DoD's $33.1M contract for airborne reconnaissance systems operations and sustainment awarded to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC

Contract Overview

Contract Amount: $33,108,971 ($33.1M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-08

End Date: 2022-07-31

Contract Duration: 2,214 days

Daily Burn Rate: $15.0K/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 THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONS AND SUSTAINMENT SERVICES FOR PRODUCT DIRECTOR, AIRBORNE RECONNAISSANCE LOW (PD ARL) SYSTEMS WHICH INCLUDES FOURTEEN (14) GUARDRAIL COMMON/SENSOR (GR/CS), SIX (6) SATURN ARCH (SA), SEVEN (7) AIRBORNE RECONNAISSANCE LOW-MULTIFUNCTION (ARL-M) AND ASSOCIATED PRIME MISSION EQUIPMENT (PME) OF THE PROJECT MANAGER, SENSORS-AERIAL INTELLIGENCE (PM SAI).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONS AND SUSTAINMENT SERVICES FOR PRODUCT DIRECTOR, AIRBORNE RECONNAISSANCE LOW (PD ARL) SYSTEMS WHICH INCLUDES FOURTEEN (14) GUARDRAIL COMMON/SENSOR (GR/CS), SIX (6) SATURN ARCH (SA), SEVEN (7) AIRBORNE RECONNAISSAN… Key points: 1. Contract provides critical operations and sustainment for multiple airborne reconnaissance systems. 2. The contract value of $33.1M over approximately 6 years indicates a significant investment in intelligence, surveillance, and reconnaissance (ISR) capabilities. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The systems supported are integral to intelligence gathering and situational awareness for the Department of the Army. 6. The contractor, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC., has been awarded this task order for a substantial period.

Value Assessment

Rating: fair

The contract value of $33.1M over 2214 days (approx. 6 years) averages to roughly $15,000 per day. Without specific benchmarks for similar ISR system sustainment contracts, it's difficult to definitively assess value for money. The CPFF contract type introduces risk, as costs are reimbursed plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if contractor efficiencies are not realized. Further analysis would require comparison with industry standards for similar services and system complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a degree of competition, but the specific number of bids received is not detailed. Full and open competition is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition, which aims to ensure the government receives the best value for its investment in critical defense systems.

Public Impact

The primary beneficiaries are the Department of the Army and its intelligence units, who receive enhanced operational capabilities for airborne reconnaissance. Services delivered include operations and sustainment for a fleet of Guardrail Common/Sensor, SATURN ARCH, and Airborne Reconnaissance Low-Multifunction systems. The geographic impact is likely global, supporting military operations and intelligence gathering wherever these systems are deployed. Workforce implications include employment for personnel skilled in operating and maintaining advanced ISR systems, both within the contractor's organization and potentially within the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending without direct cost savings.
The long duration of the contract (over 6 years) increases the risk of cost escalation due to inflation or unforeseen technical challenges.
Limited information on the number of bidders restricts a full assessment of competitive pressure.
The complexity of maintaining multiple types of advanced ISR systems may present inherent operational risks.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contract supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities vital for national security.
The contractor has been selected to provide essential sustainment services, indicating a level of trust and capability.
The task order supports a significant number of complex airborne systems, highlighting the contractor's capacity.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced intelligence, surveillance, and reconnaissance (ISR) platforms. The market for defense-related ISR operations and sustainment is substantial, driven by ongoing global security needs. Comparable spending benchmarks would typically involve other large-scale sustainment contracts for complex military aviation systems, where costs are influenced by system maturity, technological sophistication, and operational tempo.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Future analysis could explore if the prime contractor has a history of subcontracting with small businesses on similar large-scale defense contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract awards databases, though detailed operational performance data may be restricted due to security classifications. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Airborne Reconnaissance Platforms
Defense Logistics and Sustainment Services
Department of Defense Aviation Contracts
Sensor Systems Maintenance

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type
Long contract duration
Limited number of bidders (2)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE OPERATIONS AND SUSTAINMENT SERVICES FOR PRODUCT DIRECTOR, AIRBORNE RECONNAISSANCE LOW (PD ARL) SYSTEMS WHICH INCLUDES FOURTEEN (14) GUARDRAIL COMMON/SENSOR (GR/CS), SIX (6) SATURN ARCH (SA), SEVEN (7) AIRBORNE RECONNAISSANCE LOW-MULTIFUNCTION (ARL-M) AND ASSOCIATED PRIME MISSION EQUIPMENT (PME) OF THE PROJECT MANAGER, SENSORS-AERIAL INTELLIGENCE (PM SAI).

