DoD's $39.8M counter-terrorism partnership contract awarded to North American Surveillance Systems, Inc. for integration and training

Contract Overview

Contract Amount: $39,853,077 ($39.9M)

Contractor: North American Surveillance Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-09

End Date: 2019-09-30

Contract Duration: 1,239 days

Daily Burn Rate: $32.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY16 SECTION 2282/COUNTER-TERRORISM PARTNERSHIP FUNDS - BUILDING PARTNER CAPACITY - INTEGRATION&TRAINING

Place of Performance

Location: TITUSVILLE, BREVARD County, FLORIDA, 32780

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to NORTH AMERICAN SURVEILLANCE SYSTEMS, INC for work described as: FY16 SECTION 2282/COUNTER-TERRORISM PARTNERSHIP FUNDS - BUILDING PARTNER CAPACITY - INTEGRATION&TRAINING Key points: 1. Contract awarded for integration and training related to counter-terrorism partnership funds. 2. The contract duration spans over three years, indicating a significant commitment. 3. Awarded by the Defense Contract Management Agency, suggesting a focus on defense capabilities. 4. The firm fixed-price contract type aims to control costs for the government. 5. The North American Surveillance Systems, Inc. is the sole recipient of this award. 6. The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry classification.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to its specialized nature and lack of competition. The $39.8 million awarded over approximately three years suggests a substantial investment. Without comparable sole-source contracts or detailed performance metrics, assessing the true value-for-money is difficult. Further analysis would require understanding the specific integration and training services provided and their criticality to counter-terrorism efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning North American Surveillance Systems, Inc. was the only bidder considered. This approach bypasses the standard competitive bidding process, which typically ensures the government receives the best possible price and solution through market forces. The justification for a sole-source award would need to be robust, likely citing unique capabilities or national security imperatives.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government lacks the leverage of multiple competing offers. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely U.S. military and allied partners involved in counter-terrorism operations. The contract delivers integration and training services crucial for enhancing partner capacity. The geographic impact is likely global, supporting U.S. foreign policy and national security objectives. Workforce implications may include specialized technical and training personnel within the contractor's organization and potentially within partner nations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
Sole-source awards can create a dependency on a single contractor, reducing future flexibility.
Transparency is reduced without a competitive process to scrutinize proposals and pricing.

Positive Signals

Firm fixed-price contract structure helps to cap government expenditure.
The contract duration suggests a strategic, long-term investment in critical capabilities.
Awarding to a specialized firm may indicate access to unique, necessary expertise.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on specialized systems and training for counter-terrorism partnerships. The market for such niche services is often characterized by a limited number of highly specialized providers. Comparable spending benchmarks are difficult to establish without more granular data on the specific services rendered, but significant investments are common in defense modernization and international security cooperation.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature and specialized requirements likely meant that larger, established firms were the primary focus. This contract does not appear to contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure. Transparency is limited due to the sole-source award, but contract details and performance reports, if publicly available, would be subject to oversight.

Related Government Programs

Foreign Military Sales
Security Cooperation Programs
Counter-Terrorism Initiatives
Defense Systems Integration
Military Training Services

Risk Flags

Sole-source award
Lack of competition
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to NORTH AMERICAN SURVEILLANCE SYSTEMS, INC. FY16 SECTION 2282/COUNTER-TERRORISM PARTNERSHIP FUNDS - BUILDING PARTNER CAPACITY - INTEGRATION&TRAINING

Who is the contractor on this award?

The obligated recipient is NORTH AMERICAN SURVEILLANCE SYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2016-05-09. End: 2019-09-30.

What specific integration and training services are being provided under this contract?

The provided data does not detail the specific integration and training services. However, given the contract's description as 'SECTION 2282/COUNTER-TERRORISM PARTNERSHIP FUNDS - BUILDING PARTNER CAPACITY - INTEGRATION&TRAINING,' it likely involves the integration of specific technologies or systems with partner nation forces and the subsequent training on their operation and maintenance. This could range from communication systems and surveillance equipment to tactical procedures and intelligence sharing protocols, all aimed at enhancing the counter-terrorism capabilities of allied nations.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent national security needs where competition is not feasible or not in the government's best interest. For this contract, the Defense Contract Management Agency would have required a formal justification from the requiring agency detailing why North American Surveillance Systems, Inc. was the only viable option.

How does the $39.8 million expenditure compare to similar counter-terrorism partnership initiatives?

Direct comparison of the $39.8 million expenditure to similar counter-terrorism partnership initiatives is difficult without access to a broader dataset of comparable contracts. However, this figure represents a significant investment, suggesting a substantial scope of work or a high degree of specialization. Counter-terrorism partnership funds can vary widely based on the specific objectives, duration, and technological requirements of each initiative. This contract's value indicates a considerable commitment to building partner capacity in this critical area.

What is the track record of North American Surveillance Systems, Inc. in fulfilling similar defense contracts?

Information regarding the specific track record of North American Surveillance Systems, Inc. in fulfilling similar defense contracts is not available in the provided data. A comprehensive assessment would require reviewing their past performance on government contracts, including client satisfaction, adherence to schedule and budget, and the quality of deliverables. Given this is a sole-source award, it implies a pre-existing relationship or a perceived unique capability that the awarding agency deemed essential.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risks associated with a sole-source contract of this magnitude include the potential for inflated pricing due to the absence of competition, reduced incentive for the contractor to innovate or optimize performance, and a lack of transparency in the procurement process. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future options and increasing long-term costs. Effective oversight and robust contract management are crucial to mitigate these risks.

How does this contract contribute to the broader U.S. counter-terrorism strategy?

This contract directly supports the U.S. counter-terrorism strategy by 'Building Partner Capacity.' By providing integration and training services, it aims to enhance the capabilities of allied nations to combat terrorism within their own borders and regions. This approach is often more effective and sustainable than direct U.S. intervention, fostering regional stability and burden-sharing. The investment signifies a commitment to strengthening international alliances and addressing the root causes and operational aspects of terrorism through collaborative efforts.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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

Parent Company: MAG DS Corp (UEI: 831650044)

Address: 7065 CHALLENGER AVE, TITUSVILLE, FL, 32780

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,996,715

Exercised Options: $39,996,715

Current Obligation: $39,853,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline