DoD's $21.4M Contract for Mechanical Engineering Services Awarded to American Systems Corp
Contract Overview
Contract Amount: $21,431,134 ($21.4M)
Contractor: American Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-05-16
End Date: 2022-09-15
Contract Duration: 1,948 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF CODE 34 MECHANICAL ENGINEERING AND DRAWING SERVICES FOR COMMUNICATIONS SYSTEMS
Place of Performance
Location: NORWICH, NEW LONDON County, CONNECTICUT, 06360
Plain-Language Summary
Department of Defense obligated $21.4 million to AMERICAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF CODE 34 MECHANICAL ENGINEERING AND DRAWING SERVICES FOR COMMUNICATIONS SYSTEMS Key points: 1. Contract awarded to a single vendor, American Systems Corporation. 2. Significant contract value of over $21 million. 3. Services are for communications systems engineering. 4. Contract duration spans over 4 years.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award type is a delivery order, which may not reflect the full competitive landscape for the overall requirement.
Taxpayer Impact: Taxpayer funds are utilized for specialized engineering services. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Ensures critical communications systems receive necessary engineering support. Supports technological advancements within the Department of the Navy. Potential for job creation within the engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can incentivize higher costs.
- Long contract duration may not reflect current market rates.
- Lack of detailed cost data hinders precise value assessment.
Positive Signals
- Awarded through full and open competition.
- Provides essential engineering services for defense communications.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense communications. Spending in this area is critical for national security, but requires careful management to ensure value for money.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of the Navy to ensure costs are reasonable and the fixed fee is justified. Monitoring performance and expenditures is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration may not reflect current market value.
- Limited transparency on specific cost components.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to AMERICAN SYSTEMS CORPORATION. IGF::OT::IGF CODE 34 MECHANICAL ENGINEERING AND DRAWING SERVICES FOR COMMUNICATIONS SYSTEMS
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 $21.4 million.
What is the period of performance?
Start: 2017-05-16. End: 2022-09-15.
What specific engineering tasks were performed under this contract, and how do they align with the initial requirements?
The contract specifies 'Mechanical Engineering and Drawing Services for Communications Systems.' A detailed review of task orders and deliverables would be necessary to confirm alignment with initial requirements. This includes verifying that the services provided were essential, efficiently executed, and contributed directly to the intended communications system enhancements or maintenance.
How was the fixed fee determined, and is it competitive compared to similar contracts?
The fixed fee is typically determined based on the estimated cost of the work and the perceived risk. Without access to the contractor's proposal and the government's cost analysis, it's difficult to assess its competitiveness. Benchmarking against industry standards for similar complexity and scope of engineering services would be required for a thorough evaluation.
What mechanisms were in place to ensure cost control and prevent overruns given the CPFF structure?
The CPFF structure necessitates robust government oversight, including regular audits, performance reviews, and detailed cost tracking. Mechanisms likely included establishing clear ceilings, requiring detailed justifications for expenditures, and potentially implementing incentive clauses for cost savings. The effectiveness of these mechanisms would depend on the diligence of the contracting officer and the quality of reporting.
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: N0002416R3321
Offers Received: 3
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: $39,529,960
Exercised Options: $39,529,960
Current Obligation: $21,431,134
Actual Outlays: $1,334,279
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $7,716,343
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4032
IDV Type: IDC
Timeline
Start Date: 2017-05-16
Current End Date: 2022-09-15
Potential End Date: 2022-09-15 00:00:00
Last Modified: 2025-12-03
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