DoD awards $21.5M for missile support, but competition was limited, raising value concerns

Contract Overview

Contract Amount: $21,497,884 ($21.5M)

Contractor: Trident Research, LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2026-06-30

Contract Duration: 2,829 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF FY19-FY22 PILS IN-SERVICE ENGINEERING AND OPERATIONAL SUPPORT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to TRIDENT RESEARCH, LLC for work described as: IGF::CT::IGF FY19-FY22 PILS IN-SERVICE ENGINEERING AND OPERATIONAL SUPPORT Key points: 1. Contract awarded without competition, potentially limiting price discovery and value for money. 2. Long contract duration of over 7 years suggests a need for ongoing support. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Awardee has a single contract with the government, indicating limited prior experience. 5. Geographic location of performance is Texas. 6. The contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' NAICS code.

Value Assessment

Rating: questionable

The contract's value of $21.5 million over nearly 8 years requires careful scrutiny due to the lack of competition. Without competitive bidding, it's difficult to benchmark the pricing against market rates or similar contracts. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, carries inherent risks of cost escalation if not managed tightly. The absence of comparative data makes a definitive value assessment challenging, but the lack of competition is a significant red flag for potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. The data does not specify the reason for this sole-source award, such as a lack of qualified sources or a national security imperative. The absence of multiple bidders means the government did not benefit from a competitive process to drive down prices or encourage innovation. This approach limits the government's ability to ensure it is receiving the best possible value.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most cost-effective solution. The lack of competition prevents market forces from ensuring competitive pricing, potentially leading to higher overall costs for the government.

Public Impact

The Department of Defense benefits from continued in-service engineering and operational support for guided missile and space vehicles. This contract ensures the operational readiness and maintenance of critical defense assets. The primary beneficiary is the Department of Defense, specifically units relying on the supported missile systems. Work is performed in Texas, potentially supporting a local workforce in specialized engineering and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
Cost Plus Fixed Fee contract type can lead to cost overruns if not rigorously monitored.
Sole-source award without clear justification warrants further investigation into procurement processes.
Limited contractor history (one contract) may indicate a higher risk for performance issues or unmet requirements.

Positive Signals

Contract ensures continued operational support for critical defense systems, maintaining readiness.
The contract is for a defined period, providing a clear scope of work and duration.
Performance is located within the United States (Texas).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on manufacturing and support for guided missile and space vehicle components. The market for such specialized engineering and operational support is typically characterized by high barriers to entry due to technical expertise and security clearances required. Spending in this sub-sector is driven by national defense priorities and technological advancements in missile systems. Comparable spending benchmarks are difficult to establish without more specific details on the systems supported, but overall defense spending on weapon systems and associated support services runs into billions annually.

Small Business Impact

There is no indication that this contract included a small business set-aside. The awardee, TRIDENT RESEARCH, LLC, is listed as having one contract, but its size status relative to small business definitions is not provided. The lack of a set-aside means opportunities for small businesses to participate as prime contractors were likely limited. Subcontracting opportunities for small businesses are not detailed in the provided data, but are a potential avenue for their involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract type (CPFF) necessitates close financial oversight to manage costs and prevent overruns. Transparency is moderate, as contract awards are generally public, but the specifics of sole-source justifications and performance metrics may not be readily available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Missile Systems Support Contracts
Defense Engineering Services
Space Vehicle Maintenance
Guided Missile Parts Manufacturing
DoD Operational Support

Risk Flags

Sole-source award without clear justification
Cost Plus Fixed Fee contract type carries inherent cost overrun risk
Limited contractor performance history
Lack of competitive bidding may lead to suboptimal value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to TRIDENT RESEARCH, LLC. IGF::CT::IGF FY19-FY22 PILS IN-SERVICE ENGINEERING AND OPERATIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is TRIDENT RESEARCH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2018-10-01. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available, or when there is a compelling urgency, or for reasons of national security. Without further information from the contracting agency (Department of Defense, managed by DCMA), it is impossible to determine the exact rationale. This lack of transparency is a concern, as it prevents an independent assessment of whether competitive procedures were appropriately bypassed and if the government truly received the best value under the circumstances.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service, and what are the associated risks?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, such as research and development or complex engineering services. The government pays the contractor's actual costs plus a fixed fee representing profit. While this allows flexibility, the primary risk is cost overrun, as the contractor has less incentive to control costs once the ceiling is approached, beyond the fixed fee. Other contract types like Firm-Fixed-Price (FFP) offer better cost certainty but may not be suitable for undefined scopes. For ongoing operational support, FFP or even Cost-Plus-Incentive-Fee (CPIF) might offer better value if performance metrics can be clearly defined and incentivized.

What is the track record of TRIDENT RESEARCH, LLC in performing similar government contracts?

Based on the provided data, TRIDENT RESEARCH, LLC has been awarded only one contract with the federal government. This limited history suggests a minimal track record in performing government contracts. While this single contract could be substantial and successful, the lack of multiple engagements makes it difficult to assess the contractor's overall reliability, performance consistency, and ability to manage complex projects over time. Further investigation into the performance history of this single contract, if available, would be necessary for a more comprehensive assessment.

What are the potential implications of the long contract duration (over 7 years) on cost and performance?

A long contract duration, such as the nearly 8 years for this missile support contract, can have several implications. On the positive side, it can provide stability and ensure continuity of essential services, reducing the administrative burden of frequent re-competitions. However, it also increases the risk of cost escalation over time, especially with a CPFF structure, as market conditions, labor rates, and material costs can change significantly. Furthermore, long-term contracts can reduce flexibility to adapt to new technologies or changing requirements. For the government, it necessitates robust oversight throughout the contract's life to manage risks and ensure continued value.

Are there any comparable contracts or spending benchmarks available for similar missile support services within the DoD?

Without specific details on the exact missile systems or the nature of the 'in-service engineering and operational support' provided, it is challenging to identify precise comparable contracts or spending benchmarks. The NAICS code '336419 - Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' is broad. However, within the defense sector, contracts for sustainment, engineering support, and parts manufacturing for major weapon systems often run into tens or hundreds of millions of dollars over their lifecycles. The $21.5 million award over nearly 8 years suggests a moderate annual spend, but its value proposition is weakened by the sole-source nature and CPFF structure, making direct cost comparisons difficult without more granular data on scope and deliverables.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003019Q0010

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2809 LONGHORN BLVD, AUSTIN, TX, 78758

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,039,381

Exercised Options: $21,497,884

Current Obligation: $21,497,884

Actual Outlays: $4,001,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline