Naval Surface Warfare Center awards $33M engineering support contract to American Systems Corp

Contract Overview

Contract Amount: $32,980,184 ($33.0M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-25

End Date: 2025-12-17

Contract Duration: 1,728 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION (NSWCCD) CODE 70 REQUIRES SUPPORT SERVICES FOR SCIENTIFIC, ENGINEERING, TECHNICAL MANAGEMENT, AND LIMITED ASSOCIATED FABRICATION SUPPORT SERVICES FOR NSWCCD CODES 70 NAVY AND SHIP SIGNATURES PROGRAMS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.0 million to AMERICAN SYSTEMS CORPORATION for work described as: NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION (NSWCCD) CODE 70 REQUIRES SUPPORT SERVICES FOR SCIENTIFIC, ENGINEERING, TECHNICAL MANAGEMENT, AND LIMITED ASSOCIATED FABRICATION SUPPORT SERVICES FOR NSWCCD CODES 70 NAVY AND SHIP SIGNATURES PROGRAMS Key points: 1. Contract provides critical scientific, engineering, and technical management support for Navy programs. 2. Full and open competition indicates a potentially competitive bidding process. 3. Contract duration extends through late 2025, suggesting long-term needs. 4. Cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 5. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Focus on ship signatures programs highlights a specialized area of naval defense.

Value Assessment

Rating: good

The contract value of $32.98 million over its period of performance (approximately 4.75 years) suggests a moderate investment in specialized engineering support. Benchmarking against similar contracts for scientific and engineering services within the Department of Defense is necessary for a precise value-for-money assessment. However, the fixed fee component within the cost-plus structure aims to provide some cost predictability for the government, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the method of competition implies a robust process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a marketplace where the most capable and cost-effective solutions are likely to be selected, driving down prices through competitive pressure.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center Carderock Division (NSWCCD) and its Ship Signatures Programs. Services delivered include scientific, engineering, technical management, and limited fabrication support. The geographic impact is primarily within Virginia, where NSWCCD is located. The contract supports specialized technical roles within the defense sector, potentially impacting the highly skilled engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The duration of the contract (through late 2025) requires ongoing performance monitoring.
Reliance on a single contractor for critical support services could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive selection process.
The fixed fee component provides some cost certainty within the contract structure.
The contract supports essential functions for naval warfare capabilities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader defense industrial base. The market for specialized engineering and scientific support services for naval applications is significant, driven by the continuous need for technological advancement and maintenance of naval assets. Comparable spending benchmarks would involve analyzing other contracts awarded by naval warfare centers for similar technical support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, American Systems Corporation, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Surface Warfare Center Carderock Division (NSWCCD) contracting and technical points of contact. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award notices and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services Contracts
Shipbuilding and Repair Support Services
Naval Warfare Center Contracts

Risk Flags

Potential for cost overruns inherent in CPFF structure.
Reliance on contractor for specialized technical expertise.
Need for robust government oversight to ensure performance and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.0 million to AMERICAN SYSTEMS CORPORATION. NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION (NSWCCD) CODE 70 REQUIRES SUPPORT SERVICES FOR SCIENTIFIC, ENGINEERING, TECHNICAL MANAGEMENT, AND LIMITED ASSOCIATED FABRICATION SUPPORT SERVICES FOR NSWCCD CODES 70 NAVY AND SHIP SIGNATURES PROGRAMS

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 $33.0 million.

What is the period of performance?

Start: 2021-03-25. End: 2025-12-17.

What is the track record of American Systems Corporation with the Department of Defense, particularly in similar engineering support roles?

American Systems Corporation has a history of performing various support services for the Department of Defense. While specific details on their performance for NSWCCD's Ship Signatures Programs are not provided in this data snippet, their past performance on similar contracts would be a key factor in the evaluation process. A review of their contract history, including any past performance reviews or awards, would offer insight into their reliability and capability in delivering scientific, engineering, and technical management support. Their ability to manage cost-plus-fixed-fee contracts effectively and meet delivery schedules on previous DoD engagements would be critical indicators.

How does the estimated value of this contract compare to similar engineering support contracts awarded by the Navy or other DoD branches?

The contract value of approximately $33 million over roughly 4.75 years translates to an average annual value of about $6.9 million. To benchmark this, one would need to compare it against other contracts for scientific, engineering, and technical support services awarded by entities like Naval Sea Systems Command (NAVSEA), Naval Air Systems Command (NAVAIR), or other warfare centers. Factors such as the specific technical expertise required, the duration of the contract, and the level of competition influence pricing. Without access to a broader database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value, but the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to a firm-fixed-price contract, as costs are reimbursed. However, the 'fixed fee' portion provides the contractor with a predetermined profit margin. The risk for the government lies in potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen issues arise that significantly increase expenses. Effective government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the contractor remains efficient and within budget expectations.

What is the significance of 'Ship Signatures Programs' within the context of naval warfare and how does this contract support them?

Ship signatures refer to the detectable characteristics of a naval vessel, such as its acoustic, magnetic, infrared, or radar signatures. Understanding and managing these signatures is crucial for both offensive (e.g., stealth) and defensive (e.g., detection avoidance) naval operations. This contract supports the Ship Signatures Programs by providing the necessary scientific, engineering, and technical expertise to analyze, measure, and potentially mitigate these signatures. This could involve research and development, testing, data analysis, and system integration to enhance the Navy's capabilities in operating and detecting vessels in complex environments.

What does the 'Delivery Order' designation imply about the overall contract vehicle?

The 'Delivery Order' (aw: DELIVERY ORDER) designation indicates that this specific award is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar contract vehicle. IDIQ contracts allow agencies to procure supplies or services over a set period, with specific quantities and prices defined by individual orders. This approach provides flexibility for the agency to order services as needed, while the contractor is obligated to fulfill those orders. It suggests that American Systems Corporation likely holds a broader contract with the Navy or DoD, and this $33 million award represents a specific set of requirements within that larger framework.

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: N0016720R3007

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: $40,728,476

Exercised Options: $40,728,476

Current Obligation: $32,980,184

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $2,109,222

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