DoD Awards $13.5M Software Support Contract to American Systems Corp
Contract Overview
Contract Amount: $13,481,881 ($13.5M)
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: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-231
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to AMERICAN SYSTEMS CORPORATION for work described as: TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-231 Key points: 1. Contract value of $13.5M for software support engineering. 2. Awarded to American Systems Corporation. 3. Competition type is Full and Open. 4. Sector is Engineering Services, likely IT-adjacent. 5. Contract duration is 3 years.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar software support contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: Taxpayer funds are being used for software support, with the final cost influenced by the competitive process and the Cost Plus Fixed Fee structure.
Public Impact
Ensures continued operational capability for PMA-231 systems. Supports critical software engineering functions within the Department of the Navy. Potential for innovation and efficiency gains through contractor expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may incentivize higher costs.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in software support.
Positive Signals
- Full and open competition should drive competitive pricing.
- Contract duration provides stability for support.
- Experienced contractor selected.
Sector Analysis
This contract falls under Engineering Services, often closely related to IT and defense systems. Spending benchmarks for similar software support contracts would provide context for the $13.5M award.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting larger firms were likely the primary bidders. Further analysis would be needed to determine if small business subcontracting opportunities exist.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor meets performance requirements within budget. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Potential for cost overruns
- Lack of specific performance metrics
- No indication of small business subcontracting
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 $13.5 million to AMERICAN SYSTEMS CORPORATION. TASK ORDER FOR SOFTWARE SUPPORT ENGINEERING FOR PMA-231
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 $13.5 million.
What is the period of performance?
Start: 2023-03-01. End: 2026-02-28.
What is the estimated total cost if the contractor incurs significant expenses beyond the fixed fee?
The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's actual costs plus a predetermined fixed fee. If costs exceed estimates, the government bears the burden. Without detailed cost breakdowns and robust oversight, it's difficult to predict the final expenditure, but the CPFF model inherently carries a risk of cost escalation beyond initial projections.
How does the pricing compare to industry benchmarks for similar software support services?
Benchmarking is essential. The $13.5M for three years of support needs to be evaluated against market rates for comparable software engineering and maintenance contracts. Factors like complexity of the software, criticality of the systems supported, and required skill sets will influence this comparison. A detailed analysis against similar government or commercial contracts is recommended.
What are the key performance indicators (KPIs) and how will contractor performance be measured?
The provided data does not specify KPIs. Effective oversight requires clearly defined metrics for software reliability, response times, bug resolution rates, and overall system performance. Without these, assessing the contractor's effectiveness and ensuring value for taxpayer money becomes challenging. The Department of the Navy should have these defined in the contract's statement of work.
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: $23,162,934
Exercised Options: $13,488,881
Current Obligation: $13,481,881
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,048,494
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
Start Date: 2023-03-01
Current End Date: 2026-02-28
Potential End Date: 2028-02-28 00:00:00
Last Modified: 2025-09-23
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