AMERICAN SYSTEMS CORPORATION awarded $36M for R&D services, with a 3-year duration
Contract Overview
Contract Amount: $36,082,241 ($36.1M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2026-02-28
Contract Duration: 1,460 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TECHNICAL AND ENGINEERING SERVICES
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.1 million to AMERICAN SYSTEMS CORPORATION for work described as: TECHNICAL AND ENGINEERING SERVICES Key points: 1. Contract value appears reasonable given the 3-year term and specialized R&D focus. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is R&D in physical, engineering, and life sciences. 5. This contract falls within the broader R&D sector for the Department of Defense.
Value Assessment
Rating: good
The contract value of $36 million over three years for R&D services suggests a moderate annual spend. Benchmarking against similar R&D contracts within the Department of Defense would provide a clearer picture of value for money. The firm fixed-price contract type generally indicates that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion. This suggests a robust competitive process was intended. The presence of multiple bidders typically leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovation among offerors.
Public Impact
Benefits the Department of Defense by providing essential research and development capabilities. Services delivered are focused on physical, engineering, and life sciences research. Geographic impact is primarily centered around the agency's headquarters in Washington D.C. and potentially Virginia. Workforce implications include specialized technical and scientific roles within AMERICAN SYSTEMS CORPORATION.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Firm fixed-price contract type aligns incentives for cost control.
- Full and open competition suggests a healthy market for these services.
- Contract duration of 3 years allows for sustained R&D efforts.
Sector Analysis
This contract operates within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation. The North American Industry Classification System (NAICS) code 541715 categorizes firms engaged in R&D across various scientific disciplines. Spending in this sector is often characterized by long-term investments and the pursuit of technological advancements.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses through set-asides is not applicable. However, AMERICAN SYSTEMS CORPORATION may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified R&D outcomes within budget. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Department of Defense Research and Development Contracts
- Scientific and Technical Services
- Engineering Services
- Physical Sciences Research
- Life Sciences Research
Tags
research-and-development, department-of-defense, american-systems-corporation, firm-fixed-price, full-and-open-competition, washington-headquarters-services, physical-sciences, engineering-services, life-sciences, federal-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.1 million to AMERICAN SYSTEMS CORPORATION. TECHNICAL AND ENGINEERING SERVICES
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 $36.1 million.
What is the period of performance?
Start: 2022-03-01. End: 2026-02-28.
What is the track record of AMERICAN SYSTEMS CORPORATION with the Department of Defense?
AMERICAN SYSTEMS CORPORATION has a history of performing contracts with the Department of Defense. While specific details of past performance are not provided here, their ability to secure a $36 million R&D contract suggests a demonstrated capability and a positive past performance record with the agency. Further investigation into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment. Agencies often rely on past performance as a key evaluation factor in competitive procurements, indicating that their previous work likely met or exceeded expectations.
How does the value of this contract compare to similar R&D contracts in the physical, engineering, and life sciences sector?
The $36 million contract value over three years for R&D services in physical, engineering, and life sciences is a significant award. To benchmark its value, one would compare it to other contracts with similar scope, duration, and complexity awarded by the Department of Defense or other federal agencies. Factors such as the specific research areas, required expertise, and deliverables influence pricing. Without access to a broader dataset of comparable contracts, it's difficult to definitively state if this represents exceptional value. However, the firm fixed-price nature and competitive award suggest an effort to secure cost-effective solutions.
What are the primary risks associated with this type of R&D contract?
The primary risks associated with R&D contracts, even firm fixed-price ones, often revolve around the inherent uncertainty of research outcomes. Technical risks include the possibility that the research may not yield the desired results or that unforeseen technical challenges arise. Schedule risks can occur if research progresses slower than anticipated, impacting subsequent phases or program timelines. Cost risks, while mitigated by the FFP structure, can still emerge if the scope of work expands significantly or if initial estimates were inaccurate, potentially leading to contract modifications. Contractor performance risk also exists, where the contractor may not possess the necessary expertise or resources to successfully complete the research.
How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific needs. By initially excluding certain sources, the agency might be targeting specific capabilities or technologies. However, the subsequent 'full and open' aspect means that all responsible sources meeting the criteria can compete. This approach can be effective in ensuring value if the exclusion criteria are justified and do not unduly limit competition. When multiple bidders participate, it fosters price discovery and encourages innovation, leading to better deals for taxpayers. The key is ensuring the exclusion criteria are narrowly tailored and do not stifle necessary competition.
What is the historical spending trend for R&D services by the Washington Headquarters Services (WHS)?
Analyzing the historical spending trends for R&D services by the Washington Headquarters Services (WHS) is crucial for context. Without specific historical data for WHS's R&D expenditures, a direct comparison is not possible. However, federal R&D spending, particularly within the Department of Defense, is generally substantial and fluctuates based on strategic priorities and budget allocations. WHS, as an entity supporting the Office of the Secretary of Defense, likely directs significant resources towards R&D that aligns with national security objectives. Understanding WHS's specific R&D budget history would reveal patterns of investment and potential areas of focus over time.
Are there any specific performance metrics or deliverables tied to this contract that indicate success?
The provided data does not detail specific performance metrics or deliverables for this R&D contract. Typically, R&D contracts will outline key milestones, technical reports, prototypes, or demonstrations that serve as indicators of progress and success. The firm fixed-price nature implies that the contractor is obligated to achieve certain defined outcomes. The effectiveness of the contract in delivering value will depend on how well these metrics are defined, monitored, and evaluated by the Washington Headquarters Services. A thorough review of the contract's Statement of Work (SOW) would be necessary to identify these specific success criteria.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General 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: 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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,657,443
Exercised Options: $41,105,600
Current Obligation: $36,082,241
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $24,506,659
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: 2022-03-01
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-12-11
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