Dod Awards $107M R&D Contract to American Systems Corp for Arms Csip FR300 Cs-Tsr
Contract Overview
Contract Amount: $107,208,543 ($107.2M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-03-11
End Date: 2027-12-31
Contract Duration: 2,121 days
Daily Burn Rate: $50.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ARMS CSIP FR300 CS-TSR IN JAX
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to AMERICAN SYSTEMS CORPORATION for work described as: ARMS CSIP FR300 CS-TSR IN JAX Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. AMERICAN SYSTEMS CORPORATION is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The award is for a significant duration, ending in late 2027.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which offers less price certainty than fixed-price contracts. Without a competitive bidding process, it's difficult to benchmark pricing effectively against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $107M contract suggests potential for overspending, as market forces are not driving the most cost-effective solution.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long contract duration could lock in potentially suboptimal pricing for an extended period. The specific nature of the R&D may justify limited competition, but transparency is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fixed Fee Contract Type
- Long Contract Duration
Positive Signals
- Supports critical R&D for the Department of the Navy
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its inherent complexity and potential for cost escalation.
Small Business Impact
The data indicates this contract was awarded to AMERICAN SYSTEMS CORPORATION and does not specify any set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The limited competition and Cost Plus Fixed Fee structure warrant close oversight to ensure cost control and adherence to the research objectives. The Department of the Navy's contracting officers must ensure robust monitoring of expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Cost Plus Fixed Fee contract type
- Long contract duration (over 5 years)
- Potential for cost overruns
- Limited transparency on specific R&D goals
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to AMERICAN SYSTEMS CORPORATION. ARMS CSIP FR300 CS-TSR IN JAX
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 $107.2 million.
What is the period of performance?
Start: 2022-03-11. End: 2027-12-31.
What specific R&D objectives does ARMS CSIP FR300 CS-TSR aim to achieve, and how do these justify the limited competition?
The specific objectives of ARMS CSIP FR300 CS-TSR are not detailed in the provided data. However, complex or highly specialized research and development projects, particularly those requiring unique expertise or proprietary technology, may sometimes necessitate limited or sole-source contracting to ensure the government accesses the most qualified provider. A thorough justification would typically be documented by the agency.
What are the potential risks associated with a Cost Plus Fixed Fee contract for this R&D effort?
Cost Plus Fixed Fee (CPFF) contracts carry risks for the government, primarily the potential for cost overruns. While the contractor receives a fixed fee, the government bears the risk of all allowable costs exceeding estimates. This structure can incentivize contractors to incur higher costs if not meticulously monitored, potentially leading to a higher final price than anticipated.
How will the effectiveness of the R&D outcomes be measured and ensured under this contract?
Effectiveness measurement typically involves clearly defined milestones, deliverables, and performance metrics within the contract's Statement of Work (SOW). The Department of the Navy would be responsible for monitoring the contractor's progress against these benchmarks and ensuring the R&D outputs meet the intended technical and operational requirements. Regular reviews and acceptance testing are standard practices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $109,761,679
Exercised Options: $109,071,594
Current Obligation: $107,208,543
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $3,159,586
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-11
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-09
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