DoD's $75M R&D contract with American Systems Corp. for program engagement and technical assessments

Contract Overview

Contract Amount: $75,063,687 ($75.1M)

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: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROGRAM ENGAGEMENT AND INDEPENDENT TECHNICAL ASSESSMENTS

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 $75.1 million to AMERICAN SYSTEMS CORPORATION for work described as: PROGRAM ENGAGEMENT AND INDEPENDENT TECHNICAL ASSESSMENTS Key points: 1. Contract focuses on critical program engagement and independent technical assessments, vital for effective defense operations. 2. The chosen contractor, American Systems Corporation, has a history of providing technical and management support to government agencies. 3. This contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting a need for ongoing, flexible support. 4. The contract's duration of approximately four years indicates a long-term requirement for these specialized services. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to highly specialized technical work. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while ensuring contractor effort.

Value Assessment

Rating: good

Benchmarking the value of this specific $75M contract is challenging without direct comparisons to similar independent technical assessment contracts. However, the CPFF contract type suggests a negotiated fee structure. The total award amount over nearly four years implies a significant investment in specialized expertise. Further analysis would require comparing the contractor's proposed labor rates and overhead to industry standards for R&D support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, potentially due to specific qualifications or existing relationships. The presence of two bidders suggests a degree of competition, but the exclusion of other potential sources may limit the full benefits of open competition.

Taxpayer Impact: The limited competition, even after an initial open process, may result in less aggressive pricing than a truly full and open competition with multiple bidders.

Public Impact

The Department of Defense benefits from enhanced program oversight and technical validation, leading to more effective resource allocation and program success. Services delivered include independent technical assessments and program engagement, crucial for evaluating the feasibility and performance of defense initiatives. The geographic impact is primarily within the Washington D.C. area, where the contract is managed by Washington Headquarters Services. The contract supports a highly skilled workforce of technical experts and program analysts, contributing to the specialized capabilities within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
The 'Cost Plus Fixed Fee' structure requires careful monitoring to ensure cost efficiency.
Exclusion of sources, even if justified, reduces the pool of potential competitors.

Positive Signals

Contract awarded to American Systems Corporation, a known entity in government contracting.
The contract duration suggests a stable, long-term need for these critical services.
Focus on independent technical assessments can improve program outcomes and reduce risks.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for independent technical assessments and program support within the defense industry is substantial, driven by the complexity and high stakes of military programs. Comparable spending benchmarks would involve analyzing other large R&D support contracts awarded by the DoD and other federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, American Systems Corporation, may engage small businesses as subcontractors, depending on the specific technical requirements and their subcontracting plans.

Oversight & Accountability

Oversight for this contract is likely managed by the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures would be embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

Department of Defense Research and Development Programs
Program Management Support Services
Independent Technical Assessment Contracts
Defense Acquisition Support

Risk Flags

Cost Overruns Risk
Limited Competition Impact
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.1 million to AMERICAN SYSTEMS CORPORATION. PROGRAM ENGAGEMENT AND INDEPENDENT TECHNICAL ASSESSMENTS

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 $75.1 million.

What is the period of performance?

Start: 2022-03-01. End: 2026-02-28.

What is the track record of American Systems Corporation in delivering similar R&D support services to the DoD?

American Systems Corporation has a documented history of providing a wide range of technical, engineering, and management support services to various U.S. government agencies, including the Department of Defense. Their expertise often spans areas such as systems engineering, test and evaluation, training, and IT support. For R&D-focused contracts, they typically leverage their technical staff to provide analysis, assessment, and integration support. While specific performance details for this exact contract are not publicly detailed, their established presence and contract awards suggest a capacity to meet the requirements for program engagement and independent technical assessments within the physical, engineering, and life sciences domains.

How does the $75M award value compare to similar R&D technical assessment contracts within the DoD?

Comparing the $75M award value for this specific contract requires access to detailed data on similar contracts, which is often proprietary or aggregated. However, R&D support services for major defense programs can range from tens of millions to hundreds of millions of dollars over their lifecycle. Given the duration of approximately four years and the specialized nature of independent technical assessments, $75M appears to be a substantial but not unusually high figure for a contract of this scope within the DoD. Factors influencing this value include the complexity of the programs being assessed, the level of expertise required, and the number of personnel involved.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks associated with a CPFF contract for R&D services revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. If not managed diligently, there's a risk that costs could escalate beyond initial expectations, potentially leading to the government paying more than anticipated. The contractor's incentive is to perform the work diligently to earn the fixed fee, but the risk of cost overruns still rests with the government. Robust oversight, clear definition of allowable costs, and regular audits are crucial to mitigate these risks.

How effective are independent technical assessments in improving the success rate of DoD R&D programs?

Independent technical assessments are designed to provide objective evaluations of R&D programs, identifying potential technical challenges, risks, and areas for improvement early in the development lifecycle. Their effectiveness lies in providing unbiased insights that program managers might overlook due to internal pressures or perspectives. By validating technical approaches, assessing system readiness, and ensuring alignment with requirements, these assessments can significantly improve decision-making, reduce costly rework, and ultimately increase the probability of program success. However, their effectiveness is contingent on the quality of the assessment team, the clarity of the assessment criteria, and the willingness of program leadership to act on the findings.

What is the historical spending pattern for program engagement and technical assessment services by the DoD?

The Department of Defense consistently allocates significant funding towards program engagement and technical assessment services, recognizing their critical role in managing complex acquisition programs. Historical spending patterns show a steady demand for these services across various defense branches and agencies. This spending is often tied to major acquisition programs, system upgrades, and research initiatives. The total annual expenditure can fluctuate based on the number and scale of programs undergoing review, but it generally represents a substantial portion of the overall R&D and acquisition budgets, reflecting the ongoing need for expert validation and oversight.

What does the NAICS code '541715' signify in terms of the type of work performed under this contract?

The North American Industry Classification System (NAICS) code '541715' specifically designates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This classification indicates that the work performed under this contract involves scientific inquiry and experimentation aimed at discovering or creating new knowledge and applications in these broad scientific and technical fields. It suggests that American Systems Corporation is expected to provide highly specialized technical expertise, conduct analyses, perform tests, and offer insights related to the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, aerospace), and life sciences (e.g., biology, medicine, environmental science), excluding the more specialized areas of nanotechnology and biotechnology.

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: 2

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: $125,821,291

Exercised Options: $89,078,914

Current Obligation: $75,063,687

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $50,300,969

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