DoD awards $56M engineering services contract to TRAX INTERNATIONAL CORPORATION for ATSS Task Order
Contract Overview
Contract Amount: $56,173,674 ($56.2M)
Contractor: Trax International Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-15
End Date: 2026-12-19
Contract Duration: 1,100 days
Daily Burn Rate: $51.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ATSS TASK ORDER
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $56.2 million to TRAX INTERNATIONAL CORPORATION for work described as: ATSS TASK ORDER Key points: 1. Contract value of $56.17M for engineering services indicates significant investment in specialized technical support. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not closely managed. 4. Task order structure implies a specific, defined scope of work within a larger program. 5. The contract duration of approximately 3 years allows for sustained support and project continuity. 6. Engineering services are critical for complex defense systems, highlighting the need for specialized expertise.
Value Assessment
Rating: good
The contract value of $56.17M for engineering services appears to be within a reasonable range for specialized defense support. Benchmarking against similar large-scale engineering service contracts awarded by the Department of Defense would provide further context. The CPFF structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and project scope. Without specific performance metrics or historical data for this exact task order, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.
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 method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought a broad range of potential contractors, suggesting a belief that multiple firms possessed the necessary capabilities.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a wider pool of offers and potentially lower prices due to market pressures.
Public Impact
The Department of the Army benefits from specialized engineering expertise to support its operations and systems. Services delivered likely include design, analysis, testing, and technical support for complex defense platforms. The geographic impact is primarily centered around the Army's operational bases and facilities, potentially in Maryland where the contract is managed. Workforce implications include employment opportunities for engineers, technicians, and support staff within TRAX INTERNATIONAL CORPORATION and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
- The duration of the contract may not be sufficient for very long-term, evolving defense projects.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Task order structure implies a clear and defined scope of work.
- TRAX INTERNATIONAL CORPORATION's involvement suggests a level of established capability in defense engineering services.
Sector Analysis
Engineering services within the defense sector are a critical component of national security, encompassing a wide range of activities from research and development to sustainment. This contract falls under the broader engineering services industry, which is characterized by high technical expertise and significant government spending. The market size for defense engineering services is substantial, driven by the continuous need to modernize and maintain complex military systems. Comparable spending benchmarks would involve looking at other large engineering support contracts awarded by the DoD for similar platforms or services.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. While TRAX INTERNATIONAL CORPORATION may engage small businesses as subcontractors, there is no explicit requirement or indication of a small business set-aside in the provided information. This suggests the primary focus was on securing the best technical solution through broad competition, rather than specifically targeting small business prime contractors for this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Defense Engineering Services
- Army Logistics Support
- Technical Support Services
- Aerospace Engineering
- Systems Engineering
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Performance Monitoring Challenges
Tags
defense, department-of-defense, department-of-the-army, engineering-services, cost-plus-fixed-fee, full-and-open-competition, task-order, delivery-order, trax-international-corporation, maryland, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.2 million to TRAX INTERNATIONAL CORPORATION. ATSS TASK ORDER
Who is the contractor on this award?
The obligated recipient is TRAX INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $56.2 million.
What is the period of performance?
Start: 2023-12-15. End: 2026-12-19.
What is TRAX INTERNATIONAL CORPORATION's track record with the Department of Defense, particularly in engineering services?
TRAX INTERNATIONAL CORPORATION has a significant history of contracting with the Department of Defense, often in areas related to test and evaluation, engineering services, and program support. They are known for providing services across various military branches, including the Army and Air Force. Their experience often involves supporting complex weapon systems and large-scale testing facilities. Analyzing their past performance ratings, any contract disputes, and the types of services previously rendered would provide a clearer picture of their capabilities and reliability for this specific task order. A review of their award history would likely show multiple large contracts, indicating a substantial presence and established relationship within the defense contracting ecosystem.
How does the $56.17M value of this ATSS Task Order compare to similar engineering services contracts awarded by the DoD?
The $56.17 million value for this ATSS Task Order is a substantial but not extraordinary figure for specialized engineering services within the Department of Defense. Large-scale engineering support contracts can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity of the systems involved. For instance, contracts for system design, integration, sustainment, or advanced research and development often exceed this amount. This particular task order, being a 'delivery order' under a larger contract vehicle, suggests it represents a specific segment of work. Benchmarking against other engineering services task orders or delivery orders for similar defense platforms or technical domains would be necessary for a precise comparison of value and scope.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost to the government can escalate if the contractor's costs are higher than anticipated. This necessitates robust oversight from the government to ensure that costs are reasonable, allocable, and allowable, and that the contractor is managing resources efficiently. Another risk is the contractor's incentive to control costs, as their profit is fixed, potentially leading to less focus on cost-saving measures compared to fixed-price contracts. Effective management and clear scope definition are crucial to mitigate these risks.
How effective is 'full and open competition' in ensuring value for money in defense engineering contracts?
Full and open competition is widely considered the most effective method for ensuring value for money in defense contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving innovative solutions and competitive pricing. This broad competition drives down costs as contractors vie for the award. Furthermore, it provides the agency with a wider range of technical approaches and capabilities to choose from, enabling selection of the best overall value, not just the lowest price. While it requires more administrative effort upfront, the long-term benefits in terms of cost savings and quality are significant for taxpayers.
What are the implications of this contract's duration (approx. 1100 days) for program continuity and potential future needs?
A duration of approximately 1100 days (around 3 years) for this engineering services task order suggests a medium-term engagement focused on specific project milestones or ongoing support needs. This timeframe is generally sufficient to achieve defined objectives and provide consistent support, fostering continuity in technical assistance. However, for programs requiring very long-term development, sustainment, or research, a 3-year period might necessitate follow-on contracts or contract modifications to ensure uninterrupted service. The duration implies that the scope of work is well-defined and achievable within this period, but it also means that planning for subsequent phases or evolving requirements should begin well in advance of the contract's expiration.
What is the typical market size and structure for engineering services within the US Department of Defense?
The market for engineering services within the US Department of Defense is substantial and highly specialized, representing a significant portion of the defense budget. It encompasses a vast array of sub-disciplines, including systems engineering, aerospace engineering, mechanical engineering, electrical engineering, civil engineering, and specialized fields like cybersecurity engineering and artificial intelligence integration. The market structure is characterized by a mix of large, established defense contractors (like TRAX INTERNATIONAL CORPORATION) and numerous smaller, niche firms that provide specialized expertise. Government spending in this sector is driven by the continuous need for research, development, acquisition, sustainment, and modernization of complex military platforms and technologies, making it a dynamic and enduring market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB21R0016
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8337 W SUNSET RD STE 190, LAS VEGAS, NV, 89113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $110,910,764
Exercised Options: $110,910,764
Current Obligation: $56,173,674
Actual Outlays: $9,721,342
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W91CRB24D0004
IDV Type: IDC
Timeline
Start Date: 2023-12-15
Current End Date: 2026-12-19
Potential End Date: 2026-12-19 00:00:00
Last Modified: 2025-09-12
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