DoD's $21.5M contract for OCONUS FSR Support and Training awarded to American Science & Engineering Inc. without competition

Contract Overview

Contract Amount: $21,473,668 ($21.5M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-27

End Date: 2013-05-26

Contract Duration: 972 days

Daily Burn Rate: $22.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OCONUS FSR SUPPORT AND TRAINING

Place of Performance

Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: OCONUS FSR SUPPORT AND TRAINING Key points: 1. The contract's value of $21.5 million for support and training services warrants scrutiny due to the lack of competitive bidding. 2. Awarding this contract on a sole-source basis raises concerns about potential overpricing and limited market exploration. 3. The duration of the contract (972 days) suggests a significant, long-term need for these specialized services. 4. The specific nature of 'OCONUS FSR Support and Training' implies critical operational requirements in overseas locations. 5. The absence of small business participation is noted, with no set-aside or subcontracting requirements indicated. 6. The contract type (Firm Fixed Price) aims to control costs, but the lack of competition limits benchmarking opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this $21.5 million contract is challenging due to its sole-source nature and the specific, potentially niche, nature of 'OCONUS FSR Support and Training'. Without competitive bids, it's difficult to ascertain if the price reflects fair market value or if alternative, more cost-effective solutions were overlooked. The firm fixed-price contract type suggests an attempt to cap costs, but the lack of competition prevents a robust comparison against similar services in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, American Science & Engineering Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price discovery through market forces, potentially leading to higher costs for the government and taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing and innovation by excluding potential competitors. Taxpayers may bear a higher cost for these services than if a competitive process had been employed.

Public Impact

The primary beneficiaries are likely Department of Defense personnel operating in overseas locations (OCONUS) who require Field Service Representative (FSR) support and training. The services delivered are critical for maintaining operational readiness and effectiveness of equipment or systems used by the military abroad. The geographic impact is focused on OCONUS locations, implying support for deployed forces and potentially allied nations. Workforce implications could include the need for specialized technical personnel provided by the contractor to support military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced value for money.
Sole-source awards can limit innovation by not exploring solutions from a wider range of vendors.
The specific nature of 'FSR Support and Training' might indicate a reliance on a single provider's unique capabilities, raising long-term dependency risks.
The contract's duration and value suggest a significant commitment without a clear competitive justification.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, assuming the initial price was reasonable.
Awarding to a known entity, American Science & Engineering Inc., might suggest a history of satisfactory performance, though this is not explicitly stated.
The contract addresses a specific need for overseas support, indicating a focus on critical operational requirements.

Sector Analysis

The contract falls within the broader defense services sector, specifically focusing on specialized technical support and training for overseas operations. The market for such services can be niche, often requiring contractors with specific clearances, expertise, and the ability to operate in challenging environments. While precise benchmarks for 'OCONUS FSR Support and Training' are difficult to isolate, overall defense contracting spending is substantial, with significant portions allocated to services and support functions.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. There is no information suggesting subcontracting opportunities for small businesses. This means the full value of the contract was awarded directly to the prime contractor, American Science & Engineering Inc., with no explicit mechanism to ensure small business participation or benefit.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by 'sa': 'Defense Contract Management Agency'. Accountability measures would be tied to the contract's performance clauses and the firm fixed-price structure. Transparency is limited due to the sole-source nature of the award, making it harder for the public to scrutinize the value proposition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency Support Contracts
Foreign Military Sales Support
Expeditionary Support Services
Technical Training and Services Contracts
Department of Defense OCONUS Operations Support

Risk Flags

Sole-source award without clear justification
Potential mismatch between NAICS code and contract description
Lack of small business participation
Limited transparency on value for money due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to AMERICAN SCIENCE & ENGINEERING INC. OCONUS FSR SUPPORT AND TRAINING

Who is the contractor on this award?

The obligated recipient is AMERICAN SCIENCE & ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2010-09-27. End: 2013-05-26.

What is the specific nature of the 'OCONUS FSR Support and Training' provided under this contract, and why was it deemed necessary to award it on a sole-source basis?

The contract data indicates 'OCONUS FSR Support and Training' valued at $21.5 million, awarded to American Science & Engineering Inc. without competition. 'FSR' typically refers to Field Service Representative, suggesting personnel providing on-site technical support, maintenance, and training for specific equipment or systems used by the Department of Defense (DoD) in overseas locations. The sole-source award implies that the DoD determined that only American Science & Engineering Inc. possessed the unique capabilities, specialized knowledge, or existing infrastructure necessary to fulfill these critical requirements. This could be due to proprietary technology, existing integration with specific DoD systems, or a lack of readily available alternative providers with the required security clearances and operational experience in the designated OCONUS regions. Without further details on the specific systems or technologies involved, the exact justification for the sole-source award remains opaque but likely centers on unique expertise or mission-critical needs.

