DoD awards $38.25M Engineering Services contract to AMERICAN SYSTEMS CORPORATION via full and open competition

Contract Overview

Contract Amount: $38,250,421 ($38.3M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2017-07-31

End Date: 2023-11-30

Contract Duration: 2,313 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF CEXC TSD

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF CEXC TSD Key points: 1. Contract awarded to AMERICAN SYSTEMS CORPORATION for engineering services. 2. Significant contract value of $38.25 million over its duration. 3. Procured through full and open competition, suggesting market availability. 4. Contract type is Cost Plus Fixed Fee, which can pose cost control challenges. 5. The contract spans over 6 years, indicating a long-term need.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully, as contractor incentives may not align perfectly with cost efficiency. Benchmarking CPFF contracts is challenging due to inherent cost variability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through market forces.

Public Impact

Ensures continued engineering support for Department of Defense operations. Supports a large federal agency's mission-critical functions. Potential for innovation and efficiency gains through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns.
Long contract duration (over 6 years) may not reflect current market prices.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Significant contract value suggests important services are being procured.
Contractor has a history of performance (implied by award).

Sector Analysis

This contract falls under Engineering Services, a broad category often supporting complex government projects. Spending in this sector is substantial, with benchmarks varying widely based on the specific engineering discipline and project scope.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no specific information provided regarding subcontracting opportunities for small businesses on this award.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight is crucial for CPFF contracts to manage costs and ensure delivery.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No small business participation indicated.
Lack of specific performance metrics in provided data.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to AMERICAN SYSTEMS CORPORATION. IGF::OT::IGF CEXC TSD

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2017-07-31. End: 2023-11-30.

What is the estimated total cost per year, and how does it compare to industry averages for similar engineering services?

The total award value is $38.25 million over approximately 2313 days (about 6.3 years), averaging roughly $6.05 million per year. Benchmarking this requires detailed knowledge of the specific engineering services provided, but it appears to be a substantial investment. Industry averages vary greatly, making direct comparison difficult without more granular service details.

What are the specific performance metrics and deliverables for this contract, and how are they being monitored to ensure value for money?

The provided data does not detail specific performance metrics or deliverables. For a Cost Plus Fixed Fee contract, monitoring typically involves tracking costs against the fixed fee, ensuring adherence to the scope of work, and evaluating the quality of deliverables. The DCMA's role is critical in this oversight process to ensure the government receives the intended value.

Given the CPFF structure, what mechanisms are in place to control costs and prevent potential overruns, especially over a 6-year period?

Cost control in CPFF contracts relies heavily on robust government oversight, detailed cost accounting by the contractor, and clear definition of the scope of work. The fixed fee provides some incentive for efficiency, but the government must actively monitor expenditures, review invoices, and ensure that all costs incurred are reasonable, allocable, and necessary to the contract's objectives.

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: N0002415R3584

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13990 PARKEAST CIRCLE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,675,421

Exercised Options: $40,675,421

Current Obligation: $38,250,421

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $2,479,274

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4010

IDV Type: IDC

Timeline