DoD's $56.5M Engineering Services Contract Awarded to American Systems Corp. Under Full and Open Competition
Contract Overview
Contract Amount: $56,541,797 ($56.5M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-01
End Date: 2022-02-28
Contract Duration: 2,006 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROFESSIONAL ENGINEERING SERVICES FOR THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE FOR DEVELOPMENTAL TEST AND ENGINEERING IGF::OT::IGF
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.5 million to AMERICAN SYSTEMS CORPORATION for work described as: PROFESSIONAL ENGINEERING SERVICES FOR THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE FOR DEVELOPMENTAL TEST AND ENGINEERING IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over 5 years, indicating a long-term need for these services. 3. The firm-fixed-price contract type aims to control costs by setting a predetermined price. 4. The services are for the Office of the Assistant Secretary of Defense for Developmental Test and Engineering. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The primary place of performance is Virginia, a common hub for defense contracting.
Value Assessment
Rating: good
The contract value of $56.5 million over approximately 5 years represents a significant investment in engineering support for a critical defense function. Benchmarking this against similar large-scale engineering services contracts within the Department of Defense is challenging without more specific service details. However, the firm-fixed-price structure suggests an effort to manage cost predictability. The award to a single entity, American Systems Corporation, indicates they were deemed the best value under the competitive process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates one award, but the initial solicitation likely attracted multiple proposals. Full and open competition is generally expected to yield competitive pricing and ensure the government receives the best value by allowing a wide range of contractors to compete.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the chosen contractor was selected through a transparent and inclusive process, minimizing the risk of inflated costs due to limited competition.
Public Impact
The Office of the Assistant Secretary of Defense for Developmental Test and Engineering benefits from specialized engineering expertise. Services delivered likely support critical testing and evaluation of defense systems and technologies. The geographic impact is primarily in Virginia, where the performance is located. The contract supports a firm-fixed-price model, potentially stabilizing costs for the DoD. This contract contributes to the overall readiness and technological advancement of the U.S. military.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'engineering services' is not tightly managed.
- Reliance on a single contractor for a significant period could pose risks if performance issues arise.
- The long duration might not fully capture the most current technological advancements if not managed proactively.
Positive Signals
- Awarded under full and open competition, indicating a robust selection process.
- Firm-fixed-price contract type provides cost certainty for the government.
- The contractor, American Systems Corporation, has a track record in government contracting.
- The contract supports a critical defense function related to testing and engineering.
Sector Analysis
This contract falls within the Engineering Services sector, a vital component of the broader professional, scientific, and technical services industry supporting government operations. The market for defense engineering services is substantial, driven by the continuous need for research, development, testing, and evaluation of advanced military technologies. Spending in this area is often characterized by long-term contracts and specialized expertise, with significant government investment aimed at maintaining technological superiority.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, American Systems Corporation, may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, though this is not mandated by the contract terms.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's established procurement and contract management regulations. The Washington Headquarters Services (WHS) as the servicing agency, along with the contracting officer's representative (COR) within the Office of the Assistant Secretary of Defense for Developmental Test and Engineering, would be responsible for monitoring performance, ensuring compliance, and managing deliverables. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Defense Engineering Services
- Test and Evaluation Support
- Professional, Scientific, and Technical Services
- Department of Defense Acquisition Programs
Risk Flags
- Long-term contract duration may require proactive management to ensure continued relevance and adaptation to evolving technologies.
- Firm-fixed-price contracts can sometimes lead to less flexibility if unforeseen technical challenges arise that require scope adjustments.
Tags
defense, engineering-services, professional-services, department-of-defense, washington-headquarters-services, full-and-open-competition, firm-fixed-price, delivery-order, virginia, test-and-evaluation, american-systems-corporation, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.5 million to AMERICAN SYSTEMS CORPORATION. PROFESSIONAL ENGINEERING SERVICES FOR THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE FOR DEVELOPMENTAL TEST AND ENGINEERING IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is AMERICAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $56.5 million.
What is the period of performance?
Start: 2016-09-01. End: 2022-02-28.
What is the specific nature of the 'Professional Engineering Services' provided under this contract?
The contract, identified by the description 'PROFESSIONAL ENGINEERING SERVICES FOR THE OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE FOR DEVELOPMENTAL TEST AND ENGINEERING IGF::OT::IGF', suggests services related to the technical and engineering support required for developmental testing and engineering within the DoD. This could encompass a wide range of activities, including but not limited to, systems engineering, test planning and execution, data analysis, technical documentation, and advisory services related to the development and evaluation of defense systems. The exact scope would be detailed in the contract's statement of work (SOW), which is not provided here. These services are crucial for ensuring that new defense technologies and systems meet performance requirements and are ready for deployment.
How does the $56.5 million contract value compare to similar engineering services contracts within the DoD?
The $56.5 million value for a contract spanning approximately five years (September 2016 to February 2022) is substantial but falls within the typical range for large-scale engineering support contracts within the Department of Defense. DoD frequently awards contracts in the tens to hundreds of millions of dollars for specialized engineering, research, and technical services, especially those supporting critical development and testing functions. Without specific details on the scope of work and the specific sub-sector of engineering, a precise comparison is difficult. However, given the duration and the nature of supporting developmental test and engineering, this value appears commensurate with the complexity and importance of the services rendered to a major federal agency.
What are the key performance indicators (KPIs) or metrics used to evaluate American Systems Corporation's performance on this contract?
The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate American Systems Corporation's performance. Typically, for engineering services contracts, performance is assessed based on factors such as adherence to the statement of work (SOW), quality of deliverables, timeliness of service provision, cost control (especially relevant for cost-plus contracts, though this is firm-fixed-price), and responsiveness to government requests. The contracting officer's representative (COR) would monitor these aspects throughout the contract period. Performance evaluations are often documented in Contractor Performance Assessment Reporting System (CPARS) reports, which are crucial for future contract awards.
What is the historical spending trend for engineering services related to developmental test and engineering within the DoD?
Analyzing the historical spending trend for engineering services specifically for developmental test and engineering within the DoD requires access to comprehensive historical contract data beyond this single award. However, it is generally understood that spending in this area is consistently high and often increases with advancements in technology and evolving geopolitical landscapes. The DoD's budget allocates significant resources to R&D, testing, and evaluation to maintain a technological edge. Contracts like this one, supporting critical testing functions, are a recurring necessity. Trends would likely show a steady or increasing demand for such specialized engineering expertise over the years, reflecting the continuous cycle of defense system development and modernization.
What is the potential impact of this contract on the broader defense engineering services market?
This contract, valued at $56.5 million and awarded to American Systems Corporation, represents a significant procurement within the defense engineering services market. Its award under full and open competition suggests a healthy competitive environment for such services. The duration of the contract (over 5 years) indicates a stable, long-term demand for specialized engineering expertise in developmental test and engineering. This can influence market dynamics by providing a substantial revenue stream for the prime contractor and potentially creating opportunities for subcontractors. It also signals to other firms in the sector the types of capabilities and contract vehicles that are valued by the DoD, potentially shaping their strategic focus and investment in R&D and talent acquisition.
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: HQ003416R0135
Offers Received: 1
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: $56,541,797
Exercised Options: $56,541,797
Current Obligation: $56,541,797
Actual Outlays: $2,562,698
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $11,839,529
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
Start Date: 2016-09-01
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2024-10-21
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