DoD's $16.7M Engineering Services Contract with AMERICAN SYSTEMS CORPORATION Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $16,732,862 ($16.7M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-06-01
End Date: 2022-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF Key points: 1. The contract awarded to AMERICAN SYSTEMS CORPORATION for engineering services represents a significant expenditure. 2. Full and open competition was utilized, suggesting an attempt at market-based pricing. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. The Maryland-based contract falls within the broad Engineering Services sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar contracts is crucial to assess if the final price reflects true value for the engineering services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the effectiveness of this competition in securing the best value is contingent on the clarity of the SOW and the rigor of the evaluation process.
Taxpayer Impact: Taxpayer funds are utilized. While competition aims for efficiency, the CPFF structure necessitates careful oversight to prevent unnecessary costs.
Public Impact
Significant federal investment in engineering services for defense. Potential for cost overruns due to contract type. Importance of robust oversight to ensure service delivery and cost control. Impact on small businesses is not explicitly detailed but is a consideration in federal contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long duration (5 years)
- No explicit mention of small business subcontracting goals
Positive Signals
- Full and open competition utilized
- Clear NAICS code for Engineering Services
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for government infrastructure and defense projects. Spending in this area is substantial, making efficient procurement and oversight critical.
Small Business Impact
The data does not indicate specific provisions for small business participation or subcontracting. Federal policy encourages small business involvement, and the absence of this detail warrants further investigation into potential opportunities missed.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate strong oversight from the Department of the Navy to ensure performance standards are met and costs remain controlled. Regular audits and performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of detail on small business participation
- Long contract duration may reduce flexibility
- Need for robust performance monitoring
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to AMERICAN SYSTEMS CORPORATION. IGF::OT::IGF
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 $16.7 million.
What is the period of performance?
Start: 2017-06-01. End: 2022-05-31.
What specific engineering services were procured under this contract, and how do they align with the Department of the Navy's strategic objectives?
The contract was for Engineering Services (NAICS 541330). While the specific services are not detailed here, they likely encompass design, analysis, and technical support crucial for naval operations and infrastructure. Alignment with strategic objectives would require examining the Statement of Work and the Navy's program requirements at the time of award.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to mitigate the risk of cost overruns and ensure fair pricing?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns. Mitigation typically involves detailed baseline cost estimates, rigorous monitoring of actual costs against the estimate, defined fixed fee targets, and strong contract administration. The effectiveness of these mechanisms would depend on the diligence of the contracting officer and the transparency of the contractor's cost reporting.
How effectively did the 'full and open competition' process ensure the best value was achieved for the taxpayer, considering the contract's duration and value?
Full and open competition is designed to foster a competitive environment that drives down prices and improves quality. For a contract of this value and duration, its effectiveness hinges on the clarity of the solicitation, the competitiveness of the bids received, and the evaluation criteria used. Without access to the bid data and evaluation results, it's difficult to definitively assess the value achieved.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042115R0042
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: $24,556,207
Exercised Options: $18,797,793
Current Obligation: $16,732,862
Actual Outlays: $392,952
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $1,672,522
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042117D0031
IDV Type: IDC
Timeline
Start Date: 2017-06-01
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2025-09-30
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