DoD's Navy Awards $57.6M Engineering Services Contract to American Systems Corp

Contract Overview

Contract Amount: $57,583,407 ($57.6M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-18

End Date: 2027-04-16

Contract Duration: 1,733 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DEMONSTRATION AND ASSESSMENT TEAM SUPPORT SERVICES (DAT)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $57.6 million to AMERICAN SYSTEMS CORPORATION for work described as: DEMONSTRATION AND ASSESSMENT TEAM SUPPORT SERVICES (DAT) Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. The contract is for Demonstration and Assessment Team Support Services. 3. American Systems Corporation is the sole awardee for this delivery order. 4. The contract spans nearly five years, indicating a long-term need. 5. The sector is Engineering Services, a critical area for defense.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering support contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these essential engineering services.

Public Impact

Supports critical Department of the Navy operations and readiness. Ensures access to specialized engineering expertise for defense programs. Potential for follow-on work or similar contracts in the future. Impacts the defense contracting landscape for engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration (nearly 5 years) necessitates ongoing performance monitoring.

Positive Signals

Awarded through full and open competition.
Supports a critical government function (Defense).

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's technological advancement and operational capabilities. Spending in this sector is often substantial due to the complexity and criticality of defense projects.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract is managed by the Department of the Navy, implying established oversight mechanisms. However, the effectiveness of this oversight depends on the specific controls and monitoring processes in place for this particular award.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Long contract duration requires sustained oversight.
Sole awardee may limit future competitive opportunities if performance is poor.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.6 million to AMERICAN SYSTEMS CORPORATION. DEMONSTRATION AND ASSESSMENT TEAM SUPPORT SERVICES (DAT)

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 $57.6 million.

What is the period of performance?

Start: 2022-07-18. End: 2027-04-16.

What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense engineering sector, and how does this contract's fee compare?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in defense engineering can vary but often range from 7-15%. The fixed fee is negotiated upfront and represents the contractor's profit. To assess value, one would compare this fee against industry benchmarks and the complexity/risk involved. Without the specific fee amount, a direct comparison is difficult, but the overall contract value suggests a significant engagement.

What are the key performance indicators (KPIs) used to measure the success of the Demonstration and Assessment Team Support Services (DAT)?

Key performance indicators for DAT support services would likely focus on the effectiveness and efficiency of demonstrations and assessments. This could include metrics such as the accuracy of assessment reports, timeliness of deliverables, successful identification of system flaws or improvements, and adherence to technical specifications. The government's quality assurance surveillance plan (QASP) would detail these KPIs and the methods for monitoring contractor performance.

How does the $57.6 million award compare to other similar engineering support contracts awarded by the Department of Defense in the last fiscal year?

A $57.6 million award for engineering support services is a substantial contract, particularly for a single delivery order. Comparing it requires access to a database of recent DoD contracts. However, given the duration (nearly 5 years) and the nature of defense engineering, this amount appears within a reasonable range for complex, long-term support. It suggests a significant need for specialized expertise within the Navy.

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: N0017422R3002

Offers Received: 2

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: $64,923,325

Exercised Options: $64,923,325

Current Obligation: $57,583,407

Actual Outlays: $5,106,911

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $889,345

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