DoD's $216M ASTROS contract to ASRC Federal System Solutions shows strong performance signals despite research focus
Contract Overview
Contract Amount: $216,068,228 ($216.1M)
Contractor: Asrc Federal System Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2016-06-30
End Date: 2027-08-31
Contract Duration: 4,079 days
Daily Burn Rate: $53.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: IGF::OT::IGF AEROSPACE SYSTEMS TECHNICAL REASEARCH AND OPERATIONS SUPPORT SERVICES (ASTROS)
Place of Performance
Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $216.1 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC for work described as: IGF::OT::IGF AEROSPACE SYSTEMS TECHNICAL REASEARCH AND OPERATIONS SUPPORT SERVICES (ASTROS) Key points: 1. The contract demonstrates a commitment to long-term research and development support, indicating a strategic investment in future capabilities. 2. ASRC Federal System Solutions has a solid track record, suggesting reliability and expertise in delivering complex technical research services. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance, aligning contractor efforts with government objectives. 4. While specific value-for-money metrics are not detailed, the extended duration and consistent funding suggest perceived value by the agency. 5. The contract's focus on R&D in physical, engineering, and life sciences positions it within a critical sector for national security and innovation. 6. The definitive contract type provides flexibility for evolving research needs over its significant lifespan.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging due to its specialized R&D nature and the absence of directly comparable public data. However, the sustained funding over several years and the Cost Plus Award Fee (CPAF) structure suggest the Department of Defense perceives good value. The CPAF mechanism allows for performance-based incentives, which can drive efficiency and effectiveness, potentially leading to better outcomes than fixed-price contracts in a research environment where scope can be uncertain. The total award value of over $216 million spread across its duration indicates a significant, ongoing investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a competitive environment, though the specific details of the bidding process and the nature of the proposals are not publicly available. Full and open competition is generally expected to yield competitive pricing and innovative solutions by allowing a wide range of contractors to participate.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to better pricing and a wider array of technical solutions, maximizing the value of federal investments.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, which receive advanced research and technical support critical for maintaining technological superiority. Services delivered include research and development in physical, engineering, and life sciences, contributing to advancements in defense technology and operational capabilities. The contract's impact is primarily national, supporting defense initiatives and potentially leading to innovations with broader civilian applications. Workforce implications include the employment of highly skilled scientists, engineers, and technical personnel within ASRC Federal System Solutions and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Award Fee (CPAF) structure, while incentivizing, can sometimes lead to cost overruns if not managed rigorously, as the government bears the cost of performance.
- Research and Development contracts inherently carry a higher degree of uncertainty regarding outcomes and timelines, posing a risk to achieving specific objectives within budget.
- The long duration of the contract (over 10 years from award to projected end date) increases the risk of scope creep or misalignment with evolving technological needs.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
- The Cost Plus Award Fee (CPAF) structure is designed to reward high performance, indicating a focus on achieving quality outcomes.
- ASRC Federal System Solutions is a known entity in government contracting, implying a level of established capability and reliability.
- The contract supports critical R&D in physical, engineering, and life sciences, aligning with strategic national interests and technological advancement.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. This is a broad category encompassing fundamental and applied research aimed at advancing scientific knowledge and developing new technologies. The market for such services is characterized by highly specialized expertise, significant investment in intellectual capital, and often long development cycles. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D projects, but the Department of Defense is a major investor in this sector to maintain technological superiority.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The primary contractor, ASRC Federal System Solutions, is a large business. While there are no direct set-asides, large federal contracts often include subcontracting goals. The extent to which ASRC Federal System Solutions will utilize small businesses for subcontracting opportunities is not detailed in the provided data, but it is a common practice to ensure small business participation in the federal contracting ecosystem.
Oversight & Accountability
Oversight for this contract is primarily managed by the Department of the Air Force, which is responsible for monitoring performance, costs, and adherence to contract terms. The Cost Plus Award Fee (CPAF) structure necessitates close oversight to ensure that award fees are justified by performance metrics. Transparency is facilitated through contract reporting mechanisms, though detailed performance data and specific oversight activities are typically not made public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Science and Technology Investments
- Advanced Technology Development Contracts
- Engineering and Technical Support Services
- Federal R&D Spending
Risk Flags
- Long contract duration increases risk of technological obsolescence and scope creep.
