DoD's $24.8M contract for irradiation apparatus manufacturing awarded to American Science & Engineering Inc. without competition

Contract Overview

Contract Amount: $24,813,680 ($24.8M)

Contractor: American Science & Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2012-09-10

End Date: 2013-10-30

Contract Duration: 415 days

Daily Burn Rate: $59.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR LOGISTICS SUPPORT

Plain-Language Summary

Department of Defense obligated $24.8 million to AMERICAN SCIENCE & ENGINEERING INC for work described as: CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded on a firm fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential cost savings through competition. 3. The duration of 415 days suggests a moderate-term need for the services. 4. The specific product classification (Irradiation Apparatus Manufacturing) points to a specialized industrial need. 5. The award was made by the Department of the Army, a major component of the DoD. 6. The contract value of $24.8 million represents a significant investment in this specific capability.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for irradiation apparatus manufacturing. However, the absence of competition suggests that the government may not have secured the most favorable pricing. A firm fixed-price contract provides cost certainty, but the lack of competitive bidding means potential savings from market forces were not realized. Further analysis would require understanding the specific technical requirements and the availability of alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or security clearances. The lack of competition limits the government's ability to leverage market dynamics to drive down prices and ensure the best value. It also raises concerns about whether alternative solutions were adequately explored.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall costs for the government.

Public Impact

The Department of Defense benefits from specialized equipment for its operations. Services delivered likely involve the manufacturing or supply of irradiation apparatus. The geographic impact is primarily within the defense sector's operational footprint. Workforce implications may include specialized manufacturing roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency in pricing and value.
Reliance on a single contractor can create supply chain risks.
Limited visibility into alternative technological solutions.
Potential for contractor lock-in due to specialized nature of the product.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a specific contractor suggests they meet unique technical requirements.
Contract supports critical Department of Defense operational needs.

Sector Analysis

The contract falls within the manufacturing sector, specifically focusing on irradiation apparatus. This is a niche area within industrial manufacturing, often requiring specialized expertise and technology. The market for such equipment is likely limited, with a few key players. The Department of Defense is a significant purchaser of specialized industrial equipment, and this contract represents a specific investment in that capability, potentially for research, testing, or operational purposes.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver the specified goods or services at the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Industrial Base Manufacturing
Specialized Equipment Procurement
Department of Defense Supply Chain

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to AMERICAN SCIENCE & ENGINEERING INC. CONTRACTOR LOGISTICS SUPPORT

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 $24.8 million.

What is the period of performance?

Start: 2012-09-10. End: 2013-10-30.

What specific type of irradiation apparatus is being manufactured under this contract, and what is its intended use within the Department of Defense?

The provided data indicates the contract is for 'Irradiation Apparatus Manufacturing' under NAICS code 334517. This classification covers establishments primarily engaged in manufacturing irradiation apparatus. While the specific application is not detailed, such apparatus can be used for various purposes within the DoD, including sterilization of medical equipment, food irradiation for troop sustenance, materials testing, or research and development in areas involving radiation. The exact use would depend on the specific technical requirements and operational needs of the contracting Army unit.

Given the sole-source nature of the award, what justification was provided by the Department of the Army for not competing this contract?

Sole-source contracts are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available or capable of providing the required supplies or services. For irradiation apparatus manufacturing, this could be due to proprietary technology, unique manufacturing capabilities, or specialized security requirements that only American Science & Engineering Inc. possesses. The justification would need to demonstrate that a thorough market survey was conducted and that no other vendors could meet the government's needs, or that the cost of competition would outweigh the benefits.

How does the firm fixed-price (FFP) contract type mitigate risks for the government in this sole-source award?

A Firm Fixed-Price (FFP) contract is generally considered the least risky for the buyer, especially in sole-source situations. It establishes a firm price that is not subject to adjustment based on the contractor's cost experience. This means the contractor assumes the risk of cost overruns. For the government, this provides budget certainty and protects against unexpected price increases. However, in a sole-source context, the initial price is negotiated without competitive pressure, so the 'fixed' price might be higher than it would be in a competed scenario.

What is the typical market size and competitive landscape for irradiation apparatus manufacturing, and how does this contract fit within it?

The market for irradiation apparatus manufacturing is a niche segment within the broader industrial machinery sector. It requires specialized knowledge in radiation physics, engineering, and safety protocols. The competitive landscape is likely concentrated, with a limited number of companies possessing the necessary expertise and certifications. This contract, valued at $24.8 million, represents a significant procurement for this specialized area, indicating a substantial requirement by the Department of the Army. It suggests that American Science & Engineering Inc. is a key player in this specific market segment serving defense needs.

What is the track record of American Science & Engineering Inc. in fulfilling government contracts, particularly for specialized manufacturing?

American Science & Engineering Inc. (AS&E) has a history of providing advanced technology solutions, particularly in areas like X-ray imaging and security screening systems. While specific details on their track record for manufacturing irradiation apparatus under government contracts are not provided in this data snippet, their general experience suggests a capability in developing and producing complex technological equipment. Further investigation into their past performance on similar DoD contracts would be necessary to fully assess their reliability and expertise in this specific domain.

Are there any known concerns or performance issues associated with American Science & Engineering Inc. on previous contracts that might be relevant to this award?

Without access to detailed past performance reviews or contract databases beyond the provided snippet, it is difficult to definitively state any concerns associated with American Science & Engineering Inc. on previous contracts. However, any sole-source award warrants scrutiny. A comprehensive review would involve checking contract databases for performance ratings, any disputes, or termination for default clauses invoked on prior government contracts awarded to AS&E, especially those involving complex manufacturing or defense applications.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

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: $24,813,680

Exercised Options: $24,813,680

Current Obligation: $24,813,680

Contract Characteristics

Cost or Pricing Data: YES

Timeline