DoD's Naval Research contract awarded to American Technology Solutions International Corp for $27M

Contract Overview

Contract Amount: $27,087,607 ($27.1M)

Contractor: American Technology Solutions International Corp

Awarding Agency: Department of Defense

Start Date: 2020-02-14

End Date: 2025-09-01

Contract Duration: 2,026 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL, ENGINEERING AND ANALYTICAL AND PROGRAMMATIC SUPPORT SERVICES FOR THE OFFICE OF NAVAL RESEARCH (ONR) MISSION CAPABLE, PERSISTENT&SURVIVABLE NAVEL PLATFORMS DEPARTMENT (CODE 33).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to AMERICAN TECHNOLOGY SOLUTIONS INTERNATIONAL CORP for work described as: TECHNICAL, ENGINEERING AND ANALYTICAL AND PROGRAMMATIC SUPPORT SERVICES FOR THE OFFICE OF NAVAL RESEARCH (ONR) MISSION CAPABLE, PERSISTENT&SURVIVABLE NAVEL PLATFORMS DEPARTMENT (CODE 33). Key points: 1. Contract provides critical technical and analytical support for naval platform development. 2. Competition was full and open, suggesting a robust bidding process. 3. Contract duration extends to September 2025, indicating a long-term need. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. Performance is within the Engineering Services sector, vital for defense innovation. 6. The award is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The contract's value of approximately $27 million over its period of performance appears reasonable for specialized technical and analytical support services for naval platforms. Benchmarking against similar contracts for engineering and programmatic support within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure, while common, requires careful monitoring to ensure costs remain aligned with the fixed fee and overall project objectives. Without specific comparable contract data, a definitive value assessment is challenging, but the scope suggests a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 5 bidders suggests a healthy level of competition for this requirement. Full and open competition is generally expected to drive competitive pricing and encourage innovation as contractors vie for the award. The specific details of the bidding process and the number of proposals received would further illuminate the intensity of the competition.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions. This process helps ensure that the government is obtaining the best value for its investment by leveraging market forces.

Public Impact

The Office of Naval Research (ONR) benefits from enhanced technical and analytical capabilities for its mission-critical naval platform development. Services delivered are crucial for ensuring naval platforms are capable, persistent, and survivable. The geographic impact is primarily within the Department of the Navy's research and development ecosystem. Workforce implications include specialized engineering, technical, and analytical roles supporting naval innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost overruns and ensure the fixed fee remains appropriate.
The long duration of the contract (through September 2025) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving naval requirements.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that likely resulted in favorable pricing.
The contract supports the critical mission of the Office of Naval Research, contributing to national security and technological advancement.
The contractor, American Technology Solutions International Corp, is providing specialized services essential for naval platform development.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the defense industrial base. This sector is characterized by high technical expertise and innovation, often involving complex projects with long development cycles. Spending in this area is essential for maintaining a technological edge in defense capabilities. Comparable spending benchmarks would typically involve analyzing other contracts for similar technical, engineering, and programmatic support services awarded by defense agencies to understand market rates and contractor capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the Office of Naval Research. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, requiring the contractor to justify costs and adhere to the fixed fee. Transparency is facilitated through contract reporting mechanisms, though specific details on public transparency are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research and Development Programs
Naval Platform Modernization
Defense Engineering Services
Department of the Navy Research Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to AMERICAN TECHNOLOGY SOLUTIONS INTERNATIONAL CORP. TECHNICAL, ENGINEERING AND ANALYTICAL AND PROGRAMMATIC SUPPORT SERVICES FOR THE OFFICE OF NAVAL RESEARCH (ONR) MISSION CAPABLE, PERSISTENT&SURVIVABLE NAVEL PLATFORMS DEPARTMENT (CODE 33).

Who is the contractor on this award?

The obligated recipient is AMERICAN TECHNOLOGY SOLUTIONS INTERNATIONAL CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2020-02-14. End: 2025-09-01.

What is the track record of American Technology Solutions International Corp in performing similar technical and analytical support services for the Department of Defense?

American Technology Solutions International Corp (ATSIC) has a history of providing technical, engineering, and analytical support services. While specific details on past performance for the Office of Naval Research (ONR) mission-capable naval platforms are not fully elaborated in the provided data, ATSIC's general profile suggests experience in government contracting. A deeper dive into their contract history, past performance reviews, and any awards or penalties associated with previous DoD contracts would offer a more comprehensive understanding of their capabilities and reliability in executing complex technical and programmatic support.

How does the awarded amount of $27 million compare to similar contracts for naval platform engineering support?

The $27 million contract value for technical, engineering, and analytical support services for naval platforms is a significant investment. To benchmark this value, one would need to compare it against similar contracts awarded by the Department of the Navy or other defense agencies for comparable services. Factors such as the scope of work, duration, complexity of the platforms supported, and the specific technical expertise required would influence these comparisons. Without access to a database of comparable contracts, it's difficult to definitively state if this represents a high, low, or average cost. However, the full and open competition suggests an effort to secure competitive pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to American Technology Solutions International Corp, revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs rigorously, as the fee is fixed regardless of the final cost. This could lead to cost overruns if not managed effectively. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is profitable. Effective oversight, detailed cost reporting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

How effective is the competition level (5 bidders) in ensuring optimal value for taxpayers on this contract?

Having 5 bidders for this contract, awarded under full and open competition, suggests a reasonably competitive environment. This level of competition generally increases the likelihood of receiving competitive pricing and innovative solutions, thereby benefiting taxpayers. A higher number of bidders could potentially drive prices down further, while fewer bidders might indicate less market interest or higher barriers to entry. The effectiveness is also dependent on the quality of the proposals received and the government's evaluation process. Overall, 5 bidders indicate a healthy market response that should contribute positively to value for taxpayers.

What is the historical spending trend for similar engineering and analytical support services within the Department of the Navy?

Historical spending trends for engineering and analytical support services within the Department of the Navy are generally substantial, reflecting the continuous need for advanced research, development, and sustainment of naval capabilities. The Navy consistently invests heavily in these areas to maintain its technological superiority and operational readiness. Analyzing past budgets and contract awards for similar services would reveal patterns of increasing or stable expenditure, influenced by geopolitical factors, technological advancements, and strategic priorities. This specific $27 million contract represents a portion of that broader historical spending commitment to critical support functions.

What are the potential implications of the contract duration (ending September 2025) on long-term naval platform development?

The contract duration extending to September 2025 provides a stable, multi-year period for American Technology Solutions International Corp to deliver essential technical, engineering, and analytical support for naval platforms. This continuity is beneficial for long-term development projects, allowing for sustained focus and expertise application without frequent re-competition. It enables the Office of Naval Research to build a consistent working relationship with the contractor, fostering deeper understanding of complex requirements. However, it also means that the Navy must ensure robust performance management throughout the period to guarantee ongoing alignment with evolving strategic needs and technological advancements.

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

Solicitation ID: N0001419R3506

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 49 BETHANY WAY, FREDERICKSBURG, VA, 22406

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,046,051

Exercised Options: $31,668,378

Current Obligation: $27,087,607

Actual Outlays: $1,684,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7112

IDV Type: IDC

Timeline