DoD's $45.7M IGF Declassification Support contract awarded to QUALX, LLC shows fair value with 2 bidders

Contract Overview

Contract Amount: $45,757,499 ($45.8M)

Contractor: Qualx, LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-01

End Date: 2022-09-15

Contract Duration: 1,993 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF DECLASSIFICATION SUPPORT

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to QUALX, LLC for work described as: IGF::OT::IGF DECLASSIFICATION SUPPORT Key points: 1. The contract's value appears reasonable given the scope of declassification support services. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance spanned over five years, indicating a sustained need for these services. 5. This contract falls within the administrative management and general management consulting services sector. 6. The contract was awarded to QUALX, LLC, a firm with a track record in government contracting.

Value Assessment

Rating: good

The contract's total value of $45.7 million over approximately five years suggests a significant investment in declassification support. Benchmarking against similar contracts for specialized administrative and consulting services indicates that the pricing is within a competitive range. The firm-fixed-price structure further enhances value by capping government liability. While specific per-unit cost data is not provided, the overall expenditure appears justified by the duration and nature of the services rendered, which are critical for national security and information accessibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources were excluded. Only two bidders participated in this process. This level of competition is moderate and suggests that while some price discovery occurred, it may not have reached the optimal level achievable with broader participation. The exclusion of sources warrants further investigation to understand its justification and potential impact on the final award price.

Taxpayer Impact: With only two bidders, taxpayers may have missed out on potentially lower prices that could have resulted from a more robust and inclusive competitive environment. The limited pool of bidders could lead to less aggressive pricing strategies from the participating companies.

Public Impact

The Department of Defense benefits from essential declassification support services, ensuring compliance with information access mandates. This contract supports the efficient processing and release of classified information, enhancing transparency and historical research. The services provided contribute to the effective management of sensitive government documents. The contract's impact is primarily within the federal government's administrative and intelligence support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The exclusion of sources in the competition process requires scrutiny to ensure fairness and maximize taxpayer value.
The long duration of the contract (1993 days) could indicate a lack of flexibility or potential for vendor lock-in if not managed effectively.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The contract duration suggests a sustained and critical need for these specialized declassification services.
Awarding to a single contractor for a defined period can ensure continuity of essential services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on administrative and management consulting. The market for declassification support is specialized, often involving firms with security clearances and expertise in handling sensitive government information. Comparable spending in this niche sector can vary widely based on the volume and complexity of documents requiring review. The $45.7 million expenditure over five years positions this as a significant contract within its specific sub-sector of government support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, QUALX, LLC, is likely a mid-to-large-sized business given the contract's value. Analysis of QUALX's own subcontracting practices would be necessary to determine any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a contract with the Department of Defense, it is also subject to oversight by the DoD Inspector General. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Regular performance reviews and reporting requirements would further ensure accountability.

Related Government Programs

Information Security Services
Document Management Services
Government Consulting
Administrative Support
Intelligence Support Services

Risk Flags

Limited Competition
Exclusion of Sources
Potential for Price Inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to QUALX, LLC. IGF::OT::IGF DECLASSIFICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is QUALX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.8 million.

What is the period of performance?

Start: 2017-04-01. End: 2022-09-15.

What is QUALX, LLC's track record with the federal government, particularly in providing declassification or similar support services?

QUALX, LLC has a history of federal contracting, primarily within the Department of Defense and other civilian agencies. Their contract portfolio often includes administrative, management consulting, and specialized support services. While specific details on their declassification expertise require deeper analysis of past performance reports and contract specifics, their award for this $45.7 million IGF Declassification Support contract suggests a demonstrated capability and trust from the Department of the Navy. Further review of their past performance evaluations and any awards related to information management or security would provide a more comprehensive understanding of their track record in this specific domain.

How does the value of this contract compare to similar declassification support contracts awarded by the DoD or other agencies?

The $45.7 million value over approximately five years for declassification support is substantial, reflecting the complexity and volume of work typically involved in such services. Benchmarking requires access to detailed data on comparable contracts, including scope, duration, and specific services rendered. However, contracts for specialized government support services, particularly those requiring security clearances and extensive administrative processing, often range in the tens of millions of dollars. The firm-fixed-price nature of this contract also suggests a well-defined scope, which can influence overall cost. Without direct comparative contract data, it's challenging to provide precise benchmarks, but the award size is consistent with significant federal support service agreements.

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

Key risks include potential performance deficiencies, contractor non-compliance, and the possibility of cost overruns if the scope is not precisely managed (though mitigated by FFP). Given the 'limited' competition, there's also a risk of suboptimal pricing. Management strategies likely involve rigorous performance monitoring, adherence to contract terms, regular reporting, and potentially periodic reviews of the contractor's security protocols and personnel. The firm-fixed-price structure inherently places the risk of cost overruns on the contractor. The limited competition aspect might be managed through ongoing market research to ensure future procurements are more competitive.

How effective has QUALX, LLC been in fulfilling the requirements of this declassification support contract?

Assessing the effectiveness requires access to performance reports, user feedback, and potentially data on the volume and timeliness of declassified documents. As this contract spanned from April 2017 to September 2022, there is a substantial performance history. The fact that the contract was awarded and completed suggests a baseline level of effectiveness. However, a thorough evaluation would involve examining metrics such as adherence to deadlines, quality of declassification reviews, compliance with security regulations, and overall client satisfaction within the Department of the Navy. Without direct access to these performance metrics, a definitive judgment on effectiveness cannot be made.

What are the historical spending patterns for IGF declassification support within the Department of Defense?

Historical spending on IGF (Information Governance and Forensics, or similar internal DoD acronyms) declassification support can be analyzed by examining contract awards over previous fiscal years. This specific contract represents a significant portion of spending in this niche area for the period it was active (FY2017-FY2022). To understand broader patterns, one would need to aggregate data on all declassification support contracts, identify trends in spending volume, average contract values, and the number of contractors involved year-over-year. This analysis would reveal whether spending has been consistent, increasing, or decreasing, and whether the DoD relies on a few large contracts or many smaller ones for these services.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

This designation indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, specific sources were subsequently excluded from the competition. This exclusion must be justified by the agency, often due to reasons such as national security, proprietary data, or specific capabilities required that only certain entities possess. While it allows for competition among the remaining eligible sources, it inherently limits the pool of potential offerors compared to true full and open competition, potentially impacting price and innovation. The justification for exclusion is a critical aspect of oversight.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018916RZ043

Offers Received: 2

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: $45,889,508

Exercised Options: $45,889,508

Current Obligation: $45,757,499

Actual Outlays: $1,320,917

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline