DoD awards $7.7M for Triton software support, with engineering services benchmarked at $7M

Contract Overview

Contract Amount: $7,692,545 ($7.7M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-262 TRITON

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to AMERICAN SYSTEMS CORPORATION for work described as: TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-262 TRITON Key points: 1. Value for money appears reasonable, with the awarded amount closely aligning with the benchmarked value for similar engineering services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are low, with a clear statement of work and a defined period of performance. 4. Performance context is provided by the duration of the contract, spanning nearly three years. 5. The contract falls within the engineering services sector, supporting a critical defense platform.

Value Assessment

Rating: good

The awarded amount of $7.7 million for software support engineering is slightly above the benchmarked value of $7 million for comparable services. However, this difference is marginal and likely within acceptable variance for specialized engineering support. The contract type (Cost Plus Fixed Fee) allows for flexibility while maintaining cost control through a fixed fee, which is a common and generally effective pricing structure for complex services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters robust price discovery and encourages competitive pricing. The open competition suggests that the government sought the best value from a wide range of potential contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and technical solutions for essential software support services.

Public Impact

The primary beneficiaries are the Department of the Navy and the PMA-262 Triton program, ensuring continued operational readiness of the unmanned aerial vehicle. Services delivered include crucial software support engineering, vital for maintaining and enhancing the Triton's capabilities. The geographic impact is primarily within Maryland, where the contract is being performed. Workforce implications include the potential for skilled engineering jobs in the Maryland area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed, though the fixed fee component mitigates this risk.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Contract duration of nearly three years provides stability for program support.
Clear performance period and defined services reduce ambiguity.
Alignment with benchmarked engineering service costs suggests reasonable value.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant segment of federal spending supporting defense and technology initiatives. The market for specialized software support engineering is competitive, with numerous firms capable of providing these services. The $7.7 million award is a moderate-sized contract within this sector, contributing to the overall spending on defense platforms and their sustainment.

Small Business Impact

The data indicates that 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 requirement. The prime contractor, American Systems Corporation, will determine any subcontracting opportunities based on their own business needs and capabilities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, specifically within the PMA-262 program office. Accountability measures are inherent in the Cost Plus Fixed Fee contract type, which includes a fixed fee component that incentivizes the contractor to perform efficiently. Transparency is supported by the contract's public award data, though detailed performance metrics and oversight reports are typically internal to the agency.

Related Government Programs

PMA-262 Triton Program
Unmanned Aerial Vehicle Support Contracts
Defense Software Engineering Services
Naval Air Systems Command (NAVAIR) Contracts

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Limited transparency on the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to AMERICAN SYSTEMS CORPORATION. TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-262 TRITON

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 $7.7 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-02-28.

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

American Systems Corporation has a significant history of contracting with the Department of Defense. While specific details on their performance for the PMA-262 Triton program are not fully elaborated in the provided data, their extensive experience suggests a capacity to handle complex engineering and software support tasks. A deeper dive into their past performance reviews, contract history with NAVAIR, and any reported issues or accolades would provide a more comprehensive understanding of their reliability and expertise in this specific domain. Their ability to secure this task order under full and open competition also implies a satisfactory past performance record that met the government's evaluation criteria.

How does the awarded amount of $7.7 million compare to historical spending on similar Triton software support contracts?

The awarded amount of $7.7 million for this task order is a key data point, and its comparison to historical spending on similar Triton software support is crucial for value assessment. The provided data includes a benchmarked value of $7 million for comparable engineering services, indicating the current award is slightly above this market indicator. To fully assess historical value, one would need to examine previous contracts for Triton software support, noting their duration, scope, and awarded amounts. Analyzing trends in cost per year or cost per service unit over time would reveal whether current spending is escalating, stable, or decreasing relative to past investments. Without specific historical contract data for this exact service on the Triton, the current benchmark provides the most immediate comparative context.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software support engineering?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded here, present specific risks. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. If the contractor's actual costs exceed estimates, the government bears the burden, although the fixed fee remains constant. Conversely, the contractor bears the risk if costs are significantly lower than anticipated, as their profit margin is capped by the fixed fee. For software support engineering, risks include scope creep, unforeseen technical challenges, and the potential for less rigorous cost management compared to fixed-price contracts. Effective oversight and clear definition of work are critical to mitigate these risks.

How effective is the full and open competition process in ensuring optimal value for taxpayer dollars in specialized engineering services?

The full and open competition process is generally considered the most effective method for ensuring optimal value for taxpayer dollars, especially in specialized engineering services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that reflect fair market value. This process encourages innovation and efficiency as contractors strive to differentiate themselves on technical merit and price. While it requires more upfront effort in terms of solicitation and evaluation, the potential for cost savings and superior technical solutions typically outweighs these initial investments. The success of this method hinges on a well-defined scope of work and objective evaluation criteria to prevent bias and ensure the best value is truly selected.

What is the expected impact of this contract on the operational readiness and future development of the Triton unmanned aerial vehicle program?

This contract is directly tied to ensuring the operational readiness and supporting the future development of the Triton unmanned aerial vehicle (UAV) program. Software support engineering is critical for maintaining the complex systems that enable the Triton's surveillance, reconnaissance, and other mission capabilities. By securing dedicated engineering support, the Department of the Navy aims to minimize downtime, address software-related issues promptly, and potentially implement upgrades or enhancements. This sustained support is vital for the Triton to remain a relevant and effective asset in the DoD's intelligence, surveillance, and reconnaissance (ISR) capabilities, contributing to national security objectives.

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: SEALED BID

Solicitation ID: N0042120R0127

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: $20,074,979

Exercised Options: $10,591,660

Current Obligation: $7,692,545

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,616,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0035

IDV Type: IDC

Timeline