DoD's $49.8M Theater Deployable Communications (TDC) SATCOM contract awarded to American Systems Corp
Contract Overview
Contract Amount: $49,812,643 ($49.8M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-10-31
End Date: 2022-03-31
Contract Duration: 1,247 days
Daily Burn Rate: $39.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THEATER DEPLOYABLE COMMUNICATIONS (TDC) MEDIUM SATELLITE COMMUNICATIONS (SATCOM)
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.8 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF THEATER DEPLOYABLE COMMUNICATIONS (TDC) MEDIUM SATELLITE COMMUNICATIONS (SATCOM) Key points: 1. The contract supports critical Air Force communication needs. 2. American Systems Corporation is the sole awardee. 3. The contract value is substantial, requiring careful oversight. 4. The sector involves advanced telecommunications infrastructure.
Value Assessment
Rating: good
The contract value of $49.8M over approximately 3.5 years appears reasonable for specialized SATCOM equipment and services. Benchmarking against similar large-scale deployable communication systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a delivery order under a larger contract, awarded after exclusion of sources, suggesting a specific need or existing relationship. The limited competition may impact price discovery, potentially leading to higher costs than a full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for essential defense communication capabilities. The pricing and competition method will influence the overall value for money.
Public Impact
Ensures critical communication infrastructure for Air Force operations. Supports military readiness and global deployment capabilities. Potential for technological advancements in satellite communications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Contract duration and value warrant close monitoring.
Positive Signals
- Provides essential, specialized communication capabilities.
- Supports critical national defense missions.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, specifically focusing on deployable satellite communication systems for military use. Spending in this area is crucial for maintaining global operational command and control.
Small Business Impact
The data does not indicate any specific subcontracting or set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved or could have been.
Oversight & Accountability
Given the contract's value and duration, robust oversight is necessary to ensure performance, cost control, and adherence to contract terms. Regular reviews and audits are recommended.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to limited competition.
- Risk of vendor lock-in if technology is proprietary.
- Dependence on a single contractor for critical infrastructure.
- Ensuring continued technological relevance and upgradeability.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.8 million to AMERICAN SYSTEMS CORPORATION. IGF::OT::IGF THEATER DEPLOYABLE COMMUNICATIONS (TDC) MEDIUM SATELLITE COMMUNICATIONS (SATCOM)
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 $49.8 million.
What is the period of performance?
Start: 2018-10-31. End: 2022-03-31.
What was the justification for excluding other sources in the competition?
The justification for excluding other sources is critical for understanding the procurement strategy. Typically, this involves demonstrating that only one source can meet the unique requirements, or that a previous contract's success necessitates continuation. Without this specific justification, it's difficult to fully assess if the limited competition was appropriate or if it potentially inflated costs.
How does the per-unit cost of the SATCOM equipment compare to industry benchmarks?
A detailed per-unit cost comparison against similar commercial or government SATCOM systems is essential. If the contract's unit costs are significantly higher than benchmarks, it could indicate a lack of competitive pressure or unique technical requirements driving up the price. This analysis is key to determining value for money.
What is the long-term strategic value of this specific TDC SATCOM system?
The long-term strategic value lies in its ability to provide reliable, deployable communication in diverse operational environments. Assessing its effectiveness involves evaluating its uptime, bandwidth, security features, and adaptability to evolving threats and technological advancements. Its role in supporting critical missions justifies the investment if it consistently performs.
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: 5
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: $49,812,643
Exercised Options: $49,812,643
Current Obligation: $49,812,643
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $45,690,581
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
Start Date: 2018-10-31
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2022-07-21
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