DoD's $60.9M IT contract for medical information systems awarded to AMERICAN SYSTEMS CORPORATION without competition
Contract Overview
Contract Amount: $60,908,374 ($60.9M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-04
End Date: 2023-09-06
Contract Duration: 975 days
Daily Burn Rate: $62.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THEATER MEDICAL INFORMATION PROGRAM JOINT INFORMATION SYSTEMS SUSTAINMENT BRIDGE CONTRACT
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $60.9 million to AMERICAN SYSTEMS CORPORATION for work described as: THEATER MEDICAL INFORMATION PROGRAM JOINT INFORMATION SYSTEMS SUSTAINMENT BRIDGE CONTRACT Key points: 1. Significant spending on IT sustainment for a critical medical information system. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract's duration and cost-plus structure warrant close scrutiny for efficiency. 4. Focus on IT services within the defense healthcare sector.
Value Assessment
Rating: questionable
The contract's cost-plus fixed fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar IT sustainment contracts is challenging without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive environment.
Taxpayer Impact: The absence of competition for a $60.9M contract means taxpayers may not be receiving the best possible value, as market forces were not leveraged to drive down costs.
Public Impact
Ensures continued operation of vital medical information systems for military personnel. Potential for taxpayer funds to be used inefficiently due to lack of competition. Highlights reliance on specific vendors for critical IT infrastructure. Impacts the modernization and upgrade potential of defense healthcare IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Sustains critical medical information systems
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT services sector, specifically supporting defense healthcare systems. Benchmarks for IT sustainment can vary widely, but large, sole-source contracts often face scrutiny for cost-effectiveness.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could indicate a lack of focus on subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Defense Health Agency to ensure costs are reasonable and performance meets requirements. Transparency in reporting is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- No small business participation
- Potential for cost overruns
- Limited transparency on pricing justification
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.9 million to AMERICAN SYSTEMS CORPORATION. THEATER MEDICAL INFORMATION PROGRAM JOINT INFORMATION SYSTEMS SUSTAINMENT BRIDGE CONTRACT
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 Health Agency).
What is the total obligated amount?
The obligated amount is $60.9 million.
What is the period of performance?
Start: 2021-01-04. End: 2023-09-06.
What was the justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like urgency, unique capabilities, or lack of market availability. Without further details, it's unclear if alternatives were explored. A thorough review would examine the specific circumstances that precluded a competitive process to ensure taxpayer funds were managed responsibly.
How is the cost-plus fixed fee structure being managed to ensure value for money, given the lack of competition?
Managing a cost-plus fixed fee contract without competition requires stringent oversight. The agency must meticulously track all costs, ensure they are reasonable and allocable, and verify that the fixed fee remains appropriate for the effort. Performance metrics and regular audits are essential to mitigate risks of cost overruns and ensure efficient service delivery.
What is the long-term strategy for the sustainment and modernization of this medical information system, and will future procurements be competed?
The long-term strategy should outline a plan for system evolution and potential future competition. Agencies should aim to foster market competition where feasible, perhaps through phased procurements or by breaking down services into smaller, more contestable lots. This ensures ongoing innovation and cost efficiency over the system's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT003821R0004
Offers Received: 1
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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,923,148
Exercised Options: $60,908,374
Current Obligation: $60,908,374
Actual Outlays: $828,272
Subaward Activity
Number of Subawards: 111
Total Subaward Amount: $38,605,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-01-04
Current End Date: 2023-09-06
Potential End Date: 2023-10-06 00:00:00
Last Modified: 2025-09-30
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