DoD awards $74.4M for Emergency Mass Notification System, exceeding initial estimates

Contract Overview

Contract Amount: $74,433,661 ($74.4M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2017-12-21

End Date: 2024-11-20

Contract Duration: 2,526 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EMERGENCY MASS NOTIFICATION SYSTEM TASK ORDER AWARD

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $74.4 million to AMERICAN SYSTEMS CORPORATION for work described as: EMERGENCY MASS NOTIFICATION SYSTEM TASK ORDER AWARD Key points: 1. Value appears fair given the long duration and scope of the task order. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of over 6 years presents potential for scope creep and cost overruns. 4. This contract supports critical communication infrastructure for the Air Force. 5. The contractor has a history of performing on similar government contracts. 6. Spending on this system is a small fraction of the overall DoD IT budget.

Value Assessment

Rating: good

The total award amount of $74.4 million over approximately 7 years (2526 days) suggests a moderate annual spend. Benchmarking against similar mass notification systems is challenging without more granular data on system features and user base size. However, the firm-fixed-price structure provides cost certainty for the government. The contractor, AMERICAN SYSTEMS CORPORATION, has a track record with the government, which can sometimes lead to more predictable performance and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been limited, the final award was made through a broad competitive process. The presence of 4 bids (no: 4) suggests a healthy level of competition, which typically drives down prices and encourages innovation. This approach aims to ensure the government receives the best value by considering multiple qualified offerors.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are Department of Defense personnel and potentially their families, ensuring timely communication during emergencies. The system delivered is a critical mass notification capability for the Air Force. The geographic impact is likely focused on Air Force installations where the system is deployed. Workforce implications include the need for trained personnel to manage and operate the system, as well as potential support roles for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 6 years) increases risk of technology obsolescence and potential for cost increases if not managed tightly.
Reliance on a single task order for a critical system could pose a risk if the contractor faces performance issues.
The specific details of the 'Exclusion of Sources' in the competition are not fully detailed, warranting further review for potential limitations.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor has prior experience with government contracts, suggesting familiarity with requirements.
The system supports a critical function: emergency mass notification.

Sector Analysis

The Emergency Mass Notification System falls within the broader telecommunications and IT services sector. This sector is characterized by rapid technological advancements and a constant need for secure and reliable communication solutions. The market size for such systems is substantial, driven by government and enterprise needs for business continuity and emergency preparedness. This contract represents a significant investment in maintaining and upgrading critical communication infrastructure within the defense sector.

Small Business Impact

There is no explicit indication of small business set-asides (ss: false, sb: false) for this specific task order. The contract was awarded to AMERICAN SYSTEMS CORPORATION, a large business. Subcontracting opportunities for small businesses may exist within the performance of this contract, but they are not detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on whether the prime contractor utilizes small business partners.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. As a task order under a larger contract vehicle, it inherits the oversight mechanisms of that vehicle. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Emergency Communications Systems
Air Force IT Infrastructure Modernization
Mass Notification Solutions
Wired Telecommunications Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for scope creep over the 7-year period.
Dependence on a single contractor for a critical system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.4 million to AMERICAN SYSTEMS CORPORATION. EMERGENCY MASS NOTIFICATION SYSTEM TASK ORDER AWARD

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 $74.4 million.

What is the period of performance?

Start: 2017-12-21. End: 2024-11-20.

What is the historical spending trend for Emergency Mass Notification Systems within the Department of Defense?

Analyzing historical spending on Emergency Mass Notification Systems within the DoD requires accessing and aggregating data across multiple contract vehicles and agencies over several fiscal years. While this specific task order represents a $74.4 million award, understanding the broader trend involves looking at the total obligated amounts for similar services. Factors influencing spending include evolving threats, technological advancements in notification capabilities (e.g., integration with mobile devices, social media), and the number of installations requiring such systems. Without a comprehensive dataset, it's difficult to pinpoint a precise trend, but the consistent need for reliable emergency communication suggests sustained, if not increasing, investment in this area.

How does the per-unit cost of this Emergency Mass Notification System compare to industry benchmarks?

Determining a precise per-unit cost benchmark for this Emergency Mass Notification System is challenging without detailed information on the system's architecture, features, user capacity, and the specific services included (e.g., software licenses, hardware, maintenance, training). The total award of $74.4 million over approximately seven years averages to roughly $10.6 million annually. If this system serves a large number of users across multiple bases, the per-user cost might be competitive. However, if it's for a smaller, more localized deployment, it could be on the higher side. Industry benchmarks often vary widely based on the vendor, technology (e.g., SMS-based, app-based, voice-based), and the scale of deployment. A more detailed analysis would require comparing the system's specifications and pricing structure against publicly available data for similar government or commercial contracts.

What are the key performance indicators (KPIs) used to evaluate the success of this Emergency Mass Notification System contract?

Key performance indicators for an Emergency Mass Notification System contract typically focus on reliability, speed of message delivery, reachability, and user satisfaction. Specific KPIs might include: message delivery success rate (e.g., percentage of messages successfully sent and received within a target timeframe), system uptime and availability (e.g., 99.9% uptime), response time for initiating alerts, accuracy of contact information management, and the number of distinct communication channels supported (e.g., SMS, email, voice calls, app notifications). User feedback surveys and post-incident reviews would also contribute to assessing performance. The firm-fixed-price nature of the contract implies that the contractor is incentivized to meet these performance standards to receive full payment.

What is AMERICAN SYSTEMS CORPORATION's track record with similar large-scale notification or communication system contracts?

AMERICAN SYSTEMS CORPORATION has a significant history of performing on government contracts, including those related to command, control, communications, computers, and intelligence (C4I) systems. While specific details on past mass notification system contracts of this exact scale are not immediately available in the provided data, their broader experience suggests a capability to manage complex IT and communication projects for agencies like the Department of Defense. Their contract history indicates they have experience with various contract types and agencies, which is a positive indicator for managing this task order. Further due diligence would involve reviewing their past performance evaluations and any publicly available project portfolios related to communication systems.

Are there any identified risks associated with the long duration of this contract (over 6 years)?

Yes, the contract duration of approximately 7 years (2526 days) presents several potential risks. Firstly, technological obsolescence is a significant concern; communication technologies evolve rapidly, and a system implemented today might be outdated before the contract ends. Secondly, the long duration increases the risk of scope creep, where requirements may change or expand over time, potentially leading to cost overruns if not managed strictly. Thirdly, maintaining consistent performance and contractor engagement over such an extended period can be challenging. Finally, market conditions and pricing for components or services could fluctuate, impacting the initial cost assumptions. Mitigation strategies include robust contract management, regular reviews of technological advancements, and clear change control processes.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $125,193,626

Exercised Options: $74,434,921

Current Obligation: $74,433,661

Actual Outlays: $4,118,204

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $111,939,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA873214D0019

IDV Type: IDC

Timeline