DoD awards $16.4M for Ship Control Systems Support, with a significant portion allocated to engineering services

Contract Overview

Contract Amount: $16,357,820 ($16.4M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2026-08-19

Contract Duration: 2,025 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SHIP CONTROL SYSTEMS (SCS) SUPPORT SERVICES IN THE AREAS OF INDEPENDENT VALIDATION & VERIFICATION (IV&V), IN-SERVICE ENGINEERING AGENT (ISEA), AND SHIP INSTALLS AND ALTERATIONS (TEMPALTS).

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to AMERICAN SYSTEMS CORPORATION for work described as: SHIP CONTROL SYSTEMS (SCS) SUPPORT SERVICES IN THE AREAS OF INDEPENDENT VALIDATION & VERIFICATION (IV&V), IN-SERVICE ENGINEERING AGENT (ISEA), AND SHIP INSTALLS AND ALTERATIONS (TEMPALTS). Key points: 1. Contract focuses on critical ship control systems, encompassing validation, engineering, and installation services. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting ongoing needs. 3. Competition was full and open, indicating a broad market engagement for these specialized services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight. 5. The primary recipient, American Systems Corporation, has a track record in defense contracting. 6. The contract duration extends to August 2026, indicating a medium-term commitment. 7. The North American Industry Classification System (NAICS) code 541330 points to engineering services as the core offering.

Value Assessment

Rating: good

The contract value of $16.4 million for Ship Control Systems (SCS) Support Services appears reasonable given the scope of Independent Validation & Verification (IV&V), In-Service Engineering Agent (ISEA), and Ship Installs and Alterations (TEMPALTS). While specific benchmarks for this niche service are not readily available, the contract type (Cost Plus Fixed Fee) allows for flexibility while aiming for cost efficiency through a fixed fee component. The award amount should be viewed in the context of the overall IDIQ ceiling, if applicable, and compared to similar support contracts for naval systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition indicates that the Department of the Navy sought the best value from the widest possible pool of contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives high-quality services at competitive prices by leveraging market forces.

Public Impact

Naval readiness and operational effectiveness are enhanced through the provision of critical support for ship control systems. The services directly benefit the Department of the Navy by ensuring the proper functioning and maintenance of vital shipboard technology. The contract supports specialized engineering and technical expertise within the defense industrial base. Workforce implications include the employment of engineers, technicians, and support staff involved in validation, testing, and installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain within reasonable bounds and the fixed fee is justified.
The duration of the contract extending to August 2026 necessitates ongoing monitoring of performance and contractor adherence to requirements.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses critical systems essential for naval operations, suggesting a high priority for the services provided.
The primary contractor, American Systems Corporation, is likely experienced in defense contracting, implying a degree of reliability.

Sector Analysis

The defense sector, particularly naval systems, relies heavily on specialized engineering services for the maintenance, upgrade, and validation of complex control systems. This contract falls within the broader engineering services market, which is characterized by high technical barriers to entry and significant government spending. Comparable spending benchmarks would typically involve other contracts for similar IV&V, ISEA, or ship alteration services within the Department of Defense or other naval forces globally.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor may engage small businesses as subcontractors, which would need to be assessed through further subcontracting plan reviews.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve rigorous monitoring of incurred costs, progress reports, and performance metrics by the Department of the Navy contracting officer and technical representatives. Accountability measures would be tied to the contract's performance standards and deliverables. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of cost breakdowns may be sensitive.

Related Government Programs

Naval Ship Systems Engineering
Defense Engineering Services
Independent Validation and Verification
In-Service Engineering Support
Ship Alterations and Installations

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Contract duration extends to mid-2026, necessitating ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to AMERICAN SYSTEMS CORPORATION. SHIP CONTROL SYSTEMS (SCS) SUPPORT SERVICES IN THE AREAS OF INDEPENDENT VALIDATION & VERIFICATION (IV&V), IN-SERVICE ENGINEERING AGENT (ISEA), AND SHIP INSTALLS AND ALTERATIONS (TEMPALTS).

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2021-02-01. End: 2026-08-19.

What is the track record of American Systems Corporation in delivering similar ship control system support services to the Department of the Navy?

American Systems Corporation has a history of providing a range of technical and engineering services to the Department of Defense, including the Navy. Their experience often encompasses areas like systems engineering, test and evaluation, and integrated logistics support. While specific details on past performance for Ship Control Systems (SCS) support are not detailed in this summary, their general presence in the defense sector suggests familiarity with government contracting requirements and naval platforms. A deeper dive into their contract history, past performance evaluations, and any awards or penalties related to similar services would provide a more comprehensive understanding of their track record.

How does the $16.4 million award compare to historical spending on Ship Control Systems (SCS) support services by the Department of the Navy?

Without access to historical spending data specifically for SCS support services, a direct comparison is challenging. However, $16.4 million represents a significant investment for a delivery order, suggesting a substantial scope of work. The Department of the Navy's overall budget for shipbuilding, conversion, and repair is in the tens of billions annually, and support services like these are a critical component. To benchmark this award, one would need to analyze trends in spending on similar engineering, IV&V, and installation services over the past several fiscal years, considering factors like inflation, fleet size, and modernization programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services like IV&V and ISEA?

The primary risk with a CPFF contract is that the government may end up paying more than necessary if the contractor's costs are not managed efficiently, despite the fixed fee. While the fee provides an incentive for the contractor to control costs, there's less direct financial upside for them in cost savings compared to fixed-price contracts. For the government, the risk lies in potential cost overruns if the scope is not well-defined or if unforeseen technical challenges arise. Robust oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for money.

How effective is the full and open competition process in ensuring the best value for taxpayers in specialized defense engineering contracts?

Full and open competition is generally considered the most effective method for ensuring best value for taxpayers in defense engineering contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process increases the likelihood that the government will receive high-quality services at the most advantageous price. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to assess complex technical proposals accurately. For highly specialized services, ensuring a sufficient number of capable bidders can sometimes be a challenge.

What are the potential implications of this contract on the future modernization and maintenance of naval vessels?

This contract directly supports the ongoing maintenance, validation, and alteration of ship control systems, which are crucial for the operational readiness and modernization of naval vessels. By ensuring these systems are functioning correctly and are up-to-date, the contract contributes to the overall effectiveness and safety of the fleet. The services provided can facilitate the integration of new technologies, address obsolescence issues, and ensure compliance with evolving operational requirements. Ultimately, this support is vital for extending the service life of vessels and maintaining the Navy's technological edge.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this delivery order that indicate program effectiveness?

The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) for this delivery order. However, for engineering services contracts, particularly those involving IV&V and ISEA, typical KPIs often relate to the timeliness of validation reports, the accuracy of technical assessments, the reduction of system failures, the successful implementation of alterations, and adherence to project schedules. The effectiveness of the program would be measured by the extent to which these systems perform reliably, meet mission requirements, and contribute to overall fleet readiness, as assessed through government performance evaluations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016720R3006

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: $17,295,755

Exercised Options: $17,295,755

Current Obligation: $16,357,820

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $944,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7111

IDV Type: IDC

Timeline