DoD's $2.5M Contract for Engineering Design Development Raises Questions on Competition and Value
Contract Overview
Contract Amount: $2,504,982 ($2.5M)
Contractor: Advanced Systems Supportability Engineering Technologies and Tools, Inc
Awarding Agency: Department of Defense
Start Date: 2026-02-01
End Date: 2027-01-31
Contract Duration: 364 days
Daily Burn Rate: $6.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING DESIGN DEVELOPMENT
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $2.5 million to ADVANCED SYSTEMS SUPPORTABILITY ENGINEERING TECHNOLOGIES AND TOOLS, INC for work described as: ENGINEERING DESIGN DEVELOPMENT Key points: 1. Contract awarded to ADVANCED SYSTEMS SUPPORTABILITY ENGINEERING TECHNOLOGIES AND TOOLS, INC for $2.5M. 2. Focus on engineering design development, a critical but potentially high-cost area. 3. Limited competition raises concerns about price discovery and potential overspending. 4. Sector context suggests high R&D spending, but specific benchmarks are needed.
Value Assessment
Rating: questionable
The contract value of $2.5M for engineering design development is difficult to assess without specific deliverables and benchmarks. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a sole-source or limited source award. This lack of competition hinders price discovery and may result in a higher price than if multiple vendors were involved.
Taxpayer Impact: The absence of robust competition suggests taxpayers may not be receiving the best possible value for this $2.5M investment.
Public Impact
Potential for inflated costs due to limited competition in a specialized R&D field. Impact on future defense capabilities if the design development is not cost-effective. Need for transparency in how the fixed fee was determined for this CPFF contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee structure
- Lack of specific performance metrics in provided data
Positive Signals
- Supports critical engineering design development
- Long-term contract duration allows for project continuity
Sector Analysis
The contract falls under Research and Development, specifically engineering design. This sector often involves high upfront costs and specialized expertise, making competitive benchmarking challenging but essential for value assessment.
Small Business Impact
The provided data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further investigation is needed to assess potential small business participation.
Oversight & Accountability
Oversight is crucial for CPFF contracts, especially those with limited competition. The Department of the Navy must ensure rigorous monitoring of costs and performance to safeguard taxpayer funds.
Related Government Programs
- Research and Development in Biotechnology (except Nanobiotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Cost Plus Fixed Fee structure
- Lack of detailed scope of work
- Potential for cost overruns
- Unclear justification for sole-source/limited award
Tags
research-and-development-in-biotechnolog, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.5 million to ADVANCED SYSTEMS SUPPORTABILITY ENGINEERING TECHNOLOGIES AND TOOLS, INC. ENGINEERING DESIGN DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is ADVANCED SYSTEMS SUPPORTABILITY ENGINEERING TECHNOLOGIES AND TOOLS, 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 $2.5 million.
What is the period of performance?
Start: 2026-02-01. End: 2027-01-31.
What specific engineering design development tasks are included, and how were the costs for these tasks estimated to arrive at the $2.5M value?
The provided data lacks specifics on the engineering design development tasks. A Cost Plus Fixed Fee (CPFF) contract implies costs are reimbursed plus a fixed fee. Understanding the basis for the fixed fee, the estimated costs, and the scope of work is critical to assessing value. Without this, it's difficult to determine if $2.5M is justified.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for limited competition is not provided. Typically, this occurs when only one source can meet requirements. However, agencies must still conduct market research and negotiate diligently to ensure fair and reasonable pricing. The absence of competition inherently weakens price discovery, making robust negotiation and oversight paramount.
How will the effectiveness and impact of this engineering design development be measured to ensure it meets the Department of Defense's needs?
Effectiveness measurement for R&D contracts relies on defined milestones, deliverables, and performance metrics. For this contract, the Department of the Navy needs clear criteria to evaluate the quality and utility of the engineering designs produced. Post-award reviews and adherence to the contract's technical requirements will be key indicators of success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002425R6102
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9385 INNOVATION DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,191,337
Exercised Options: $4,888,863
Current Obligation: $2,504,982
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2026-02-01
Current End Date: 2027-01-31
Potential End Date: 2031-01-31 00:00:00
Last Modified: 2026-01-05
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