DoD awards $39M for Z-Backscatter Van maintenance, a sole-source contract for critical surveillance

Contract Overview

Contract Amount: $39,009,186 ($39.0M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2011-08-16

End Date: 2012-08-28

Contract Duration: 378 days

Daily Burn Rate: $103.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVER ORDER FOR 9 MONTHS OF MAINTENANCE AND SUSTAINMENT SERVICES IN SUPPORT OF Z-BACKSCATTER VANS LOCATED IN SOUTHWEST ASIA.

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: DELIVER ORDER FOR 9 MONTHS OF MAINTENANCE AND SUSTAINMENT SERVICES IN SUPPORT OF Z-BACKSCATTER VANS LOCATED IN SOUTHWEST ASIA. Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Maintenance and sustainment services for specialized surveillance vehicles. 3. Duration of 9 months suggests a focused, short-term operational need. 4. Contract type is Firm Fixed Price, providing cost certainty for the government. 5. The awardee, American Science & Engineering Inc., specializes in sensor technology. 6. Geographic focus on Southwest Asia indicates a specific operational theater.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific equipment focus. The $39 million for 9 months of maintenance suggests a significant per-month cost, but without details on the scope of work or the number of vans supported, a direct comparison to similar contracts is difficult. The firm fixed-price structure offers predictability, but the lack of competition may have led to a higher price than a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a specific capability or technology is only available from a single source, or in urgent situations. The lack of competition means there was no opportunity for price discovery through multiple bids, potentially impacting the final cost to the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, the government could not leverage market forces to secure the best possible price for these essential maintenance services.

Public Impact

Provides essential maintenance for Z-Backscatter Vans, crucial for surveillance operations in Southwest Asia. Ensures the operational readiness of critical intelligence, surveillance, and reconnaissance (ISR) assets. Supports ongoing military operations and national security objectives in a key geopolitical region. Indirectly benefits the workforce by ensuring the continuity of operations that require these specialized vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Lack of transparency in the justification for sole-sourcing.
Potential for cost overruns if scope of work was not precisely defined for a fixed-price contract.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awardee is a specialist in the relevant technology, suggesting technical capability.
Focus on maintenance ensures operational readiness of critical assets.

Sector Analysis

The contract falls within the broader defense electronics and surveillance equipment sector. This sector is characterized by high technological complexity and significant government investment. American Science & Engineering Inc. operates in the niche market of X-ray detection and imaging systems, often used for security and inspection purposes. Spending in this area is driven by evolving threats and the need for advanced reconnaissance capabilities, with contracts often being specialized and sometimes sole-sourced due to proprietary technology.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. There is no explicit mention of subcontracting requirements for small businesses. The award to a single, likely established, prime contractor suggests limited direct opportunities for small businesses within this specific contract's execution, unless they are pre-existing suppliers to American Science & Engineering Inc.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The firm fixed-price nature provides some cost control, but the sole-source award necessitates careful monitoring of the scope of work and delivery. Transparency regarding the justification for sole-sourcing and performance metrics would be key areas for oversight.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Mobile Surveillance Platforms
Defense Equipment Maintenance and Sustainment
X-ray Detection and Imaging Technology

Risk Flags

Sole-source award
High per-month cost
Specialized technology maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to AMERICAN SCIENCE & ENGINEERING INC. DELIVER ORDER FOR 9 MONTHS OF MAINTENANCE AND SUSTAINMENT SERVICES IN SUPPORT OF Z-BACKSCATTER VANS 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2011-08-16. End: 2012-08-28.

What is the specific operational need driving the requirement for Z-Backscatter Van maintenance in Southwest Asia?

The Z-Backscatter Vans are specialized mobile surveillance platforms equipped with X-ray imaging technology designed to detect threats and contraband. Their deployment in Southwest Asia indicates a critical need for persistent, on-the-ground surveillance capabilities in operational theaters. This could include border security, force protection, or counter-insurgency operations where detailed scanning of vehicles and structures is required. The 9-month duration suggests a focused operational period or a bridge to a longer-term solution, highlighting the immediate importance of maintaining these assets for ongoing missions.

How does the $39 million cost for 9 months of maintenance compare to industry benchmarks for similar specialized vehicle sustainment?

Directly comparing this $39 million contract for 9 months of maintenance to industry benchmarks is challenging due to the highly specialized nature of Z-Backscatter Vans and their unique X-ray technology. Typical vehicle maintenance contracts might focus on mechanical systems, but this includes sustainment of complex electronic and imaging equipment. The cost per month is approximately $4.33 million. Without knowing the number of vans serviced, the specific maintenance tasks (e.g., routine vs. depot-level repairs), and the criticality of the systems, a precise benchmark is elusive. However, given the advanced technology and operational environment, the cost appears substantial, underscoring the importance of the sole-source justification and the need for rigorous oversight to ensure value.

What are the potential risks associated with a sole-source award for critical maintenance services?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or provide exceptional service. Taxpayers may not receive the best value for their money. Additionally, reliance on a single provider can create vulnerabilities if that provider experiences financial difficulties, operational disruptions, or decides to exit the market. This can lead to mission-critical equipment being left without support, potentially impacting national security operations. Ensuring robust contract management and performance monitoring becomes even more crucial in sole-source situations.

What is American Science & Engineering Inc.'s track record with government contracts, particularly for surveillance technology?

American Science & Engineering Inc. (AS&E) has a history of providing advanced X-ray detection and imaging solutions to government agencies, including defense and homeland security. Their expertise lies in developing and manufacturing systems for security screening and inspection. While specific contract details and performance reviews are often sensitive, AS&E's continued presence in this market suggests a generally positive track record in delivering specialized technology. Their focus on Z-Backscatter technology aligns directly with the services required under this contract, indicating a strong capability match.

What are the implications of the 'Irradiation Apparatus Manufacturing' NAICS code for this maintenance contract?

The North American Industry Classification System (NAICS) code 334517, 'Irradiation Apparatus Manufacturing,' is somewhat unusual for a maintenance and sustainment services contract. This code typically applies to establishments primarily engaged in manufacturing irradiation equipment. While Z-Backscatter Vans utilize X-ray technology, which involves irradiation, the contract itself is for services, not manufacturing. This discrepancy might indicate that the original procurement or the contractor's primary classification falls under manufacturing, but the current award is for operational support. It could also reflect the complexity of the technology, where manufacturing expertise is closely tied to sustainment.

How does this contract fit into the broader landscape of defense spending on surveillance and reconnaissance assets?

This contract represents a small but critical component within the vast defense budget allocated to Intelligence, Surveillance, and Reconnaissance (ISR). ISR assets are a top priority for the Department of Defense, encompassing a wide range of technologies from satellites and drones to specialized ground vehicles like the Z-Backscatter Vans. Spending in this area is driven by the need for real-time situational awareness and threat detection. While large-scale platform procurements often dominate headlines, the sustainment and maintenance of these high-value assets are equally crucial for ensuring their operational readiness and maximizing return on investment. This contract highlights the ongoing need to support deployed, specialized surveillance capabilities.

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: $39,347,687

Exercised Options: $39,347,687

Current Obligation: $39,009,186

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52H0908D0393

IDV Type: IDC

Timeline