DoD Awards $7M for Logistics and Technical Support to Applied Technical Systems, Inc

Contract Overview

Contract Amount: $6,983,455 ($7.0M)

Contractor: Applied Technical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-02-11

End Date: 2026-02-05

Contract Duration: 1,820 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICS AND TECHNICAL SUPPORT FOR NSWCPCD SUPPORTED SYSTEMS.

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to APPLIED TECHNICAL SYSTEMS, INC. for work described as: LOGISTICS AND TECHNICAL SUPPORT FOR NSWCPCD SUPPORTED SYSTEMS. Key points: 1. Contract awarded to Applied Technical Systems, Inc. for logistics and technical support. 2. The contract is for engineering services within the Department of Defense. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The contract duration is 1820 days, ending in February 2026.

Value Assessment

Rating: fair

The contract value of $6.98M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar engineering services contracts would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

Ensures continued operational support for critical Navy systems. Supports a private sector company, contributing to the defense industrial base. The long-term nature of the contract provides stability for both the government and the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns in Cost Plus Fixed Fee contracts.
Reliance on a single contractor for extended support.

Positive Signals

Awarded through full and open competition.
Long contract duration provides stability.
Supports critical defense systems.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense operations. Spending in this sector can vary significantly based on project complexity and duration, but this award represents a moderate investment.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The award process under full and open competition suggests adherence to standard procurement regulations. However, ongoing oversight of performance and costs will be crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
No specific performance metrics provided.
Contract awarded to a single entity for an extended period.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to APPLIED TECHNICAL SYSTEMS, INC.. LOGISTICS AND TECHNICAL SUPPORT FOR NSWCPCD SUPPORTED SYSTEMS.

Who is the contractor on this award?

The obligated recipient is APPLIED TECHNICAL SYSTEMS, 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 $7.0 million.

What is the period of performance?

Start: 2021-02-11. End: 2026-02-05.

What specific systems does this logistics and technical support cover, and what is the criticality of these systems to naval operations?

The provided data does not specify the exact systems supported. Understanding the criticality of these systems is essential for evaluating the true value of this contract. If they are mission-critical, the cost may be justified; if they are less vital, the expenditure warrants closer scrutiny regarding efficiency and necessity.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services in terms of cost control and risk to the government?

CPFF contracts are often used when the scope of work is not well-defined, allowing flexibility. However, they carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight is paramount to manage costs and ensure value.

What performance metrics are in place to ensure Applied Technical Systems, Inc. is delivering effective logistics and technical support as per the contract requirements?

The provided data does not detail the performance metrics or Key Performance Indicators (KPIs) associated with this contract. Effective oversight requires clearly defined metrics to measure the contractor's performance, ensuring timely and quality support, and allowing for corrective actions if necessary.

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: N6133119R3507

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7566 E SITKA CT, PORT ORCHARD, WA, 98366

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: $23,755,486

Exercised Options: $23,755,486

Current Obligation: $6,983,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7145

IDV Type: IDC

Timeline