DoD's $17.2M contract for wargaming and analytic support awarded to American Systems Corp

Contract Overview

Contract Amount: $17,243,130 ($17.2M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-07-27

End Date: 2026-05-27

Contract Duration: 1,765 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WARGAMING, ANALYTIC, AND TECHNICAL SUPPORT SERVICES (WATSS) TO SUPPORT IN RESEARCH AND DEVELOPMENT SUPPORT MODELING, SIMULATION, STIMULATION, AND ANALYSIS SUPPORT AND, INTEROPERABILITY, TEST AND EVALUATION, TRIALS SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to AMERICAN SYSTEMS CORPORATION for work described as: WARGAMING, ANALYTIC, AND TECHNICAL SUPPORT SERVICES (WATSS) TO SUPPORT IN RESEARCH AND DEVELOPMENT SUPPORT MODELING, SIMULATION, STIMULATION, AND ANALYSIS SUPPORT AND, INTEROPERABILITY, TEST AND EVALUATION, TRIALS SUPPORT Key points: 1. Contract focuses on critical R&D, modeling, simulation, and analysis support for the Navy. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Performance period spans nearly five years, indicating a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. Services are essential for advanced military research and development, impacting national security. 6. The contractor, American Systems Corporation, has a track record in defense-related services.

Value Assessment

Rating: good

The contract's value of $17.2 million over approximately five years appears reasonable for specialized wargaming, analytic, and technical support services. Benchmarking against similar contracts for advanced modeling and simulation support in the defense sector suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain controlled and represent good value for the taxpayer.

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 vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of technical solutions. The open competition suggests the government sought the best value and technical approach available in the market for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of federal dollars spent.

Public Impact

The Department of the Navy benefits from advanced analytical and wargaming capabilities to inform strategic planning and R&D. Services delivered include modeling, simulation, analysis, interoperability, test, and evaluation support. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications include specialized roles for analysts, engineers, and technical experts within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost overruns.
The duration of the contract (nearly 5 years) necessitates ongoing performance monitoring.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The contractor, American Systems Corporation, has experience in defense and technical support.
The services provided are crucial for advanced military research and development, indicating strategic importance.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced research and development, modeling, and simulation for defense applications. The market for such specialized technical support is driven by government defense spending, with a focus on innovation and technological superiority. Comparable spending benchmarks in this niche often involve significant investments in complex analytical tools and expert personnel, reflecting the high-skill nature of the work.

Small Business Impact

This contract was not set aside for small businesses and does not indicate any specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor may engage small businesses as subcontractors depending on their specific needs and capabilities.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and technical representatives who monitor performance, costs, and adherence to contract terms. Accountability measures are built into the CPFF structure through fixed fee targets and potential award fees. Transparency is generally maintained through contract databases, though specific performance details may be sensitive.

Related Government Programs

Defense Research and Development
Military Simulation and Wargaming
Naval Warfare Analysis
Engineering and Technical Services

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Requirement
Technical Expertise Maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to AMERICAN SYSTEMS CORPORATION. WARGAMING, ANALYTIC, AND TECHNICAL SUPPORT SERVICES (WATSS) TO SUPPORT IN RESEARCH AND DEVELOPMENT SUPPORT MODELING, SIMULATION, STIMULATION, AND ANALYSIS SUPPORT AND, INTEROPERABILITY, TEST AND EVALUATION, TRIALS SUPPORT

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 $17.2 million.

What is the period of performance?

Start: 2021-07-27. End: 2026-05-27.

What is American Systems Corporation's track record with similar DoD contracts?

American Systems Corporation has a history of performing defense-related contracts, including those involving technical support, engineering services, and IT solutions. While specific details on prior wargaming and analytic support contracts are not detailed here, their general experience within the DoD suggests familiarity with government procurement processes and defense requirements. A deeper dive into their contract history would reveal the scale and scope of their previous work in areas directly comparable to the WATSS contract, providing further insight into their capabilities and performance reliability.

How does the $17.2M contract value compare to similar modeling and simulation support contracts?

The $17.2 million contract value for nearly five years of wargaming, analytic, and technical support services appears to be within a reasonable range for specialized defense R&D support. Contracts for advanced modeling, simulation, and analysis often require highly skilled personnel and sophisticated tools, leading to significant costs. Benchmarking against similar contracts awarded by the Department of Defense or other agencies for comparable services indicates that this value is not exceptionally high or low, suggesting competitive pricing given the technical complexity and duration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one for wargaming and analytic support, is the potential for cost overruns. While the contractor is incentivized to control costs to achieve their fixed fee, the government bears the risk of increased costs beyond the initial estimate. Effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent scope creep. Another risk is ensuring the contractor maintains the necessary technical expertise and delivers high-quality analytical products throughout the contract's duration.

How effective are wargaming and simulation services in improving defense R&D outcomes?

Wargaming and simulation services are highly effective tools for improving defense R&D outcomes by providing a risk-free environment to test strategies, technologies, and operational concepts. They allow for the exploration of complex scenarios, identification of potential weaknesses, and optimization of resource allocation before costly real-world implementation. These services enable rapid iteration of designs, validation of interoperability, and assessment of system performance under various conditions, ultimately leading to more robust and effective defense capabilities.

What has been the historical spending trend for similar engineering and technical support services within the Department of the Navy?

Historical spending trends for engineering and technical support services within the Department of the Navy have generally shown a consistent demand, particularly for specialized areas like R&D, modeling, and simulation. Budgets in these areas often fluctuate based on strategic priorities, technological advancements, and geopolitical factors. While specific figures for this exact niche require detailed analysis of historical budgets, the overall trend indicates a sustained investment in acquiring advanced analytical and support capabilities to maintain technological superiority.

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: N0018921R3013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $19,837,709

Exercised Options: $17,915,802

Current Obligation: $17,243,130

Actual Outlays: $3,716,664

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,146,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7111

IDV Type: IDC

Timeline