Navy Initiates Recompete for Software Engineering Contract with American Systems
The Navy is preparing to recompete its Mission Systems Software Engineering contract, currently held by American Systems Corp. The new contract will adopt a cost-plus structure over firm-fixed pricing due to variability in requirements.
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The Naval Air Warfare Center plans to recompete the Mission Systems Software Engineering Department contract, currently held by American Systems Corp., which has a ceiling of $165.4 million. The Navy will utilize cost-plus task orders instead of firm-fixed price models, citing broad variability in requirements.
The new contract will span five years with no options, despite requests for a two-year extension. Since its award in 2021, American Systems has received approximately $75 million in task order volume. The existing contract expires August 2026, impacting ongoing activities such as mission analysis and training. This shift to a cost-plus model may increase budget flexibility but also carries risks associated with cost overruns.
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