Navy awards $222M contract for program management support services to American Systems Corporation

Contract Overview

Contract Amount: $22,233,718 ($22.2M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2004-12-10

End Date: 2009-09-30

Contract Duration: 1,755 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200506!147185!1700!N00024!NAVAL SEA SYSTEMS COMMAND !GS07T00BGD0030 !C!N! !N!N0002405FB021! !20041210!20051209!077799799!077799799!077799799!N!AMERICAN SYSTEMS CORPORATION !13990 PARKEAST CIR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000000019213!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !541 !LONGBOW HELLFIRE !541330!E! !5!B!M! !D! !20200930!B! ! !N!Z!A! !J! !001!F! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !A!N! ! ! ! !1724!N00024!0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to AMERICAN SYSTEMS CORPORATION for work described as: 200506!147185!1700!N00024!NAVAL SEA SYSTEMS COMMAND !GS07T00BGD0030 !C!N! !N!N0002405FB021! !20041210!20051209!077799799!077799799!077799799!N!AMERICAN SYSTEMS CORPORATION !13990 PARKEAST CIR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIR… Key points: 1. Contract awarded for program management and support services, indicating a need for specialized expertise. 2. The contract duration of 1755 days suggests a long-term requirement for these services. 3. Awarded to a single contractor, American Systems Corporation, for the full duration. 4. The contract was competed on a full and open basis, suggesting a broad search for qualified vendors. 5. The primary place of performance is Virginia, indicating a concentration of federal IT support services in the region. 6. The contract falls under the 'Program Management/Support Services' category, highlighting a specific service area.

Value Assessment

Rating: good

The contract value of $222,337,180 over approximately 4.8 years represents a significant investment in program management support. Benchmarking this against similar contracts for program management services within the Department of Defense is crucial for a precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government has a clear understanding of the scope and aims to control costs. The absence of extensive modifications or overruns, if applicable, would further support a 'good' value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The fact that it was competed broadly suggests that the Navy sought the best possible solution and price. The number of bidders is not specified in the provided data, but full and open competition generally leads to more competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it drives down prices through market forces and ensures that the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Department of the Navy and its various programs requiring expert program management and support. Services delivered include program management, technical support, and potentially other related professional services. The geographic impact is concentrated in Virginia, where the contractor is located and likely where the services will be performed. The contract supports a workforce skilled in program management, systems engineering, and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competed.
Reliance on a single contractor for critical program management functions could pose a risk if performance degrades.
The long duration of the contract may not always align with rapidly evolving program needs.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type helps control costs and provides budget certainty.
The contractor, American Systems Corporation, has a track record of performing federal contracts.
The contract is for program management support, a critical function for successful project execution.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on program management and support. The market for these services is substantial within the federal government, particularly for defense agencies like the Navy, which often require specialized expertise to manage complex acquisition programs. Comparable spending benchmarks would involve analyzing other contracts for similar program management support services awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, American Systems Corporation, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Sea Systems Command (NAVSEA) contracting officer and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery requirements. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Program Management Support
Professional, Scientific, and Technical Services Contracts
IT and Engineering Support Services

Risk Flags

Long contract duration may not adapt to changing requirements.
Reliance on a single contractor for critical functions.
Potential for cost overruns if scope is not well-defined initially.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to AMERICAN SYSTEMS CORPORATION. 200506!147185!1700!N00024!NAVAL SEA SYSTEMS COMMAND !GS07T00BGD0030 !C!N! !N!N0002405FB021! !20041210!20051209!077799799!077799799!077799799!N!AMERICAN SYSTEMS CORPORATION !13990 PARKEAST CIR !CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000000019213!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !541 !LONGBOW HELLFIRE !541330!E! !5!B!M! !D! !202

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2004-12-10. End: 2009-09-30.

What is the track record of American Systems Corporation with the Department of the Navy and similar contracts?

American Systems Corporation has a history of performing contracts with the Department of Defense, including the Navy. The provided data shows this specific contract (GS07T00BGD0030) awarded in 2004 for program management support services. Further analysis of federal procurement databases would reveal the full scope of their past performance, including the types of services rendered, contract values, and performance ratings on other awards. Understanding their historical success with similar program management and technical support contracts is key to assessing their capability and reliability for this specific award.

How does the awarded amount compare to similar program management support contracts within the Navy?

The awarded amount of approximately $222 million for program management support services over nearly five years is substantial. To benchmark this value, one would need to compare it against other contracts for similar services awarded by the Naval Sea Systems Command (NAVSEA) or other Navy commands during the same period. Factors such as the specific scope of work, required expertise, contract duration, and the number of bidders in those comparable contracts are essential for a fair comparison. Without direct comparative data, it's difficult to definitively state if this represents excellent or fair value, but the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with a long-term, firm-fixed-price contract for program management support?

A primary risk with a long-term, firm-fixed-price contract for program management support is the potential for scope creep or unforeseen technical challenges that were not adequately accounted for during the initial pricing. If the contractor underestimates the effort required or if program requirements evolve significantly, they may incur losses or seek contract modifications, potentially increasing costs. Conversely, the government risks paying for services that may become less relevant if program priorities shift dramatically. Another risk is the contractor's ability to maintain performance quality over an extended period, requiring diligent oversight.

How effective is full and open competition in ensuring competitive pricing for specialized support services like program management?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized support services. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This process encourages vendors to offer their best pricing and technical solutions to win the contract. While the number of bidders for this specific Navy contract is not detailed, the commitment to full and open competition signals an intent to leverage market forces to achieve optimal value for taxpayer dollars.

What is the historical spending trend for program management and support services within the Department of the Navy?

Historical spending trends for program management and support services within the Department of the Navy are generally substantial, reflecting the complexity and scale of naval acquisition and sustainment programs. Agencies like NAVSEA consistently require significant investment in these areas to manage shipbuilding, weapon systems development, and operational support. Analyzing past spending data would likely show a consistent demand for these services, with fluctuations tied to major defense initiatives, budget cycles, and specific program needs. This contract represents a portion of that ongoing, significant expenditure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 13990 PARKEAST CIR, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS07T00BGD0030

IDV Type: GWAC

Timeline