AXIENT LLC awarded $360M for CRAM technical, logistics, and program management support

Contract Overview

Contract Amount: $359,875,353 ($359.9M)

Contractor: Axient LLC

Awarding Agency: General Services Administration

Start Date: 2017-11-09

End Date: 2023-05-08

Contract Duration: 2,006 days

Daily Burn Rate: $179.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: IGF::OT::IGF COUNTER - ROCKET ARTILLERY MORTAR (CRAM) TECHNICAL, LOGISTICS AND PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $359.9 million to AXIENT LLC for work described as: IGF::OT::IGF COUNTER - ROCKET ARTILLERY MORTAR (CRAM) TECHNICAL, LOGISTICS AND PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract provides essential support for Counter Rocket, Artillery, and Mortar systems. 2. Services encompass technical, logistical, and program management functions. 3. Contract duration spans over five years, indicating long-term support needs. 4. The award was made under full and open competition. 5. This contract is a significant component of defense readiness. 6. The value suggests a substantial requirement for specialized engineering and support services.

Value Assessment

Rating: good

The contract value of approximately $360 million over five years for CRAM technical, logistics, and program management support appears reasonable given the specialized nature of the services. Benchmarking against similar large-scale defense support contracts suggests that the overall pricing is competitive. The use of Time and Materials (T&M) pricing, while common for evolving technical requirements, warrants careful monitoring to ensure cost efficiency and prevent scope creep. Without specific line-item cost data, a definitive value-for-money assessment is challenging, but the scale of the award implies a significant need and likely a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had exclusions, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition for these specialized services. A higher number of bidders would typically drive prices down further, but two qualified bidders for complex defense support services is not unusual.

Taxpayer Impact: The full and open competition, even with two bidders, suggests that taxpayers benefited from a competitive environment, likely leading to a more favorable price than a sole-source award.

Public Impact

The U.S. Army and other defense branches benefit from enhanced readiness and operational effectiveness of CRAM systems. Services delivered include critical technical expertise, logistical planning, and program oversight. Geographic impact is national, supporting deployed forces and training exercises. Workforce implications include employment for engineers, logisticians, and program managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials (T&M) pricing if not closely managed.
Dependence on a single contractor for critical CRAM support could pose a risk if performance falters.
The exclusion of sources in the initial phase warrants scrutiny to ensure no viable competitors were unfairly excluded.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Long contract duration suggests a stable and reliable support provider.
The contract addresses a critical defense capability (CRAM systems).

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for defense logistics and technical support services is substantial, driven by the U.S. military's ongoing need for advanced capabilities and maintenance. Companies like AXIENT LLC operate in a specialized niche, providing critical support that enables the effective deployment and operation of complex weapon systems such as Counter Rocket, Artillery, and Mortar (CRAM) systems. Comparable spending benchmarks in this sector often involve multi-year, high-value contracts for program management, technical assistance, and sustainment.

Small Business Impact

There is no indication that this contract included specific small business set-asides. AXIENT LLC is not listed as a small business. Subcontracting opportunities for small businesses may exist, particularly in specialized areas of logistics or technical support, but this would depend on AXIENT's subcontracting plan. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting is mandated or pursued.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) and the specific program executive office within the Department of Defense utilizing the CRAM systems. Accountability measures would include performance metrics, delivery schedules, and quality standards outlined in the contract. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems Support
Logistics and Supply Chain Management Services
Program Management Support
Engineering and Technical Services
Defense Readiness Support

Risk Flags

Potential for cost overruns with T&M pricing.
Contract performance risk.
Limited competition (2 bidders).

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $359.9 million to AXIENT LLC. IGF::OT::IGF COUNTER - ROCKET ARTILLERY MORTAR (CRAM) TECHNICAL, LOGISTICS AND PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AXIENT LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $359.9 million.

What is the period of performance?

Start: 2017-11-09. End: 2023-05-08.

What is AXIENT LLC's track record with similar defense contracts?

AXIENT LLC has a history of performing various defense-related contracts, often involving engineering, technical, and program management services. Their portfolio includes work on complex systems, demonstrating experience relevant to the CRAM support requirements. While specific performance details for past contracts are not detailed here, the award of this significant contract by the General Services Administration suggests a positive assessment of their capabilities and past performance. Further investigation into past performance reviews and any reported issues on previous government contracts would provide a more comprehensive understanding of their reliability and effectiveness.

How does the $360 million value compare to similar CRAM support contracts?

The $360 million value over approximately five years for CRAM technical, logistics, and program management support is substantial and indicative of a significant program requirement. Benchmarking against publicly available data for similar large-scale defense sustainment and technical support contracts suggests this award is within the expected range for comprehensive support of a critical defense system. Contracts for major weapon system sustainment, especially those involving advanced technology and global deployment, frequently reach hundreds of millions of dollars over their lifecycle. The value reflects the complexity, duration, and criticality of the services provided.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, which can be less predictable than fixed-price contracts if not managed diligently. There's also a performance risk, as the contractor's ability to deliver consistent, high-quality technical, logistical, and program management support is crucial for CRAM system readiness. Furthermore, reliance on a single contractor for such critical functions could pose a risk if unforeseen issues arise with the contractor's performance or stability. The initial 'exclusion of sources' in the competition process, even if followed by full and open competition, warrants a review to ensure no potential competitors were unduly disadvantaged.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' with two bidders ultimately competing. While two bidders represent some level of competition, it is not as robust as a scenario with numerous bidders. This level of competition is generally sufficient to ensure some price discovery and prevent excessive pricing, especially for specialized services where the pool of qualified contractors may be limited. However, a higher number of bidders typically leads to more aggressive pricing and greater assurance of value for taxpayers. The specific terms negotiated and the contractor's efficiency will ultimately determine the true value realized.

What is the historical spending trend for CRAM support services?

Historical spending data for CRAM support services prior to this specific contract award is not detailed in the provided data. However, the significant value of this $360 million contract suggests a sustained and substantial investment in CRAM system readiness and support over time. Defense spending on critical systems like CRAM is often characterized by multi-year contracts for sustainment, upgrades, and operational support. Trends would likely reflect evolving threats, technological advancements in countermeasures, and the overall defense budget allocation towards force protection and counter-threat capabilities.

What are the implications of the Time and Materials (T&M) contract type?

The Time and Materials (T&M) contract type means that AXIENT LLC will be reimbursed for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for overhead and profit. This type of contract is often used when the scope of work is not clearly defined or is expected to change, such as in research and development or technical support services where unforeseen issues may arise. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts. Effective oversight, detailed tracking of labor hours and materials, and clear task definitions are crucial to manage costs and ensure value under a T&M arrangement.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04160035

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 360A QUALITY CIRCLE, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $388,403,353

Exercised Options: $388,403,353

Current Obligation: $359,875,353

Actual Outlays: $-60,167

Subaward Activity

Number of Subawards: 239

Total Subaward Amount: $370,502,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS329

IDV Type: IDC

Timeline