DoD awards $27.5M contract for logistics support of inspection systems in Southwest Asia
Contract Overview
Contract Amount: $27,535,548 ($27.5M)
Contractor: American Science & Engineering Inc
Awarding Agency: Department of Defense
Start Date: 2012-08-24
End Date: 2013-08-28
Contract Duration: 369 days
Daily Burn Rate: $74.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 12 MONTHS CONTRACTOR LOGISTICS SUPPORT SERVICES CONTRACT FOR THE SUSTAINMENT AND REPAIR OF AS&E MANUFACTURED NON-INTRUSIVE INSPECTION SYSTEMS LOCATED IN SOUTHWEST ASIA.
Place of Performance
Location: BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01821
Plain-Language Summary
Department of Defense obligated $27.5 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: 12 MONTHS CONTRACTOR LOGISTICS SUPPORT SERVICES CONTRACT FOR THE SUSTAINMENT AND REPAIR OF AS&E MANUFACTURED NON-INTRUSIVE INSPECTION SYSTEMS LOCATED IN SOUTHWEST ASIA. Key points: 1. Contract focuses on sustainment and repair of specialized inspection equipment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Limited contract duration suggests a need for ongoing, potentially higher-cost, future procurements. 4. Geographic focus on Southwest Asia implies critical operational support requirements. 5. Contractor is the original manufacturer, suggesting specialized knowledge but potentially limiting competitive options. 6. Firm Fixed Price contract type provides cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $27.5 million for 12 months of logistics support appears high, especially given the specialized nature of the equipment. Without comparable contract data for similar systems or services, it is difficult to definitively benchmark value. However, the sole-source nature of the award suggests that competitive pricing pressures were absent, potentially leading to a less favorable price than if the contract had been competed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, American Science & Engineering Inc., was solicited. This approach is typically used when a unique product or service is required, or when only one vendor possesses the necessary expertise. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple offerors.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative quotes, it's challenging to ascertain if the price reflects the best possible value for the services rendered.
Public Impact
The primary beneficiaries are the Department of Defense units operating in Southwest Asia, ensuring the continued functionality of critical inspection systems. Services delivered include sustainment and repair, crucial for maintaining operational readiness. The geographic impact is concentrated in Southwest Asia, supporting military operations in that region. Workforce implications are likely limited to the contractor's specialized technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- High contract value for a single year of support warrants scrutiny.
- Lack of transparency in the justification for sole-source award.
- Potential for vendor lock-in due to specialized equipment.
Positive Signals
- Firm Fixed Price contract provides budget predictability.
- Contractor is the original manufacturer, ensuring specialized knowledge for repair and sustainment.
- Focus on critical operational support in a demanding region.
Sector Analysis
This contract falls within the broader defense logistics and maintenance sector, specifically supporting specialized inspection equipment. The market for such niche services is often dominated by the original equipment manufacturers due to proprietary knowledge and technical requirements. Comparable spending benchmarks are difficult to establish without more information on the specific type and volume of inspection systems being supported.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating significant subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is limited due to the sole-source nature. Accountability would be measured by the contractor's performance in sustaining and repairing the specified inspection systems as per the contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Logistics Agency (DLA) Support Services
- Military Equipment Maintenance Contracts
- Non-Intrusive Inspection System Procurement
- Department of Defense Sustainment Programs
Risk Flags
- Sole-source award
- High contract value for specialized support
- Lack of competitive bidding
Tags
defense, department-of-defense, department-of-the-army, southwest-asia, logistics-support, maintenance-and-repair, sole-source, firm-fixed-price, inspection-systems, irradiation-apparatus-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to AMERICAN SCIENCE & ENGINEERING INC. 12 MONTHS CONTRACTOR LOGISTICS SUPPORT SERVICES CONTRACT FOR THE SUSTAINMENT AND REPAIR OF AS&E MANUFACTURED NON-INTRUSIVE INSPECTION SYSTEMS LOCATED IN SOUTHWEST ASIA.
Who is the contractor on this award?
The obligated recipient is AMERICAN SCIENCE & ENGINEERING INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $27.5 million.
What is the period of performance?
Start: 2012-08-24. End: 2013-08-28.
What is the specific type and model of AS&E manufactured non-intrusive inspection systems being supported under this contract?
The provided data does not specify the exact models of American Science & Engineering (AS&E) manufactured non-intrusive inspection systems. However, AS&E is known for producing a range of advanced X-ray scanning systems used for security and inspection purposes, including cargo scanners, baggage scanners, and vehicle scanners. These systems are often deployed at ports, borders, and critical infrastructure sites. The '334517' NAICS code points to 'Irradiation Apparatus Manufacturing,' which aligns with the technology used in such inspection systems. Understanding the specific models would be crucial for assessing the complexity of the required sustainment and repair services and for benchmarking costs against similar equipment.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from situations where only one responsible source can satisfy the agency's needs. For specialized equipment like non-intrusive inspection systems, the original manufacturer often possesses unique technical knowledge, proprietary data, and specialized tooling essential for maintenance and repair. Without this justification document (often a Justification and Approval - J&A), it's presumed that AS&E was deemed the only capable provider. This could be due to the complexity of the systems, the need for original parts, or specific warranty requirements. However, the absence of competition means the government could not explore alternative solutions or potentially lower prices from other qualified service providers.
How does the $27.5 million contract value compare to historical spending on similar logistics support for AS&E systems?
The provided data does not include historical spending figures for logistics support of AS&E systems, making a direct comparison impossible. To assess value, one would need to analyze past contracts for similar services, potentially from the same or different military branches, or even from other government agencies using comparable AS&E equipment. Factors such as the number of systems supported, the scope of services (e.g., preventative maintenance vs. extensive repairs), and the duration of support would need to be considered. The $27.5 million for 12 months represents a significant investment, and without historical context or data on the number of units supported, it's difficult to determine if it represents good value for money.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for logistics support and repair services, KPIs would focus on metrics such as response time for service requests, equipment uptime or availability rates, turnaround time for repairs, and the quality of parts used. SLAs would define the expected standards for these metrics. The effectiveness of the contractor's performance would be measured against these agreed-upon standards, which are crucial for ensuring the operational readiness of the inspection systems in Southwest Asia.
What is the expected lifespan of the AS&E manufactured non-intrusive inspection systems, and how does this contract contribute to their lifecycle management?
The expected lifespan of the specific AS&E manufactured non-intrusive inspection systems is not detailed in the provided data. However, sustainment and repair contracts like this are integral to extending the operational life of complex equipment. By ensuring the systems remain functional and are properly maintained, this contract contributes to the lifecycle management of the assets. This prevents premature replacement and maximizes the return on the initial investment in the inspection technology. The duration of this specific contract (12 months) suggests it is part of a broader, potentially longer-term strategy for managing these systems throughout their useful life.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 829 MIDDLESEX TPKE, BILLERICA, MA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,535,548
Exercised Options: $27,535,548
Current Obligation: $27,535,548
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-24
Current End Date: 2013-08-28
Potential End Date: 2013-08-28 00:00:00
Last Modified: 2013-10-20
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