DOT's FAA awards $24.3M IT services contract to Arctic Slope Technical Services, Inc

Contract Overview

Contract Amount: $24,344,469 ($24.3M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-04-15

End Date: 2024-10-20

Contract Duration: 2,015 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TNT DTFACT-17-D-00004 APR 21ST 2019 THROUGH APRIL 20TH 2020 RMLS

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $24.3 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: TNT DTFACT-17-D-00004 APR 21ST 2019 THROUGH APRIL 20TH 2020 RMLS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract (over 5 years) indicates a long-term need for these IT services. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle. 6. The contractor, Arctic Slope Technical Services, Inc., has secured this significant award, indicating their capability in the IT services sector.

Value Assessment

Rating: fair

The contract's value of $24.3 million over approximately five years suggests a moderate annual spend for IT services. Benchmarking this against similar IT service contracts awarded by the FAA or other transportation agencies would be necessary for a comprehensive value assessment. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not carefully monitored for scope creep and efficient labor utilization. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment was intended. The specific details of 'after exclusion of sources' might indicate that certain pre-qualified vendors or specific types of contracts were considered, but the overall intent is broad competition. The number of bidders is not provided, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering price discovery and encouraging multiple vendors to offer competitive pricing, potentially leading to lower overall costs for the government.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by securing necessary IT support services. The services delivered are expected to be computer-related, likely supporting FAA's operational and administrative functions. The geographic impact is primarily within New Jersey, where the contractor is located, but the services may support national FAA operations. The contract supports the IT workforce, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost overruns if not rigorously managed and monitored for scope.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the contractor's performance potential.
The 'after exclusion of sources' clause in the competition type warrants further investigation to understand its implications on the breadth of competition.

Positive Signals

Awarded under full and open competition, indicating a potentially competitive pricing environment.
The contract has a significant duration (over 5 years), suggesting a stable and ongoing need for the services, which can lead to efficiencies.
The contractor, Arctic Slope Technical Services, Inc., has secured a substantial contract, implying a level of trust and capability recognized by the FAA.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, supporting nearly every agency's mission. This contract falls under computer-related services, a broad category encompassing software development, IT support, data management, and network administration. The federal government is a major consumer of IT services, with spending often driven by modernization efforts, cybersecurity needs, and the maintenance of legacy systems. Comparable spending benchmarks would typically look at the average cost of similar IT support contracts awarded by agencies like the FAA or the Department of Transportation, considering factors like contract duration, scope of work, and contractor size.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a small business set-aside. The focus of this award is on larger, potentially more established IT service providers capable of fulfilling the contract's requirements under full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. Accountability measures are usually embedded in the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to satisfactory performance. Transparency is facilitated through contract databases like FPDS, where basic award information is made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

FAA IT Support Services
Department of Transportation IT Contracts
General Services Administration (GSA) IT Schedule Contracts
Information Technology Professional Services and Electronic Solutions (IT-PSES)

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Creep Potential
Limited Competition Transparency (Exclusion of Sources)
Performance Monitoring Challenges (Lack of Specific Metrics)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.3 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. TNT DTFACT-17-D-00004 APR 21ST 2019 THROUGH APRIL 20TH 2020 RMLS

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2019-04-15. End: 2024-10-20.

What is the typical cost range for similar IT support contracts awarded by the FAA?

Determining the typical cost range for similar IT support contracts awarded by the FAA requires access to detailed historical contract data, including scope of work, duration, and specific services rendered. However, contracts for IT support services can vary widely. For instance, contracts focusing on help desk support might range from a few million dollars annually, while those involving complex system integration, cybersecurity, or software development could easily reach tens or hundreds of millions over their lifecycle. The $24.3 million value over five years for this specific contract ($4.86 million annually on average) places it in the mid-range for significant IT support engagements. Benchmarking against contracts with similar NAICS codes (like 541519) and contract types (Time and Materials) awarded by the FAA or other large federal agencies would provide a more precise comparison. Factors such as the number of end-users supported, the criticality of the systems maintained, and the required skill sets of the personnel directly influence the cost.

