DoD's $36.4M Joint Program Office Support contract awarded to Advanced Systems Technology & Management, Inc. shows fair value

Contract Overview

Contract Amount: $36,434,652 ($36.4M)

Contractor: Advanced Systems Technology & Management, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2011-11-30

Contract Duration: 1,886 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: U400400 JOINT PROGRAM OFFICE SUPPORT - BASE

Place of Performance

Location: SUFFOLK, SUFFOLK (CITY) County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to ADVANCED SYSTEMS TECHNOLOGY & MANAGEMENT, INC. for work described as: U400400 JOINT PROGRAM OFFICE SUPPORT - BASE Key points: 1. The contract's total value of $36.4 million over approximately 5 years suggests a moderate annual spend. 2. Competition was strong, with 6 bidders vying for the contract, indicating a healthy market for these services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The administrative management and general management consulting services provided are crucial for program office operations. 5. The contract was awarded to a single vendor, Advanced Systems Technology & Management, Inc., suggesting specialized capabilities. 6. The contract's duration of nearly 5 years allowed for sustained support and potential for long-term program development.

Value Assessment

Rating: fair

The total award of $36.4 million over nearly five years averages to approximately $7.3 million annually. Benchmarking this against similar administrative and management support contracts within the Department of Defense is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the government aimed to secure a defined scope of work at a predictable cost. The number of bidders (6) indicates a competitive environment, which typically drives pricing towards market rates. Further analysis would require comparing the specific deliverables and labor categories to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that the solicitation was broadly advertised and multiple companies were allowed to bid. With six bidders participating, the competition level appears robust. This suggests that the market has several capable providers for administrative management and general management consulting services. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions being presented to the government.

Taxpayer Impact: The strong competition for this contract likely resulted in a more favorable price for taxpayers, as bidders were incentivized to offer competitive rates to win the award. It also suggests that the government had a good selection of qualified vendors, increasing the likelihood of obtaining high-quality services.

Public Impact

The primary beneficiaries are the Joint Program Office, which receives essential administrative and management support to execute its mission. Services delivered include general management consulting, administrative support, and potentially program management assistance. The geographic impact is primarily within the Department of Defense, supporting its operational and strategic objectives. Workforce implications include the potential for direct employment by the contractor and indirect support to government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized support provided over a long contract duration.
Reliance on a single contractor for critical administrative functions could pose a risk if performance degrades.
Limited transparency into the specific performance metrics and outcomes achieved by the contractor without further data.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential providers.
Fixed-price contract type helps control costs and provides budget certainty.
Multiple bidders (6) suggest a competitive market and availability of qualified contractors.
Long contract duration (nearly 5 years) allows for continuity of essential support services.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government operations, providing expertise in areas ranging from strategic planning to operational efficiency. The market for these services is large and diverse, with numerous firms capable of supporting federal agencies. This contract represents a portion of the broader federal spending on management and administrative support, which is essential for the effective functioning of government programs and initiatives.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award to Advanced Systems Technology & Management, Inc. does not specify its size status. Without information on subcontracting plans, the direct impact on the small business ecosystem is unclear. However, the presence of full and open competition suggests that small businesses were eligible to bid if they met the qualifications, though the ultimate awardee's size is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Defense. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Joint Program Office Support Services
Federal IT and Program Management Support

Risk Flags

Contract duration is long, potentially leading to vendor lock-in.
Specific performance metrics and outcomes are not detailed in the provided data.
Contractor's prior performance history is not available for review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to ADVANCED SYSTEMS TECHNOLOGY & MANAGEMENT, INC.. U400400 JOINT PROGRAM OFFICE SUPPORT - BASE

Who is the contractor on this award?

The obligated recipient is ADVANCED SYSTEMS TECHNOLOGY & MANAGEMENT, 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 $36.4 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-11-30.

What specific administrative and management consulting services were detailed in the contract statement of work?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS code 541611). However, the specific details of the statement of work (SOW) are not included. Typically, such services can encompass a wide range of activities including strategic planning, organizational analysis, process improvement, policy development, budget support, and general administrative assistance to program offices. Without the SOW, it's impossible to ascertain the precise nature and scope of the services rendered, which limits a granular assessment of value and performance.

How does the annual value of this contract compare to similar support contracts within the Department of Defense?

The contract's total value of approximately $36.4 million over 1886 days (roughly 5 years) equates to an average annual value of about $7.3 million. Comparing this to similar contracts requires access to a database of DoD support contracts with detailed service descriptions and award values. General management and administrative support contracts can vary significantly based on the specific agency, program complexity, and required expertise. While $7.3 million annually is a substantial sum, its relative value is difficult to determine without comparative data on contracts for comparable services, scope, and duration within the DoD.

What was the track record of Advanced Systems Technology & Management, Inc. with federal contracts prior to this award?

Information regarding the prior track record of Advanced Systems Technology & Management, Inc. (AST&M) with federal contracts is not provided in the data snippet. A comprehensive assessment would require reviewing AST&M's contract history, including past performance evaluations, any disputes or terminations, and the types and values of previous awards. This information is typically available through federal procurement databases like SAM.gov or FPDS. Without this historical data, it's challenging to evaluate AST&M's reliability, experience, and past performance in delivering services to the government.

Were there any performance issues or contract modifications during the life of this contract?

The provided data does not include information on contract modifications, performance issues, or disputes related to this contract. Such details would typically be found in contract modification logs or performance reports. A contract awarded in 2006 and ending in 2011 likely underwent modifications for various reasons, such as changes in scope, funding adjustments, or extensions. The absence of this information prevents an analysis of how the contract evolved or if any challenges were encountered and resolved during its execution.

What was the estimated cost savings or value added by using a fixed-price contract for these services?

The use of a Firm Fixed Price (FFP) contract for administrative and management consulting services is generally intended to provide cost certainty for the government. The primary value added is the transfer of risk for cost overruns to the contractor. If the contractor can perform the work efficiently and below the fixed price, they realize a profit; if costs exceed the price, their profit is reduced or they incur a loss. The estimated cost savings are realized if the competitive bidding process drove the fixed price below what might have been incurred under a cost-reimbursement contract, assuming similar performance levels. However, quantifying the exact savings without knowing the contractor's actual costs or comparing it to alternative contract types is difficult.

How did the number of bidders (6) influence the final negotiated price compared to a sole-source or limited competition scenario?

A competition involving six bidders, as indicated for this contract, generally exerts significant downward pressure on pricing. Each bidder is motivated to offer a competitive price to secure the award, knowing that multiple other firms are vying for the same contract. In a sole-source or limited competition scenario, the government typically has less leverage to negotiate the lowest possible price, as the pool of potential providers is restricted. Therefore, having six bidders suggests that the final negotiated price was likely more favorable to the government than if the contract had been awarded under less competitive conditions, leading to better value for taxpayers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91C9G06R0001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 OLD COURTHOUSE ROAD, SUITE 210, VIENNA, VA, 11

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $36,619,393

Exercised Options: $36,619,393

Current Obligation: $36,434,652

Contract Characteristics

Cost or Pricing Data: NO

Timeline