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.1 million.

What is the period of performance?

Start: 2016-07-08. End: 2022-07-31.

What is the track record of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. with similar DoD contracts?

ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. has a history of performing services for the Department of Defense, including contracts related to engineering, technical support, and communications systems. While specific details on past performance for airborne reconnaissance systems sustainment are not fully elaborated in this data, their award on this significant task order suggests they possess the requisite experience and capabilities. A deeper dive into their contract history, including past performance reviews and any reported issues on previous DoD engagements, would provide a more comprehensive understanding of their reliability and expertise in managing complex defense contracts of this nature.

How does the average daily cost of this contract compare to industry benchmarks for ISR system sustainment?

The average daily cost for this contract is approximately $15,000 ($33.1M / 2214 days). Benchmarking this figure against industry standards for ISR system operations and sustainment is challenging without access to proprietary cost data or specific market analyses for comparable systems. Factors such as the age and complexity of the Guardrail, SATURN ARCH, and ARL-M systems, the required operational tempo, and the level of technical support needed significantly influence costs. Generally, sustainment for advanced military aviation and sensor platforms can be high due to specialized personnel, maintenance, and technology integration requirements. A definitive comparison would necessitate detailed cost breakdowns and access to data on similar contracts within the defense sector.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this ISR sustainment effort?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor does not manage costs efficiently. While the 'fixed fee' provides the contractor with a guaranteed profit margin, the 'cost plus' aspect means the government reimburses all allowable costs incurred. This structure can disincentivize cost-saving measures by the contractor, as increased costs (up to a point) do not reduce their profit. For complex ISR sustainment, where unforeseen technical issues or operational demands can arise, there's a heightened risk of cost growth. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

How effective is the 'full and open competition' strategy in ensuring value for money for these critical ISR systems?

Full and open competition is generally considered the most effective strategy for ensuring value for money, as it allows all qualified vendors to compete, fostering price reductions and innovation. In this case, with two bidders, the competition level is present but not exceptionally high. The effectiveness hinges on the specific requirements of the solicitation and the number of capable vendors in the market. While it provides a baseline for competitive pricing, the CPFF structure introduces a layer of complexity where cost control and oversight become paramount to realizing the full value. The ultimate value is realized if the competitive process leads to a technically sound solution at a reasonable cost, managed effectively throughout the contract lifecycle.

What is the historical spending trend for operations and sustainment of similar airborne reconnaissance systems within the Department of the Army?

Historical spending trends for similar airborne reconnaissance systems within the Department of the Army are typically characterized by significant, long-term investments. These systems, like Guardrail and its successors, are crucial for intelligence gathering and require continuous funding for sustainment, upgrades, and operational support. Spending often fluctuates based on modernization programs, operational tempo, and geopolitical demands. Contracts for such systems can span many years and involve hundreds of millions, if not billions, of dollars cumulatively over their lifecycle. This specific $33.1M task order represents a segment of that broader, ongoing investment in maintaining and operating the Army's ISR capabilities.

What are the potential implications of the contract's duration (over 6 years) on its overall cost and performance?

The contract's duration of over six years (2214 days) has several implications. Positively, it provides stability and predictability for both the government and the contractor, allowing for long-term planning and investment in specialized resources and personnel. This can lead to greater efficiency and expertise development. However, a long duration also increases the risk of cost escalation due to inflation, changes in market conditions, or unforeseen technological obsolescence. It also means that performance issues, if they arise, could persist for an extended period. For a CPFF contract, the extended timeline amplifies the need for robust government oversight to manage costs effectively and ensure performance remains high throughout the contract's life.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10740 PARKRIDGE BLVD STE 700, RESTON, VA, 20191

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $36,694,992

Exercised Options: $36,694,992

Current Obligation: $33,108,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD420

IDV Type: IDC

Timeline