DoD's $98M Satellite Command and Control Contract Awarded to ASRC Federal System Solutions

Contract Overview

Contract Amount: $98,004,408 ($98.0M)

Contractor: Asrc Federal System Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-22

End Date: 2026-03-31

Contract Duration: 1,925 days

Daily Burn Rate: $50.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SATELLITE AND GROUND COMMAND AND CONTROL

Place of Performance

Location: WELCOME, CHARLES County, MARYLAND, 20693

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $98.0 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC for work described as: SATELLITE AND GROUND COMMAND AND CONTROL Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Significant investment in R&D for physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 3. Long contract duration of over 5 years suggests a need for sustained support in a critical area. 4. The contract's value is substantial within the R&D sector, requiring careful performance monitoring. 5. Focus on satellite and ground command and control indicates a strategic investment in space-based capabilities. 6. The absence of small business set-aside suggests limited direct opportunities for smaller firms in this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific R&D focus. The $98 million over approximately five years represents a significant investment. Without competitive bids, it's difficult to definitively assess if the pricing is optimal or if alternative solutions could have been procured at a lower cost. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a fixed fee, which can incentivize cost control but also requires robust oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competitively awarded contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, the government has less leverage to negotiate the lowest possible price for these critical R&D services.

Public Impact

The Department of Defense benefits from sustained expertise in satellite and ground command and control systems. Services delivered are crucial for national security and the effective operation of military space assets. The primary geographic impact is likely within the contractor's operational areas and relevant military installations, with Maryland noted as the contractor's state. Workforce implications include specialized engineering and technical roles within ASRC Federal System Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs effectively.
Lack of small business participation in this direct award may limit broader economic impact.

Positive Signals

Award to an established contractor suggests continuity and potentially reduced transition risks.
Focus on critical R&D for space command and control aligns with strategic national security priorities.
Long-term contract provides stability for essential research and development efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technologies for satellite and ground command and control. The market for such specialized R&D services is often characterized by a limited number of highly capable firms. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of defense-related R&D, but significant government investment in space and C2 systems is a consistent trend.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of specific subcontracting goals for small businesses within the provided data. This means that the primary contract value will flow to the prime contractor, ASRC Federal System Solutions. While larger prime contractors often engage small businesses for subcontracting, the absence of a set-aside or explicit subcontracting plan in the initial data suggests limited direct opportunities for small businesses on this specific award.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of Defense contracting officers and program managers. Accountability measures would focus on tracking costs against the fixed fee, ensuring milestones are met, and verifying the quality of research and development outputs. Transparency is often limited in sole-source defense contracts, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

Space Force Command and Control Systems
Satellite Communications Research
Defense Research and Development
Advanced Technology Development
Military C4ISR Systems

Risk Flags

Sole-source award may indicate limited market availability or unique capabilities, but also reduces competitive pricing pressure.
Cost Plus Fixed Fee (CPFF) requires stringent oversight to manage potential cost overruns and ensure value for money.
Long contract duration (over 5 years) increases exposure to potential shifts in technology or strategic requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.0 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC. SATELLITE AND GROUND COMMAND AND CONTROL

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL SYSTEM SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $98.0 million.

What is the period of performance?

Start: 2020-12-22. End: 2026-03-31.

What is the track record of ASRC Federal System Solutions with the Department of Defense, particularly in R&D contracts?

ASRC Federal System Solutions has a significant history of contracting with the Department of Defense and other federal agencies. They specialize in a range of services including IT, engineering, and mission support. Their experience often involves complex systems integration and R&D efforts. While specific performance metrics for past R&D contracts are not detailed here, their continued awards suggest a generally satisfactory performance history. However, a deeper dive into past performance reviews, contract modifications, and any past disputes would provide a more comprehensive understanding of their track record in delivering R&D outcomes for the DoD.

How does the $98 million value compare to similar R&D contracts for satellite command and control systems?

The $98 million value for this five-year contract is substantial, reflecting the complexity and criticality of satellite and ground command and control (C2) systems. Benchmarking against precisely comparable R&D contracts is challenging due to the specialized nature of defense R&D and the proprietary aspects often involved. However, major defense contractors frequently receive multi-year R&D awards in the tens to hundreds of millions of dollars for advanced capabilities. This contract appears to be within the expected range for significant, long-term R&D investments in strategic areas like space C2, especially when awarded on a sole-source basis which can sometimes lead to higher individual contract values compared to highly competitive bids.

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

The primary risks associated with a sole-source, CPFF contract for R&D are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to innovate aggressively on cost-efficiency. The government has less leverage to negotiate favorable terms. Secondly, the CPFF structure reimburses the contractor's allowable costs plus a fixed fee. While the fee is fixed, the risk of cost overruns lies primarily with the government if costs are not meticulously managed and controlled. Effective oversight is crucial to ensure that costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without being excessive.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for R&D projects like satellite command and control?

The CPFF contract type is often considered suitable for R&D projects where the scope of work is not fully defined at the outset, or where significant uncertainty exists regarding the costs involved. It allows the government to reimburse the contractor for incurred costs while providing a defined profit margin (the fixed fee). This structure can encourage contractors to undertake high-risk, innovative R&D that might be too uncertain under other contract types. However, its effectiveness hinges heavily on robust government oversight to monitor costs, ensure efficient performance, and prevent scope creep that could inflate the overall cost beyond the initial expectations.

What is the historical spending trend for satellite and ground command and control R&D within the Department of Defense?

Historical spending trends within the Department of Defense for satellite and ground command and control (C2) R&D have generally shown a consistent and often increasing investment. As geopolitical landscapes evolve and the importance of space-based assets grows, the DoD prioritizes maintaining and advancing its capabilities in this domain. This includes funding for research into next-generation satellite technologies, resilient communication networks, advanced sensor systems, and sophisticated C2 software and hardware. While specific annual figures fluctuate based on budgetary cycles and strategic priorities, the overall trajectory indicates a sustained commitment to enhancing space C2 capabilities through research and development.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $121,619,143

Exercised Options: $121,619,143

Current Obligation: $98,004,408

Subaward Activity

Number of Subawards: 132

Total Subaward Amount: $21,379,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0017321D2001

IDV Type: IDC

Timeline