Transportation contract with Quecon, Inc. for system requirements valued at over $21.2 million

Contract Overview

Contract Amount: $21,200,630 ($21.2M)

Contractor: Quecon, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-04-26

End Date: 2024-10-30

Contract Duration: 2,014 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SYSTEM REQUIREMENTS

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $21.2 million to QUECON, INC. for work described as: SYSTEM REQUIREMENTS Key points: 1. The contract's value of over $21.2 million represents a significant investment in system requirements. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. The contract duration spans from 2019 to 2024, indicating a long-term need for the services. 4. The primary contractor, Quecon, Inc., is responsible for delivering these critical system requirements. 5. The services are being procured by the Federal Aviation Administration, a key agency within the Department of Transportation. 6. The contract type is 'Time and Materials,' which can introduce cost variability if not closely managed.

Value Assessment

Rating: fair

Benchmarking the value of this $21.2 million contract is challenging without specific performance metrics or comparable service costs. The 'Time and Materials' pricing structure, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. Further analysis would require understanding the specific system requirements and the market rates for such specialized services. The duration of the contract suggests a substantial and ongoing need, but the value-for-money assessment is contingent on the successful delivery and effectiveness of the system requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical qualifications or prior relationships. The exact number of bidders is not specified, but the exclusion of sources suggests a narrower field than a truly unrestricted full and open competition. This could impact price discovery, potentially leading to higher prices than if a broader range of competitors had been involved.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. The exclusion of sources warrants scrutiny to ensure it was justified and did not unduly restrict competition.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving services crucial for its operational systems. The contract supports the development and maintenance of essential system requirements for aviation operations. The geographic impact is likely concentrated within the operational areas of the FAA, primarily in New Jersey where the contractor is located. The contract supports specialized IT services, potentially impacting the workforce in the IT and systems engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type poses a risk of cost overruns if not meticulously monitored.
The 'exclusion of sources' in the competition method raises questions about the breadth of market engagement and potential price impacts.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the delivered system requirements.
The long contract duration (2019-2024) requires ongoing vigilance to ensure continued relevance and cost-efficiency.

Positive Signals

The contract was awarded to Quecon, Inc., indicating a selected vendor capable of meeting specific requirements.
The Federal Aviation Administration's engagement suggests the system requirements are critical for national aviation infrastructure.
The contract duration implies a stable, long-term need being addressed, providing continuity for essential services.

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically under 'Other Computer Related Services' (NAICS 541519). The IT services market is vast and competitive, with significant government spending allocated to system development, maintenance, and support. Comparable spending benchmarks would depend heavily on the specific nature of the 'system requirements' and the complexity involved. Government spending in this area often focuses on modernization, cybersecurity, and operational efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus is on the large prime contract awarded to Quecon, Inc.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance clauses. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the Department of Transportation's operations.

Related Government Programs

FAA IT Modernization Programs
Department of Transportation IT Infrastructure Support
Air Traffic Control System Enhancements
Aviation Systems Engineering Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may have impacted final price.
Lack of detailed performance metrics hinders value assessment.
Scope creep risk inherent in T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.2 million to QUECON, INC.. SYSTEM REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is QUECON, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2019-04-26. End: 2024-10-30.

What specific 'system requirements' are being addressed by this contract, and how do they align with the FAA's strategic objectives?

The provided data does not detail the specific 'system requirements' covered by this $21.2 million contract. However, given the contractor is Quecon, Inc. and the agency is the Federal Aviation Administration (FAA), it is highly probable these requirements relate to aviation systems, potentially including air traffic management, flight data processing, communication systems, or safety-related software. These would align with the FAA's strategic objectives of ensuring aviation safety, efficiency, and modernization of the National Airspace System (NAS). Without a detailed statement of work, a precise alignment cannot be confirmed, but the substantial value suggests a critical function.

How does the 'Time and Materials' pricing structure compare to industry standards for similar IT services, and what are the associated risks?

Time and Materials (T&M) contracts are common in IT services, especially when the scope of work is not fully defined or is expected to evolve. They allow flexibility but shift cost risk to the government. Industry standards vary widely based on skill sets and project complexity. For highly specialized IT roles, T&M rates can be competitive, but they lack the cost certainty of fixed-price contracts. The primary risk is cost overrun if labor hours are not diligently managed, or if the project scope expands significantly without adequate controls. Effective oversight, detailed timesheet review, and clear task definitions are crucial to mitigate these risks.

What was the rationale behind 'excluding sources' during the full and open competition, and did this limit potential cost savings for taxpayers?

The rationale for 'excluding sources' in a 'full and open competition after exclusion of sources' typically involves pre-qualification criteria based on specific technical capabilities, past performance, security clearances, or unique expertise required for the contract. The FAA likely determined that only a subset of potential bidders possessed the necessary qualifications to fulfill these particular system requirements. While this method aims for qualified bidders, it inherently narrows the competitive pool compared to unrestricted competition. This limitation could potentially reduce price competition, meaning taxpayers might not have benefited from the absolute lowest price achievable if a broader range of vendors had been allowed to bid.

What is Quecon, Inc.'s track record with the federal government, particularly with the FAA, for contracts of similar size and scope?

Information on Quecon, Inc.'s specific track record with the federal government, and particularly the FAA, for contracts of this $21.2 million value and 'system requirements' scope is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contract awards, and any history of disputes or issues. Without this external data, it's impossible to definitively assess their suitability or past success in delivering comparable services. Their current award suggests they met the FAA's criteria at the time of selection.

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

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally shown a consistent upward trend over the past five years, driven by agencies' needs for IT modernization, cybersecurity, cloud migration, and specialized software development. This $21.2 million contract with Quecon, Inc. represents a significant single award within this category. Its value places it in the mid-to-large tier for individual IT service contracts. It contributes to the overall spending volume in this sector, reflecting the ongoing demand for diverse IT support services across government agencies like the FAA.

Are there any known risks or performance concerns associated with Quecon, Inc. or similar 'Time and Materials' contracts for aviation IT systems?

Specific performance concerns related to Quecon, Inc. are not detailed in the provided data. However, 'Time and Materials' (T&M) contracts, in general, carry inherent risks, primarily related to cost control. If not managed rigorously, T&M can lead to budget overruns. For aviation IT systems, which are often safety-critical, performance risks also include potential delays, integration issues, or failure to meet stringent regulatory requirements. The FAA typically has robust oversight mechanisms for such critical systems, but the T&M structure necessitates heightened vigilance from the government's contracting and technical teams to ensure both cost-effectiveness and reliable performance.

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

Address: 134 PEYTON ST, FRONT ROYAL, VA, 22630

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,121,866

Exercised Options: $21,200,630

Current Obligation: $21,200,630

Actual Outlays: $19,998,949

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT17D00005

IDV Type: IDC

Timeline