DoD awards $8.36M contract for MILSATCOM engineering services to Linquest Corporation

Contract Overview

Contract Amount: $8,358,096 ($8.4M)

Contractor: Linquest Corporation

Awarding Agency: Department of Defense

Start Date: 2024-03-08

End Date: 2026-03-07

Contract Duration: 729 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR OPERATIONS OF THE CODE 34 MILITARY SATELLITE COMMUNICATIONS (MILSATCOM) SYSTEMS PROGRAMS FOR MILSATCOM SYSTEMS AND SUBSYSTEMS.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to LINQUEST CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR OPERATIONS OF THE CODE 34 MILITARY SATELLITE COMMUNICATIONS (MILSATCOM) SYSTEMS PROGRAMS FOR MILSATCOM SYSTEMS AND SUBSYSTEMS. Key points: 1. Contract focuses on critical engineering and technical services for the MILSATCOM systems. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spans two years, indicating a medium-term engagement. 5. The award is a delivery order under a larger contract vehicle. 6. The contractor, Linquest Corporation, has a history of supporting defense programs.

Value Assessment

Rating: good

The contract value of $8.36 million for two years of engineering and technical services for MILSATCOM systems appears reasonable given the specialized nature of military satellite communications. Benchmarking against similar contracts for complex defense systems engineering is challenging without more specific details on the scope of work. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing for cost flexibility, requires careful oversight to ensure value for money. The fixed fee component provides a degree of cost certainty for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible technical solutions and pricing for essential MILSATCOM engineering support.

Public Impact

The primary beneficiaries are the Department of Defense and its MILSATCOM programs, ensuring the continued operation and maintenance of vital satellite communication systems. Services delivered include engineering and technical support for the operation of MILSATCOM systems and subsystems. The geographic impact is likely focused on locations where MILSATCOM operations and engineering support are managed, potentially including various DoD facilities. Workforce implications may involve specialized engineers and technicians, contributing to the skilled labor pool in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for critical engineering services could pose a risk if performance issues arise.
The complexity of MILSATCOM systems requires highly specialized expertise, which may limit the pool of qualified alternative contractors.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
The contractor, Linquest Corporation, has experience in defense and aerospace, indicating familiarity with the domain.
The fixed fee component of the CPFF contract provides a defined profit margin, potentially encouraging efficiency.

Sector Analysis

The defense sector, particularly within the realm of space and communications, is characterized by high technological complexity and significant government investment. Military satellite communications (MILSATCOM) are a critical component of national security, requiring specialized engineering and technical support. Spending in this area is substantial, driven by the need for secure, reliable, and advanced communication capabilities. This contract fits within the broader category of defense IT and aerospace services, where contracts often involve long-term sustainment and development.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, Linquest Corporation may engage small businesses as subcontractors, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific contracting officers and program managers responsible for monitoring performance, costs, and adherence to contract terms. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure that costs are reasonable and allocable. Transparency is typically maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General's office if performance or cost issues arise.

Related Government Programs

Military Satellite Communications (MILSATCOM) Programs
Defense Information Technology Services
Aerospace Engineering Services
Satellite Operations and Maintenance
Department of Defense IT Procurement

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Reliance on specialized engineering expertise for critical MILSATCOM systems.
Potential for scope creep in complex engineering services if requirements are not well-defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to LINQUEST CORPORATION. ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR OPERATIONS OF THE CODE 34 MILITARY SATELLITE COMMUNICATIONS (MILSATCOM) SYSTEMS PROGRAMS FOR MILSATCOM SYSTEMS AND SUBSYSTEMS.

Who is the contractor on this award?

The obligated recipient is LINQUEST CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2024-03-08. End: 2026-03-07.

What is Linquest Corporation's track record with similar MILSATCOM or defense communication contracts?

Linquest Corporation has a significant history of supporting defense and aerospace programs, including those related to satellite communications. They have been involved in various aspects of satellite systems, from design and development to operations and sustainment. Their experience often includes providing engineering, integration, and technical services for complex communication platforms. While specific contract values and details for past MILSATCOM work are not detailed here, their presence in this sector suggests a familiarity with the technical requirements and operational demands of such systems. This background is a positive indicator for their ability to perform on the current contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. In this structure, the government reimburses the contractor for allowable costs and pays a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen technical challenges, but it carries a higher risk of cost overruns for the government if not managed diligently. It contrasts with Cost-Plus-Incentive-Fee (CPIF) contracts, which can offer greater cost control by adjusting the fee based on performance against targets.

What are the primary risks associated with the engineering and technical services for MILSATCOM systems?

The primary risks associated with engineering and technical services for MILSATCOM systems are multifaceted. Technical risks include the inherent complexity of satellite technology, potential for system failures, obsolescence of components, and the need for continuous upgrades to counter evolving threats or incorporate new capabilities. Operational risks involve ensuring uninterrupted service, managing ground station operations, and maintaining secure communication links. Furthermore, there are personnel risks, such as the need for highly specialized and cleared personnel, and the potential for knowledge loss if key individuals depart. Programmatic risks include budget fluctuations, changing requirements, and the long lead times associated with space-based systems.

How does the $8.36 million contract value compare to historical spending on MILSATCOM engineering services?

The $8.36 million contract value for two years of engineering and technical services for MILSATCOM systems represents a specific delivery order under a larger contract vehicle. To provide a comprehensive comparison to historical spending, one would need to analyze aggregate spending on MILSATCOM engineering and technical support over several years, across different programs and agencies. This figure alone is a snapshot. However, given the critical nature and complexity of MILSATCOM, annual spending on sustainment, operations, and upgrades for these systems typically runs into hundreds of millions or even billions of dollars across the Department of Defense. This $8.36 million award is likely a component of that larger ecosystem.

What are the implications of this contract being a Delivery Order under a larger contract?

This contract being a Delivery Order (DO) signifies that it is a task-specific order issued against a previously awarded Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract. This approach allows the government to procure services incrementally as needed, rather than awarding a single, large, fixed-scope contract upfront. The benefits include flexibility in adapting to changing requirements, potentially faster procurement cycles for individual orders, and the ability to leverage competition among multiple awardees on the base contract for each order. For taxpayers, it can mean more efficient use of funds by procuring only what is needed, when it is needed, while still benefiting from the initial competition for the base contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660422R3013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2551 DULLES VIEW DR STE 200, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $23,541,221

Exercised Options: $9,205,240

Current Obligation: $8,358,096

Actual Outlays: $15,891

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,627,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8018

IDV Type: IDC

Timeline