How does the $21.5 million contract value compare to similar OCONUS support and training contracts awarded by the DoD?

Directly comparing the $21.5 million value of this specific 'OCONUS FSR Support and Training' contract is challenging without more granular data on the scope, duration, and specific services included in comparable contracts. However, the amount is substantial, reflecting significant operational needs in overseas environments. Defense contracts for technical support, training, and logistics in OCONUS theaters can range widely, from millions to hundreds of millions of dollars, depending on the complexity of the systems supported, the number of personnel deployed, and the geographic scope. The fact that this was a sole-source award means there is no direct competitive benchmark to assess if $21.5 million represents a fair market price. Generally, larger dollar values in sole-source contracts warrant closer scrutiny to ensure value for taxpayer money, especially when compared to potential costs if competition had been pursued.

What are the potential risks associated with awarding a contract of this magnitude ($21.5M) on a sole-source basis, particularly concerning contractor performance and accountability?

Awarding a $21.5 million contract on a sole-source basis introduces several risks. Firstly, the lack of competition can reduce the incentive for the contractor, American Science & Engineering Inc., to perform optimally or control costs, as they face no immediate threat of losing the business to a competitor. This can lead to complacency and potentially lower quality service delivery. Secondly, without competitive proposals, it's harder to establish a robust baseline for performance metrics and hold the contractor accountable against market-driven standards. Accountability often relies heavily on the government's contract management capabilities and the clarity of the contract's statement of work. If the government's oversight is insufficient, the sole-source nature can exacerbate risks of cost overruns, schedule delays, or unmet performance requirements, as the contractor may have less pressure to proactively address issues.

What is the track record of American Science & Engineering Inc. in fulfilling similar defense contracts, particularly those involving OCONUS support and training?

Information regarding the specific track record of American Science & Engineering Inc. in fulfilling 'OCONUS FSR Support and Training' contracts is not detailed in the provided data snippet. The data only confirms they were awarded this $21.5 million contract. To assess their track record, one would need to examine past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and any publicly available reports or news related to their previous government contracts. A thorough review would look for evidence of successful delivery on time and within budget, positive performance reviews, and any history of contract disputes, terminations, or significant issues. Without this external data, it's impossible to definitively state their suitability or past success in similar roles.

Given the contract's duration (972 days, approx. 2.6 years) and value, what are the implications for long-term strategic planning and potential vendor lock-in for the DoD?

A contract lasting nearly three years and valued at $21.5 million, especially when awarded sole-source, carries significant implications for long-term strategic planning and can lead to vendor lock-in. For the DoD, this commitment means that resources and planning are tied to American Science & Engineering Inc.'s capabilities for an extended period. This can limit flexibility to adapt to changing technological requirements or operational needs if the contractor's offerings become outdated or if a better solution emerges elsewhere. Vendor lock-in occurs when the cost or difficulty of switching to a different provider becomes prohibitively high, making the DoD dependent on the incumbent contractor. This dependency can reduce future bargaining power and potentially lead to higher costs in subsequent contract renewals or replacements, as competitors may face barriers to entry.

What does the classification 'Irradiation Apparatus Manufacturing' (NAICS 334517) signify in relation to 'OCONUS FSR Support and Training' services?

The NAICS code '334517 - Irradiation Apparatus Manufacturing' appears incongruous with the contract description 'OCONUS FSR Support and Training'. NAICS 334517 typically relates to the manufacturing of equipment used for irradiation, such as those found in medical, industrial, or research settings. 'OCONUS FSR Support and Training' generally refers to services provided by personnel in overseas locations to support military operations, equipment maintenance, and user training. This discrepancy suggests a potential data entry error in the NAICS code or that American Science & Engineering Inc. has diversified capabilities where they manufacture such apparatus and also provide related support services, perhaps for the very equipment they manufacture. However, based solely on the provided data, the NAICS code does not directly align with the described service contract, raising a flag for further investigation into the contractor's primary business line versus the specific services procured.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,577,668

Exercised Options: $21,473,668

Current Obligation: $21,473,668

Contract Characteristics

Cost or Pricing Data: NO

Timeline