DoD's $34.6M contract for ZBV maintenance awarded to American Science & Engineering Inc. without competition

Contract Overview

Contract Amount: $34,559,359 ($34.6M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2009-09-11

End Date: 2010-09-30

Contract Duration: 384 days

Daily Burn Rate: $90.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE AND SUSTAINMENT OF ZBV

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $34.6 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: MAINTENANCE AND SUSTAINMENT OF ZBV Key points: 1. The contract value represents a significant investment in specialized equipment maintenance. 2. Lack of competition raises concerns about potential overpricing and limited value for money. 3. The sole-source nature of this award warrants scrutiny of the justification for not competing. 4. Performance context is limited due to the single award and lack of comparative data. 5. This contract falls within the defense sector, specifically related to specialized equipment. 6. The duration of the contract (384 days) suggests a need for ongoing support.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized equipment involved. Without competitive bids, it's difficult to ascertain if the $34.6 million represents a fair market price. The absence of comparable contracts makes it hard to assess if the pricing is aligned with industry standards for similar maintenance services. Further analysis would be needed to determine if the government received optimal value for this expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided, but it typically implies that only one vendor possessed the necessary capabilities or that competition was deemed impractical. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the best possible pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government missed an opportunity to secure potentially lower prices through a competitive process.

Public Impact

The primary beneficiaries are the Department of Defense units relying on the ZBV equipment. The service delivered is maintenance and sustainment, crucial for operational readiness. Geographic impact is likely concentrated where the ZBV equipment is deployed by the DoD. Workforce implications include the need for specialized technicians to perform the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability.
Potential for vendor lock-in if alternatives are not explored.
Limited data available to assess the true value for money.
The specific nature of ZBV equipment maintenance might limit viable competitors.

Positive Signals

Contract ensures continued operational readiness of critical DoD equipment.
American Science & Engineering Inc. is likely a specialized provider with relevant expertise.
The fixed-price contract type can offer cost predictability.

Sector Analysis

This contract falls within the defense industrial base, a sector characterized by high-value, specialized equipment and services. The market for maintenance and sustainment of advanced defense systems is often concentrated among a few key players due to the technical expertise and security clearances required. Spending in this area is critical for national security, but the lack of competition can be a recurring issue across various defense contracts, impacting overall cost-efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a likely large corporation, there are no direct subcontracting implications for small businesses stemming from this specific award mechanism. The focus is on the prime contractor's capabilities, potentially limiting opportunities for small businesses to participate in this particular maintenance effort.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the contract terms, particularly the fixed-price nature, which aims to cap costs. Transparency is limited due to the sole-source award; however, contract details and performance reports are usually available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Equipment Maintenance
Specialized Equipment Sustainment
Sole-Source Defense Contracts
DoD Readiness Programs

Risk Flags

Sole-source award
Lack of competition
Limited value for money assessment
Specialized equipment maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.6 million to AMERICAN SCIENCE & ENGINEERING INC. MAINTENANCE AND SUSTAINMENT OF ZBV

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2009-09-11. End: 2010-09-30.

What is the specific nature of the ZBV equipment and why is specialized maintenance required?

The provided data does not specify the exact nature of the 'ZBV' equipment. However, the North American Industry Classification System (NAICS) code '334517' points to 'Irradiation Apparatus Manufacturing.' This suggests the ZBV equipment is likely a sophisticated apparatus involving radiation, possibly used for testing, research, or industrial processes within the Department of Defense. Such specialized equipment often requires highly trained personnel, specific calibration tools, and adherence to stringent safety protocols for maintenance and sustainment, justifying the need for specialized service providers like American Science & Engineering Inc.

What is the track record of American Science & Engineering Inc. with similar DoD contracts?

While the provided data confirms American Science & Engineering Inc. (AS&E) as the contractor for this specific $34.6 million sole-source award, it does not detail their broader track record with the DoD or similar contracts. AS&E is known for its X-ray imaging and inspection systems, often used in security and defense applications. To fully assess their track record, one would need to examine their contract history, performance reviews, and any past issues or successes with maintenance and sustainment contracts, particularly those involving specialized or sensitive equipment.

How does the $34.6 million contract value compare to industry benchmarks for similar maintenance services?

Directly comparing the $34.6 million contract value to industry benchmarks for similar maintenance services is difficult without more specific information on the ZBV equipment and the scope of work. Given the sole-source nature, there's no competitive data to establish a market price. However, considering the NAICS code suggests irradiation apparatus, maintenance for such complex, potentially hazardous, and specialized equipment is typically high-cost due to the required expertise, safety measures, and proprietary knowledge. A thorough benchmark would require analyzing costs for maintaining other high-value, specialized defense systems.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $34.6 million contract on a sole-source basis include: 1) Inflated pricing: Without competition, the contractor may not be incentivized to offer the lowest possible price. 2) Reduced innovation: The lack of competitive pressure can stifle innovation in service delivery or technology upgrades. 3) Vendor lock-in: The government may become overly reliant on a single provider, making future transitions difficult and potentially costly. 4) Lack of transparency: Sole-source awards can obscure the true cost drivers and make it harder to justify the expenditure to taxpayers. 5) Potential for complacency: The contractor might be less motivated to ensure optimal performance or efficiency when competition is absent.

What is the historical spending pattern for maintenance of ZBV or similar equipment by the DoD?

The provided data only includes details for this single contract award from September 2009 to September 2010. It does not offer historical spending patterns for ZBV equipment maintenance or similar systems by the DoD. To understand historical spending, one would need to query federal procurement databases for all contracts related to 'ZBV maintenance,' 'irradiation apparatus maintenance,' or similar keywords over several fiscal years. Analyzing this data would reveal trends in contract values, competition levels, and the number of awards over time.

What is the justification provided for awarding this contract without competition?

The provided data explicitly states the contract type as 'NOT COMPETED' (ct: NOT COMPETED). However, it does not include the specific justification or documentation that would explain why this contract was awarded on a sole-source basis. Typically, sole-source justifications are required under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency that precludes competition. Without access to the official justification document, the precise reasons remain unknown.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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: $34,559,359

Exercised Options: $34,559,359

Current Obligation: $34,559,359

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52H0908D0393

IDV Type: IDC

Timeline