Transportation's FAA awarded $12.2M IT support contract to Trevor L Newman LLC, a sole-source award

Contract Overview

Contract Amount: $12,246,756 ($12.2M)

Contractor: Trevor L Newman LLC

Awarding Agency: Department of Transportation

Start Date: 2017-07-18

End Date: 2023-01-17

Contract Duration: 2,009 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF ACQUISITION&BUSINESS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $12.2 million to TREVOR L NEWMAN LLC for work described as: IGF::OT::IGF ACQUISITION&BUSINESS MANAGEMENT SUPPORT SERVICES Key points: 1. The contract's value of $12.2 million over its duration indicates a significant investment in IT support. 2. As a sole-source award, the lack of competition may have impacted price discovery and potentially led to higher costs. 3. The contract's duration of approximately 5.5 years suggests a need for sustained IT services. 4. The 'Custom Computer Programming Services' NAICS code points to specialized IT development and maintenance. 5. The 'Time and Materials' contract type can pose cost control challenges if not closely managed. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

The contract value of $12.2 million for custom computer programming services over nearly six years appears substantial. Without direct comparable contracts for similar services from the FAA or other agencies, it is difficult to benchmark the value definitively. The 'Time and Materials' pricing structure, while common, can lead to cost overruns if not meticulously monitored, raising questions about optimal value for money. The sole-source nature of the award further complicates a direct value assessment, as competitive bidding often drives down prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Trevor L Newman LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price negotiation against other market participants, potentially leading to a less favorable price for the government.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price for the services rendered. The absence of competition limits the government's leverage in securing cost savings.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by receiving custom computer programming services essential for its operations. These services likely support critical IT infrastructure, software development, and maintenance for the FAA's various programs. The geographic impact is primarily within New Jersey, where the contractor is located, but the services support national FAA functions. The contract supports specialized IT workforce roles, contributing to employment in the custom computer programming sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Time and Materials contract type carries inherent risks of cost escalation without strict oversight.
Lack of transparency in the procurement process due to sole-source nature.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Contract awarded to a specific vendor, suggesting a potentially established relationship or specialized capability.
Contract duration indicates a sustained need for the services provided.
Services fall under custom computer programming, a critical area for government IT modernization.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. Agencies like the FAA rely heavily on specialized IT support for maintaining and upgrading complex systems. The market for these services is competitive, with numerous firms offering development, integration, and maintenance. However, sole-source awards can occur for various reasons, including unique capabilities or urgent needs, but they represent a departure from the government's general preference for full and open competition to ensure best value.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there information indicating subcontracting requirements for small businesses. The sole-source nature of the award further suggests that opportunities for small business participation were likely not a primary consideration in this specific procurement. This could mean missed opportunities to leverage the innovation and agility of the small business IT sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. Given it's a Time and Materials contract, rigorous monitoring of labor hours and material costs is crucial to ensure accountability and prevent overspending. The Department of Transportation's Inspector General may also have jurisdiction for audits and investigations, particularly concerning potential fraud, waste, or abuse, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

Federal Aviation Administration IT Support Services
Custom Computer Programming Contracts
Department of Transportation IT Procurement
Sole Source IT Contracts
Time and Materials IT Contracts

Risk Flags

Sole Source Award
Time and Materials Contract Type
Potential for Cost Overruns
Lack of Competitive Bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.2 million to TREVOR L NEWMAN LLC. IGF::OT::IGF ACQUISITION&BUSINESS MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TREVOR L NEWMAN LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2017-07-18. End: 2023-01-17.

What is the track record of Trevor L Newman LLC in performing federal contracts, particularly for the FAA?

Information regarding Trevor L Newman LLC's specific track record with federal contracts, especially for the FAA, is not detailed in the provided data. As this was a sole-source award, it suggests the FAA may have had prior positive experience with the contractor or identified them as possessing unique capabilities. A deeper dive into the contractor's past performance databases (like the Contractor Performance Assessment Reporting System - CPARS) would be necessary to fully assess their reliability, quality of work, and adherence to schedule and budget on previous engagements. Without this, the assessment of their track record remains speculative based solely on the award itself.

How does the $12.2 million contract value compare to similar IT support contracts awarded by the FAA or other transportation agencies?

Benchmarking the $12.2 million contract value requires comparing it against similar IT support and custom computer programming services procured by the FAA or other Department of Transportation agencies. Given the contract duration of approximately 5.5 years (July 2017 - January 2023), the average annual value is roughly $2.2 million. This figure needs to be contextualized against the complexity and scope of the services provided. Without specific details on the deliverables, comparing it to other contracts is challenging. However, for specialized IT programming services, an annual spend in the low millions is not uncommon for large federal agencies with extensive IT needs, but the lack of competition makes a definitive value-for-money assessment difficult.

What are the primary risks associated with a sole-source, Time and Materials contract for custom computer programming?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to offer the most cost-effective solutions. The government misses out on the benefits of price discovery through bidding. Secondly, the Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation. Without stringent oversight and well-defined task orders, the contractor could incur significant labor hours or material costs, leading to expenditures exceeding initial expectations. This combination requires robust government oversight to manage effectively and mitigate financial risks.

How effective has the FAA been in managing Time and Materials contracts to ensure program effectiveness and cost control?

The effectiveness of the FAA in managing Time and Materials (T&M) contracts can vary significantly. T&M contracts are generally considered less desirable for the government than fixed-price contracts due to their inherent risk of cost overruns. However, they can be appropriate when the scope of work is not well-defined or is expected to change frequently. Effective management hinges on strong government oversight, including detailed tracking of labor hours, verification of material costs, and clear task order definitions. The FAA, like other large agencies, has established procedures for T&M contract management, but the success of these procedures depends on the diligence of the contracting officers and program managers involved in overseeing specific contracts like this one.

What has been the historical spending pattern for custom computer programming services by the FAA?

Analyzing the historical spending patterns for custom computer programming services by the FAA would require access to comprehensive federal procurement data over several fiscal years. This specific contract represents a $12.2 million expenditure over approximately 5.5 years. To understand the broader pattern, one would need to aggregate spending on NAICS code 541511 (Custom Computer Programming Services) and potentially related IT service codes awarded by the FAA. This would reveal trends in contract values, types of services procured, and the prevalence of competitive versus sole-source awards within this category, providing context for the significance of this particular contract.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: T L Newman Incorporated

Address: 309 SOUTH NEW YORK RD STE 31, GALLOWAY, NJ, 08205

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,643,899

Exercised Options: $12,246,756

Current Obligation: $12,246,756

Actual Outlays: $8,303,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA11A00237

IDV Type: BPA

Timeline