DoD's $21.3M contract for technical and project management services awarded to Adsyst Technologies, Inc

Contract Overview

Contract Amount: $21,365,902 ($21.4M)

Contractor: Adsync Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-23

End Date: 2026-01-22

Contract Duration: 2,009 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF:OT:IGF REQUIREMENT FOR TECHNICAL, PROJECT, ANALYTICAL, PROGRAM, AND SUPPLY CHAIN MANAGEMENT SERVICES PROPERTY MANAGEMENT DIVISION OPERATING MANAGEMENT, SUPPLIES, AND PR CREATION.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to ADSYNC TECHNOLOGIES, INC. for work described as: IGF:OT:IGF REQUIREMENT FOR TECHNICAL, PROJECT, ANALYTICAL, PROGRAM, AND SUPPLY CHAIN MANAGEMENT SERVICES PROPERTY MANAGEMENT DIVISION OPERATING MANAGEMENT, SUPPLIES, AND PR CREATION. Key points: 1. Contract provides essential support for property management and operational functions. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration extends through January 2026, indicating a long-term need. 4. Services encompass technical, project, analytical, program, and supply chain management. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. Awarded by the Department of the Navy, a significant component of the DoD. 7. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: good

The contract's total value of $21.3 million over its period of performance appears reasonable for the scope of services provided, which include comprehensive technical, project, and program management. Benchmarking against similar contracts for specialized management support within the Department of Defense would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, necessitates robust oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

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 6 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and encourages innovation among bidders.

Public Impact

The Department of the Navy benefits from enhanced operational efficiency and project execution. Services support critical property management and supply chain functions within the DoD. The contract ensures continuity of essential technical and analytical support. Workforce implications include the potential for specialized roles within Adsyst Technologies, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract requires ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for critical management services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract addresses a clear need for specialized technical and project management support.
The contractor, Adsyst Technologies, Inc., has secured a significant award, suggesting a level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports government agencies with specialized expertise in areas like project management, technical analysis, and program execution. Spending in this category is often driven by the need for specialized skills that may not be readily available in-house within federal agencies, particularly for complex defense and infrastructure projects. Comparable spending benchmarks would typically be found within government-wide contract vehicles for professional services or specific agency procurement data for similar support functions.

Small Business Impact

The provided 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 small business set-aside. However, the prime contractor, Adsyst Technologies, 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 would primarily be managed by the Department of the Navy's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Cost Plus Fixed Fee structure necessitates close scrutiny of incurred costs against the fixed fee. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG typically has oversight over all DoD contracts to detect and prevent fraud, waste, and abuse.

Related Government Programs

Department of Defense Professional Services Contracts
Navy Technical Support Services
Project Management Support Contracts
Supply Chain Management Services
Property Management Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Potential for scope creep given the nature of management services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to ADSYNC TECHNOLOGIES, INC.. IGF:OT:IGF REQUIREMENT FOR TECHNICAL, PROJECT, ANALYTICAL, PROGRAM, AND SUPPLY CHAIN MANAGEMENT SERVICES PROPERTY MANAGEMENT DIVISION OPERATING MANAGEMENT, SUPPLIES, AND PR CREATION.

Who is the contractor on this award?

The obligated recipient is ADSYNC TECHNOLOGIES, 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 $21.4 million.

What is the period of performance?

Start: 2020-07-23. End: 2026-01-22.

What is the track record of Adsyst Technologies, Inc. in performing similar government contracts?

A comprehensive review of Adsyst Technologies, Inc.'s past performance would involve examining their contract history with federal agencies, particularly the Department of Defense and Department of the Navy. This includes looking at past awards, contract values, performance evaluations (such as Past Performance Information), and any reported issues or disputes. A strong track record with similar services, such as technical, project, and program management, would indicate a lower risk for this current contract. Conversely, a history of performance issues, contract terminations, or significant disputes could raise concerns about their ability to successfully execute this $21.3 million award. Further analysis would require accessing contract databases and performance review systems to gauge their reliability and expertise in delivering complex management solutions.

How does the pricing structure (Cost Plus Fixed Fee) compare to market rates for similar services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for services where the scope of work may evolve or is difficult to define precisely at the outset. For this $21.3 million contract, the 'cost' component covers allowable direct and indirect costs incurred by Adsyst Technologies, Inc., while the 'fixed fee' represents their profit. To assess market rates, one would compare the negotiated fixed fee percentage and the projected cost base against similar contracts awarded by the Department of Defense or other federal agencies for comparable technical, project, and program management services. Benchmarking would involve analyzing the ratio of fee to total contract value and the types of costs being reimbursed. If the fixed fee is significantly higher than industry averages for similar risk profiles and the cost reimbursement appears excessive or lacks sufficient justification, it could indicate a less than optimal value for the government.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this $21.3 million contract include potential cost overruns due to the CPFF structure, performance deficiencies by the contractor, and the long contract duration (ending January 2022) which could lead to scope creep or evolving requirements not adequately addressed. Mitigation strategies typically involve robust contract oversight by the Department of the Navy, including detailed review of incurred costs, regular performance evaluations against defined metrics, and proactive communication with Adsyst Technologies, Inc. The full and open competition, with 6 bidders, suggests a competitive environment that may incentivize better performance. However, continuous monitoring of contractor performance, adherence to the Statement of Work, and effective change management processes are crucial to mitigate these risks and ensure successful delivery of technical, project, and program management services.

How effective is the competition level (6 bidders) in ensuring value for money for this specific contract?

The fact that this contract received bids from 6 different entities under a full and open competition is a positive indicator for value for money. A higher number of bidders generally suggests a more competitive marketplace, which tends to drive down prices and encourage contractors to offer their best terms and performance capabilities. For this $21.3 million award, the competition likely pressured Adsyst Technologies, Inc. to submit a more cost-effective proposal and commit to strong performance standards. While 6 bidders is a healthy number, the ultimate effectiveness in ensuring value depends on the quality and competitiveness of the proposals received and the government's evaluation process. It suggests that the government had a reasonable selection of qualified offerors, increasing the likelihood of a fair and competitive price.

What is the historical spending pattern for similar technical and project management services within the Department of the Navy?

Analyzing historical spending patterns for similar technical and project management services within the Department of the Navy (DoN) is crucial for contextualizing the $21.3 million award to Adsyst Technologies, Inc. This involves examining procurement data over several fiscal years to identify trends in contract values, types of services procured, and the number of contractors utilized. Understanding the average cost per year for such services, the typical contract durations, and the prevalence of different contract types (like CPFF versus fixed-price) provides a benchmark. If this contract's value and duration align with historical norms for similar requirements, it suggests consistent demand and potentially efficient procurement. Significant deviations, either higher or lower, could warrant further investigation into the specific needs, market conditions, or procurement strategies employed.

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: N6449820R3002

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Adsync Technologies Inc.

Address: 201 SOUTH F STREET, PENSACOLA, FL, 32502

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $25,878,684

Exercised Options: $25,878,684

Current Obligation: $21,365,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7040

IDV Type: IDC

Timeline