DoD awards $51.5M R&D contract for senior experts to American Systems Corp

Contract Overview

Contract Amount: $51,486,123 ($51.5M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-06-15

End Date: 2026-06-14

Contract Duration: 1,825 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER FOR THE OFFICE OF THE UNDERSECRETARY OF DEFENSE, RESEARCH AND ENGINEERING, MODERNIZATION DIRECTORATE TO PROVIDE SENIOR SUBJECT MATTER EXPERTS AND SENIOR ENGINEERS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $51.5 million to AMERICAN SYSTEMS CORPORATION for work described as: TASK ORDER FOR THE OFFICE OF THE UNDERSECRETARY OF DEFENSE, RESEARCH AND ENGINEERING, MODERNIZATION DIRECTORATE TO PROVIDE SENIOR SUBJECT MATTER EXPERTS AND SENIOR ENGINEERS. Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. American Systems Corporation is the sole awardee. 3. High value contract with a 5-year duration. 4. Potential for significant impact on defense modernization efforts.

Value Assessment

Rating: good

The contract value of $51.5M over 5 years appears reasonable for specialized senior subject matter experts and engineers. Benchmarking against similar high-level consulting or engineering services contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for specialized expertise to support defense modernization, aiming for improved technological capabilities.

Public Impact

Enhances critical research and engineering capabilities within the Department of Defense. Supports the modernization directorate's mission to advance defense technologies. Ensures access to high-level expertise for complex R&D challenges. Potential for advancements in physical, engineering, and life sciences relevant to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for technological advancement and maintaining a competitive edge, with significant government investment.

Small Business Impact

The contract does not indicate any specific set-asides for small businesses. The nature of the requirement for senior subject matter experts and engineers may favor larger, established firms.

Oversight & Accountability

The contract is managed by Washington Headquarters Services, part of the Department of Defense. Oversight will be critical to ensure the effective utilization of funds and the quality of services provided.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.5 million to AMERICAN SYSTEMS CORPORATION. TASK ORDER FOR THE OFFICE OF THE UNDERSECRETARY OF DEFENSE, RESEARCH AND ENGINEERING, MODERNIZATION DIRECTORATE TO PROVIDE SENIOR SUBJECT MATTER EXPERTS AND SENIOR ENGINEERS.

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 $51.5 million.

What is the period of performance?

Start: 2021-06-15. End: 2026-06-14.

What is the specific impact of these senior experts on the modernization directorate's key performance indicators?

The specific impact of the senior subject matter experts and engineers on the modernization directorate's key performance indicators (KPIs) is not detailed in the provided data. Further analysis would require access to the contract's statement of work and performance metrics to assess how their contributions directly influence project timelines, technological advancements, and overall modernization goals.

How does the 'exclusion of sources' in the competition method affect the overall cost-effectiveness for taxpayers?

The 'exclusion of sources' in the competition method suggests that not all potential offerors were considered, potentially limiting the pool of bidders. While the contract was awarded after some form of competition, this exclusion might have reduced the pressure on pricing, potentially leading to a higher cost for taxpayers than if a broader, unrestricted competition had been conducted.

What are the long-term implications of relying on American Systems Corporation for these critical R&D roles?

The long-term implications of relying on American Systems Corporation involve both potential benefits and risks. Benefits include continuity of expertise and established working relationships. Risks include potential contractor lock-in, reduced incentive for innovation if competition is consistently limited, and the need for ongoing vigilance to ensure performance and fair pricing over the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003420R0129

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,083,917

Exercised Options: $58,083,917

Current Obligation: $51,486,123

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $32,792,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ003421D0003

IDV Type: IDC

Timeline

Start Date: 2021-06-15

Current End Date: 2026-06-14

Potential End Date: 2026-06-14 00:00:00

Last Modified: 2025-09-03

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