DoD's $23.1M Training Development Contract with Advanced Mission Systems LLC Raises Value Concerns
Contract Overview
Contract Amount: $23,125,343 ($23.1M)
Contractor: Advanced Mission Systems LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-24
End Date: 2017-06-15
Contract Duration: 1,725 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEVELOPMENT OF TRAINING
Place of Performance
Location: BUCHANAN, BOTETOURT County, VIRGINIA, 24066
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to ADVANCED MISSION SYSTEMS LLC for work described as: DEVELOPMENT OF TRAINING Key points: 1. The contract awarded to Advanced Mission Systems LLC for training development represents a significant investment. 2. Competition details are limited, but the contract type suggests potential for cost overruns. 3. The lack of small business participation is a notable risk factor. 4. The sector is R&D, specifically focused on physical and engineering sciences.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a duration of 1725 days and a high number of modifications (999), suggests potential for cost escalation beyond initial estimates. Benchmarking is difficult without more granular data on deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the high number of modifications and the contract's duration may indicate a less competitive environment than initially stated. The pricing discovery process could be impacted by the cost-plus nature.
Taxpayer Impact: Taxpayer funds are being utilized for this development. The potential for cost overruns due to contract structure and modifications warrants scrutiny to ensure value for money.
Public Impact
Significant federal investment in specialized training development. Potential for taxpayer funds to be used inefficiently if costs escalate. Limited visibility into the specific training outcomes and their effectiveness. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High number of modifications (999)
- Cost-plus-fixed-fee contract type
- No small business participation
- Long contract duration (1725 days)
Positive Signals
- Contract awarded under full and open competition
- Focus on critical defense training development
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure efficient allocation of resources.
Small Business Impact
The contract data indicates no participation from small businesses. This is a missed opportunity to leverage the innovation and agility of smaller firms and could impact broader economic goals related to small business development.
Oversight & Accountability
The high number of modifications (999) suggests a need for robust oversight to ensure that changes are justified and do not lead to uncontrolled cost increases. Accountability for the contract's performance and cost management is critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High number of contract modifications
- Cost-plus contract type with long duration
- No small business participation
- Potential for cost overruns
- Limited transparency on specific training outcomes
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to ADVANCED MISSION SYSTEMS LLC. DEVELOPMENT OF TRAINING
Who is the contractor on this award?
The obligated recipient is ADVANCED MISSION SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2012-09-24. End: 2017-06-15.
What specific training capabilities were developed, and how do they align with current and future defense needs?
The contract focused on 'DEVELOPMENT OF TRAINING' under NAICS code 541712. Without specific deliverable details, it's challenging to assess the precise capabilities developed. However, given the DoD context and R&D focus, it likely pertains to advanced technical or operational training systems. Further analysis would require access to contract line item details and performance reports to confirm alignment with evolving defense requirements.
What is the justification for the high number of contract modifications, and did they significantly increase the overall cost?
The 999 modifications on a $23.1M contract are a significant red flag. Such a high volume often indicates poor initial planning, scope creep, or unforeseen technical challenges. Each modification likely involved negotiation and potential cost adjustments, contributing to the contract's final price and potentially exceeding initial budget expectations. A detailed review of modification justifications is essential.
How effectively was the fixed fee component managed under the cost-plus structure to ensure optimal value for the taxpayer?
The Cost Plus Fixed Fee (CPFF) structure aims to provide an incentive for the contractor to control costs while ensuring a profit. However, with 999 modifications over 1725 days, the effectiveness of this fee structure is questionable. It's crucial to determine if the fixed fee remained appropriate throughout the contract's life or if it was adjusted, and whether the contractor demonstrated sufficient cost control measures despite the numerous changes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 3120 WHITEHALL PARK DR, CHARLOTTE, NC, 28273
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,189,421
Exercised Options: $23,125,343
Current Obligation: $23,125,343
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-24
Current End Date: 2017-06-15
Potential End Date: 2017-06-15 00:00:00
Last Modified: 2021-12-09
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