DOT's FAA awards $20.5M IT services contract to Arctic Slope Technical Services, Inc

Contract Overview

Contract Amount: $20,539,598 ($20.5M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-04-12

End Date: 2024-10-20

Contract Duration: 2,018 days

Daily Burn Rate: $10.2K/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 APRIL 21ST 2019 THROUGH APRIL 20TH 2020 FBO/SFDPS/IESP

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $20.5 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: TNT DTFACT-17-D-00004 APRIL 21ST 2019 THROUGH APRIL 20TH 2020 FBO/SFDPS/IESP 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, spanning over five years, indicates a long-term need for these services. 4. The award amount of $20.5M over the period suggests a significant investment in IT services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded as a Delivery Order under a larger contract vehicle. 7. The contractor, Arctic Slope Technical Services, Inc., is a significant player in this service category.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure presents a potential risk for cost overruns, as it directly reimburses labor hours and material costs without a fixed ceiling. While the total award is $20.5M, the actual expenditure will depend on the hours worked and materials used. Benchmarking T&M contracts is challenging without specific task orders and labor rates, but the overall value appears to be within a reasonable range for IT services of this scope and duration, given the competitive award process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while initial solicitations might have had some exclusions, the final award was made after a broad competition. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better pricing and value for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation from multiple vendors.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by securing essential IT services to support its operations. The contract delivers a range of computer-related services, crucial for maintaining and upgrading the FAA's technological infrastructure. The geographic impact is primarily within New Jersey, where the contractor is based, but the services likely support national FAA operations. The contract supports a workforce skilled in IT services, contributing to the broader technology sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Lack of specific details on the number of bidders limits a full assessment of competition intensity.
The broad NAICS code (541519) may encompass a wide array of services, making precise performance evaluation difficult without task-specific details.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
The contractor, Arctic Slope Technical Services, Inc., is likely experienced in providing these types of services.
The contract duration suggests a stable, long-term need and commitment from the agency.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and specific technologies involved, but contracts in the tens of millions of dollars are common for agencies like the FAA.

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 for small businesses stemming from a small business set-aside. The primary contractor, Arctic Slope Technical Services, Inc., is likely a larger entity, and its role in subcontracting to small businesses would depend on its own procurement practices and the specific requirements of the delivery orders issued under this contract.

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. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency is facilitated through contract databases like FPDS, though detailed task order specifics may be less public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Professional Services
IT Support Services
Computer Systems Design Services
Information Technology Services

Risk Flags

Cost Overrun Risk (T&M Contract)
Potential for Scope Creep
Contractor Performance Monitoring Intensity Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.5 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. TNT DTFACT-17-D-00004 APRIL 21ST 2019 THROUGH APRIL 20TH 2020 FBO/SFDPS/IESP

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 $20.5 million.

What is the period of performance?

Start: 2019-04-12. End: 2024-10-20.

What is the track record of Arctic Slope Technical Services, Inc. in performing similar IT services for the federal government?

Arctic Slope Technical Services, Inc. (ASTS) has a history of federal contracting, primarily within IT and technical services. While specific performance metrics for this particular contract (TNT DTFACT-17-D-00004) are not detailed in the provided data, ASTS has secured other contracts with various federal agencies. A deeper analysis would involve reviewing past performance evaluations (e.g., CPARS reports) for this contractor on similar IT service contracts to assess their reliability, quality of work, and adherence to schedules and budgets. Their presence in the federal contracting space suggests they possess the necessary certifications and experience to compete for and execute such agreements.

How does the awarded amount of $20.5M compare to similar IT services contracts awarded by the FAA or other transportation agencies?

The $20.5M award for IT services over a period potentially extending to October 2024 (approximately 5.5 years from the start date) averages around $3.7M per year. This figure appears to be within a reasonable range for IT support and related services for a large federal agency like the FAA. Many IT service contracts for agencies of this size can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity, scope, and duration. Benchmarking requires comparing specific service types, labor categories, and contract vehicles, but the overall value does not immediately suggest an outlier compared to typical federal IT spending.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours expended and the cost of materials used, plus a fixed fee or labor rate. Unlike fixed-price contracts, there is no pre-determined ceiling on the total cost unless a contract ceiling is explicitly stated and enforced. This necessitates robust oversight from the government to ensure that hours are reasonable, labor categories are appropriate, and materials are necessary and cost-effective. Without diligent management, T&M contracts can become significantly more expensive than initially anticipated.

What is the expected effectiveness of these IT services in supporting the FAA's mission?

The effectiveness of these IT services hinges on the specific tasks performed under the contract and the FAA's ability to manage the T&M structure. Assuming the services provided align with the FAA's critical IT needs—such as maintaining air traffic control systems, data management, cybersecurity, or administrative IT support—they are essential for the agency's operational effectiveness. The FAA's mission relies heavily on robust and secure IT infrastructure. The success of this contract will be measured by the reliability, performance, and security of the IT systems and services delivered by Arctic Slope Technical Services, Inc., and the FAA's oversight in managing the scope and cost.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this contract fit?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a steady increase over the past five years, reflecting the government's ongoing reliance on IT modernization and specialized computer services. This category is broad and encompasses a wide range of services beyond standard IT support, including system integration, data analytics, and specialized software development. The $20.5M award to Arctic Slope Technical Services, Inc. represents a significant, but not extraordinary, portion of this spending for a single contract. It aligns with the trend of agencies procuring specialized IT expertise to meet evolving technological demands and security requirements.

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: $20,539,598

Exercised Options: $20,539,598

Current Obligation: $20,539,598

Actual Outlays: $18,994,693

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,488,048

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