DoD's $23.1M contract for JCTD operations support awarded to American Systems Corporation

Contract Overview

Contract Amount: $23,134,775 ($23.1M)

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: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OPERATIONS SUPPORT FOR THE OFFICE OF JOINT CAPABILITY TECHNOLOGY DEMONSTRATION.

Place of Performance

Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22040

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to AMERICAN SYSTEMS CORPORATION for work described as: OPERATIONS SUPPORT FOR THE OFFICE OF JOINT CAPABILITY TECHNOLOGY DEMONSTRATION. Key points: 1. Contract provides essential operational support for the Joint Capability Technology Demonstration (JCTD) program. 2. The JCTD program aims to accelerate the adoption of innovative technologies for national security. 3. American Systems Corporation has a history of supporting complex government programs. 4. The contract duration of nearly three years suggests a need for sustained support. 5. The fixed-price contract type aims to control costs and provide predictable spending. 6. The specific NAICS code (541715) indicates a focus on R&D services.

Value Assessment

Rating: good

The contract value of $23.1 million over approximately three years for operations support of a specialized program appears reasonable. Benchmarking against similar R&D support contracts is challenging due to the unique nature of JCTD. However, the firm-fixed-price structure suggests an effort to ensure cost predictability. The award to a single contractor, American Systems Corporation, warrants a review of their past performance and pricing to confirm value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the pool of bidders. The exact reasons for exclusion are not detailed but could relate to specialized capabilities or prior relationships. The limited competition may impact price discovery compared to a fully open process.

Taxpayer Impact: The exclusion of certain sources, even with an initial open competition intent, could mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement.

Public Impact

The primary beneficiaries are the Department of Defense and its components utilizing the JCTD program. Services delivered include operational support crucial for the successful execution of technology demonstrations. The geographic impact is likely concentrated around DoD facilities and research centers, primarily in Virginia. Workforce implications include the potential for skilled R&D support personnel employed by American Systems Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted the number of potential bidders, potentially impacting price.
The specific reasons for excluding sources are not detailed, raising questions about fairness.
The reliance on a single contractor for critical operational support could pose a risk if performance falters.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
American Systems Corporation's experience in supporting government programs suggests a capable contractor.
The contract duration indicates a sustained need for these specialized support services.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. The Joint Capability Technology Demonstration (JCTD) program itself is a critical initiative within the defense sector, aimed at rapidly prototyping and demonstrating emerging technologies to meet urgent warfighter needs. Spending in this area is often characterized by innovation, specialized expertise, and a focus on future capabilities, making direct spending benchmarks difficult without deeper program context.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside or subcontracting requirements being explicitly mentioned. This suggests that the focus was on securing specialized R&D support capabilities, and the prime contractor, American Systems Corporation, likely possesses the necessary resources and expertise to fulfill the contract requirements directly.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Washington Headquarters Services (WHS) within the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services within a set budget. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Capability Technology Demonstration (JCTD) Program
Department of Defense Research and Development Initiatives
Advanced Technology Demonstrations
Warfighter Support Programs

Risk Flags

Limited competition raises concerns about optimal price discovery.
Lack of detailed justification for source exclusion.
Potential for contractor performance issues in a specialized support role.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to AMERICAN SYSTEMS CORPORATION. OPERATIONS SUPPORT FOR THE OFFICE OF JOINT CAPABILITY TECHNOLOGY DEMONSTRATION.

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 $23.1 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-03-31.

What is the track record of American Systems Corporation in supporting similar defense R&D or technology demonstration programs?

American Systems Corporation has a significant history of supporting U.S. government agencies, including the Department of Defense, across various complex programs. Their expertise often lies in areas such as systems engineering, test and evaluation, and program management, which are directly relevant to supporting technology demonstration initiatives like JCTD. While specific details on past JCTD involvement require deeper investigation, their general profile suggests they are well-positioned to provide the operational support required. A review of their past performance ratings and any documented successes or challenges on similar contracts would provide further insight into their capabilities and reliability for this specific award.

How does the awarded value of $23.1 million compare to the typical costs for similar operational support services in the defense R&D sector?

Benchmarking the $23.1 million value for operational support of the JCTD program against 'similar' contracts is challenging due to the specialized and often unique nature of technology demonstration initiatives. The NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) encompasses a broad range of activities. However, considering the contract duration of nearly three years and the firm-fixed-price structure, the annual cost averages around $7.7 million. This figure needs to be assessed against the scope of services provided, the level of expertise required, and the specific technologies being demonstrated. Without a detailed statement of work and comparison to other JCTD or similar advanced technology prototyping efforts, a precise value-for-money assessment relative to market rates is difficult.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential performance issues from the contractor (American Systems Corporation) in delivering the specialized operational support required for the JCTD program. Given the 'limited' competition, there's also a risk that the pricing may not be as competitive as it could have been under a broader solicitation. Furthermore, the reliance on a single contractor for critical support functions presents a concentration risk. Mitigation strategies likely involve robust contract management by the Washington Headquarters Services, including performance monitoring, regular progress reviews, and clear communication channels. The firm-fixed-price nature also incentivizes the contractor to manage their own risks effectively to maintain profitability. Specific risk mitigation plans would be detailed in the contract's performance work statement and associated management plans.

How effective is the JCTD program in delivering innovative technologies, and how does this contract contribute to that effectiveness?

The Joint Capability Technology Demonstration (JCTD) program is designed to bridge the gap between promising technologies and their rapid fielding to warfighters. Its effectiveness is generally measured by its ability to accelerate the prototyping, testing, and demonstration phases, thereby reducing the time it takes for new capabilities to become operational. This contract, by providing essential operational support, directly contributes to the program's effectiveness. It ensures that the logistical, administrative, and technical groundwork is in place for successful demonstrations, allowing researchers and developers to focus on the technology itself. Without adequate operational support, the JCTD process could be slowed down or hampered, diminishing its overall impact.

What are the historical spending patterns for the JCTD program or similar operational support contracts within the Department of Defense?

Historical spending on the JCTD program and related operational support contracts within the DoD can vary significantly year-to-year, influenced by emerging threats, technological advancements, and budgetary priorities. While this specific contract is valued at $23.1 million over three years, broader JCTD funding and similar support contract expenditures would require analysis of DoD budget documents and contract databases over several fiscal years. Typically, such support functions are funded through specific program elements or research, development, test, and evaluation (RDT&E) appropriations. Understanding past spending levels would help contextualize the current award amount and identify any trends in investment in technology demonstration support.

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: 1

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: $38,768,374

Exercised Options: $23,134,775

Current Obligation: $23,134,775

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $13,534,276

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