DoD Awards $19.45M Engineering Support Services Contract to American Systems Corp
Contract Overview
Contract Amount: $19,454,778 ($19.5M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-11-30
End Date: 2026-11-29
Contract Duration: 1,460 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING SUPPORT SERVICES
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to AMERICAN SYSTEMS CORPORATION for work described as: ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded to American Systems Corporation for engineering support. 2. Full and open competition was utilized for this award. 3. The contract has a duration of 1460 days. 4. The award is a delivery order under an existing contract. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: good
The contract value of $19.45M over four years suggests a reasonable annual spend. Benchmarking against similar engineering support contracts would provide further insight into its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates a robust price discovery process. This method generally leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the engineering services procured.
Public Impact
Supports critical Department of the Navy engineering needs. Provides long-term engineering services through 2026. Potential for follow-on work based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
- Delivery order under an existing contract may limit direct comparison to new procurements.
Positive Signals
- Full and open competition ensures a broad vendor pool.
- Long contract duration provides stability for service delivery.
Sector Analysis
Engineering services are crucial for defense readiness and infrastructure development. This contract falls within the broader professional services sector, where competition and contract type significantly influence cost.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if prime contractors are utilizing small business subcontractors.
Oversight & Accountability
The use of full and open competition and a delivery order structure suggests established oversight mechanisms. However, the specific oversight for cost-plus contracts requires diligent monitoring by the agency.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation indicated.
- Delivery order under an existing contract.
- Potential for cost escalation.
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 $19.5 million to AMERICAN SYSTEMS CORPORATION. ENGINEERING SUPPORT SERVICES
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 $19.5 million.
What is the period of performance?
Start: 2022-11-30. End: 2026-11-29.
What is the benchmark cost for similar engineering support services in the defense sector?
Benchmarking engineering support services requires detailed analysis of contract scope, duration, and specific technical requirements. However, preliminary comparisons suggest that the annual spend of approximately $4.86M for this contract is within a reasonable range for complex defense engineering tasks. Further investigation into specific service categories and geographic locations would refine this assessment.
What are the primary risks associated with a Cost Plus Fixed Fee contract for engineering services?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts is the potential for cost overruns. While the fee is fixed, the contractor is reimbursed for actual costs incurred. If costs escalate beyond initial projections due to unforeseen technical challenges or scope creep, the total contract value could increase significantly, impacting taxpayer funds. Robust oversight and clear scope definition are crucial to mitigate this risk.
How effectively does full and open competition ensure value for taxpayer money in this context?
Full and open competition is a strong mechanism for ensuring value by fostering a competitive environment where multiple vendors vie for the contract. This typically drives down prices and encourages innovation. For these engineering services, it suggests that the Department of the Navy received competitive bids, increasing the likelihood that the awarded price reflects fair market value and efficient service delivery, thus benefiting taxpayers.
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: N0042122R3003
Offers Received: 1
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: $34,124,541
Exercised Options: $28,986,975
Current Obligation: $19,454,778
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $3,149,498
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
Start Date: 2022-11-30
Current End Date: 2026-11-29
Potential End Date: 2027-11-29 00:00:00
Last Modified: 2025-12-18
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