DoD's $56.6M IGF Records Management Contract Awarded to QUALX, LLC Shows Fair Competition

Contract Overview

Contract Amount: $56,602,456 ($56.6M)

Contractor: Qualx, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-17

End Date: 2022-02-16

Contract Duration: 1,797 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF RECORDS INFORMATION MANAGEMENT AND INFORMATION ACCESS SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.6 million to QUALX, LLC for work described as: IGF::OT::IGF RECORDS INFORMATION MANAGEMENT AND INFORMATION ACCESS SUPPORT SERVICES Key points: 1. Contract value of $56.6 million over nearly five years suggests a significant investment in information management. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is a firm-fixed-price definitive contract, which typically shifts cost risk to the contractor. 4. The primary NAICS code (541611) points to administrative and general management consulting services. 5. The contract duration of 1797 days (approx. 4.9 years) aligns with typical long-term government service needs. 6. The small business set-aside flag is false, suggesting the competition was not specifically targeted towards small businesses.

Value Assessment

Rating: fair

The contract's total value of $56.6 million over almost five years averages to approximately $11.5 million annually. Without specific benchmarks for similar comprehensive records management and information access support services within the Department of Defense, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests that the government has locked in a price, potentially mitigating cost overruns if the contractor manages their expenses effectively. Further analysis would require comparing this contract's unit costs or scope to other DoD contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates only one bid was received (no: 1). While full and open competition is generally preferred for maximizing price discovery, a single bid can sometimes indicate limited market interest or a highly specialized requirement that only one firm could meet. This could potentially lead to less competitive pricing than if multiple bids were received.

Taxpayer Impact: A single bid under full and open competition raises questions about whether the government received the best possible price. Taxpayers may not have benefited from the full competitive pressure that typically drives down costs.

Public Impact

The Department of Defense benefits from improved information management and access to records, crucial for operational efficiency and decision-making. Services delivered likely include organizing, maintaining, and providing access to critical defense-related information. The geographic impact is primarily within Washington Headquarters Services (WHS) in Virginia, supporting a key administrative hub. The contract supports the administrative and consulting workforce within the defense sector, potentially involving specialized information management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received under full and open competition could indicate potential issues with market engagement or an overly restrictive scope.
Lack of specific performance metrics or outcome-based evaluations in the provided data makes it difficult to assess the contractor's effectiveness.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.

Positive Signals

The contract was awarded under full and open competition, adhering to standard procurement practices.
The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected price increases.
The contract duration of nearly five years suggests a stable, long-term need for these services within the DoD.

Sector Analysis

The Information Technology and Administrative Support sector within the federal government is vast, encompassing a wide range of services from basic IT maintenance to complex management consulting. Contracts like this, focused on records management and information access, are critical for agencies to comply with regulations, maintain historical data, and ensure efficient operations. The market for these services is competitive, with numerous firms offering specialized solutions. Benchmarking this contract's value would require comparing it to similar contracts for records management and administrative support within other federal agencies or across different branches of the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, QUALX, LLC, is not explicitly identified as a small business in the provided snippet. This means the competition was open to all responsible sources, including large businesses. There is no direct information on subcontracting plans or their impact on the small business ecosystem from this data alone. The absence of a small business set-aside suggests that the requirement was not specifically tailored to create opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and program managers. The Washington Headquarters Services (WHS) would likely be responsible for day-to-day oversight and performance monitoring. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, where basic details are made public, though detailed performance reports are often internal.

Related Government Programs

Federal Records Management
Information Governance
Administrative Support Services
Management and Consulting Services
Department of Defense IT Spending
Washington Headquarters Services Contracts

Risk Flags

Limited competition (single bid)
Potential for corner-cutting in FFP contracts
Lack of detailed performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.6 million to QUALX, LLC. IGF::OT::IGF RECORDS INFORMATION MANAGEMENT AND INFORMATION ACCESS SUPPORT SERVICES

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 $56.6 million.

What is the period of performance?

Start: 2017-03-17. End: 2022-02-16.

What is the track record of QUALX, LLC in performing similar federal contracts, particularly within the Department of Defense?

Assessing the track record of QUALX, LLC requires a deeper dive into federal procurement databases beyond the provided snippet. While this contract represents a significant award of $56.6 million, it's crucial to examine past performance on similar contracts. This includes looking at contract history for on-time delivery, quality of service, adherence to budget (especially relevant for cost-reimbursement contracts, though this is firm-fixed-price), and any past performance evaluations or disputes. Understanding their experience with records management, information access support, and administrative consulting within the DoD specifically would provide context for their ability to successfully execute this current award. Without this historical data, it's difficult to definitively gauge their reliability and expertise.

How does the average annual value of this contract compare to other DoD contracts for records management and administrative support?

The average annual value of this contract is approximately $11.5 million ($56.6M / ~4.9 years). To benchmark this effectively, one would need to compare it against a portfolio of similar contracts awarded by the Department of Defense or other federal agencies for records management, information governance, and administrative consulting services. Key comparison points would include the scope of services, contract duration, and the specific requirements outlined in the Statement of Work. If comparable contracts for similar scope and duration are significantly lower or higher, it could indicate that this contract is either a particularly good deal or potentially overpriced. Accessing and analyzing data from sources like FPDS-NG or specialized contract databases would be necessary for a robust comparison.

What are the specific risks associated with a firm-fixed-price contract for records management services?

Firm-fixed-price (FFP) contracts, while beneficial for budget certainty, carry specific risks, especially for service-based contracts like records management. The primary risk for the government is that the contractor may be incentivized to cut corners on quality or scope to maximize profit if their internal costs exceed estimates. For records management, this could manifest as incomplete data digitization, inadequate security protocols, or missed deadlines for information retrieval. Conversely, the risk for the contractor is that unforeseen issues or increased labor costs could erode their profit margin or lead to financial losses. Effective oversight and clear performance metrics are crucial in FFP contracts to ensure the government receives the contracted quality and scope of services.

Given only one bid was received, what is the potential impact on the government's ability to ensure program effectiveness?

Receiving only one bid under a full and open competition process can raise concerns about program effectiveness. A lack of robust competition may suggest that the contract requirements were too narrowly defined, the solicitation period was insufficient, or the market for such specialized services is limited. This can reduce the government's leverage in negotiating terms and ensuring the contractor is highly motivated to deliver optimal performance. While the single bidder might be highly qualified, the absence of alternatives limits the government's ability to compare approaches and potentially identify a more innovative or cost-effective solution. It also increases reliance on that single contractor, making the program vulnerable if they underperform or face challenges.

How has historical spending by Washington Headquarters Services (WHS) on records management and administrative support evolved over the past five years?

To analyze historical spending trends for Washington Headquarters Services (WHS) on records management and administrative support, one would need to query federal procurement databases (like FPDS) for contracts awarded to WHS within the relevant NAICS codes (e.g., 541611) and service categories over the last five fiscal years. This analysis would reveal whether spending in this area has been increasing, decreasing, or remaining stable. It would also help identify the primary contractors WHS has utilized and the types of contract vehicles employed. Such a trend analysis provides crucial context for evaluating the current $56.6 million contract, helping to determine if it represents a significant shift in WHS's investment in these services or aligns with established spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003417R0008

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: $56,602,456

Exercised Options: $56,602,456

Current Obligation: $56,602,456

Actual Outlays: $3,245,224

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline