Dod's $29.8M Drmd Declassification and Records Processing Services Contract Awarded to Qualx, LLC
Contract Overview
Contract Amount: $29,838,691 ($29.8M)
Contractor: Qualx, LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-16
End Date: 2026-09-15
Contract Duration: 1,460 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DRMD DECLASSIFICATION AND RECORDS PROCESSING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350
Plain-Language Summary
Department of Defense obligated $29.8 million to QUALX, LLC for work described as: DRMD DECLASSIFICATION AND RECORDS PROCESSING SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating phased execution. 3. The firm fixed-price structure aims to control costs for the government. 4. Services are for declassification and records processing, a critical national security function. 5. The contract duration of 1460 days (4 years) provides long-term support. 6. The awardee, QUALX, LLC, is a single entity for this specific delivery order.
Value Assessment
Rating: good
The contract value of approximately $29.8 million over four years for declassification and records processing services appears reasonable given the specialized nature of the work and the firm fixed-price contract type. Benchmarking against similar declassification and records management contracts is challenging due to the specific security requirements and niche market. However, the pricing structure suggests an effort to establish a predictable cost for the government over the contract's life.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach is generally expected to yield fair market prices and encourage innovation from multiple vendors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through competitive pressure and ensures the government receives the best value for its investment in critical declassification services.
Public Impact
The Department of Defense benefits from enhanced national security through the declassification and processing of sensitive records. Citizens and researchers may eventually gain access to historical or previously classified information, fostering transparency. The contract supports specialized roles in records management and declassification, potentially impacting a niche workforce. Services are delivered within the District of Columbia, indicating a localized operational focus.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if QUALX, LLC's proprietary processes become integral to DoD's workflow.
- Dependence on a single contractor for a critical national security function could pose risks if performance falters.
- The long-term nature of the contract may limit opportunities for other companies to enter this specialized market.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- Award through full and open competition suggests a competitive process that likely secured a fair price.
- The contract addresses a vital national security requirement for declassification and records processing.
Sector Analysis
The declassification and records processing sector is a niche but critical area within government contracting, closely tied to national security and information management. This contract falls under engineering services (NAICS 541330) but specifically addresses the unique requirements of handling classified and sensitive government records. The market size for such specialized services is difficult to quantify but is essential for agencies dealing with vast amounts of historical and current classified information. Comparable spending benchmarks are scarce due to the security-sensitive nature of the work.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. As a delivery order under a larger contract, specific performance metrics and reporting requirements would be detailed in the contract's statement of work. Transparency is generally limited for contracts involving classified information, but standard government contracting oversight mechanisms apply.
Related Government Programs
- National Archives and Records Administration (NARA) services
- Intelligence Community Information Management
- Department of State Records Management
- Federal Records Center operations
Risk Flags
- Potential for performance delays impacting national security information release.
- Risk of data security breaches or mishandling of classified information.
- Contractor dependence may limit future competition and innovation.
- Ensuring ongoing compliance with evolving declassification regulations.
Tags
defense, department-of-defense, department-of-the-navy, records-management, declassification, engineering-services, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, qualx-llc, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to QUALX, LLC. DRMD DECLASSIFICATION AND RECORDS PROCESSING SERVICES
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 $29.8 million.
What is the period of performance?
Start: 2022-09-16. End: 2026-09-15.
What is the track record of QUALX, LLC in performing declassification and records processing services for the federal government?
Information regarding QUALX, LLC's specific track record in declassification and records processing is not detailed in the provided data. However, as a recipient of a federal contract, the company has presumably met the qualifications and requirements set forth by the Department of the Navy for this specialized service. Further investigation into past performance reviews, contract history databases (like SAM.gov or FPDS), and any publicly available project portfolios would be necessary to fully assess their capabilities and reliability in this domain. The award of this significant contract suggests a level of confidence from the awarding agency in QUALX, LLC's ability to perform.
How does the value of this contract compare to similar declassification services awarded by other federal agencies?
Direct comparison of this $29.8 million contract value to similar declassification services is challenging due to the niche nature of the work and the security sensitivities involved, which often limit public data availability. Declassification and records processing require specialized expertise, personnel clearances, and adherence to strict protocols, making each contract unique. While the firm fixed-price structure provides cost certainty, the actual value is contingent on the volume and complexity of records processed over the four-year period. Benchmarking would ideally involve analyzing contracts with similar scope, duration, and security requirements, which are not readily available in the public domain for precise comparison.
What are the primary risks associated with this contract for the Department of Defense?
The primary risks associated with this contract include potential performance issues by QUALX, LLC, which could delay critical declassification processes and impact national security operations or information release timelines. There's also a risk related to data security and handling of classified information; any breach or mishandling could have severe consequences. Furthermore, the long-term reliance on a single contractor for such a specialized function could lead to a lack of competitive pressure on pricing or innovation over time. Ensuring continuous compliance with evolving declassification standards and regulations also presents an ongoing risk that requires diligent oversight.
How effective is the firm fixed-price contract type in managing costs for declassification services?
The firm fixed-price (FFP) contract type is generally effective in managing costs for services like declassification because it shifts the risk of cost overruns to the contractor, QUALX, LLC. The government agrees to pay a set price, providing budget certainty. This structure incentivizes the contractor to perform efficiently and control their own costs to maximize profit. For declassification services, where the scope of work can be defined with reasonable certainty, FFP is a suitable choice. However, it requires careful initial scope definition to avoid disputes or change orders that could negate the cost-saving benefits.
What is the historical spending pattern for declassification and records processing services within the Department of Defense?
Historical spending patterns for declassification and records processing services within the Department of Defense (DoD) are not detailed in the provided data. However, it is understood that such services are a continuous requirement due to the vast amount of classified information generated and maintained by the DoD. Spending in this area is likely influenced by factors such as the volume of records requiring review, changes in declassification regulations, technological advancements in processing, and the overall national security landscape. This $29.8 million contract represents a significant, multi-year investment, suggesting a sustained need for these critical functions within the Navy component of the DoD.
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: N0018922R3035
Offers Received: 1
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: $47,968,956
Exercised Options: $34,295,425
Current Obligation: $29,838,691
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8374
IDV Type: IDC
Timeline
Start Date: 2022-09-16
Current End Date: 2026-09-15
Potential End Date: 2028-03-15 00:00:00
Last Modified: 2026-02-03
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