Army's $38.4M IED Defeat Support Contract Awarded to American Systems Corp. Amidst Full and Open Competition

Contract Overview

Contract Amount: $38,422,173 ($38.4M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2009-01-27

End Date: 2013-12-19

Contract Duration: 1,787 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: JOINT IMPROVISED EXPLOSIVE DEVICE (IED) DEFEAT TEST BOARD (JTB) SUPPORT FOR THE U.S. ARMY EVALUATION CENTER

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22101, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to AMERICAN SYSTEMS CORPORATION for work described as: JOINT IMPROVISED EXPLOSIVE DEVICE (IED) DEFEAT TEST BOARD (JTB) SUPPORT FOR THE U.S. ARMY EVALUATION CENTER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 5 years indicates a long-term need for these engineering services. 3. The 'Time and Materials' contract type can pose cost control challenges if not managed closely. 4. Awarded to a single contractor, American Systems Corporation, for specialized support. 5. The contract falls under Engineering Services, a critical sector for defense operations. 6. The value of the contract is substantial, reflecting the importance of IED defeat capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for JTB support services. The total award value of $38.4 million over almost five years averages to approximately $7.7 million annually. This figure needs to be assessed against the scope and complexity of the JTB's mission. The 'Time and Materials' pricing structure, while flexible, can lead to higher costs if not meticulously managed and monitored for efficiency. Without detailed breakdowns of labor rates and material costs, a precise value-for-money assessment is difficult.

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 multiple bidders, though the exact number is not specified, generally leads to more competitive pricing and a wider range of technical solutions. The government's ability to select the best value offering is enhanced through this procurement method.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the most advantageous offer, maximizing the return on investment for public funds.

Public Impact

The U.S. Army benefits directly through enhanced capabilities in evaluating and defeating Improvised Explosive Devices (IEDs). This contract supports critical research and development efforts aimed at improving soldier safety. The services provided contribute to the overall effectiveness of military operations by addressing a significant threat. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment for engineers and technical specialists within American Systems Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials (T&M) contract type if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency.
The specialized nature of JTB support might limit the pool of truly comparable contracts for benchmarking.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Long contract duration suggests a stable and ongoing requirement, providing continuity for the Army.
The contract supports a critical mission area (IED Defeat), aligning with significant national security needs.

Sector Analysis

The Engineering Services sector (NAICS 541330) is a vital component of the defense industrial base, providing specialized technical expertise for complex government projects. This contract fits within the broader defense R&D and support services market, which is characterized by high technical barriers to entry and significant government investment. Comparable spending benchmarks would typically be found within other large-scale engineering support contracts for military branches, particularly those focused on testing, evaluation, and system development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, American Systems Corporation, would determine any subcontracting opportunities based on their own business needs and the scope of work, but this contract does not mandate small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Evaluation Center and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the contract's performance work statement and delivery requirements. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Joint Improvised Explosive Device Defeat Organization (JIEDDO) programs
Army Test and Evaluation Command (ATEC) contracts
Defense Threat Reduction Agency (DTRA) support services
Engineering and Technical Services for DoD
Research, Development, Test, and Evaluation (RDT&E) support

Risk Flags

Potential cost overruns due to Time and Materials contract type.
Limited transparency on specific performance metrics and outcomes.
Need for robust government oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to AMERICAN SYSTEMS CORPORATION. JOINT IMPROVISED EXPLOSIVE DEVICE (IED) DEFEAT TEST BOARD (JTB) SUPPORT FOR THE U.S. ARMY EVALUATION CENTER

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 Army).

What is the total obligated amount?

The obligated amount is $38.4 million.

What is the period of performance?

Start: 2009-01-27. End: 2013-12-19.

What is the track record of American Systems Corporation in supporting similar defense engineering and testing contracts?

American Systems Corporation has a significant history of performing contracts for the U.S. military, particularly within engineering, IT, and test and evaluation services. While specific details on their performance for the JTB support contract require deeper analysis of past performance reviews and CPARS (Contractor Performance Assessment Reporting System) data, their longevity and repeated awards suggest a generally satisfactory performance history. They have been involved in various capacities, including simulation, training systems, and technical support for complex defense programs. A thorough review would involve examining their performance on contracts of similar size, scope, and criticality to ensure consistent delivery and adherence to requirements.

How does the $38.4 million contract value compare to other engineering support contracts for the Army or DoD?

The $38.4 million total contract value over nearly five years places this contract in the mid-to-large tier for specialized engineering support services within the Department of Defense. Annualized at approximately $7.7 million, it is substantial but not exceptionally large compared to major system development or large-scale acquisition programs. To provide a precise comparison, one would need to benchmark against contracts for similar services, such as technical support for testing ranges, system integration, or specialized engineering analysis within the Army or other defense agencies. Factors like the specific technical expertise required, the duration, and the competitive landscape heavily influence contract values in this sector.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, like the one awarded to American Systems Corporation, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure provides flexibility but can lead to higher overall costs if the effort required is greater than initially estimated, or if labor hours and material usage are not meticulously tracked and controlled. Effective oversight, clear task definitions, and robust monitoring by the government are crucial to mitigate these risks and ensure the contractor operates efficiently and within budget expectations.

How effective has the Joint Improvised Explosive Device (IED) Defeat Test Board (JTB) been in its mission, and how does this contract contribute?

The effectiveness of the JTB is directly linked to its ability to rigorously test and evaluate technologies and tactics designed to counter IED threats. This contract provides essential support services, likely encompassing technical expertise, logistical assistance, and analytical capabilities, enabling the JTB to conduct its evaluations. By ensuring the JTB has the necessary resources, the contract contributes to the development and refinement of effective IED defeat strategies and equipment, ultimately aiming to enhance soldier safety and mission success. Assessing the JTB's overall effectiveness would require examining its output, the impact of its recommendations on deployed forces, and the successful integration of technologies it has validated.

What is the historical spending trend for JTB support or similar IED defeat analysis contracts within the Army?

Analyzing historical spending trends for JTB support or similar IED defeat analysis contracts requires access to historical contract databases and budget allocations. Generally, spending in this area has fluctuated based on operational tempo and the evolving nature of the IED threat. During periods of active conflict where IEDs posed a significant danger, funding for research, development, testing, and evaluation related to IED defeat would likely have been higher. As the nature of warfare evolves, so too does the focus and funding for such specialized support. A detailed trend analysis would involve examining contract awards over multiple fiscal years, identifying patterns in contract values, durations, and the number of competing contractors.

What are the implications of awarding this contract to a single entity, American Systems Corporation, for the long term?

Awarding a significant contract like this to a single entity, American Systems Corporation, can offer benefits such as continuity, deep institutional knowledge, and streamlined communication. The contractor can develop specialized expertise tailored to the JTB's unique needs over the contract's duration. However, it also carries potential risks, including vendor lock-in, reduced incentive for innovation if competition is absent post-award, and potential challenges if the contractor's performance falters. The long-term implications depend heavily on the government's ongoing oversight, performance management, and its strategy for future contract renewals or re-competitions to ensure continued value and access to the best available solutions.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB05R0015

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $41,850,541

Exercised Options: $41,850,541

Current Obligation: $38,422,173

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB06D0014

IDV Type: IDC

Timeline