DoD's $758.6M Mission Test Support Contract Awarded to TRAX International Corporation for Engineering Services

Contract Overview

Contract Amount: $758,631,930 ($758.6M)

Contractor: Trax International Corporation

Awarding Agency: Department of Defense

Start Date: 2018-05-30

End Date: 2026-02-14

Contract Duration: 2,817 days

Daily Burn Rate: $269.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: MISSION TEST SUPPORT SERVICES

Place of Performance

Location: YUMA, YUMA County, ARIZONA, 85365

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $758.6 million to TRAX INTERNATIONAL CORPORATION for work described as: MISSION TEST SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. With a duration of 2817 days, this represents a significant long-term commitment for mission test support. 4. The contract is managed by the Department of the Army, indicating a focus on military operational readiness. 5. The primary service category is Engineering Services, crucial for the development and testing of defense systems. 6. The contract has a base value of $269.3M with significant award potential, requiring careful performance monitoring.

Value Assessment

Rating: good

The contract's value of $758.6M over its potential duration appears to be within a reasonable range for extensive mission test support services, given the complexity and criticality of defense testing. Benchmarking against similar large-scale engineering and test support contracts within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for performance-based incentives, which can drive efficiency, but also necessitates robust oversight to manage costs effectively and ensure the award fees are tied to demonstrable value.

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 presence of 4 bidders suggests a healthy level of competition for this significant engineering services requirement. A competitive process like this is generally expected to lead to more favorable pricing and innovative solutions for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price and quality for essential defense mission test support services.

Public Impact

The Department of Defense, specifically the Department of the Army, benefits from enhanced mission test support capabilities. Services delivered include critical engineering and testing functions essential for military readiness and system development. The contract's primary performance location is Arizona, suggesting a significant impact on the local economy and workforce in that state. The contract supports the development and validation of advanced military technologies and systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed meticulously.
The long duration of the contract may present challenges in adapting to evolving technological requirements.
The significant total value necessitates ongoing scrutiny to ensure continued value for money.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract incentivizes performance through an award fee structure.
TRAX International Corporation has a history of supporting similar government contracts.

Sector Analysis

The Engineering Services sector (NAICS 541330) is a critical component of the defense industrial base, providing specialized expertise for the design, development, and testing of complex systems. This contract falls within a segment of the market focused on supporting government research, development, testing, and evaluation (R&DTE) activities. Spending in this area is often driven by the need for advanced technological capabilities and operational readiness, with significant government outlays directed towards specialized engineering support firms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is TRAX International Corporation, there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and what their potential impact might be on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of the Army, which is responsible for ensuring contractor performance aligns with contract requirements and objectives. The Cost Plus Award Fee structure implies performance metrics and evaluation criteria that the agency will use to determine award fees. Transparency is facilitated through contract awards databases, and while specific oversight mechanisms are not detailed here, the Department of Defense generally has robust Inspector General functions that can investigate potential fraud, waste, or abuse.

Related Government Programs

Mission Support Services
Engineering and Technical Services
Defense Test and Evaluation Support
Cost Plus Contracts
Department of the Army Contracts

Risk Flags

Potential for cost overruns in CPAF contracts.
Long contract duration may lead to evolving requirements challenges.
Need for robust oversight to ensure performance metrics are met for award fees.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $758.6 million to TRAX INTERNATIONAL CORPORATION. MISSION TEST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TRAX INTERNATIONAL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $758.6 million.

What is the period of performance?

Start: 2018-05-30. End: 2026-02-14.

What is TRAX International Corporation's track record with similar Department of Defense contracts?

TRAX International Corporation has a substantial history of supporting the Department of Defense, particularly in areas related to test and evaluation, mission support, and engineering services. They have held numerous contracts, including significant roles at major proving grounds and test ranges. Their experience often involves managing complex testing operations, providing technical support, and ensuring the readiness of military systems. This extensive background suggests a familiarity with government contracting processes, performance expectations, and the specific needs of military branches like the Army and Air Force. Their past performance is a key factor considered in the award of new contracts, and their continued success in securing such awards indicates a generally positive evaluation of their capabilities and reliability.

How does the value of this contract compare to other mission test support contracts awarded by the DoD?

The $758.6 million total value for this mission test support contract is substantial, reflecting the long-term and comprehensive nature of the services required. When compared to other large-scale engineering and test support contracts within the Department of Defense, it falls within the upper range for such specialized services. Contracts for major test ranges, weapon system development support, and large-scale simulation and training often reach similar figures due to the extensive personnel, equipment, and infrastructure involved. However, the specific scope and duration are critical for precise benchmarking. Smaller, more focused test support contracts might range from tens to hundreds of millions, while overarching support for entire defense programs could exceed this value. This contract's value suggests it covers a broad spectrum of critical testing and engineering functions.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude revolve around cost control and the effective administration of award fees. While CPAF incentivizes performance by offering additional profit for meeting or exceeding specific criteria, there's a risk that the "cost plus" component could lead to higher overall expenditures if contractor costs are not rigorously managed and scrutinized. The government must establish clear, measurable, and achievable performance objectives to ensure award fees are genuinely earned and reflect added value, rather than being a de facto increase in profit. Furthermore, the long duration (2817 days) introduces risks related to potential scope creep, evolving requirements, and the contractor's ability to maintain efficiency and innovation over an extended period. Effective government oversight is paramount to mitigate these risks.

How does this contract contribute to the overall effectiveness of the Department of the Army's testing and evaluation programs?

This contract is designed to significantly enhance the Department of the Army's testing and evaluation (T&E) programs by providing essential mission test support services. These services likely encompass a wide range of activities, including the operation and maintenance of test facilities, instrumentation, data collection and analysis, logistical support for test events, and specialized engineering expertise. By outsourcing these critical functions to a specialized contractor like TRAX International Corporation, the Army can ensure that its T&E infrastructure is robust, up-to-date, and capable of supporting the rigorous validation of new and existing weapon systems and technologies. This allows Army personnel to focus on strategic decision-making and the interpretation of test results, ultimately contributing to the development of more effective and reliable military capabilities.

What are the historical spending patterns for mission test support services within the Department of Defense?

Historical spending patterns for mission test support services within the Department of Defense have consistently represented a significant portion of the overall defense budget, particularly within the R&D, Test & Evaluation (RDT&E) appropriations. Agencies like the Department of the Army, Navy, and Air Force, along with various defense agencies, rely heavily on contractors to provide specialized expertise and infrastructure for testing everything from individual components to complex integrated systems. Spending in this area tends to be relatively stable, driven by the continuous need to modernize military hardware and ensure operational readiness. While specific annual figures fluctuate based on program priorities and budget cycles, the overall trend shows a sustained and substantial investment in test and evaluation support services, often awarded through large, long-term contracts to specialized firms.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124R13R0001

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8337 W SUNSET RD STE 250, LAS VEGAS, NV, 89113

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

Financial Breakdown

Contract Ceiling: $831,768,090

Exercised Options: $831,768,090

Current Obligation: $758,631,930

Actual Outlays: $238,888,409

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $105,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline