DoD's $42.7M Engineering Services Contract Awarded to X Corp Solutions Inc. with 8 Bidders

Contract Overview

Contract Amount: $42,716,511 ($42.7M)

Contractor: X Corp Solutions Inc.

Awarding Agency: Department of Defense

Start Date: 2019-11-30

End Date: 2025-02-28

Contract Duration: 1,917 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS AMENDMENT IS TO: PAGE 2.

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to X CORP SOLUTIONS INC. for work described as: THE PURPOSE OF THIS AMENDMENT IS TO: PAGE 2. Key points: 1. Contract value of $42.7 million over its period of performance. 2. Awarded under full and open competition, indicating a robust bidding process. 3. Engineering services are critical for defense infrastructure and operational readiness. 4. The contract duration spans approximately 1917 days, suggesting a long-term need. 5. Fixed-price contract type aims to control costs and provide predictability. 6. Virginia-based contractor suggests potential for regional economic impact.

Value Assessment

Rating: good

The contract value of $42.7 million for engineering services appears reasonable given the extensive duration of nearly five years. Benchmarking against similar large-scale engineering support contracts for defense agencies would provide a clearer picture of value for money. The firm fixed-price structure suggests an effort to manage costs effectively, but the ultimate value depends on the quality and scope of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 bidders participating. This level of competition is generally positive, suggesting that multiple firms were interested and capable of providing the required engineering services. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: The robust competition in this procurement is beneficial for taxpayers as it likely drove down the price and ensured the government received the best value for its investment in engineering services.

Public Impact

Benefits the Department of Defense, specifically the Department of the Navy, by providing essential engineering expertise. Services delivered likely include design, analysis, and technical support for defense systems and infrastructure. Geographic impact is centered in Virginia, where the contractor is based, potentially supporting local jobs and businesses. Workforce implications include employment opportunities for engineers and technical staff within X Corp Solutions Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term fixed-price contracts if not managed diligently.
Reliance on a single contractor for critical engineering services over an extended period.
Ensuring consistent quality and performance across the entire contract duration.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a sustained and critical need for these services.
Multiple bidders (8) indicate strong market interest and capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, particularly in defense, infrastructure, and technology development. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and operational support of military assets and facilities. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by DoD agencies.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention a small business set-aside, the presence of 8 bidders suggests that small businesses may have participated in the bidding process or could be involved as subcontractors. Further analysis would be needed to determine the extent of small business participation and subcontracting plans, which are crucial for fostering the small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Support Services
Naval Facilities Engineering Command Contracts
Professional, Scientific, and Technical Services
Department of Defense IT and Engineering Support

Risk Flags

Long-term fixed-price contract risk
Potential for scope creep
Ensuring sustained quality over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to X CORP SOLUTIONS INC.. THE PURPOSE OF THIS AMENDMENT IS TO: PAGE 2.

Who is the contractor on this award?

The obligated recipient is X CORP SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2019-11-30. End: 2025-02-28.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the contract is for 'Engineering Services' (NAICS code 541330) awarded by the Department of the Navy. While the specific nature isn't detailed, engineering services in this context typically encompass a broad range of activities. These can include preliminary design, detailed engineering, systems engineering, technical analysis, research and development support, testing and evaluation, and lifecycle support for naval platforms, infrastructure, and weapon systems. The contract's duration and value suggest it likely supports ongoing, complex engineering requirements rather than a single, short-term project. Further details would likely be found in the contract's statement of work (SOW).

How does the $42.7 million contract value compare to similar engineering services contracts within the Department of Defense?

Benchmarking the $42.7 million contract value requires comparing it to similar engineering services contracts awarded by the Department of Defense (DoD) or its various branches, such as the Department of the Navy, over comparable periods. Contracts for engineering services can vary significantly based on scope, duration, and specialization. For instance, contracts for large-scale platform design (e.g., ships, aircraft) would command higher values than those for facility engineering or specialized technical consulting. Given the nearly five-year duration, $42.7 million averages to roughly $8.5 million per year. This figure appears moderate for significant engineering support within the DoD, suggesting it might cover specialized technical services, program support, or a defined set of engineering tasks rather than comprehensive platform development.

What are the potential risks associated with a firm fixed-price contract of this duration (approx. 1917 days)?

Firm fixed-price (FFP) contracts aim to provide cost certainty by obligating the contractor to a set price regardless of their actual costs. However, for long-duration contracts like this one (nearly five years), several risks emerge. The primary risk is contractor underestimation of costs, potentially leading to reduced quality or contractor financial distress if costs escalate significantly beyond projections. Conversely, if the contractor accurately or conservatively estimated costs, the government might overpay if market conditions or project requirements change favorably for the contractor. Scope creep, where the government requests additional work not originally envisioned, can become a significant issue if not managed through formal contract modifications, potentially leading to disputes or cost overruns despite the FFP nature. Ensuring the SOW is precise and comprehensive from the outset is critical to mitigate these risks.

What does the participation of 8 bidders signify for the government and taxpayers?

The participation of 8 bidders in this full and open competition is a strong positive signal. It indicates a healthy and competitive market for the engineering services required by the Department of the Navy. For the government, this means a greater likelihood of receiving competitive proposals that offer a balance of technical capability and cost-effectiveness. For taxpayers, robust competition generally translates into better value for money, as multiple companies vie to win the contract, often leading to lower prices than would be achieved in a less competitive environment. It also suggests that the government's requirements were clearly defined and accessible to a range of potential providers, fostering fair market access.

How might the Virginia location of X Corp Solutions Inc. impact the contract's execution and oversight?

The Virginia location of X Corp Solutions Inc. could have several implications. Proximity to Department of the Navy installations or headquarters in Virginia may facilitate easier communication, collaboration, and on-site support, potentially improving contract execution efficiency. It might also simplify oversight activities for government personnel located in the region. Furthermore, awarding a contract to a local or regional business can have positive economic impacts, such as job creation and support for the local supply chain. However, the government must ensure that the contractor's location does not create undue logistical challenges or limit access to necessary resources or expertise if the work requires a broader geographic reach than Virginia alone.

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

Solicitation ID: M6785419R3509

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1010 CORPORATE DR STE 310, STAFFORD, VA, 22554

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $43,963,016

Exercised Options: $42,853,640

Current Obligation: $42,716,511

Actual Outlays: $25,724,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8849

IDV Type: IDC

Timeline