DoD's $522M translation services contract awarded to Global Linguist Solutions LLC shows fair value with 3 bidders

Contract Overview

Contract Amount: $522,732,389 ($522.7M)

Contractor: Global Linguist Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2010-06-07

End Date: 2011-06-06

Contract Duration: 364 days

Daily Burn Rate: $1.4M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: LABOR

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $522.7 million to GLOBAL LINGUIST SOLUTIONS LLC for work described as: LABOR Key points: 1. Contract value appears reasonable given the specialized nature of translation and interpretation services. 2. The presence of three bidders suggests a competitive market for these services. 3. Potential risks include contractor performance and the need for ongoing quality assurance. 4. This contract supports critical defense operations requiring linguistic support. 5. The IT and professional services sector is characterized by specialized skill sets and fluctuating demand. 6. The contract type (Cost Plus Award Fee) allows for flexibility but requires careful oversight.

Value Assessment

Rating: good

The total award amount of $522,732,388.52 over 364 days indicates a significant investment in translation and interpretation services. Benchmarking this against similar large-scale linguistic support contracts is challenging due to the specialized nature and scale. However, the contract type (Cost Plus Award Fee) suggests a structure where the contractor is incentivized for performance, which can lead to better value if managed effectively. The relatively low number of bidders (3) might suggest a premium for specialized providers, but the overall spending level is not inherently indicative of poor value without further market analysis.

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 offers. The solicitation resulted in three bids, suggesting a moderate level of competition for this specialized service. While three bidders is not a large number, it demonstrates that multiple companies were capable and interested in providing these critical linguistic services to the Department of Defense. The competitive process, even with a limited number of participants, should have contributed to price discovery and ensured a reasonable offer.

Taxpayer Impact: A full and open competition, even with three bidders, is generally favorable for taxpayers as it aims to secure the best possible price and quality through a structured evaluation process.

Public Impact

The primary beneficiaries are the Department of Defense units requiring accurate and timely translation and interpretation services for intelligence, operational, and diplomatic missions. Services delivered include translation of documents, interpretation in various settings, and potentially linguistic support for special operations. The geographic impact is likely global, supporting military operations and engagements worldwide. Workforce implications include the direct employment of linguists and translators by the contractor, as well as potential indirect impacts on related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Award Fee structure if performance incentives are not tightly managed.
Ensuring consistent quality and accuracy across a large volume of translation and interpretation work can be challenging.
Dependence on a single contractor for critical linguistic capabilities could pose a risk if performance degrades or the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting of potential providers.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality outcomes.
The contract duration of 364 days allows for sustained support, crucial for ongoing military operations.

Sector Analysis

The translation and interpretation services market is a niche within the broader professional services sector, often driven by government demand, particularly in defense and intelligence. This sector requires highly specialized linguistic skills and often involves sensitive information, necessitating rigorous vetting of personnel and adherence to strict quality standards. Market size can fluctuate based on geopolitical events and defense spending priorities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each contract's requirements and the specific languages and expertise needed.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, GLOBAL LINGUIST SOLUTIONS LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, though the contractor may engage small businesses as subcontractors if it aligns with their operational needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with terms and conditions, quality standards, and delivery schedules. The Cost Plus Award Fee (CPA) structure necessitates close monitoring of costs and performance metrics to ensure the award fees are justified. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Language Institute Foreign Language Center
Intelligence Community Language Services
Special Operations Forces Support Contracts
Department of State Language Services
Federal Bureau of Investigation Language Services

Risk Flags

Contract Type Risk (Cost Plus Award Fee)
Performance Quality Risk
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $522.7 million to GLOBAL LINGUIST SOLUTIONS LLC. LABOR

Who is the contractor on this award?

The obligated recipient is GLOBAL LINGUIST SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $522.7 million.

What is the period of performance?

Start: 2010-06-07. End: 2011-06-06.

What is the track record of GLOBAL LINGUIST SOLUTIONS LLC with the Department of Defense?

GLOBAL LINGUIST SOLUTIONS LLC has a history of securing significant contracts with the Department of Defense, particularly in the realm of translation and interpretation services. This specific contract, valued at over $522 million, highlights their capacity to handle large-scale linguistic support requirements. Past performance data, often detailed in contract award justifications and performance reviews (though not provided here), would offer deeper insights into their reliability, quality of service, and ability to meet demanding deadlines. Examining their portfolio of previous DoD contracts can reveal patterns in contract types, durations, and specific services rendered, providing a basis for assessing their experience and suitability for complex linguistic tasks.

How does the pricing of this contract compare to similar linguistic services contracts?

Directly comparing the pricing of this $522 million contract to similar linguistic services contracts is complex without access to detailed pricing structures and market benchmarks for specialized language services. The contract type, Cost Plus Award Fee (CPA), means the final cost is influenced by performance metrics and allowable costs, making a simple per-unit cost comparison difficult. However, the fact that it was awarded under full and open competition with three bidders suggests that the pricing was deemed competitive within the market for these specialized services at the time of award. Factors such as the specific languages required, security clearances for personnel, and the geographic locations of service delivery significantly impact overall cost. A comprehensive value assessment would require benchmarking against contracts with similar scope, complexity, and duration.

What are the primary risks associated with a contract of this magnitude and type?

A contract of this magnitude ($522M) for translation and interpretation services carries several inherent risks. Firstly, the Cost Plus Award Fee (CPA) structure, while incentivizing performance, can lead to cost overruns if not meticulously managed and overseen. Ensuring the contractor's costs are reasonable and allocable is paramount. Secondly, maintaining consistent quality and accuracy across a vast array of languages and contexts is a significant challenge. Errors in translation or interpretation can have severe operational or intelligence consequences. Thirdly, contractor performance degradation or financial instability poses a risk, as replacing a large-scale linguistic support provider can be disruptive and costly. Finally, managing a large, dispersed workforce of linguists requires robust logistical and HR support from the contractor.

How effective is the Cost Plus Award Fee (CPA) contract type for ensuring program effectiveness in linguistic services?

The Cost Plus Award Fee (CPA) contract type can be effective for ensuring program effectiveness in linguistic services by aligning contractor incentives with government objectives. It allows the government to reimburse the contractor for allowable costs while providing an additional award fee based on performance against defined criteria. For linguistic services, this means the contractor is motivated not only to complete the work but to do so with high accuracy, timeliness, and responsiveness. Effective implementation requires clearly defined performance standards and objective metrics for evaluating the contractor's success. When managed properly, the CPA structure can drive higher quality outcomes and foster a collaborative relationship focused on achieving mission success, thereby enhancing overall program effectiveness.

What are the historical spending patterns for translation and interpretation services within the Department of Defense?

Historical spending patterns for translation and interpretation (T&I) services within the Department of Defense (DoD) have generally shown a consistent and significant demand, driven by global military operations, intelligence gathering, and diplomatic engagements. Spending levels often correlate with the extent of U.S. military involvement in various regions and the complexity of linguistic requirements. The DoD is a major consumer of T&I services, frequently awarding large, multi-year contracts to support diverse mission needs across different branches and commands. While specific annual figures fluctuate based on budget allocations and operational tempo, the overall trend indicates a sustained requirement for these specialized services, making it a substantial category within the DoD's services procurement portfolio.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911W405R0001

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 6564 LOISDALE CT STE 900, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $551,612,146

Exercised Options: $551,612,146

Current Obligation: $522,732,389

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W408D0002

IDV Type: IDC

Timeline