DoD's $40.4M IT Services Contract with QUALX, LLC Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $40,445,680 ($40.4M)
Contractor: Qualx, LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-17
End Date: 2017-03-16
Contract Duration: 1,641 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION ACCESS AND TRANSPARENCY
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.4 million to QUALX, LLC for work described as: INFORMATION ACCESS AND TRANSPARENCY Key points: 1. Significant IT infrastructure spending highlights the reliance on computing and hosting services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The specific NAICS code (518210) points to a well-defined market for these IT services.
Value Assessment
Rating: good
The contract's value of $40.4M over approximately 4 years suggests a substantial investment. Benchmarking against similar large-scale IT infrastructure contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically fosters price discovery and ensures the government receives competitive pricing. The existence of multiple bids, if available, would further validate the pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures critical IT infrastructure and data processing capabilities for the Department of Defense. Supports government operations through reliable web hosting and related computing services. The contract's value represents a significant portion of federal spending in this IT service category.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if renewal is not competitive.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Federal spending in this area is consistently high due to the essential nature of digital services for government operations.
Small Business Impact
While the contract was awarded under full and open competition, there is no explicit information on small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract's duration and value warrant ongoing oversight to ensure performance, adherence to terms, and continued value for taxpayer money. Regular performance reviews are crucial.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Contract duration is substantial.
- High contract value.
- Specific IT service category.
- Awarded to a single entity.
- No explicit small business participation noted.
Tags
computing-infrastructure-providers-data-, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.4 million to QUALX, LLC. INFORMATION ACCESS AND TRANSPARENCY
Who is the contractor on this award?
The obligated recipient is QUALX, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $40.4 million.
What is the period of performance?
Start: 2012-09-17. End: 2017-03-16.
What specific IT services were provided under this contract, and how did they align with the Department of Defense's strategic objectives?
The contract covered computing infrastructure, data processing, web hosting, and related services under NAICS code 518210. These services are fundamental to maintaining the operational capabilities and information systems of the Department of Defense, supporting everything from administrative functions to mission-critical applications.
Were there any identified risks associated with QUALX, LLC's performance or the overall contract structure that could impact service delivery or cost?
Potential risks could include vendor performance issues, cybersecurity vulnerabilities within the provided infrastructure, or the long-term cost-effectiveness if market prices for these services decrease significantly over the contract's life. The dependence on a single vendor also presents a risk if they face operational disruptions.
How effectively did the full and open competition process ensure the best value and pricing for the government in this $40.4M contract?
Full and open competition is designed to maximize value by encouraging multiple vendors to bid, driving down prices. The effectiveness is best assessed by examining the number of bids received and comparing the final award price against market benchmarks and the initial solicitation requirements.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6564 LOISDALE COURT SUITE 305, SPRINGFIELD, VA, 22150
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $40,929,194
Exercised Options: $40,929,194
Current Obligation: $40,445,680
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS03F0005Y
IDV Type: FSS
Timeline
Start Date: 2012-09-17
Current End Date: 2017-03-16
Potential End Date: 2017-03-16 00:00:00
Last Modified: 2018-10-25
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