DoD's AMCOM awards $37.8M contract for FMS missile system support to Adams Communication & Engineering Technology

Contract Overview

Contract Amount: $37,796,924 ($37.8M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-06

End Date: 2015-08-30

Contract Duration: 1,088 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL,CT::IGF ARMY AVIATION AND MISSILE COMMAND (AMCOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) MISSLES SYSTEM BRANCH FOR SUPPORTING FOREIGN MILITARY SALES (FMS).

Place of Performance

Location: WALDORF, CHARLES County, MARYLAND, 20602

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $37.8 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: IGF::CL,CT::IGF ARMY AVIATION AND MISSILE COMMAND (AMCOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) MISSLES SYSTEM BRANCH FOR SUPPORTING FOREIGN MILITARY SALES (FMS). Key points: 1. Contract value of $37.8M for missile system support. 2. Adams Communication & Engineering Technology, Inc. is the awardee. 3. Full and open competition was utilized. 4. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may limit the direct benefit of competitive pricing to the government.

Taxpayer Impact: Taxpayer funds are used to support foreign military sales, with the efficiency of spending dependent on effective program management and cost control.

Public Impact

Supports critical foreign military sales programs for allies. Ensures continued operational readiness of missile systems. Contributes to U.S. foreign policy and national security objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long contract duration (1088 days)

Positive Signals

Full and open competition
Supports critical defense programs
Experienced contractor

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex defense systems. Spending benchmarks for similar services can vary widely based on scope and complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The awardee is a large business, suggesting limited direct opportunities for small businesses on this prime contract.

Oversight & Accountability

Oversight would focus on ensuring the contractor adheres to the Cost Plus Fixed Fee terms, manages costs effectively, and delivers the required engineering services for FMS programs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type increases financial risk.
Potential for scope creep without strict management.
Long duration may lead to outdated technology or requirements.
Limited transparency on specific service costs.
Dependence on a single contractor for critical FMS support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.8 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. IGF::CL,CT::IGF ARMY AVIATION AND MISSILE COMMAND (AMCOM) SECURITY ASSISTANCE MANAGEMENT DIRECTORATE (SAMD) MISSLES SYSTEM BRANCH FOR SUPPORTING FOREIGN MILITARY SALES (FMS).

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, 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 $37.8 million.

What is the period of performance?

Start: 2012-09-06. End: 2015-08-30.

What specific engineering services are being provided under this contract, and how do they directly contribute to the readiness of foreign military sales missile systems?

The contract provides engineering services for the AMCOM SAMD Missiles System Branch to support Foreign Military Sales. This likely includes technical support, maintenance planning, system upgrades, and troubleshooting for various missile systems sold to allied nations. The direct contribution to readiness involves ensuring these systems are operational, maintainable, and effective for end-users, thereby supporting U.S. foreign policy and security cooperation objectives.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure value for taxpayer money?

Mitigation strategies for CPFF contracts typically involve robust government oversight, detailed cost tracking, regular performance reviews, and clear definition of allowable costs. The government contracting officer and technical team must diligently monitor expenditures against the fixed fee and the estimated cost ceiling. Performance metrics and milestones should be established to ensure the contractor is meeting objectives efficiently, providing leverage for negotiation and potential adjustments.

How does this contract contribute to the overall effectiveness of U.S. foreign military sales programs and the interoperability of allied defense capabilities?

By ensuring the proper support and maintenance of missile systems sold through FMS, this contract directly enhances the operational effectiveness of allied forces. This strengthens their defense capabilities, promotes interoperability with U.S. forces through standardized systems and support, and solidifies strategic partnerships. The contract's success contributes to the broader effectiveness of U.S. foreign policy by providing reliable defense capabilities to allies.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11637 TER DR STE102- 201, WALDORF, MD, 20602

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $43,111,835

Exercised Options: $43,111,835

Current Obligation: $37,796,924

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline