DoD's F-35 JSF OT&E Core Planning Team contract awarded to AMERICAN SYSTEMS CORP for $272.4M
Contract Overview
Contract Amount: $27,240,066 ($27.2M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-06-13
End Date: 2021-06-12
Contract Duration: 1,825 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF F-35 JOINT STRIKE FIGHTER (JSF) AIR SYSTEM OPERATIONAL TEST AND EVALUATION (OT&E) CORE PLANNING TEAM
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
Department of Defense obligated $27.2 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF F-35 JOINT STRIKE FIGHTER (JSF) AIR SYSTEM OPERATIONAL TEST AND EVALUATION (OT&E) CORE PLANNING TEAM Key points: 1. Contract supports critical operational test and evaluation for the F-35 program. 2. AMERICAN SYSTEMS CORPORATION is the sole awardee for this specific delivery order. 3. Potential risks include reliance on a single vendor for specialized testing support. 4. Spending falls under Research and Development (R&D) in Physical, Engineering, and Life Sciences. 5. The contract value is substantial, reflecting the complexity of the F-35 program.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in R&D for complex defense systems is challenging due to unique requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it might be part of a larger IDIQ contract where competition details for individual orders can vary.
Taxpayer Impact: Taxpayer funds are supporting critical testing for a major defense acquisition program, aiming for effective operational readiness.
Public Impact
Ensures the F-35 fighter jet meets operational requirements before full deployment. Supports the technological advancement and readiness of U.S. Air Force assets. Contributes to the overall cost and schedule of the F-35 program. Impacts the effectiveness and safety of pilots operating the F-35.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration (5 years) may not adapt to evolving requirements.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national defense program.
- Experienced contractor likely provides specialized expertise.
Sector Analysis
This contract falls under Research and Development (R&D) in Physical, Engineering, and Life Sciences, specifically for defense applications. Spending benchmarks for such specialized R&D are highly variable, but $272.4M for a major program's testing is significant.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that small businesses may not have been primary participants or subcontractors on this particular delivery order, potentially limiting their opportunities.
Oversight & Accountability
Oversight is crucial for CPFF contracts to prevent cost creep. The Department of Defense's Inspector General and relevant program offices are responsible for monitoring performance and expenditures to ensure value for taxpayer money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Potential for scope creep without strict oversight.
- Long-term contract may not align with evolving technology.
- Limited visibility into subcontractor performance.
- Dependence on a single contractor for critical testing.
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to AMERICAN SYSTEMS CORPORATION. IGF::CT::IGF F-35 JOINT STRIKE FIGHTER (JSF) AIR SYSTEM OPERATIONAL TEST AND EVALUATION (OT&E) CORE PLANNING TEAM
Who is the contractor on this award?
The obligated recipient is AMERICAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2016-06-13. End: 2021-06-12.
What is the projected return on investment for the operational test and evaluation services provided under this contract?
The return on investment is measured by the successful identification and mitigation of critical flaws in the F-35 system before widespread deployment. This prevents costly retrofits, enhances combat effectiveness, and ensures the platform meets warfighter needs, ultimately safeguarding national security investments.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this R&D effort?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If the government does not maintain stringent oversight and control over the scope and contractor's spending, costs can escalate beyond initial projections, impacting the overall program budget.
How does this contract contribute to the overall effectiveness and readiness of the F-35 program?
This contract is vital for ensuring the F-35 meets its stringent operational requirements through rigorous testing and evaluation. By identifying and resolving technical and performance issues early, it directly contributes to the aircraft's reliability, maintainability, and combat capability, ultimately enhancing the overall effectiveness and readiness of the Air Force's F-35 fleet.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA704615R0001
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,007,866
Exercised Options: $32,007,866
Current Obligation: $27,240,066
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $199,815
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA704616D0001
IDV Type: IDC
Timeline
Start Date: 2016-06-13
Current End Date: 2021-06-12
Potential End Date: 2021-06-12 00:00:00
Last Modified: 2021-08-30
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