- Cost Plus Award Fee structure requires diligent oversight to manage costs effectively.
- R&D contracts inherently involve uncertainty in outcomes and timelines.
Tags
department-of-defense, department-of-the-air-force, research-and-development, definitive-contract, full-and-open-competition, cost-plus-award-fee, large-contract, technical-services, maryland, asrc-federal-system-solutions
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $216.1 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC. IGF::OT::IGF AEROSPACE SYSTEMS TECHNICAL REASEARCH AND OPERATIONS SUPPORT SERVICES (ASTROS)
Who is the contractor on this award?
The obligated recipient is ASRC FEDERAL SYSTEM SOLUTIONS LLC.
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 $216.1 million.
What is the period of performance?
Start: 2016-06-30. End: 2027-08-31.
What is the historical spending trend for the ASTROS contract since its inception?
The ASTROS contract, awarded on June 30, 2016, has a projected end date of August 31, 2027, with a total estimated value of $216,068,227.64. The contract duration is 4079 days. While specific annual spending figures are not provided, the sustained funding over its multi-year lifespan suggests consistent allocation of resources towards its research and development objectives. The contract's value indicates a significant and ongoing commitment from the Department of the Air Force to the services provided by ASRC Federal System Solutions. Further analysis would require access to detailed disbursement data to understand the year-over-year spending patterns and any fluctuations.
How does the pricing structure (Cost Plus Award Fee) compare to other R&D contracts of similar scope?
Cost Plus Award Fee (CPAF) contracts are common in research and development environments where the scope of work can be uncertain and performance outcomes are critical. This structure allows the government to reimburse the contractor for allowable costs plus a fee that is adjusted based on performance against pre-defined metrics. Compared to fixed-price contracts, CPAF offers more flexibility for evolving R&D needs but requires robust government oversight to manage costs effectively. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) or Cost Plus Fixed Fee (CPFF) structures, each with different incentive mechanisms and risk allocations. The choice of CPAF suggests a strong emphasis on achieving specific performance targets and quality outcomes in this particular R&D effort.
What are the key performance indicators (KPIs) used to determine award fees for ASRC Federal System Solutions under this contract?
The specific Key Performance Indicators (KPIs) used to determine award fees for ASRC Federal System Solutions under the ASTROS contract are not publicly disclosed in the provided data. However, for Cost Plus Award Fee (CPAF) contracts, these KPIs typically relate to factors such as technical performance, schedule adherence, cost control, management effectiveness, and overall customer satisfaction. The Department of the Air Force would have established these metrics prior to contract award, and they would be tailored to the specific research and development objectives of the ASTROS program. Regular performance reviews would assess the contractor's achievement against these KPIs, informing the final award fee determination.
What is the track record of ASRC Federal System Solutions with similar Department of Defense R&D contracts?
ASRC Federal System Solutions is a significant government contractor with a substantial portfolio of work across various federal agencies, including the Department of Defense (DoD). While specific details on all their R&D contracts are not provided, their continued success in securing and performing on large, complex contracts like ASTROS suggests a strong track record. Companies like ASRC Federal typically demonstrate expertise in areas such as systems engineering, research, development, testing, and sustainment. Their ability to win and execute a contract valued at over $216 million for R&D services indicates a proven capability to meet the demanding requirements of DoD research initiatives and manage complex projects effectively.
Are there any identified risks associated with the long duration of this contract (over 10 years)?
Yes, the long duration of this contract, spanning from 2016 to a projected 2027, presents several potential risks. Firstly, technological obsolescence is a significant concern; research priorities and the technological landscape can change rapidly over a decade, potentially making the original objectives or methodologies outdated. Secondly, scope creep is a risk, as evolving requirements might lead to expansions of the contract's scope, potentially increasing costs and extending timelines beyond initial projections. Thirdly, maintaining consistent contractor performance and institutional knowledge over such an extended period can be challenging. Finally, the longer the contract, the greater the potential for misalignment with future strategic goals of the Department of the Air Force if not actively managed and reviewed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA930015R0001
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $279,809,692
Exercised Options: $276,503,407
Current Obligation: $216,068,228
Actual Outlays: $11,868,612
Subaward Activity
Number of Subawards: 217
Total Subaward Amount: $34,861,762
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-30
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-02-12
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