DoD's $29.4M Navy Call Center Contract Awarded to American Systems Corp. Amidst Full and Open Competition

Contract Overview

Contract Amount: $29,439,898 ($29.4M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2016-06-30

End Date: 2022-01-31

Contract Duration: 2,041 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF NAVY 311 CALL CENTER CONTRACTOR SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF NAVY 311 CALL CENTER CONTRACTOR SUPPORT SERVICES Key points: 1. Contract value of $29.4M over its period of performance suggests a significant investment in call center support services. 2. The use of 'Full and Open Competition' indicates a broad solicitation process, potentially leading to competitive pricing. 3. The contract's duration of 2041 days (approximately 5.6 years) allows for sustained service delivery and contractor stability. 4. The 'Cost Plus Fixed Fee' pricing structure may incentivize cost control by the contractor while ensuring a defined profit margin. 5. The contract falls under Engineering Services (NAICS 541330), suggesting a need for specialized technical or operational support beyond basic call handling. 6. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 7. The small business indicators are false, suggesting the prime contractor is not a small business and no specific small business set-aside was applied.

Value Assessment

Rating: fair

Benchmarking the value of this $29.4 million contract requires understanding the specific scope of 'Call Center Contractor Support Services' for the Navy. Without detailed service level agreements or performance metrics, it's difficult to definitively assess value for money. However, the duration of over five years suggests a stable, long-term need. The 'Cost Plus Fixed Fee' (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed carefully, but it allows for flexibility in scope. Comparing it to similar large-scale call center support contracts within the DoD or other federal agencies would provide a clearer picture of its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (no) suggests a moderate level of competition for this specific award. While 'Full and Open' is generally the preferred method for maximizing competition, the number of bidders can vary significantly based on the contract's complexity, specialized requirements, and market size. A higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition process, even with 3 bidders, aims to ensure taxpayers receive the best possible value by encouraging multiple companies to offer their services at competitive prices. This approach helps prevent overpayment and promotes efficiency.

Public Impact

The primary beneficiaries are the U.S. Navy personnel and potentially other Department of Defense entities who rely on the call center services for support. The contract delivers essential contractor support services for a critical Navy call center, ensuring operational continuity and user assistance. The geographic impact is likely concentrated where the Navy operates or where the contractor's support personnel are located, with potential for nationwide reach depending on the call center's function. Workforce implications include the direct employment of individuals by American Systems Corporation to staff and manage the call center operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Fixed Fee' (CPFF) contract type can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs plus a fixed fee.
The duration of over five years (2041 days) might reduce flexibility for the Navy to adapt to changing technological needs or service requirements without modification.
The specific nature of 'Engineering Services' for a call center might indicate complex technical support requirements that could be prone to scope creep if not well-defined.

Positive Signals

The award was made under 'Full and Open Competition,' suggesting a robust process that allowed multiple vendors to compete, potentially leading to better value.
The contract has a defined period of performance, providing clarity on the duration of services and associated costs.
The contractor, American Systems Corporation, has secured a significant contract, indicating a level of trust and capability recognized by the Department of Defense.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically related to support services. The NAICS code 541330 (Engineering Services) suggests a specialized niche, possibly involving technical support, system integration, or operational assistance for complex Navy systems managed through call centers. The market for such services is competitive, with numerous firms offering IT support, customer service, and specialized engineering solutions to government agencies. The value of $29.4 million places this contract in the mid-to-large size category for IT support services within the federal government.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and likely did, as evidenced by the award to American Systems Corporation, which is typically considered a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific award notice. Therefore, the direct impact on the small business ecosystem from this particular contract is likely limited unless American Systems Corporation voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractors meet the terms and conditions of their contracts, including quality, cost, and schedule. The 'Cost Plus Fixed Fee' structure necessitates close financial oversight to ensure costs are reasonable and allowable. Transparency is generally maintained through contract reporting mechanisms within the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Navy Information Technology Support Services
DoD Call Center Operations
Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Defense Contract Management Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration may limit adaptability to future technological changes or evolving mission needs.
Specific scope of 'Engineering Services' for a call center needs clear definition to prevent scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to AMERICAN SYSTEMS CORPORATION. IGF::OT::IGF NAVY 311 CALL CENTER CONTRACTOR 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2016-06-30. End: 2022-01-31.

