Air Force awards $8.5M A&AS contract to American Systems Corp for OT&E support

Contract Overview

Contract Amount: $8,524,348 ($8.5M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-06-28

End Date: 2026-04-30

Contract Duration: 1,037 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADVISORY AND ASSISTANCE SERVICES FOR AIR FORCE OPERATIONAL TEST AND EVALUATION CENTER DETACHMENT 5

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93524

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to AMERICAN SYSTEMS CORPORATION for work described as: ADVISORY AND ASSISTANCE SERVICES FOR AIR FORCE OPERATIONAL TEST AND EVALUATION CENTER DETACHMENT 5 Key points: 1. Contract awarded to American Systems Corporation for advisory and assistance services. 2. Services are for the Air Force Operational Test and Evaluation Center Detachment 5. 3. The contract has a duration of 1037 days. 4. The award was made under full and open competition. 5. The contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: good

The contract value of $8.5M over approximately 2.8 years appears reasonable for specialized advisory and assistance services in a defense context. Benchmarking against similar engineering services contracts for operational test and evaluation would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: Taxpayer funds are being used for essential operational test and evaluation support, which is critical for ensuring the effectiveness of Air Force systems. Competitive bidding helps ensure value for money.

Public Impact

Supports critical Air Force operational test and evaluation functions. Ensures specialized expertise is available for complex defense systems. Contract duration extends over multiple fiscal years. Awarded to a single contractor, American Systems Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not managed tightly.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Small business participation is not indicated, potentially missing opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, promoting market fairness.
Supports a critical defense function (OT&E).
Contract value appears reasonable for the scope of services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense operational test and evaluation. Spending in this area is crucial for validating military hardware and software before deployment, with benchmarks varying widely based on system complexity and service duration.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). While full and open competition was utilized, there's no explicit mention of small business set-asides or subcontracting goals, which could represent a missed opportunity for small business engagement.

Oversight & Accountability

The Department of the Air Force is responsible for oversight of this contract. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and prevent potential overruns.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No indication of small business participation.
Limited detail on performance metrics.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to AMERICAN SYSTEMS CORPORATION. ADVISORY AND ASSISTANCE SERVICES FOR AIR FORCE OPERATIONAL TEST AND EVALUATION CENTER DETACHMENT 5

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 $8.5 million.

What is the period of performance?

Start: 2023-06-28. End: 2026-04-30.

What specific performance metrics are included in the contract to ensure the quality and effectiveness of the advisory and assistance services provided?

The provided data does not specify the performance metrics within the contract. A thorough review of the contract documentation would be necessary to identify key performance indicators (KPIs) related to the advisory and assistance services. These metrics are crucial for objectively assessing the contractor's performance and ensuring the services meet the Air Force's operational test and evaluation requirements effectively.

How does the Cost Plus Fixed Fee (CPFF) structure mitigate risks associated with potential cost overruns in this long-term advisory contract?

The CPFF structure aims to control costs by establishing a fixed fee for the contractor's effort, regardless of the actual costs incurred. However, the 'cost plus' component means the government covers allowable costs. Effective oversight, detailed cost tracking, and clear scope definition are essential to mitigate the risk of cost overruns inherent in CPFF contracts.

What is the anticipated impact of these advisory services on the overall readiness and effectiveness of Air Force operational capabilities?

These advisory and assistance services are intended to enhance the Air Force Operational Test and Evaluation Center's capabilities, directly impacting the readiness and effectiveness of operational systems. By providing expert support for testing and evaluation, the contract aims to identify and resolve issues before systems are deployed, ultimately leading to more robust and reliable military assets.

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: FA704623R0001

Offers Received: 2

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,662,356

Exercised Options: $11,934,484

Current Obligation: $8,524,348

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $124,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU343

IDV Type: IDC

Timeline