DoD Awards $11.5M for Rapid Defense Experimentation Reserve to American Systems Corp
Contract Overview
Contract Amount: $11,524,050 ($11.5M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2026-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: PROFESSIONAL SERVICES FOR THE RAPID DEFENSE EXPERIMENTATION RESERVE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.5 million to AMERICAN SYSTEMS CORPORATION for work described as: PROFESSIONAL SERVICES FOR THE RAPID DEFENSE EXPERIMENTATION RESERVE Key points: 1. Contract awarded to American Systems Corporation for R&D services. 2. Full and open competition was used, indicating a competitive bidding process. 3. The contract value is $11.5 million over three years. 4. Services fall under Research and Development in Physical, Engineering, and Life Sciences. 5. This award is a delivery order under a larger contract.
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, which provides cost certainty. Benchmarking against similar R&D contracts is difficult without more specific service details, but the value appears reasonable for specialized defense experimentation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources. This method suggests a robust price discovery process, allowing multiple vendors to bid and driving competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, ensuring taxpayer funds are used efficiently for critical defense research.
Public Impact
Supports advanced research and development for national defense. Enhances the Department of Defense's ability to rapidly experiment with new technologies. Potential for technological advancements that could impact future military capabilities. Contracting process aimed for competitive pricing, benefiting taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in R&D projects.
- Dependence on a single contractor for specific expertise.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract type.
- Supports critical defense experimentation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.
Oversight & Accountability
As a delivery order under a larger contract, oversight is likely managed by Washington Headquarters Services. The firm-fixed-price structure provides some cost control, but ongoing monitoring of performance and deliverables is essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for R&D project delays.
- Reliance on contractor's technical expertise.
- Need for clear definition of 'rapid' experimentation timelines.
- Ensuring intellectual property rights are appropriately managed.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to AMERICAN SYSTEMS CORPORATION. PROFESSIONAL SERVICES FOR THE RAPID DEFENSE EXPERIMENTATION RESERVE
Who is the contractor on this award?
The obligated recipient is AMERICAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2023-04-01. End: 2026-03-31.
What specific types of rapid defense experimentation will this contract support, and how do they align with current DoD priorities?
The contract supports the Rapid Defense Experimentation Reserve (RDER) program, which aims to accelerate the prototyping and testing of promising technologies for national security. Specific experiments are not detailed but likely focus on areas identified as critical by the DoD, such as artificial intelligence, cyber defense, advanced materials, or autonomous systems, aligning with strategic goals for modernization and threat mitigation.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
Key performance indicators would likely focus on the successful completion of experimentation milestones, timely delivery of prototypes or test results, and adherence to technical specifications. Success will be measured by the RDER program's ability to validate or invalidate new technologies for potential future adoption, contributing to informed acquisition decisions and maintaining a technological edge.
How does the pricing structure of this firm-fixed-price contract ensure value for money given the inherent uncertainties in R&D projects?
The firm-fixed-price structure shifts the risk of cost overruns to the contractor, American Systems Corporation. While R&D inherently involves uncertainty, the fixed price incentivizes the contractor to manage costs efficiently and deliver within the agreed budget. The competitive bidding process prior to award should have established a fair market price based on the defined scope and anticipated challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ003420R0129
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,791,855
Exercised Options: $11,524,050
Current Obligation: $11,524,050
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,488,698
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ003421D0003
IDV Type: IDC
Timeline
Start Date: 2023-04-01
Current End Date: 2026-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-09-26
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