What specific engineering services are provided under this Navy call center contract?

The contract falls under NAICS code 541330, 'Engineering Services.' For a call center context, this likely translates to specialized technical support, troubleshooting complex systems, providing expert guidance on Navy platforms or software, and potentially managing the technical infrastructure of the call center itself. It could involve support for communication systems, IT infrastructure, or specific weapon systems that require a high level of technical understanding from call center agents. The 'Cost Plus Fixed Fee' (CPFF) structure suggests that the scope might have involved some uncertainty or evolving requirements, necessitating reimbursement of costs plus a defined profit margin for the contractor, American Systems Corporation.

How does the $29.4 million contract value compare to similar Navy call center support contracts?

Direct comparison of the $29.4 million value is challenging without knowing the exact scope, duration, and service level agreements (SLAs) of comparable contracts. However, for a contract spanning over five years (2041 days), this value suggests a substantial and ongoing requirement for support services. Larger, more complex IT support or call center operations for major defense systems can easily reach tens or hundreds of millions of dollars. This contract appears to be a significant investment, indicating the critical nature of the call center's function to the Navy's operations or personnel support.

What are the primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor's fee is fixed, their reimbursement for costs is based on actual expenditures. If the contractor does not effectively manage its costs, or if unforeseen issues arise that increase expenses, the total contract value could exceed initial projections, even though the profit margin remains constant. For the government, this necessitates robust oversight and auditing of contractor expenses to ensure they are reasonable, allocable, and allowable. Scope creep is another risk; if the requirements are not tightly defined, the contractor may incur additional costs that are reimbursed, increasing the overall expenditure.

What does the 'Full and Open Competition' with 3 bidders imply for the Navy's procurement process?

Awarding under 'Full and Open Competition' signifies that the Navy followed a process designed to solicit bids from all responsible sources, maximizing the potential pool of offerors. The fact that 3 bids were received indicates a moderate level of market interest for this specific requirement. While 3 bidders is generally considered competitive, a larger number could potentially drive prices lower. This outcome suggests that the market has players capable of meeting the Navy's needs, and the competition likely contributed to establishing a reasonable price, although further analysis of the bids would be needed to confirm optimal value.

What is the track record of American Systems Corporation with DoD contracts of similar size and scope?

American Systems Corporation has a significant history of contracting with the U.S. Department of Defense and other federal agencies. They specialize in a range of services including engineering, IT, training, and defense support. While this specific $29.4 million contract for Navy call center support is a notable award, the company has secured numerous contracts, some of which may be of comparable or larger value, across various defense and civilian agencies. Their sustained presence in the federal contracting space suggests a capacity to manage complex projects and meet government requirements, though a detailed review of past performance on similar contracts would provide deeper insights.

How does the contract duration of 2041 days (approx. 5.6 years) impact flexibility and long-term value?

A contract duration of over five years provides stability and allows the contractor, American Systems Corporation, to invest in resources and personnel, potentially leading to more efficient and consistent service delivery for the Navy's call center. This extended period can reduce the administrative burden and costs associated with frequent re-procurement. However, it also reduces the government's flexibility to adapt quickly to technological advancements, changing mission requirements, or shifts in strategic priorities. Modifications to the contract would be necessary to implement significant changes, which can be a complex and time-consuming process.

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: N0002415R3572

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13990 PARKEAST CIRCLE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,062,211

Exercised Options: $48,820,822

Current Obligation: $29,439,898

Subaward Activity

Number of Subawards: 72

Total Subaward Amount: $9,760,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4010

IDV Type: IDC

Timeline