change significantly.

How does the 'full and open competition' award type impact the overall value proposition for the government?

The 'full and open competition' award type generally enhances the value proposition for the government. It ensures that a wide range of potential contractors can bid, fostering a competitive environment that typically drives down prices and encourages innovation. This broad competition increases the likelihood that the government will receive the best technical solution at a fair market price. For this $925.5 million contract, it suggests that the Department of Defense sought the most capable provider through a transparent process, maximizing the potential for effective service delivery and cost efficiency compared to sole-source or limited competition scenarios.

What is the significance of the 'definitive contract' award type in this context?

A 'definitive contract' is a fixed-price or cost-reimbursement contract that, when awarded, is considered complete and requires no further negotiation between the parties. In the context of this $925.5 million engineering services contract, it signifies that the terms, conditions, and pricing (or pricing structure, in the case of CPAF) were finalized at the time of award. This provides clarity and predictability for both the government and the contractor regarding the scope of work and financial obligations over the contract's duration, reducing administrative burden and potential disputes compared to contracts that might require subsequent modifications or negotiations for core elements.

What is the potential impact of the Cost Plus Award Fee (CPAF) structure on contractor behavior and government spending?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by linking a portion of the potential profit to the achievement of specific, measurable performance objectives. For the government, this means the contractor is motivated to not only control costs but also to excel in areas like quality, timeliness, and technical execution. The 'award fee' portion is discretionary and determined by the government based on performance evaluations. While CPAF can lead to better outcomes, it also requires robust government oversight to ensure fair and accurate performance assessments. It can potentially lead to higher total costs than fixed-price contracts if performance targets are consistently met or exceeded, but it aims to deliver superior value and mission accomplishment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124Q06R0005

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Trax International Corporation

Address: WHITE SANDS MISSILE RANGE, BIDG 151, WHITE SANDS MISSILE RANGE, NM, 88002

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,030,834,121

Exercised Options: $945,834,121

Current Obligation: $925,547,489

Actual Outlays: $240,962

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline