Army Training System Contract Awarded to ASM Research for $48.9M, Lacking Competition

Contract Overview

Contract Amount: $48,867,584 ($48.9M)

Contractor: ASM Research, LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-13

End Date: 2023-02-12

Contract Duration: 729 days

Daily Burn Rate: $67.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ARMY TRAINING REQUIREMENTS AND RESOURCE SYSTEM (ATRRS) CONTRACT IN SUPPORT OF HEADQUARTERS, DEPARTMENT OF ARMY.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to ASM RESEARCH, LLC for work described as: ARMY TRAINING REQUIREMENTS AND RESOURCE SYSTEM (ATRRS) CONTRACT IN SUPPORT OF HEADQUARTERS, DEPARTMENT OF ARMY. Key points: 1. Significant contract value of $48.9M for essential Army training systems. 2. Sole-source award to ASM Research, LLC, raises questions about competition. 3. Potential risk associated with a single vendor for critical IT services. 4. IT services sector, specifically computer-related services, is the focus.

Value Assessment

Rating: questionable

The contract value of $48.9M for IT services appears substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts to determine if it represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition could lead to inflated prices, meaning taxpayer funds may not be utilized as efficiently as possible.

Public Impact

Ensures continued operation of a critical system for Army training. Potential for higher costs due to lack of competitive bidding. Impacts the IT services market by awarding a large contract without competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation noted

Positive Signals

Supports critical Army training functions
Definitive contract structure

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. The value is significant for this category, especially given the sole-source nature.

Small Business Impact

The data indicates that this contract was not awarded to a small business, and there is no specific mention of small business subcontracting goals. This represents a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future requirements are competed to maximize value.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to ASM RESEARCH, LLC. ARMY TRAINING REQUIREMENTS AND RESOURCE SYSTEM (ATRRS) CONTRACT IN SUPPORT OF HEADQUARTERS, DEPARTMENT OF ARMY.

Who is the contractor on this award?

The obligated recipient is ASM RESEARCH, 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 $48.9 million.

What is the period of performance?

Start: 2021-02-13. End: 2023-02-12.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details, it's difficult to assess the validity of this decision. A thorough review would be needed to confirm if competitive options were truly unavailable or if the justification was sound.

What is the risk of vendor lock-in and potential cost escalation with this sole-source contract?

Sole-source contracts inherently carry a higher risk of vendor lock-in, as the government becomes dependent on a single provider. This can lead to cost escalation over time, as the vendor may face less pressure to offer competitive pricing. Regular price reviews and market research are crucial to mitigate this risk.

How does this contract ensure the effectiveness and modernization of Army training systems?

While the contract ensures the continued operation of the ATRRS, its effectiveness in driving modernization is questionable without competitive pressure. The fixed-price nature provides some cost control, but innovation and adaptation may be limited compared to a competitively bid contract that could solicit proposals for improved solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 4050 LEGATO RD STE 1100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $48,867,584

Exercised Options: $48,867,584

Current Obligation: $48,867,584

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $7,516,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline