DoD awards $9.2M engineering services contract to ASRC Federal, raising questions about competition and value

Contract Overview

Contract Amount: $9,209,344 ($9.2M)

Contractor: Asrc Federal Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2021-12-31

End Date: 2026-12-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL DATA PACKAGE DEVELOPMENT

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.2 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC for work described as: TECHNICAL DATA PACKAGE DEVELOPMENT Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. Engineering services are critical for defense readiness, but the lack of competition warrants scrutiny. 3. The contract duration of 5 years suggests a long-term need for these specialized services. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored. 5. ASRC Federal's track record and past performance will be key indicators of successful execution. 6. The specific technical data package development services are essential for future defense systems.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and the specific technical data package development services. The CPFF structure requires rigorous oversight to ensure costs remain reasonable. Without comparable bids, it's difficult to definitively assess if the pricing reflects fair market value. The $9.2 million total obligation over five years averages to approximately $1.84 million annually, which needs to be evaluated against the complexity and criticality of the engineering services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the agency's needs, often due to proprietary data, unique capabilities, or urgent requirements. The lack of multiple bidders means there was no competitive pressure to drive down prices or encourage innovative solutions, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may be paying a premium for these engineering services due to the absence of competitive bidding. The government missed an opportunity to leverage market forces to secure the best possible price and value.

Public Impact

The Department of the Army benefits from specialized engineering services for technical data package development. This contract supports the development of critical components and systems for national defense. The services are primarily delivered in Maryland, impacting the local professional engineering workforce. Successful execution of this contract contributes to the overall readiness and technological superiority of the U.S. military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits transparency and potential cost savings.
CPFF contract type carries inherent risk of cost escalation without strict oversight.
Lack of defined per-unit cost makes value assessment difficult.
Limited public information on the specific technical data package development requirements.

Positive Signals

ASRC Federal is a known entity in government contracting, suggesting some level of established capability.
The contract addresses a critical need within the Department of the Army for engineering expertise.
Long-term contract duration (5 years) indicates a sustained requirement and potential for stable support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a vital component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise, often requiring advanced degrees and certifications. Federal spending in engineering services supports a wide range of government functions, from infrastructure development to complex defense systems design. Comparable spending benchmarks are difficult to establish without more specific details on the technical data package development, but the overall federal expenditure on engineering services is substantial, reflecting its importance.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications or specific benefits intended for small businesses through this particular award. The focus is on the prime contractor's capabilities. Opportunities for small businesses would likely arise if ASRC Federal were to subcontract portions of this work, but this is not a requirement of the contract itself.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and technical monitors. The CPFF structure necessitates robust financial and performance oversight to ensure costs are reasonable and allocable to the contract. Transparency is limited due to the non-competitive nature of the award. Specific Inspector General jurisdiction would depend on the agency's internal policies and the nature of any potential investigations into fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Technical Data Package Development
Professional, Scientific, and Technical Services
Department of the Army Contracts
Non-Competitive Procurements

Risk Flags

Non-competitive award
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.2 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC. TECHNICAL DATA PACKAGE DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2021-12-31. End: 2026-12-30.

What is ASRC Federal Professional Services, LLC's track record with similar engineering services contracts, particularly those involving technical data package development for the Department of Defens

ASRC Federal Professional Services, LLC has a significant presence in federal contracting, often supporting defense and aerospace clients. While specific details on their past performance for 'technical data package development' within the DoD are not publicly detailed in this summary, their general portfolio includes a range of engineering, IT, and professional services. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar projects, would be necessary to fully assess their capability and reliability for this specific requirement. The company is a subsidiary of ASRC Industrial, indicating a broader capacity for complex projects.

How does the $9.2 million contract value compare to similar engineering services contracts awarded by the Department of the Army for technical data package development?

Direct comparison of the $9.2 million contract value for 'technical data package development' is challenging due to the specialized nature of the service and the non-competitive award. Typically, value is assessed against market rates and competitive bids. Without competitive data, it's difficult to ascertain if this price is optimal. However, the average annual value of approximately $1.84 million over five years suggests a substantial, ongoing requirement. Benchmarking would require access to detailed statements of work for comparable contracts and their awarded values, ideally from competitive procurements, which are not readily available for this sole-source award.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated in this case?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize higher spending if not properly managed. Mitigation strategies include rigorous government oversight of incurred costs, detailed review of the contractor's accounting systems, and clear definition of the scope of work to prevent scope creep. The government must actively monitor expenditures and ensure that all costs are reasonable, allocable, and necessary. The fixed fee itself is negotiated upfront, providing some cost certainty for that component, but the variable cost component requires diligent management.

Given the 'NOT AVAILABLE FOR COMPETITION' status, what justification did the Department of the Army provide for not seeking multiple bids?

The justification for a 'NOT AVAILABLE FOR COMPETITION' (sole-source) award typically falls under specific exceptions to full and open competition, such as when only one responsible source is available, or when the agency determines that it is in the public interest to award the contract on a sole-source basis. Common reasons include the existence of unique capabilities, proprietary data, or urgent and compelling needs where competition is not feasible. The specific justification for this contract would be detailed in a Justification and Approval (J&A) document, which is usually made public, although its accessibility can vary.

What is the historical spending trend for engineering services related to technical data package development within the Department of the Army?

Analyzing historical spending trends for 'technical data package development' specifically within the Department of the Army requires access to detailed procurement data beyond this single contract. General trends in federal spending on engineering services, particularly within the defense sector, have historically been significant due to the continuous need for modernization and system upgrades. However, pinpointing the exact historical expenditure on this niche service requires querying databases for specific keywords and contract types over several fiscal years. Without such granular data, it's difficult to establish a precise trend for this particular service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T21R0008

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR #100, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,395,498

Exercised Options: $9,209,344

Current Obligation: $9,209,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline