DoD's $21.9M Measurement Sciences Support Services Contract Awarded to American Technical Services, Inc

Contract Overview

Contract Amount: $21,936,706 ($21.9M)

Contractor: American Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-07-14

End Date: 2018-07-31

Contract Duration: 1,478 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF MEASUREMENT SCIENCES SUPPORT SERVICES

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to AMERICAN TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF MEASUREMENT SCIENCES SUPPORT SERVICES Key points: 1. Contract value of $21.9M over 4 years. 2. Awarded via full and open competition. 3. Potential for cost overruns due to Cost Plus Fixed Fee (CPFF) contract type. 4. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs for the government compared to fixed-price contracts if costs are not well-managed. The total award value is $21.9M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the CPFF structure may limit price discovery and incentivize cost escalation.

Taxpayer Impact: Taxpayer funds are utilized for engineering services. The CPFF structure requires careful oversight to ensure cost efficiency and prevent unnecessary spending.

Public Impact

Ensures critical measurement science support for the Department of the Navy. Supports national defense objectives through specialized engineering services. Potential impact on budget if costs exceed initial estimates due to CPFF structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type increases cost risk.
  • Long contract duration (4 years) may lead to scope creep or evolving needs.
  • Limited information on specific performance metrics or outcomes.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical defense functions.
  • Experienced contractor likely involved.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the defense industry. Spending in this sector is substantial, supporting research, development, and operational needs for government agencies.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting or prime contracting. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The CPFF contract type necessitates robust government oversight to monitor costs, ensure performance, and prevent contractor overbilling. Regular audits and performance reviews are crucial.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • Lack of specific performance metrics in provided data.
  • Ambiguity in 'IGF' service description.

Tags

engineering-services, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to AMERICAN TECHNICAL SERVICES, INC.. IGF::OT::IGF MEASUREMENT SCIENCES SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AMERICAN TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2014-07-14. End: 2018-07-31.

What specific measurement science support is being provided, and how critical is it to the Navy's operations?

The contract is for 'IGF MEASUREMENT SCIENCES SUPPORT SERVICES.' While the exact nature of 'IGF' is not specified, measurement sciences are fundamental to calibration, testing, and quality assurance across various defense systems. This support is likely critical for ensuring the accuracy and reliability of equipment used in naval operations, impacting everything from navigation to weapons systems.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

The primary risk with CPFF is that the contractor has less incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if not managed diligently. For the government, it means potential for higher-than-expected expenditures and the need for stringent oversight to ensure costs remain reasonable and tied to performance.

How does the full and open competition method impact the overall value and effectiveness of this contract?

Full and open competition generally leads to better pricing and a wider pool of qualified contractors, theoretically maximizing value. However, the effectiveness is also dependent on the clarity of the statement of work and the government's ability to manage the CPFF structure. While competition is a positive signal, the contract type introduces inherent cost risks that require active management to ensure overall effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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

Solicitation ID: N0002414R3095

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9520 TOPANGA CANYON BLVD STE 200, CHATSWORTH, CA, 91311

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

Financial Breakdown

Contract Ceiling: $22,326,867

Exercised Options: $22,326,867

Current Obligation: $21,936,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7604

IDV Type: IDC

Timeline

Start Date: 2014-07-14

Current End Date: 2018-07-31

Potential End Date: 2018-07-31 00:00:00

Last Modified: 2020-05-15

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