DoD awards $21.8M contract for ZBV/RDIM maintenance in Southwest Asia to American Science & Engineering Inc
Contract Overview
Contract Amount: $21,809,016 ($21.8M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-16
End Date: 2009-09-27
Contract Duration: 376 days
Daily Burn Rate: $58.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAINTENANCE AND SUSTAINMENT OF ZBV/RDIM LOCATED IN SOUTHWEST ASIA
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Defense obligated $21.8 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: MAINTENANCE AND SUSTAINMENT OF ZBV/RDIM LOCATED IN SOUTHWEST ASIA Key points: 1. Contract awarded to a single, established vendor for specialized equipment maintenance. 2. Limited competition due to the niche nature of the equipment and location. 3. Potential risk associated with single-vendor reliance for critical infrastructure. 4. Spending falls within the 'Irradiation Apparatus Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $21.8M for one year of maintenance appears high for sustainment services. Benchmarking against similar specialized equipment maintenance contracts is difficult without more data, but the price warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressure is absent.
Taxpayer Impact: The lack of competition likely resulted in a higher price than a competed contract, impacting taxpayer value.
Public Impact
Ensures operational readiness of critical ZBV/RDIM systems in a sensitive region. Supports military operations by maintaining essential equipment. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value for sustainment
- Lack of competition
Positive Signals
- Ensures operational capability
- Supports critical infrastructure
Sector Analysis
This contract falls under the Irradiation Apparatus Manufacturing sector, which involves specialized equipment. Spending benchmarks for this niche are hard to establish, but the value is significant for a one-year sustainment contract.
Small Business Impact
The contract was awarded to American Science & Engineering Inc., a large business. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial procurement phase. Subsequent oversight would focus on performance and cost control, which is crucial for sole-source contracts.
Related Government Programs
- Irradiation Apparatus Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- High annual cost for sustainment.
- Potential for vendor lock-in.
- Lack of transparency in procurement justification.
Tags
irradiation-apparatus-manufacturing, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to AMERICAN SCIENCE & ENGINEERING INC. MAINTENANCE AND SUSTAINMENT OF ZBV/RDIM LOCATED IN SOUTHWEST ASIA
Who is the contractor on this award?
The obligated recipient is AMERICAN SCIENCE & ENGINEERING 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 $21.8 million.
What is the period of performance?
Start: 2008-09-16. End: 2009-09-27.
What was the justification for the sole-source award, and was a market survey conducted to assess potential competition?
The justification for a sole-source award is critical for understanding the necessity of avoiding competition. Agencies typically conduct market research or surveys to determine if only one responsible source can provide the required supplies or services. Without this information, it's difficult to assess if the government received the best possible value or if competition was unnecessarily excluded.
How does the $21.8M annual cost compare to the total lifecycle cost of the ZBV/RDIM systems?
Understanding the annual maintenance cost in the context of the total lifecycle cost is essential for evaluating long-term value. If this $21.8M represents a significant portion of the system's acquisition cost or projected operational expenses, it raises concerns about the overall affordability and sustainability of the equipment. A higher maintenance cost relative to acquisition could indicate potential issues with equipment reliability or vendor pricing.
What performance metrics are in place to ensure the effectiveness of the maintenance services provided?
Effective oversight requires clear performance metrics to gauge the quality and timeliness of the maintenance services. Without defined metrics and a system for tracking performance, it's challenging to ensure the contractor is meeting contractual obligations and that taxpayer funds are being used efficiently to maintain operational readiness.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,809,016
Exercised Options: $21,809,016
Current Obligation: $21,809,016
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0908D0393
IDV Type: IDC
Timeline
Start Date: 2008-09-16
Current End Date: 2009-09-27
Potential End Date: 2009-09-27 00:00:00
Last Modified: 2011-04-21
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