DOT awards $1.25M for continued systems engineering support, extending previous contract

Contract Overview

Contract Amount: $1,249,791 ($1.2M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-28

End Date: 2026-04-30

Contract Duration: 245 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SYSTEMS ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00149.

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $1.2 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: SYSTEMS ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00149. Key points: 1. Value for money assessed against similar engineering support contracts. 2. Competition dynamics indicate a full and open approach after source exclusion. 3. Risk indicators include contract type (Time and Materials) and duration. 4. Performance context relies on the continuation of services from a prior award. 5. Sector positioning within IT services, specifically computer-related support.

Value Assessment

Rating: fair

The contract value of $1.25 million for approximately 20 months of service appears reasonable for specialized systems engineering support. Benchmarking against similar IT support contracts within the federal government suggests that pricing for technical expertise can vary significantly. However, the Time and Materials (T&M) contract type introduces potential cost escalation risks if not closely managed. Without detailed labor category rates or a comparison to industry benchmarks for comparable services, a definitive value-for-money assessment is challenging. The continuation of services from a prior award provides some historical performance data, which should inform the assessment of efficiency and cost-effectiveness.

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 suggests that while the competition was intended to be broad, specific sources may have been initially excluded, possibly due to prior performance or specific requirements. The number of bidders is not specified, but the 'full and open' designation implies an effort to solicit a wide range of qualified offerors. The exclusion of sources, even if later broadened, could potentially limit the competitive landscape compared to a purely unrestricted full and open competition.

Taxpayer Impact: The 'full and open' competition, even with initial source exclusions, aims to leverage market forces to achieve competitive pricing for taxpayers. However, the specifics of the exclusion could impact the ultimate number of bids received and the resulting price.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring continuity of critical systems engineering support. Services delivered are essential for the maintenance and improvement of complex aviation systems. Geographic impact is primarily within New Jersey, where the contractor is located. Workforce implications include the potential for skilled IT and engineering professionals to be engaged in supporting federal aviation infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Potential for limited competition due to 'exclusion of sources' clause, impacting price discovery.
Continuation of services may mask inefficiencies if performance metrics from the prior contract are not rigorously reviewed.
Lack of specific performance metrics or outcomes in the provided data makes assessing effectiveness difficult.

Positive Signals

Continuation of services from a previous award suggests a level of established performance and familiarity.
Awarded under 'Full and Open Competition' framework, indicating an attempt to ensure broad market participation.
Contract supports critical FAA systems, implying a focus on essential government functions.
Contractor's established presence may lead to efficient service delivery due to prior experience.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically under 'Other Computer Related Services.' The federal IT services market is vast, with significant spending allocated to systems engineering, software development, and IT support. Comparable spending benchmarks for systems engineering support can vary widely based on the complexity of the systems, the required expertise, and the duration of the contract. The FAA's reliance on specialized IT support highlights the critical role of such services in maintaining national infrastructure.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from this particular award. The focus appears to be on securing specialized services through a broader competitive process, rather than targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officer and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Systems Engineering Support Services
IT Professional Services
Federal Aviation Administration Contracts
Department of Transportation IT Spending
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics in award data.
Need for rigorous oversight of labor hours and scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.2 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. SYSTEMS ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00149.

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 $1.2 million.

What is the period of performance?

Start: 2025-08-28. End: 2026-04-30.

What is the track record of Arctic Slope Technical Services, Inc. in performing similar federal contracts, particularly those involving systems engineering support for aviation agencies?

Arctic Slope Technical Services, Inc. (ASTS) has a history of performing various federal contracts, including IT services and engineering support. A review of their contract history would reveal their performance on similar engagements, especially with agencies like the FAA or other branches of the Department of Transportation. Key indicators to examine would include past performance evaluations, any contract disputes or terminations, and the successful completion of prior systems engineering projects. Understanding their experience with aviation-specific systems and regulatory requirements is crucial for assessing their capability to deliver effectively on this current contract. Data from contract databases can provide insights into the types and values of contracts they have previously held, as well as their performance ratings.

How does the awarded price of $1.25 million for approximately 20 months of systems engineering support compare to market rates for similar services, considering the specialized nature of FAA systems?

Benchmarking the $1.25 million award for approximately 20 months of systems engineering support against market rates requires a detailed analysis of labor categories, skill levels, and the specific technical domains involved. Given that this is for the FAA, specialized knowledge of aviation systems, air traffic control, or related infrastructure is likely required, which commands premium rates. A Time and Materials (T&M) contract makes direct price comparison difficult without knowing the billable hours and rates. However, if comparable T&M contracts for similar expertise within the federal government or commercial sector are available, they could serve as a benchmark. Factors like contractor overhead, profit margins, and the competitive landscape also influence pricing. Without access to detailed rate structures or a formal cost analysis performed by the agency, a precise market comparison is challenging, but the value appears reasonable for specialized, ongoing support.

What are the primary risks associated with the 'Time and Materials' contract type for this systems engineering support, and what mitigation strategies are likely in place?

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 and materials used, plus a fixed fee or percentage for profit. If the scope of work is not well-defined or if project timelines extend unexpectedly, costs can escalate beyond initial estimates. For systems engineering support, this could manifest as extended troubleshooting, unforeseen technical challenges, or scope creep. Mitigation strategies typically include robust contract oversight, detailed work breakdown structures, clear performance metrics, regular progress reviews, and potentially establishing ceiling prices or CLIN (Contract Line Item Number) limits. The FAA contracting officer would be responsible for closely monitoring labor hours, approving expenditures, and ensuring that the work performed directly aligns with the contract's objectives to control costs.

How does the 'Full and Open Competition After Exclusion of Sources' approach potentially impact the level of competition and the resulting price discovery for this contract?

The 'Full and Open Competition After Exclusion of Sources' approach is a nuanced method of procurement. It implies that the agency initially identified specific sources that were excluded, perhaps due to past performance issues, specific technical requirements only they met, or other pre-determined criteria. Subsequently, the competition was opened to all other responsible sources. This approach can impact competition by potentially narrowing the field from the outset compared to a purely unrestricted 'full and open' competition. If the excluded sources were significant players in the market, their absence could reduce the number of bidders. However, if the exclusion was justified and the remaining market is robust, it can still lead to effective price discovery. The ultimate impact depends on the number of qualified bidders that responded after the exclusion.

What are the historical spending patterns for systems engineering support services within the Federal Aviation Administration, and how does this $1.25 million award fit into that context?

The Federal Aviation Administration (FAA) consistently invests significant funds in systems engineering support to maintain and modernize its complex air traffic control systems, communication networks, and safety infrastructure. Historical spending patterns reveal a substantial and ongoing requirement for these specialized services. This $1.25 million award, described as a continuation of support from a previous contract valued at $692 million (likely over a longer period or multiple awards), fits within this context as part of a sustained effort. It suggests that the FAA relies on long-term partnerships for critical systems engineering functions. Analyzing past FAA contracts for similar services would provide a clearer picture of the typical award values, contract durations, and the types of contractors engaged, helping to contextualize this specific award within the agency's broader IT and engineering procurement strategy.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $1,477,204

Exercised Options: $1,249,791

Current Obligation: $1,249,791

Actual Outlays: $581,207

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