DoD's $45.8M Records Management Contract Awarded to QUALX, LLC for 5 Years

Contract Overview

Contract Amount: $45,826,901 ($45.8M)

Contractor: Qualx, LLC

Awarding Agency: Department of Defense

Start Date: 2022-02-17

End Date: 2027-01-16

Contract Duration: 1,794 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RECORDS AND INFORMATION MANAGEMENT SPPT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to QUALX, LLC for work described as: RECORDS AND INFORMATION MANAGEMENT SPPT Key points: 1. Contract provides essential administrative management and general management consulting services. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract's duration of nearly 5 years indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific NAICS code (541611) points to a focus on management consulting expertise.

Value Assessment

Rating: good

The contract value of $45.8 million over approximately five years suggests a significant investment in records and information management. Benchmarking this against similar contracts for administrative management consulting services would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure is a positive indicator, as it shifts cost risk to the contractor and provides budget certainty. Without specific performance metrics or comparison data, it's difficult to definitively assess if the pricing is optimal, but the competitive award process likely contributed to a reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. This allows for a wider range of potential solutions and encourages contractors to offer their best pricing and technical approaches to win the award. The open competition suggests that the government received multiple viable offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government obtains services at a fair and reasonable cost. It also promotes innovation as contractors vie to provide the most effective solutions.

Public Impact

The Department of Defense benefits through improved records and information management. Services delivered likely include policy development, implementation, and oversight of records management systems. The contract supports administrative functions critical to national security operations. Workforce implications may include the need for specialized records management personnel within the DoD or support from QUALX, LLC staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the services provided.
The long contract duration could lead to vendor lock-in if not managed carefully.
Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty and transfers risk to the contractor.
The contract addresses a critical function (records management) essential for government operations.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape, supporting various government functions. This contract, valued at over $45 million, falls within the mid-to-large range for consulting services. It aligns with the government's ongoing need for efficient and compliant information management, especially within large, complex organizations like the Department of Defense. Comparable spending benchmarks would typically involve analyzing other contracts for similar services across different agencies, looking at contract values, durations, and service scopes.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem through this specific award appears limited. However, the prime contractor, QUALX, LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Further analysis would be needed to determine if subcontracting opportunities were pursued or mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Defense contracting officers and program managers. As a firm-fixed-price contract, performance monitoring is crucial to ensure that QUALX, LLC meets the defined requirements. Transparency is facilitated by the contract's public award notice. Accountability measures are inherent in the contract terms, with potential penalties or remedies for non-performance. The specific Inspector General jurisdiction would be that of the Department of Defense's IG.

Related Government Programs

Federal Records Management Programs
Information Governance Contracts
Administrative Support Services
Management and Consulting Services

Risk Flags

Potential for performance issues if contractor fails to meet requirements.
Risk of scope creep if contract requirements are not clearly defined and managed.
Long contract duration may require careful monitoring to ensure continued relevance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to QUALX, LLC. RECORDS AND INFORMATION MANAGEMENT SPPT

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 $45.8 million.

What is the period of performance?

Start: 2022-02-17. End: 2027-01-16.

What is the track record of QUALX, LLC in performing similar federal contracts?

Assessing the track record of QUALX, LLC requires a review of their past performance on federal contracts, particularly those involving records and information management or administrative consulting. This would involve examining contract databases like SAM.gov or FPDS for previous awards, contract values, performance ratings, and any documented issues or successes. A history of successful contract completion, positive past performance reviews, and experience with large-scale government projects would indicate a lower risk. Conversely, a history of contract disputes, performance failures, or significant cost overruns would raise concerns about their capability to successfully execute this $45.8 million contract over its five-year term.

How does the awarded price compare to market rates for similar records management consulting services?

To compare the awarded price to market rates, one would typically benchmark the contract's total value ($45.8 million over ~5 years) against similar contracts awarded by other federal agencies or even state/local governments for comparable records management and administrative consulting services. Key metrics for comparison include the average hourly rates billed by the contractor, the total contract value relative to the scope of work, and the number of personnel or labor hours estimated. Without access to the specific labor categories, rates, and detailed scope of work within this contract, a precise comparison is challenging. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed fair and reasonable in the context of the bids received.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential performance issues if QUALX, LLC fails to deliver the required records management services effectively, leading to compliance failures or operational inefficiencies for the DoD. Another risk is cost escalation, although the firm-fixed-price structure mitigates this for the government. Scope creep is also a risk if requirements are not well-defined or managed. Mitigation strategies include robust contract oversight by the DoD, clear performance standards and deliverables outlined in the contract, regular performance reviews, and the firm-fixed-price nature of the contract itself, which incentivizes the contractor to manage costs efficiently. The competitive award process also helps mitigate the risk of selecting an underqualified vendor.

How effective is the current records management system within the DoD, and how will this contract enhance it?

The effectiveness of the DoD's current records management system is not detailed in the provided data. This contract, however, is intended to provide 'Administrative Management and General Management Consulting Services' related to records management. This suggests that QUALX, LLC will likely be tasked with assessing existing systems, developing improved policies and procedures, implementing new technologies or processes, ensuring compliance with federal regulations (like the Federal Records Act), and potentially training personnel. The contract's goal is presumably to enhance efficiency, security, accessibility, and compliance of the DoD's vast records holdings, thereby supporting its operational and strategic objectives.

What has been the historical spending trend for records management and administrative consulting services within the Department of Defense?

Analyzing historical spending trends for records management and administrative consulting within the DoD would require accessing historical contract data over several fiscal years. This would involve querying databases for spending under relevant NAICS codes (like 541611) and contract types related to information management and consulting. Such an analysis would reveal whether spending in this area has been increasing, decreasing, or remaining stable, and identify major contractors or contract vehicles utilized. This context helps understand the significance of the $45.8 million award relative to the DoD's overall budget and its long-term commitment to these types of services.

What specific deliverables or outcomes are expected from QUALX, LLC under this contract?

The provided data does not specify the exact deliverables or outcomes expected from QUALX, LLC. However, given the contract's description as 'Administrative Management and General Management Consulting Services' for 'RECORDS AND INFORMATION MANAGEMENT SPPT,' typical deliverables would likely include strategic plans for records management, updated policies and procedures, implementation of electronic records management systems, compliance audits, training materials, and regular progress reports. The contract's performance work statement (PWS) or statement of work (SOW) would detail these specific requirements, metrics for success, and reporting frequencies.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003421R0155

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6564 LOISDALE CT STE 305, SPRINGFIELD, VA, 22150

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $54,542,438

Exercised Options: $54,542,438

Current Obligation: $45,826,901

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003422D0004

IDV Type: IDC

Timeline