DoD's $17.6M technical support contract awarded to American Technical Services, Inc. for metrology and IT services

Contract Overview

Contract Amount: $17,628,750 ($17.6M)

Contractor: American Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-21

End Date: 2026-04-20

Contract Duration: 1,095 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL SUPPORT SERVICES FOCUSED ON THE AREAS OF METROLOGY, TEST AND MONITORING SYSTEMS ASSESSMENT, AND INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT.

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to AMERICAN TECHNICAL SERVICES, INC. for work described as: TECHNICAL SUPPORT SERVICES FOCUSED ON THE AREAS OF METROLOGY, TEST AND MONITORING SYSTEMS ASSESSMENT, AND INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT. Key points: 1. Contract focuses on specialized technical support, including metrology and IT assurance. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Delivery order structure indicates a phased approach to service delivery. 4. Contract duration of 1095 days spans three years. 5. The contract's value is moderate within the engineering services sector. 6. Performance is located in California, potentially impacting local IT and engineering workforce.

Value Assessment

Rating: good

The contract value of $17.6 million over three years appears reasonable for specialized technical support services. Benchmarking against similar contracts for metrology, test systems, and IT assurance would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost control while ensuring necessary services are delivered. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost-effectiveness is challenging.

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 presence of two bidders suggests a moderate level of competition for this specialized service. While more than one bidder is positive, a higher number of competitors could potentially drive prices down further and foster greater innovation. The agency's decision to use full and open competition is generally a positive sign for achieving fair market value.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and quality for the services rendered. Full and open competition increases the likelihood that the government is not overpaying for these critical technical support functions.

Public Impact

The Department of the Navy benefits from enhanced metrology, test and monitoring systems, and IT assurance. Specialized technical expertise is provided to support critical defense infrastructure and operations. The contract supports the advancement of metrology standards and information security within the DoD. Workforce implications may include specialized engineering and IT professionals in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for critical technical support could pose a risk if performance falters.
Scope creep could increase the overall cost beyond the initial $17.6 million estimate.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration allows for sustained support and potential for building contractor expertise.
Focus on critical areas like metrology and IT assurance suggests alignment with strategic defense needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms that design, develop, and implement engineering solutions. The market for technical support services in defense is substantial, driven by the need for specialized expertise in areas like metrology, advanced testing, and cybersecurity. Spending in this sector is often characterized by long-term contracts and a focus on high-reliability services. Comparable spending benchmarks would typically involve other DoD contracts for similar technical support or engineering services.

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 requirement. However, the prime contractor, American Technical Services, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Metrology and Calibration Program
Defense Information Technology Contracting
Engineering and Technical Support Services
Test and Evaluation Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Contractor Performance Dependency
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to AMERICAN TECHNICAL SERVICES, INC.. TECHNICAL SUPPORT SERVICES FOCUSED ON THE AREAS OF METROLOGY, TEST AND MONITORING SYSTEMS ASSESSMENT, AND INFORMATION TECHNOLOGY AND INFORMATION ASSURANCE SUPPORT.

Who is the contractor on this award?

The obligated recipient is AMERICAN TECHNICAL SERVICES, 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 $17.6 million.

What is the period of performance?

Start: 2023-04-21. End: 2026-04-20.

What is the track record of American Technical Services, Inc. in performing similar technical support contracts for the Department of Defense?

Assessing the track record of American Technical Services, Inc. requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive performance history on comparable metrology, test systems, or IT assurance contracts would indicate a lower risk for this current award. Conversely, a history of underperformance or issues could raise concerns about the contractor's ability to meet the requirements of this new $17.6 million contract.

How does the $17.6 million contract value compare to similar metrology and IT support contracts awarded by the DoD?

The $17.6 million contract value for three years of technical support services needs to be benchmarked against similar procurements within the Department of Defense. This comparison should consider the scope of services (metrology, test systems, IT assurance), the duration, and the specific requirements. For instance, if similar contracts for comparable services over a similar period typically range from $15 million to $20 million, then this award appears to be within the expected market range. However, if comparable contracts are significantly lower, it might suggest this award is on the higher side, warranting closer scrutiny of the value proposition.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the government?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for the government is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the total contract value could increase. Effective oversight, detailed cost tracking, and robust negotiation of the fee are crucial to mitigate this risk and ensure the government receives good value for its investment.

How effective are the current metrology and IT assurance systems that this contract aims to support?

Determining the effectiveness of the current metrology and IT assurance systems requires access to internal DoD assessments, performance metrics, and potentially Inspector General reports. This contract is awarded to provide support, implying that either existing systems need enhancement, maintenance, or new capabilities are required. Without specific data on system performance, reliability, security posture, and adherence to standards, it's difficult to gauge the precise effectiveness. The success of this contract will ultimately be measured by its contribution to improving or maintaining the effectiveness of these critical systems.

What has been the historical spending trend for technical support services related to metrology and IT assurance within the Department of the Navy?

Analyzing historical spending trends for technical support services related to metrology and IT assurance within the Department of the Navy would provide context for the $17.6 million award. This involves examining annual spending data over the past 5-10 years for similar contract types and service categories. A rising trend might indicate increasing demand or evolving technological needs, while a stable or declining trend could suggest mature requirements or shifts in procurement strategies. Understanding these patterns helps assess whether the current contract aligns with historical investment levels or represents a significant change in focus or expenditure.

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: N6426723R3002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 20384 VIA MANTUA, PORTER RANCH, CA, 91326

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

Financial Breakdown

Contract Ceiling: $38,347,198

Exercised Options: $22,686,266

Current Obligation: $17,628,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D8911

IDV Type: IDC

Timeline