How does the Time and Materials (T&M) contract type compare to other contract types in terms of cost efficiency for IT services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for overhead and profit. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For IT services where requirements can evolve, T&M can be suitable, but it necessitates stringent oversight, detailed tracking of hours and materials, and clear definitions of labor categories to prevent abuse and ensure fair pricing. Fixed-price contracts, conversely, offer greater cost certainty but are less adaptable to changing requirements. Hybrid approaches or cost-plus contracts are other alternatives. For routine or well-defined IT tasks, fixed-price is often more cost-efficient; for research, development, or evolving support needs, T&M might be chosen despite its inherent cost risks.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' contract award type?

The 'Full and Open Competition After Exclusion of Sources' award type is a specific procurement method that can introduce nuances and potential risks. While it aims for broad competition, the 'exclusion of sources' implies that certain potential offerors were deliberately excluded from the bidding process, often based on pre-existing contract vehicles, specific qualifications, or other criteria defined by the agency. The primary risk is that this exclusion might inadvertently limit the pool of highly competitive vendors, potentially leading to less aggressive pricing or fewer innovative solutions than a truly unrestricted full and open competition. Understanding the rationale behind the exclusion is crucial. If the exclusion was based on valid reasons, such as ensuring specific technical capabilities or leveraging existing contract efficiencies, the risk might be mitigated. However, if the exclusion was overly restrictive or poorly justified, it could reduce overall competition and potentially increase costs for taxpayers.

What is Arctic Slope Technical Services, Inc.'s track record with federal IT contracts?

Arctic Slope Technical Services, Inc. (ASTS) has a history of securing federal contracts, particularly within the IT and technical services domain. A review of publicly available contract databases (like FPDS) reveals that ASTS has been awarded numerous contracts across various federal agencies, including the Department of Defense, Department of Homeland Security, and others. Their awards often span IT support, telecommunications, engineering, and professional services. The size and scope of these contracts suggest a demonstrated capability to manage complex projects and deliver on government requirements. The current $24.3 million FAA contract is a significant award, indicating continued success and trust from federal clients. Further analysis would involve examining past performance evaluations, any reported contract disputes or terminations, and the specific types of IT services they have successfully provided to gauge their overall track record.

How does the $24.3 million contract value compare to the FAA's overall IT spending?

The Federal Aviation Administration (FAA) manages a substantial IT budget to support its complex air traffic control systems, infrastructure, and administrative operations. While the exact annual IT spending figures fluctuate, the FAA consistently ranks among the top federal agencies for IT investment, often in the billions of dollars annually. The $24.3 million awarded to Arctic Slope Technical Services, Inc. represents a portion of this larger IT expenditure. Specifically, it appears to be a delivery order under a larger IDIQ contract, meaning its value is part of a broader procurement ceiling. On an annual basis, this contract averages approximately $4.86 million, which is a significant but not dominant share of the FAA's overall IT budget. It likely supports a specific set of IT services or projects within the agency, contributing to the broader technological infrastructure required for aviation safety and efficiency.

What are the potential performance risks for the FAA given the Time and Materials (T&M) nature of this contract?

The primary performance risk for the FAA with this Time and Materials (T&M) contract lies in cost control and scope management. T&M contracts reimburse the contractor for direct labor hours at specified rates and the cost of materials. Without robust oversight, there's a risk of 'scope creep,' where tasks expand beyond the original intent, leading to increased labor hours and material costs without a corresponding increase in the contract's defined value or deliverables. Ensuring that the contractor accurately records hours, that the labor rates are fair market value, and that all materials are necessary and appropriately priced is critical. The FAA must have strong CORs and project managers in place to monitor progress, validate invoices, and ensure that the work performed directly aligns with the agency's needs and objectives. Failure to manage these aspects effectively can result in budget overruns and potentially suboptimal service delivery.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, 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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,344,469

Exercised Options: $24,344,469

Current Obligation: $24,344,469

Actual Outlays: $22,800,044

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $5,215,616

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT17D00004

IDV Type: IDC

Timeline