DoD's $22M C5ISR Contract with ASRC Federal Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $21,972,837 ($22.0M)

Contractor: Asrc Federal Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2022-01-31

Contract Duration: 945 days

Daily Burn Rate: $23.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF:OT:IGF GEOS FOR C5ISR, FMS

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC for work described as: IGF:OT:IGF GEOS FOR C5ISR, FMS Key points: 1. The contract awarded to ASRC Federal Professional Services, LLC for C5ISR services is valued at $21.97 million. 2. Competition was not available for this contract, raising questions about price discovery. 3. The contract type is Cost Plus Fixed Fee, which can carry higher risk if not managed closely. 4. The sector is Engineering Services, supporting the Department of the Air Force.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, without available competition, makes a direct pricing assessment difficult. Benchmarking against similar C5ISR engineering services contracts would be necessary to determine if the fixed fee and overall costs are reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competitive bidding raises concerns about whether the government secured the best possible price for these engineering services, potentially impacting taxpayer value.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The effectiveness of C5ISR systems could be impacted if the contractor is not incentivized to provide the most cost-efficient solutions. Lack of transparency in the procurement process can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of clear justification for sole-source award

Positive Signals

Contract supports critical C5ISR capabilities
Experienced contractor potentially delivering specialized services

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) for the Air Force. Spending in this area is critical for national defense, but often involves complex, specialized requirements.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification was sound and that all avenues for competition were explored. Robust monitoring of the Cost Plus Fixed Fee elements is crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC. IGF:OT:IGF GEOS FOR C5ISR, FMS

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2019-07-01. End: 2022-01-31.

What was the specific justification for limiting competition on this significant C5ISR contract?

The provided data states 'NOT AVAILABLE FOR COMPETITION,' which is a broad categorization. A thorough review would require accessing the contract file to understand the specific justification, such as unique capabilities, urgent need, or lack of qualified sources. Without this detail, it's difficult to assess if the limitation was truly warranted or if alternative procurement strategies could have been employed.

How does the Cost Plus Fixed Fee structure impact risk and potential cost overruns in this C5ISR contract?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF can be useful for research and development or when cost uncertainty is high, it shifts much of the cost risk to the government. If not closely monitored, it can lead to cost overruns as the contractor is incentivized to incur costs to maximize their fee base, rather than minimize overall project expense.

What is the potential impact on C5ISR system effectiveness given the contract's limited competition and CPFF structure?

The lack of competition and CPFF structure could indirectly impact effectiveness. If the contractor isn't strongly incentivized to innovate or find cost-saving efficiencies, the development or sustainment of C5ISR systems might proceed at a slower pace or with less optimal solutions. However, if ASRC Federal is highly capable and the government exercises strong program management, the specialized nature of C5ISR could still lead to effective outcomes.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA873019R0027

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR #100, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,359,024

Exercised Options: $22,359,024

Current Obligation: $21,972,837

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $3,047,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline