DoD's PEO C4I Awards $32.4M for Platform Integration and Modernization Support Services to XST Inc

Contract Overview

Contract Amount: $32,408,721 ($32.4M)

Contractor: XST Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-03

End Date: 2026-08-04

Contract Duration: 1,827 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IN SUPPORT OF ITS MISSION, PEO C4I REQUIRES SERVICES IN SUPPORT OF ITS MODERNIZATION, INSTALLATION, AND INTEGRATION PROCESSES, HEREINAFTER IDENTIFIED AS PLATFORM INTEGRATION AND MODERNIZATION SUPPORT SERVICES (PIMSS).

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to XST INC. for work described as: IN SUPPORT OF ITS MISSION, PEO C4I REQUIRES SERVICES IN SUPPORT OF ITS MODERNIZATION, INSTALLATION, AND INTEGRATION PROCESSES, HEREINAFTER IDENTIFIED AS PLATFORM INTEGRATION AND MODERNIZATION SUPPORT SERVICES (PIMSS). Key points: 1. Contract awarded to XST Inc. for critical modernization and integration services. 2. Significant contract value of $32.4 million over 5 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Services fall under Engineering Services (NAICS 541330), a key sector for defense modernization.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for cost reimbursement plus a predetermined profit. This is common for complex engineering services where final costs may be uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, benefiting taxpayers by ensuring funds are used efficiently for essential defense modernization.

Public Impact

Supports critical modernization of PEO C4I systems, enhancing national defense capabilities. Long-term contract (5 years) provides stability for essential services. Award to XST Inc. signifies their capability in complex defense integration projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed carefully.
The specific performance metrics and deliverables are not detailed, making it hard to assess effectiveness upfront.

Positive Signals

Full and open competition is a positive signal for fair pricing.
Long duration suggests a sustained need and potential for strong vendor performance.
Awarded by Department of the Navy, a major defense branch.

Sector Analysis

This contract falls within the Engineering Services sector, crucial for the Department of Defense's technological advancement. Spending in this area is benchmarked against similar large-scale defense modernization projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-aside for small businesses. Therefore, the direct impact on small businesses is likely limited unless they are subcontractors to XST Inc.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost escalation.
Lack of specific performance metrics makes upfront effectiveness assessment difficult.
No indication of small business participation.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to XST INC.. IN SUPPORT OF ITS MISSION, PEO C4I REQUIRES SERVICES IN SUPPORT OF ITS MODERNIZATION, INSTALLATION, AND INTEGRATION PROCESSES, HEREINAFTER IDENTIFIED AS PLATFORM INTEGRATION AND MODERNIZATION SUPPORT SERVICES (PIMSS).

Who is the contractor on this award?

The obligated recipient is XST 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 $32.4 million.

What is the period of performance?

Start: 2021-08-03. End: 2026-08-04.

What specific modernization and integration processes will PIMSS support, and how do these align with current and future defense technology roadmaps?

The PIMSS contract supports PEO C4I's modernization, installation, and integration processes. While the exact systems are not specified, these typically involve upgrading command, control, communications, computers, and intelligence (C4I) systems. This alignment is crucial for maintaining technological superiority and interoperability within the DoD's evolving defense technology landscape, ensuring readiness against emerging threats.

What are the key performance indicators (KPIs) for XST Inc. under this contract, and how will their performance be measured to ensure value for money?

Key performance indicators are not explicitly detailed in the provided data. However, for a Cost Plus Fixed Fee contract of this nature, KPIs would typically revolve around meeting project milestones, adhering to integration timelines, successful system testing and deployment, and maintaining system performance post-installation. The fixed fee component incentivizes efficiency, while the government's oversight team will monitor progress against defined objectives.

How does the $32.4 million contract value compare to similar platform integration and modernization contracts within the DoD or other federal agencies?

The $32.4 million contract value over five years is substantial but falls within the typical range for large-scale, complex engineering and integration services supporting critical defense infrastructure. Benchmarking against similar PEO C4I or equivalent programs in other branches like the Army or Air Force would provide a clearer picture of its relative cost-effectiveness and market competitiveness.

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: N0003921R3010

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7249 SHERBOURNE LN, SAN DIEGO, CA, 92129

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

Financial Breakdown

Contract Ceiling: $48,966,812

Exercised Options: $43,993,439

Current Obligation: $32,408,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8856

IDV Type: IDC

Timeline