DoD's $27M contract for Weapons Survivability Lab services awarded to Altus Systems & Technologies raises questions about value and competition
Contract Overview
Contract Amount: $27,145,076 ($27.1M)
Contractor: Altus Systems & Technologies, LLC
Awarding Agency: Department of Defense
Start Date: 2015-01-05
End Date: 2020-07-10
Contract Duration: 2,013 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: WEAPONS SURVIVABILITY LABORATORY
Place of Performance
Location: RIDGECREST, SAN BERNARDINO County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $27.1 million to ALTUS SYSTEMS & TECHNOLOGIES, LLC for work described as: WEAPONS SURVIVABILITY LABORATORY Key points: 1. The contract's high value and long duration suggest significant investment in facilities support. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. The cost-plus-fixed-fee structure may incentivize cost overruns. 4. This spending falls within the broader Facilities Support Services sector, which is crucial for government operations.
Value Assessment
Rating: questionable
The $27.1M contract value over five years, with a cost-plus-fixed-fee structure, warrants scrutiny. Benchmarking against similar facilities support contracts is needed to assess if the pricing reflects fair market value, especially given the limited competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method indicates that not all potential bidders were considered. This limited competition may have led to a higher price than could have been achieved through a truly open process.
Taxpayer Impact: The pricing structure and limited competition raise concerns about whether taxpayers received the best possible value for this significant expenditure.
Public Impact
Essential support services for critical defense research facilities. Potential for cost overruns due to the cost-plus-fixed-fee contract type. Impact on readiness and operational efficiency of the Weapons Survivability Laboratory. Limited transparency in the procurement process due to exclusion of sources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus-fixed-fee structure
- Long contract duration
Positive Signals
- Essential service provision
- Supports critical defense infrastructure
Sector Analysis
This contract falls under Facilities Support Services, a broad category essential for maintaining government infrastructure. Spending benchmarks in this sector vary widely based on the specific services and facility types, but large, long-term contracts like this often represent significant investments.
Small Business Impact
The data indicates that small businesses were not a primary focus for this contract, as the awardee is Altus Systems & Technologies, LLC, and the contract was not set aside for small businesses. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The contract's duration and 'exclusion of sources' clause suggest a need for robust oversight to ensure performance standards are met and costs are managed effectively. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may have led to higher costs.
- Cost-plus-fixed-fee structure increases risk of cost overruns.
- Lack of transparency in source exclusion.
- Long contract duration without clear performance benchmarks.
- Potential for contractor lock-in due to specialized services.
Tags
facilities-support-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to ALTUS SYSTEMS & TECHNOLOGIES, LLC. WEAPONS SURVIVABILITY LABORATORY
Who is the contractor on this award?
The obligated recipient is ALTUS SYSTEMS & TECHNOLOGIES, 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 $27.1 million.
What is the period of performance?
Start: 2015-01-05. End: 2020-07-10.
What specific factors justified the exclusion of other potential sources in this full and open competition?
The justification for excluding other sources needs to be thoroughly documented and reviewed. Typically, such exclusions are based on unique capabilities, proprietary technology, or urgent needs that only a specific contractor can meet. Without this documentation, it's difficult to assess if the exclusion was warranted or if it unnecessarily limited competition and potentially inflated costs.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs for these facilities support services?
The cost-plus-fixed-fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it can be useful for research and development or when cost uncertainty is high, it provides less incentive for the contractor to control costs compared to fixed-price contracts. The government bears the risk of cost overruns, making rigorous oversight and cost tracking essential to prevent excessive spending.
What is the long-term strategic value of maintaining this specific Weapons Survivability Laboratory under the current contract arrangement?
The long-term strategic value hinges on the lab's ongoing contribution to national defense capabilities, particularly in understanding and enhancing weapon system resilience. The current contract's duration and cost structure suggest a perceived critical need. However, periodic re-evaluation of the lab's mission relevance and the cost-effectiveness of its support services is necessary to ensure continued alignment with strategic defense objectives.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6893614R0022
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 300 FAIRFIELD, SEVERN, MD, 21144
Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,221,058
Exercised Options: $29,354,562
Current Obligation: $27,145,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-01-05
Current End Date: 2020-07-10
Potential End Date: 2020-07-10 00:00:00
Last Modified: 2024-05-15
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