DoD awards $11.3M for CBRN response training, with L2 Defense Inc. securing the contract

Contract Overview

Contract Amount: $11,280,594 ($11.3M)

Contractor: L2 Defense Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-05-14

Contract Duration: 347 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: THIS IS A NON-PERSONAL SERVICE(S) CONTRACT TO PROVIDE EFFECTIVE CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR (CBRN) RESPONSE SPECIFIC COLLECTIVE TRAINING, PLANNING, EVALUATION, AND VALIDATION EXERCISE SUPPORT SERVICES.

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to L2 DEFENSE INC for work described as: THIS IS A NON-PERSONAL SERVICE(S) CONTRACT TO PROVIDE EFFECTIVE CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR (CBRN) RESPONSE SPECIFIC COLLECTIVE TRAINING, PLANNING, EVALUATION, AND VALIDATION EXERCISE SUPPORT SERVICES. Key points: 1. Contract focuses on critical CBRN response capabilities, enhancing national security preparedness. 2. The award utilizes a Cost Plus Award Fee structure, incentivizing performance. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a potentially complex procurement. 4. The contract duration is 347 days, suggesting a focused, short-term support requirement. 5. The primary contractor, L2 Defense Inc., operates within the professional, scientific, and technical services sector. 6. The contract is a definitive contract, indicating a commitment to a specific set of terms and conditions.

Value Assessment

Rating: good

The contract's value of approximately $11.3 million for a 347-day period for CBRN response training support appears reasonable given the specialized nature of the services. Benchmarking against similar specialized training and support contracts is challenging due to the unique requirements of CBRN response. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes high performance, which can lead to better value if the contractor meets or exceeds performance objectives. However, the final cost will depend on the award fees earned.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method suggests that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or security clearances required for CBRN support. The number of bidders is not specified, but the 'exclusion of sources' implies a more tailored approach than a completely unrestricted full and open competition, which could impact price discovery.

Taxpayer Impact: The 'exclusion of sources' aspect warrants scrutiny to ensure that it did not unduly limit competition, potentially leading to higher costs for taxpayers. A thorough review of the justification for excluding sources is crucial to confirm fair pricing.

Public Impact

The primary beneficiaries are the Department of Defense personnel who will receive enhanced training in responding to Chemical, Biological, Radiological, and Nuclear threats. The services delivered include collective training, planning, evaluation, and validation exercise support, crucial for maintaining readiness. The contract is based in Texas (st), suggesting a potential geographic focus for the training activities or contractor operations. This contract supports a specialized workforce of trainers, planners, and evaluators with expertise in CBRN defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method needs further clarification to ensure it did not unnecessarily restrict competition and potentially inflate costs.
The Cost Plus Award Fee (CPAF) structure, while incentivizing performance, can lead to costs exceeding initial estimates if award fees are consistently high.
The specific nature of CBRN response requires highly specialized personnel; ensuring the contractor maintains this expertise throughout the contract is a potential concern.

Positive Signals

The contract directly addresses critical national security needs related to CBRN threats, enhancing military readiness.
The use of a definitive contract indicates a clear commitment and established terms for essential support services.
The Cost Plus Award Fee structure, if managed effectively, can drive superior performance and achieve mission objectives efficiently.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector (NAICS 541990). This sector encompasses a wide range of specialized services, including defense-related consulting, training, and technical support. The market for CBRN response training is niche, requiring highly specialized expertise and often involving government-specific certifications and clearances. Spending in this area is driven by national security priorities and the need to maintain a high level of preparedness against evolving threats. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of CBRN support, but overall government spending on defense training and readiness support is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Given the specialized nature of CBRN response training and support, it is likely that the prime contractor, L2 Defense Inc., possesses unique capabilities. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could be an area for further inquiry to understand potential impacts on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure that award fees are justified. Transparency regarding performance metrics and awarded fees would be beneficial. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense CBRN Defense Programs
Military Training and Readiness Support
Chemical, Biological, Radiological, Nuclear Defense Exercises
Specialized Technical Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Cost control risks inherent in Cost Plus Award Fee contracts.
Reliance on specialized contractor personnel with critical expertise.
Need for robust government oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to L2 DEFENSE INC. THIS IS A NON-PERSONAL SERVICE(S) CONTRACT TO PROVIDE EFFECTIVE CHEMICAL, BIOLOGICAL, RADIOLOGICAL, AND NUCLEAR (CBRN) RESPONSE SPECIFIC COLLECTIVE TRAINING, PLANNING, EVALUATION, AND VALIDATION EXERCISE SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is L2 DEFENSE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-14.

What is the track record of L2 Defense Inc. in providing CBRN response training and support services to the Department of Defense or other federal agencies?

Information regarding L2 Defense Inc.'s specific track record in CBRN response training and support is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar contracts. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be key resources to determine their experience, reliability, and quality of service in this specialized domain. Understanding their history with complex, high-stakes training environments is crucial for evaluating their capability to fulfill this current contract effectively.

How does the approximate $11.3 million cost for 347 days of CBRN response support compare to similar contracts awarded by the DoD or other agencies?

Direct comparison of the $11.3 million cost for 347 days of CBRN response support is challenging due to the highly specialized and often classified nature of such services. However, a general benchmark can be established by looking at other professional, scientific, and technical services contracts supporting military readiness and specialized training. The daily rate implied is approximately $32,509. This rate needs to be evaluated against contracts requiring similar levels of expertise, security clearances, and operational tempo. Factors such as the number of personnel involved, the complexity of the training scenarios, and the required certifications will significantly influence the cost. Without specific details on these factors, a precise value-for-money assessment is difficult, but the rate appears within a plausible range for highly specialized defense support services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include the potential for contractor underperformance in delivering critical CBRN training, challenges in maintaining highly specialized personnel, and cost overruns due to the Cost Plus Award Fee (CPAF) structure. The 'exclusion of sources' in the procurement process could also pose a risk if it limited competition unduly. Mitigation strategies likely involve rigorous performance monitoring by the government, clear performance standards tied to award fees, robust contractor vetting, and potentially contingency planning for personnel turnover. The government's oversight of the award fee determination process is critical to ensuring that fees are earned based on demonstrated performance and that costs remain controlled.

How effective is the Cost Plus Award Fee (CPAF) structure in ensuring value for money for this specific CBRN training support contract?

The CPAF structure is designed to incentivize superior performance by allowing the contractor to earn additional profit (award fee) based on meeting or exceeding defined performance objectives. For this CBRN training support contract, CPAF can be effective if the performance standards are well-defined, measurable, and directly linked to mission success. It encourages the contractor to go beyond minimum requirements. However, the effectiveness hinges on the government's ability to objectively assess performance and fairly determine award fees. Poorly defined criteria or biased evaluations can lead to unwarranted fee payments, diminishing value for money. Robust oversight and clear communication of expectations are crucial for CPAF to yield optimal results.

What is the historical spending trend for CBRN response training and support services within the Department of Defense?

Historical spending trends for CBRN response training and support within the Department of Defense have generally increased over the past two decades, driven by evolving global threats and a heightened focus on homeland security and military readiness. While specific figures for this niche service category are not readily available without deep dives into defense budget allocations, overall spending on defense training, simulation, and specialized support services represents a significant portion of the DoD budget. Factors such as geopolitical events, technological advancements in threat detection and response, and lessons learned from past incidents or exercises influence these spending patterns. This $11.3 million contract aligns with the ongoing investment in maintaining robust CBRN capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: W900KK24R0023

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 12 IRONDALE ST, BALTIMORE, MD, 21220

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,648,931

Exercised Options: $11,280,594

Current Obligation: $11,280,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline