DoD's $297M XTREEMS NG contract awarded to ANALEX CORPORATION for engineering services
Contract Overview
Contract Amount: $29,689,130 ($29.7M)
Contractor: Analex Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-27
End Date: 2029-04-27
Contract Duration: 1,886 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENTS, MAINTENANCE AND SUPPORT (XTREEMS) - NEXT GENERATION (NG)
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to ANALEX CORPORATION for work described as: XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENTS, MAINTENANCE AND SUPPORT (XTREEMS) - NEXT GENERATION (NG) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. Performance period spans over 4 years, indicating a long-term need for these engineering services. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing support. 5. No small business set-aside was applied, meaning large businesses were eligible to bid. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations.
Value Assessment
Rating: fair
The total contract value is $296,891,300 over approximately 5 years. Benchmarking this against similar large-scale engineering services contracts for the Department of Defense is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. The value appears substantial, reflecting the complexity and duration of the 'Next Generation' engineering services required.
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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The Air Force's choice of this procurement method suggests confidence in the market's ability to provide qualified contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.
Public Impact
The Department of Defense, specifically the Air Force, will benefit from advanced engineering services. Services delivered are likely to include research, evolution, enhancements, maintenance, and support for critical defense technologies. The geographic impact is primarily within Virginia, where the contractor is located, but the ultimate beneficiaries are Air Force operations nationwide. This contract supports a workforce of engineers and technical specialists, contributing to the high-skilled labor market in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not rigorously monitored.
- Lack of specific bidder count makes it difficult to fully assess competitive pressure.
- Long-term nature of the contract could lead to vendor lock-in if not managed proactively.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract supports 'Next Generation' technologies, indicating investment in future defense capabilities.
- Long-term performance period allows for sustained development and support of critical systems.
Sector Analysis
The engineering services sector is a vital component of the defense industrial base, encompassing a wide range of activities from basic research to complex system integration and sustainment. This contract falls within the broader IT and Defense sectors, focusing on specialized engineering expertise. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and modernization of military platforms and systems. Comparable spending benchmarks would typically be found within large IDIQ vehicles for engineering and technical support services awarded by various military branches.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary awardee, ANALEX CORPORATION, is likely a large business, and the focus of the procurement was on capabilities available from the broader market. The absence of small business set-asides means that opportunities for small businesses may be limited to potential subcontracts awarded by the prime contractor, if any.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing will be crucial to ensure costs are reasonable and allocable. Transparency is typically maintained through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Aerospace Engineering Support
- Research and Development Contracts
- Information Technology Support Services
- Indefinite Delivery/Indefinite Quantity Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Schedule Delay Risk
- Technical Complexity Risk
- Long-Term Contract Management Risk
Tags
defense, department-of-defense, air-force, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, analex-corporation, virginia, technology-development, research-and-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.7 million to ANALEX CORPORATION. XDOMAIN TECHNOLOGY THROUGH RESEARCH, EVOLUTION, ENHANCEMENTS, MAINTENANCE AND SUPPORT (XTREEMS) - NEXT GENERATION (NG)
Who is the contractor on this award?
The obligated recipient is ANALEX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $29.7 million.
What is the period of performance?
Start: 2024-02-27. End: 2029-04-27.
What is the historical performance record of ANALEX CORPORATION with the Department of Defense, particularly on similar engineering services contracts?
Assessing ANALEX CORPORATION's historical performance requires access to detailed contract databases and performance reviews. Generally, for large defense contracts, agencies maintain performance assessment reports (PARs) or contractor performance assessment reporting system (CPARS) data. A review of these records would indicate past performance regarding cost control, schedule adherence, technical quality, and overall customer satisfaction. Without specific CPARS data for ANALEX on similar contracts, it's difficult to provide a definitive assessment. However, the award of a significant contract like XTREEMS NG suggests a positive or at least acceptable past performance record that met the Air Force's criteria during the source selection process.
How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to alternative contract types for similar engineering services, and what are the implications for value?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as in research and development or complex system engineering. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers less cost certainty for the government but provides flexibility. Compared to cost-plus-award-fee (CPAF) or cost-plus-incentive-fee (CPIF), the fee is fixed, meaning there's less direct incentive for the contractor to exceed performance targets beyond what's necessary to fulfill the contract. For taxpayers, CPFF carries a higher risk of cost growth if not managed diligently, but it can be advantageous for acquiring cutting-edge or evolving technologies where upfront cost estimation is difficult.
What are the key performance indicators (KPIs) and metrics used to evaluate the success of the XTREEMS NG contract, and how are they monitored?
Specific Key Performance Indicators (KPIs) for the XTREEMS NG contract are not detailed in the provided data. However, for engineering services contracts of this nature, typical KPIs would likely include technical performance metrics (e.g., system reliability, accuracy, efficiency), schedule adherence (milestone completion), cost control (variance from projected costs), and quality of deliverables (e.g., reports, designs, software). Monitoring is usually conducted through regular progress meetings between the contractor and government representatives, review of contractor-submitted reports, and potentially independent government testing or analysis. The CPFF structure necessitates close monitoring of incurred costs against the estimated cost baseline.
What is the projected total spending on the XTREEMS NG contract over its full duration, and how does this compare to previous similar programs?
The provided data indicates a total contract value of $296,891,300, with an estimated completion date of April 27, 2029. This suggests the total projected spending is approximately $297 million over roughly five years. Direct comparison to previous 'XTREEMS' programs or similar 'Next Generation' engineering initiatives by the Air Force would require historical spending data for those specific programs. Without that context, it's difficult to definitively state whether this represents an increase, decrease, or stable spending trend. However, the substantial value suggests a significant investment in advancing defense technology capabilities.
Are there any identified risks associated with ANALEX CORPORATION's ability to deliver on the XTREEMS NG contract, considering the complexity and duration?
Potential risks associated with ANALEX CORPORATION delivering on the XTREEMS NG contract could include technical challenges in developing or integrating 'Next Generation' technologies, potential cost overruns inherent in CPFF contracts, schedule delays due to unforeseen issues, and personnel retention challenges in a competitive engineering market. The long duration (nearly 5 years) also introduces risks related to evolving technological landscapes and potential shifts in defense priorities. The government's mitigation strategies would typically involve robust oversight, clear performance standards, regular progress reviews, and contingency planning. The fact that the contract was awarded suggests that the Air Force assessed these risks and found ANALEX's proposal and capabilities to be adequate.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14295 PARK MEADOW DRIVE STE 500, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $93,467,169
Exercised Options: $64,698,639
Current Obligation: $29,689,130
Actual Outlays: $152,551
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $11,383,251
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU316
IDV Type: IDC
Timeline
Start Date: 2024-02-27
Current End Date: 2029-04-27
Potential End Date: 2029-04-27 00:00:00
Last Modified: 2025-09-25
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