DoD's $2.86M contract for P-326 design effort awarded to ASMD LLC, with 2,553 days duration

Contract Overview

Contract Amount: $2,859,405 ($2.9M)

Contractor: Asmd LLC

Awarding Agency: Department of Defense

Start Date: 2019-12-05

End Date: 2026-12-01

Contract Duration: 2,553 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PDA (0-35% DESIGN) EFFORT FOR P-326, PRINCIPAL END ITEM (PEI)

Place of Performance

Location: AGANA HEIGHTS, GUAM County, GUAM, 96910

Plain-Language Summary

Department of Defense obligated $2.9 million to ASMD LLC for work described as: PDA (0-35% DESIGN) EFFORT FOR P-326, PRINCIPAL END ITEM (PEI) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The duration of 2,553 days indicates a long-term project with sustained effort. 4. The contract is for engineering services, specifically for the P-326 principal end item. 5. The contract is a delivery order under a larger contract vehicle. 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: fair

Benchmarking the value of this $2.86 million contract for engineering services is challenging without specific details on the scope of work for the P-326 principal end item. However, the firm-fixed-price structure suggests that the government has negotiated a set price, which can be advantageous if the contractor accurately estimates costs. Comparing this to similar design efforts for naval systems would require access to a broader dataset of comparable contracts. The duration of over 7 years (2,553 days) for a design effort might indicate complexity or a phased approach, but it also raises questions about the efficiency of the design process and potential for cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The Department of the Navy's use of full and open competition suggests they sought the best value from the market for this engineering services requirement.

Taxpayer Impact: A competitive award process like full and open competition is generally favorable for taxpayers as it aims to secure the most cost-effective solution by leveraging market forces.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive engineering services for the P-326 principal end item. The services delivered are related to the design effort for a specific piece of equipment or system. The geographic impact is likely concentrated around the Navy's operational areas or facilities where the P-326 is utilized. Workforce implications may include employment for engineers and technical staff at ASMD LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to scope creep or inefficiencies if not actively managed.
Firm-fixed-price contracts can sometimes incentivize contractors to cut corners on quality if not adequately overseen.
Lack of specific details on the P-326 makes it difficult to assess the true value and necessity of the design effort.
The contract is a delivery order, implying it's part of a larger, potentially multi-award contract, whose overall structure and value are not detailed here.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Firm-fixed-price contract type shifts cost risk to the contractor.
The contract is for a specific engineering design effort, indicating a focused requirement.
The award to ASMD LLC suggests they possess the necessary technical capabilities for this specialized work.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330). The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military platforms and systems. Companies like ASMD LLC compete for these contracts by demonstrating specialized technical expertise and a proven track record. Spending in this sector is often characterized by long-term engagements and complex requirements, similar to the duration seen in this award.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award to ASMD LLC, whose size is not specified here, means that opportunities for small businesses to participate in this specific contract are not mandated through set-aside provisions. Further analysis would be needed to determine if ASMD LLC has its own small business subcontracting plan or if small businesses are indirectly involved.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope, schedule, and quality requirements. Transparency is facilitated by the contract award notice, but detailed project progress and spending oversight would be internal to the agency unless specific reporting mechanisms are mandated. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Engineering Services Contracts
Defense Design and Development Contracts
Principal End Item (PEI) Support Contracts
Firm Fixed Price Engineering Contracts
Full and Open Competition Awards

Risk Flags

Long contract duration may increase risk of schedule delays.
Lack of specific details on PEI makes value assessment difficult.
Firm-fixed-price requires careful contractor performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to ASMD LLC. PDA (0-35% DESIGN) EFFORT FOR P-326, PRINCIPAL END ITEM (PEI)

Who is the contractor on this award?

The obligated recipient is ASMD LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2019-12-05. End: 2026-12-01.

What is the specific nature of the P-326 Principal End Item (PEI) and the scope of the design effort?

The provided data does not specify the P-326 Principal End Item (PEI). However, 'Principal End Item' typically refers to a major component or system that is a primary product of a defense acquisition program. The 'design effort' implies that ASMD LLC is responsible for developing or refining the technical specifications, blueprints, and potentially prototypes for this item. Without knowing what the P-326 is (e.g., an aircraft component, a ship system, a weapon platform), it's impossible to fully assess the criticality or complexity of the design work. This lack of specificity makes it difficult to benchmark the contract's value or compare it to similar efforts in the defense sector.

How does the $2.86 million cost compare to similar engineering design contracts for naval systems?

Directly comparing the $2.86 million cost to similar naval engineering design contracts is challenging without more detailed information on the scope, complexity, and duration of the P-326 design effort. The contract's duration of over seven years (2,553 days) suggests a significant undertaking. If this is a preliminary or conceptual design phase for a major new system, the cost might be reasonable. However, if it's for a minor modification or a component of an existing system, it could be on the higher side. A comprehensive benchmark would require analyzing contracts with similar NAICS codes (541330), contract types (firm-fixed-price), and for comparable naval platforms or systems, considering factors like the number of bidders and the specific deliverables.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for this contract. However, as a design effort for a Principal End Item (PEI), typical deliverables would likely include design documentation, technical drawings, specifications, analysis reports (e.g., performance, reliability, maintainability), and potentially prototypes or models. KPIs would focus on adherence to schedule, budget (though fixed-price mitigates budget risk for the government), quality of design documentation, and successful completion of design reviews. The long duration suggests phased deliverables and reviews throughout the project lifecycle.

What is ASMD LLC's track record with the Department of Defense and specifically with the Department of the Navy?

Information regarding ASMD LLC's specific track record with the Department of Defense or the Department of the Navy is not provided in the data. To assess their capability and past performance, one would need to examine their contract history, including previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. A positive track record with relevant agencies and similar types of engineering services would increase confidence in their ability to successfully execute this P-326 design effort.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or cost overruns?

The primary risks identified from the available data include the long contract duration (over 7 years), which increases the potential for schedule slippage and scope creep, especially in a design-intensive project. While the firm-fixed-price contract shifts cost overrun risk to the contractor, inadequate initial cost estimation or unforeseen technical challenges could still impact the project's viability or lead to disputes. The lack of detail on the P-326 itself makes it difficult to assess specific technical risks. Effective risk mitigation would depend on robust project management, clear communication, and proactive identification and management of potential issues by both the contractor and the Navy.

How does this contract fit into the broader context of the Navy's P-326 program or other related defense initiatives?

This contract represents a specific component within a larger defense acquisition program, likely related to the P-326 Principal End Item. The design effort is a foundational stage, crucial for the subsequent development, production, and fielding of the end item. Understanding its fit requires knowing the P-326's role in the Navy's overall strategy and operational capabilities. It could be part of a modernization effort, a new platform development, or a sustainment initiative. Its significance is tied to the importance of the P-326 itself within the naval force structure and its contribution to national defense objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 733 BISHOP ST STE 3100, HONOLULU, HI, 96813

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,859,405

Exercised Options: $2,859,405

Current Obligation: $2,859,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6274215D0002

IDV Type: IDC

Timeline