DoD's $24.3M contract for PGSS Operator Support awarded to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. lacked competition

Contract Overview

Contract Amount: $24,328,719 ($24.3M)

Contractor: Adams Communication & Engineering Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-02-17

End Date: 2013-02-16

Contract Duration: 365 days

Daily Burn Rate: $66.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PGSS OPERATOR SUPPORT

Place of Performance

Location: WALDORF, CHARLES County, MARYLAND, 20602

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. for work described as: PGSS OPERATOR SUPPORT Key points: 1. The contract value of $24.3 million for operator support services represents a significant investment in communication equipment maintenance. 2. The sole awardee suggests potential limitations in market engagement or a specific need met by this contractor. 3. A single bidder raises questions about the effectiveness of the procurement process in achieving competitive pricing. 4. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial if managed effectively. 5. The contract duration of one year with a total value of $24.3 million indicates a substantial annual expenditure. 6. The absence of small business participation warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this $24.3 million contract is challenging without more specific details on the services provided under 'PGSS Operator Support'. However, the lack of competition is a significant red flag. Typically, competitive bidding leads to better pricing for the government. The firm-fixed-price nature of the contract is positive, as it caps the government's liability. Without comparable contracts or detailed service breakdowns, it's difficult to definitively assess value for money, but the non-competitive award raises concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The reason for this approach is not detailed in the provided data. Sole-source procurements can occur for various reasons, such as when only one vendor possesses the necessary unique capabilities, or in urgent situations. However, this significantly limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these services, as there was no pressure from competing bids to drive down costs.

Public Impact

The primary beneficiaries are likely the military units relying on the PGSS (presumably a communication or surveillance system) for operational effectiveness. The services delivered include operator support, which is crucial for the continuous functioning and maintenance of critical communication equipment. The contract is based in Maryland (ST: MD, SN: MARYLAND), indicating a potential geographic concentration of the supported operations or contractor presence. The contract supports the workforce involved in operating and maintaining the PGSS, ensuring readiness and technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a contract of this magnitude raises concerns about potential overpayment and reduced innovation.
The sole-source nature limits opportunities for small businesses to participate in this significant defense contract.
Without clear performance metrics or comparison data, assessing the true effectiveness and value of the operator support is difficult.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, transferring risk to the contractor.
The contract supports critical defense operations, ensuring the availability of essential communication equipment.
The contractor, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC., is being utilized for a specific support function, implying some level of expertise.

Sector Analysis

This contract falls within the broader defense sector, specifically related to communication equipment repair and maintenance. The market for such services is often specialized, with a few key players capable of meeting stringent military requirements. While specific market size data for 'PGSS Operator Support' is not readily available, the overall defense communication and IT services market is substantial, with significant government spending allocated annually. This contract represents a portion of that spending, focused on ensuring the operational readiness of specific defense systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB: false) and there is no indication of small business participation (SS: false). This means that opportunities for small businesses to engage in subcontracting for this $24.3 million contract were either not pursued or not mandated. This lack of small business involvement can limit the broader economic impact and reduce the pool of potential innovative solutions that small businesses often bring to government contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and contract management agencies, such as the Defense Contract Management Agency (DCMA), which is listed as the 'sa' (servicing agency). Accountability measures are generally embedded within the contract terms, including performance standards and payment schedules. Transparency is often limited for sole-source contracts, as the justification for non-competition may not be publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Communication Systems Support
Military Communication Equipment Maintenance
Command, Control, Communications, Computers, and Intelligence (C4I) Support
Federal IT and Communication Services Contracts
Department of Defense Contractor Support Services

Risk Flags

Sole-source award
Lack of competition
No small business participation indicated
Limited transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC.. PGSS OPERATOR SUPPORT

Who is the contractor on this award?

The obligated recipient is ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2012-02-17. End: 2013-02-16.

What specific system does 'PGSS' refer to, and what are the key operator support functions required?

The provided data abbreviates the contract description as 'PGSS OPERATOR SUPPORT' but does not specify what 'PGSS' stands for. Typically, in a defense context, such acronyms refer to specific platforms, systems, or programs. Operator support functions can range widely, from direct system operation and monitoring to maintenance, troubleshooting, training, and logistical support. Without clarification on the 'PGSS' system, the exact nature and criticality of the operator support functions remain undefined. This lack of specificity makes it difficult to fully assess the contract's purpose and value.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates this contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED), signifying a sole-source or limited competition procurement. The specific justification for this approach is not provided. Common reasons for sole-source awards include unique capabilities held by only one contractor, urgent and compelling needs where competition is impractical, or follow-on work to a previously competed contract where only the original contractor can provide the necessary integration or support. Without the official justification document, it is impossible to determine the precise rationale, but it suggests that competitive market forces were bypassed for this $24.3 million award.

How does the $24.3 million contract value compare to similar operator support contracts within the Department of Defense?

Directly comparing the $24.3 million value of this 'PGSS OPERATOR SUPPORT' contract to similar contracts is challenging without knowing the specific 'PGSS' system and the detailed scope of operator support. However, for a one-year duration (dur: 365), this represents a substantial annual expenditure. Defense contracts for specialized operator support, particularly for complex or critical systems, can range significantly. If 'PGSS' is a major communication or intelligence system, this value might be within the expected range for comprehensive support. Conversely, if it's a smaller or less critical system, the value could be considered high, especially given the lack of competition.

What are the potential risks associated with a sole-source award of this magnitude?

A sole-source award of $24.3 million carries several potential risks. Firstly, the government may not achieve the best possible price due to the absence of competitive pressure, leading to potential cost inefficiencies. Secondly, it can stifle innovation, as there's no incentive for other companies to develop competing solutions or offer alternative approaches. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future. Lastly, it raises concerns about transparency and fairness in the procurement process, potentially signaling a lack of robust market research or a failure to identify qualified alternative sources.

What is the track record of ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. in performing similar government contracts?

The provided data identifies ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC. as the contractor for this $24.3 million PGSS Operator Support contract. However, it does not offer details on their past performance, contract history, or specific expertise relevant to this role. To assess their track record, one would need to examine their past federal contract awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications, disputes, or terminations. Without this additional information, it's difficult to gauge their reliability and capability in fulfilling this specific requirement.

What are the implications of the firm-fixed-price contract type for this operator support service?

The contract is awarded as 'FIRM FIXED PRICE' (pt: FIRM FIXED PRICE), which means the contractor, ADAMS COMMUNICATION & ENGINEERING TECHNOLOGY, INC., is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the cost risk from the government to the contractor. For the government, this offers budget certainty and protection against cost overruns. However, it can also incentivize the contractor to cut corners on quality or service delivery if not adequately monitored. For a service like operator support, effective performance monitoring is crucial to ensure the fixed price delivers the expected value and quality.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6833512R0103

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11637 TER DR STE 201, WALDORF, MD, 20602

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $25,317,648

Exercised Options: $25,051,998

Current Obligation: $24,328,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline